The use of plywood can be traced back to ancient times, with archaeologists uncovering early examples in Egypt and China. In the United States, the first formal patent for plywood was granted in 1865 to John K. Mayo[1]. However, plywood did not gain widespread popularity in the US until the early to mid-1900s. This was partially attributed to the invention of formaldehyde-based resins and, later, during the post-war era, when the American economy was rapidly expanding [2].
According to the USDA’s 2016 report, U.S. Timber Production, Trade, Consumption, and Price Statistics,1965-2013, soft plywood production in the United States was historically concentrated in Oregon, California, and Washington [3]. For many years, the U.S. was a leading producer and exporter of plywood. The USDA’s 2015 report, The Global Position of the U.S. Forest Products Industry, notes that production peaked in the 1980s. By the late 1990s, however, production began to decline steadily due to rising competition from Asia. The surge in imports and the drop in domestic output during the late 1980s and early 2000s were largely driven by decades of economic growth in Asian countries. During the 1980s and 1990s, Indonesia was among the world’s largest exporters of plywood, but it was eventually surpassed by China in the early 2000s, after nearly two decades of being a net importer [4].
China – The global power player of the plywood market
Several factors help explain the shift in global market domination. The U.S. International Trade Commission’s investigation into competition in the wood flooring and hardwood plywood industries identified low production costs as a key driver of China’s competitive advantage. Reduced labor costs, made possible by China’s abundant workforce, allowed producers to employ workers at lower wages and thereby cut overall production expenses. In addition, veneer cores sourced from domestic log plantations further lowered material costs per unit [5].
Another major contributor to the rapid growth of Chinese plywood production was government support programs introduced in the early 2000s. Because of limited natural forest resources and restrictions on tree logging, China faced challenges in sustaining production. To address this, the government invested heavily in “fast-growth, high-yield” plantations between 2001 and 2015[6]. This initiative increased the use of domestic raw materials and reduced reliance on imported logs.
Further support came in the form of tax reductions, loan interest subsidies, and specially allocated funds, as detailed in a 2007 report by the Trade Lawyers Advisory Group LLC. These financial mechanisms accelerated China’s plywood production and strengthened its market dominance. However, other members of the WTO criticized these policies for disrupting international trade flows, ultimately creating tension in the global market [7].
How tariffs may change the future of wood material production
In the past year, a series of tariffs have been imposed across multiple industries to curb imports and strengthen the national economy. Current government policy has emphasized economic growth and the reassertion of influence in international trade.
One of the latest proclamations, the Lumber and Timber 232 Annex, was announced in September 2025 under Section 232 of the Trade Expansion Act of 1962. Beginning October 14, imports of softwood timber are subject to a 10% ad valorem duty, while wooden furniture and kitchen cabinets face tariffs of up to 25% [8].
According to the proclamation, these adjustments were deemed necessary to counter the threat posed by rising imports of wood products to the domestic industry and the broader economy. Over the past decades, global imports of wood products have surged, contributing to job losses and weakened U.S. manufacturing. The newly imposed duties are expected to create a ripple effect, ultimately increasing demand for domestically produced wooden materials.
ECOR has long prioritized local production, establishing our current facility in Serbia to serve the demand of the European market. Well before recent tariffs and duties were introduced, ECOR had already planned to expand into the US. In February, ECOR’s proposal to build its first US-based manufacturing facility in Texas was approved [9]. This project is designed to serve the North American market by providing sustainable, locally manufactured products, while also generating new jobs and strengthening local communities.
Sources:
[1] https://www.apawood.org/apas-history
[2] https://www.britannica.com/technology/plywood
[3] https://research.fs.usda.gov/treesearch/50895
[4] https://www.srs.fs.usda.gov/pubs/gtr/gtr_srs204.pdf
[5] https://www.usitc.gov/publications/332/pub4032.pdf
[6] https://www.cifor-icraf.org/publications/pdf_files/research/governance/MathewBrady_AF&PA_Beijing_June04.pdf
[7] https://www.uscc.gov/sites/default/files/Research/TLAG%20Report%20-%20China%27s%20Support%20Program%20for%20Wood%20and%20Wood%20Products.pdf
[8] https://www.whitehouse.gov/presidential-actions/2025/09/adjusting-imports-of-timber-lumber-and-their-derivative-products-into-the-united-states/
