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IN DEPTH: Lumber and Structural Panels

That is leading to builders switching to products like enhanced subflooring that doesn’t require edge sanding, sidewall sheathing that doesn’t need housewrap, and roof sheathing that doesn’t need felt under the shingles, he notes. “Builders are willing to pay more upfront to reduce some of the process and allow them to frame quicker.”

Radiant-barrier sheathing also is growing in popularity due to its benefits in keeping the attic cooler, a significant factor in the south, Dedmon notes. “It’s definitely growing in use there, and we’re seeing its use extend further north all the time.”

Demand also is increasing for larger sizes of OSB, says Jeff Key, senior manager of marketing communications at Georgia-Pacific. “There has been more demand for 9-foot and 10-foot OSB lengths, due to the higher ceilings being put into homes more often. Longer length panels typically result in fewer seams, which aids in preventing air infiltration. We’re keeping an eye on that trend especially as the longer lengths become more popular. We’re also seeing different roof sheathing thicknesses, depending on the region or roofing materials used.”

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[glossary]OSB[/glossary] sales have faltered in recent months, according to statistics from Forest Economic Advisors LLC. Demand dropped slightly, from 18.417 billion square feet in 2012 to 18.369 billion square feet in 2014. “A big culprit in that decline was residential improvements, which the data we use from Census shows a 15% drop in 2014,” says Greg Lewis, vice president for wood panels with FEA. “We have trouble reconciling that with what we’ve heard from producers and some other data we’ve seen. Nevertheless, that’s the main reason for the drop off.”

Manufacturers don’t anticipate that trend will continue. “As housing starts rise, OSB demand will grow, as more of it goes into houses,” Roseburg’s Killgore says. “We expect the rise in that share will go to OSB, and it will continue to grow.”
[google_chart id=6602 /]

Codes Cause Changes

Builders are making changes to meet code demands more energy efficient. Not all builders have yet resolved how they’ll meet those prescriptive needs. “We’re keeping a close eye on which products are preferred as builders adapt to changes in the building codes,” Georgia-Pacific’s Key says. “Many builders are focused on making homes tighter and more energy efficient, and we want to understand how that will affect the lumber and structural panels they are using. Their goal is to prevent air leakage to aid energy efficiency, and there are many ways they can achieve that.”

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