MARKETS FOR HARDWOOD LAMINATED-VENEER-LUMBER.

Ever-increasing hardwood lumber costs and the continuing consumer preference for 'solid wood' furniture construction has led to the use of a broad range of lumber substitutes. A substitute material with the potential for increased use is hardwood laminated-veneer-lumber (LVL). Reduced labor costs and yields of 85 to 95 percent are possible for furniture dimension parts produced from hardwood LVL. The Rough-Mill Improvement Program (11) was used to estimate the cost of dimension parts produced from red oak lumber, based on lumber prices as of the first quarter of 1982. These costs were applied to the yield of parts possible from 49- by 97-inch LVL panels. The 'panel value' obtained was approximately 1,000 per thousand board feet. Average and marginal costs to furniture manufacturers adding longer parts to a cutting bill were estimated. A review of the markets for furniture materials indicates that sofa frames, shelving, bookcases, bed, rails, and other applications that require parts at least 46 inches in length provide the most likely market niches for LVL manufacturers.