A growing market appetite from the DIYers and home renovators segment has contributed to disrupting the demand-supply equilibrium. To understand the overall situation, we need to be aware of the global supply chain, limits on labor, rising raw material costs, limited supply of said materials, unprecedented congestion at the ports; all under the umbrella of inflation.
Let us begin by understanding the role of housing, that impacted the primary channels of Plywood :
All these primary channels reacted differently to economic shutdowns due to Covid-19.
The following image shows an increase in the number of DIYers over the past year.
Core Reason : Massive Shutdown in production but an unexpected recovery of residential construction.
Who suffered the most : OEMs and Distributors
This following graph depicts an incessant rise in single-unit housing. This is also an opportunity for the industry players.
The projection says 10+% YoY growth for domestic decorative hardwood plywood in 2021, with moderate and slight growth in 2022 and 2023, respectively.
(Source : https://www.columbiaforestproducts.com/2021/03/01/role-housing-hardwood-plywood-forecasting/)
The following table compares the total volume of hardwood and softwood plywood imports decline from China with the total row volume change percentage.
2021-22 to show strong double-digit growth in single-unit housing units, driven by very low inventories, low borrowing rates, an exodus from large urban areas to suburban communities, and several other variables.
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