Page 6 - RosboroAR2020

year above the 1994-2008 pre-recession average
at 6.7% while the U-6 unemployment rate, which attempts to classify those who are also under employed, is at 11.7%, also above the pre-recession average. Employment rates will once again be a focal point for those looking to project the health of the US economy.
Equally important to market demand from increased housing starts has been Rosboro’s
continuous market penetration gains in the EWP (Engineered Wood Product) market. These
tremendous gains in market share are the result of our highly
focused pull-through marketing strategy, where
we evangelize Rosboro’s strong value proposition
to our direct customers as well as the builders, dealers, contractors and architects that speci cally in uence the use of Rosboro products. This effort
is supported by a suite of recently introduced non- stock products targeted speci cally at competing EWP, as well as our immediately successful move into the custom side of the glulam business through the acquisition and recapitalization of Western Structures.
Glulam sales volume paced ahead of plan in Q1, then fell rapidly at the onset of COVID-19. The same was true in the markets for stud and dimension lumber. However, unlike the lumber markets, the growth
in the repair & remodel upsurge did little to
spur demand for glulam. It was
not until single family
housing starts began picking up steam that Glulam orders returned in earnest. The second half of
the year saw us exceed expected sales volume as housing starts grew, most notably on the single- family side of the business, and we leveraged our previous share gains in the EWP markets.
Rosboro’s lumber products compete in the broader framing lumber market and represent less than
1% of the total market. This business is a vitally strategic partner to the glulam business (allowing for the most ef cient use of the natural sort of logs in the region and also allowing for the complete integration of lam stock production for our glulam facilities) and has been a consistently pro table segment for Rosboro even during down markets.
The fact that we are a small player in the lumber market gives us a signi cant advantage; we can remain nimble and provide added
value. We are able to produce differentiated products by
switching production targets quickly while leveraging
6 — ROSBORO ANNUAL REPORT 2020