There is a growing trend of turning wood waste into a profit center. This is sparked by the amount of waste the industry generates and applying entrepreneurial ingenuity to a business and environmental issue.
According to the EPA, in a 2018 report, large volumes of wood waste are generated each year in the United States that require disposal, reuse, or other end-of-life management. Dovetail Partners estimated that more than 64 million metric tons of wood waste was generated in 2010 with 28 million metric tons recovered, 27 million metric tons still available for recovery, and 10 million metric tons non-recoverable. In a growing trend, smart lumber yard owners are turning wood waste into a profit center.
How Big is the Wood Waste Industy?
Wood waste is being sold to those making finger-jointed studs and wood pellets. This creates income where that was previously categorized as waste. This industry was reported at $54 billion in 2022 with an anticipated compounded annual growth rate of 4.7%.
How Can Current Lumber Yard Owners Cash In?
Manufacturers of finger-jointed studs are seeing gross margins of 40-55%. Instead of opening another lumber yard, why not acquire in an adjacent industry? Acquiring a company that specializes in using what your lumber yard would normally consider scrap is a smart way to accelerate your company’s growth.
Investment Opportunity
Accelerated Manufacturing Brokers, Inc. has exclusively listed this family-owned, southern US-based Southern Yellow Pine Lumber Manufacturing Company specializing in finger-jointed studs and wood pellets. This husband-and-wife team started their business 15 years ago, working solely on finger-jointed studs. As true entrepreneurs, they constantly sought ways to improve their bottom line.
Late in 2018, they looked at the amount of waste the business generated and decided to sell it for other uses. This required investment in equipment to process the waste into pellets. The addition of wood pellets was a game changer and altered their profitability. The pellets are sold through distributors for multiple uses, including animal bedding, and are sold as far away as Japan. All business is through lumber distributors and is repeat in nature, with no Company promotion.
Check Out These Highlights:
- Family-Owned Business
- Gross Margin – 40-55% During Last Three Years
- Specializing in Southern Yellow Pine Finger-Jointed Studs
- Also Selling Wood Pellets, No Waste
- Profitable Company with No Debt (other than building mortgage)
- Well Established with Lumber Traders & Builders
- Solid Industry Reputation
- Tenured Staff
- Recent Equipment Investment
- No Company Promotion – Low-Hanging Fruit for Increased Sales
To learn more about this incredible opportunity, you can request an NDA HERE.
With the return of the NDA, we can provide the complete pitch book.