Softwood lumber substitution in the US residential construction industry in 1994

Material substitution in the residential construction industry is driven by a variety of factors including product availability, product performance, price, price stability, and in-place costs. As competition between softwood lumber and substitute products increases, managers need to understand end-users' changing perceptions of softwood lumber and the competitive position of softwood lumber vis a vis substitute products. This exploratory study was developed to assess the competitive relationship between softwood lumber and substitute products in structural end-use applications in the U.S. residential construction industry. In particular, the study was designed to identify those product attributes that are perceived by residential contractors to be important in influencing the substitution process. Over 90 percent of the respondents indicated that they had used at least one substitute product for softwood lumber in a structural end-use application. Despite this, respondents indicated that their use of structural softwood lumber is changing only moderately The analysis of the data indicates that product strength and straightness were rated the most important factors, while price and price stability were also rated highly. A principal components factor analysis of the 12 product attributes identified 3 underlying factors that influence the material substitution process: the physical characteristics of the product, the technical characteristics of the product, and economic/supply characteristics of the product. Interested persons may contact the authors for a copy of the survey questionnaire.