China Most Significant Hardwood Importer

Washington, DC, Sept. 16, 2008-- The U.S. wood flooring and hardwood plywood industries have faced increasing competition from imports in recent years, particularly from China, which has become its most significant competitor, reports the U.S. International Trade Commission (ITC) in its study Wood Flooring and Hardwood Plywood: Competitive Conditions Affecting the U.S. Industries.

While the value of U.S. production, consumption, and trade of wood flooring and hardwood plywood increased significantly from 2002-2007, the value of U.S. imports of these products doubled during the same period, and the imports' share of the U.S. markets rose from about one-third to one-half, according to the report.

The ITC, an independent, nonpartisan, factfinding federal agency, completed the report at the request of the U.S. Senate Committee on Finance. The ITC analyzed the U.S. wood flooring and hardwood plywood industries, providing an overview of the U.S. markets, a description of the U.S. industries and those of principal supplier countries, and an examination of trade patterns and the factors affecting the competitive position of U.S. producers. Highlights of the report follow.

* U.S. wood flooring consumption grew rapidly over the period studied, driven by strong demand from residential construction and remodeling and rising consumer preference for wood flooring relative to other types of flooring.

* U.S. imports increased faster than U.S. production as shifting preferences for prefinished flooring, exotic species, and engineered wood flooring benefitted imports more than domestic production.

* Combined global trade of wood flooring and hardwood plywood increased by 80 percent with the United States and the top foreign suppliers (Brazil, Canada, China, Indonesia, Malaysia, and Russia) accounting for more than three-fourths of global exports.

* The declining U.S. dollar had uneven effects on the currencies of the major foreign suppliers to the U.S. market, with Malaysia and China having a definite advantage over other countries.

* Illegal logging contributed to increased production and consumption of these products. Major exporters have implemented measures designed to conserve and/or retain forest resources for their domestic producers, and major markets (e.g., the United States, the European Union, and Japan) have either implemented or are developing policies to address illegal logging.