Hardwood lumber industry in the Appalachian region: Focus on exports

Abstract

Exports can provide income, employment, and risk diversification. However, the decision to enter the export market requires commitment of sufficient managerial, economic and financial resources. A survey of 214 hardwood lumber mills across 10 states in the Appalachian region was conducted to assess motivation and differences between hardwood lumber exporters and non-exporters. The study examined marketing strategies, business practices, manufacturing equipment used, and exporting process. Business size was the most important criterion to determine the likelihood of export. Hardwood lumber exporters invested more money in equipment, manufactured larger amounts of higher quality lumber, and utilized more species that capture greater value in the marketplace. The findings of this study will help the Appalachian forest industry and government agencies to identify strategies that lead to export opportunities for hardwood lumber. Key words: lumber, lumber industry, lumber export, hardwood lumber, Appalachian region