Do you want to start a plywood production company? If YES, here is a detailed sample plywood manufacturing business plan template & FREE feasibility report.

Starting a plywood manufacturing company can be considered to be capital intensive but it’s indeed highly profitable. This company requires proper preparation and planning; you need to acquire training and it could be obtaining a degree in Woodworks and Crafts et al.

Below is a sample plywood manufacturing company business plan template that will help you write yours with little or no stress.

A Sample Plywood Manufacturing Business Plan Template

Industry Overview

Plywood manufacturing business is part of the wood paneling manufacturing industry in the United States of America and companies in this industry manufacture veneer, plywood, engineered wood or reconstituted wood products. Please note that the industry does not include companies that engage in sawmilling or wood preservation, nor does it include companies that primarily produce dimensions stock.

The Wood Paneling Manufacturing industry has struggled over the past five years, as downstream demand for wood-paneling products declined. The industry has also contended increasingly with cut-price imports, which have put pressure on sales prices and led to reduced sales volumes of domestic manufacturers.

Over the five years through to December 2010, production volumes are expected to fall. IBISWorld estimates industry revenue will contract at an average annual rate of 7.8 percent over this period.

Statistics has it that in the United States of America alone, there are about 2,729 registered and licensed plywood/wood paneling manufacturing companies responsible for employing about 86,368 and the industry rakes in a whooping sum of $28 billion annually.

The industry was projected to grow at 4.3 percent annual growth within 2014 and 2019. It is important to state that Weyerhaeuser has the lion market share of the available market in the industry.

A recent report published by IBISWORLD shows that the Wood Paneling Manufacturing industry is expected to contract over the next five years, driven by capacity reductions and industry exits among operators in the wake of declining demand and profitability.

Employment has also fallen in recent years as a result of lower production requirements and facility closures and consolidation. Although industry operators have focused on improving labor productivity to maintain the profitability of their operations, wages paid by the industry have risen.

Some of the factors that encourage entrepreneurs to start their own plywood manufacturing company could be that the business is profitable business especially when it is properly located and they know how to reach out to their target market.

Even though the business is not a green business, the truth is that the business will continue to remain relevant as long as products manufactured by plywood companies are still in use in our world.

Executive Summary

Alex Morgan® Plywood Manufacturing Company is a registered plywood manufacturing company that will be located in Grand Forks – North Dakota. We have been able to secure all the needed state and federal licenses and permits that will enable us operate the business in Grand Forks – North Dakota.

Alex Morgan® Plywood Manufacturing Company will be involved in the manufacturing of wooden plywood, bamboo plywood, veneer, engineered wood and reconstituted wood products et al. Alex Morgan® Plywood Manufacturing Company will ensure that all our customers are given first class treatment whenever they contact us or patronize our products.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they may grow to. We will ensure that we get our customers involved when making some business decisions that directly affect them.

Alex Morgan® Plywood Manufacturing Company will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products.

Alex Morgan® Plywood Manufacturing Company is owned by Alex Morgan and his immediate family members. Alex Morgan has a B.Sc. in Woodworks and he has several related certifications with over 15 years’ experience in the Wood Paneling Manufacturing industry, working for some of the leading brands in the United States.

Our Product Offering

Alex Morgan® Plywood Manufacturing Company is in the industry to service a wide range of clients. Our product offerings are listed below;

  • Wooden plywood manufacturing
  • Bamboo plywood manufacturing
  • Veneer manufacturing
  • Reconstituted wood products manufacturing (including sheets and boards)
  • Plastic-faced plywood manufacturing
  • Oriented strand board (OSB) manufacturing
  • Medium-density fiberboard (MDF) manufacturing
  • Laminated structural wood members manufacturing
  • Fabricated structural wood members manufacturing
  • Particleboard manufacturing
  • Roof trusses manufacturing
  • Producing wood chips in the factory

Our Mission and Vision Statement

  • Alex Morgan® Plywood Manufacturing Company’s vision is to grow our plywood manufacturing business all over the United States and be the brand for quality plywood products.
  • Our mission is to establish a world – class plywood manufacturing company that will supply to clients all across the United States of America via supply.

Our Business Structure

At Alex Morgan® Plywood Manufacturing Company, our business structure will be designed in such a way that it can accommodate both full and part-time employees; those who just want to take some time off to generate additional income.

Adequate provision and competitive packages have been prepared for all our full-time employees. As a means of maximizing operational cost, we will contract the maintenance of all our wood plying machines and trucks to a service provider, we don’t intend to maintain a very large overhead from the onset.

But as soon as the business grows and stabilizes, we will assemble our own professional maintenance team. Below is the business structure and the roles that will be available at Alex Morgan® Plywood Manufacturing Company;

  • Chief Operating Officer (Owner)
  • Admin and HR Manager
  • Factory Manager
  • Business Developer
  • Accountant
  • Wood Plying/Processing Machine Operators
  • Professional Truck Drivers
  • Client Service Executive / Front Desk Officer

Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
  • Accountable for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Reports to the board

Factory Manager:

  • Responsible for managing the daily activities in the plywood manufacturing factory
  • Ensures that proper records of plywood and other related products are kept and warehouse does not run out of finished products
  • Ensure that the factory is in tip top shape and easy to locate
  • Interfaces with third – party suppliers (vendors) of raw materials
  • Control plywood distribution and supply inventory
  • Supervise the workforce in the plywood manufacturing factory.

Admin and HR Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office activities.

Sales and Marketing Manager

  • Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Models demographic information and analyze the volumes of transactional data generated by customer purchases
  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company

Accountant

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managers with financial analyses, development budgets, and accounting reports
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Accountable for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Wood Plying and Processing Machine Operators

  • Responsible for wooden plywood manufacturing
  • Responsible for bamboo plywood manufacturing
  • Responsible for veneer manufacturing
  • Reconstituted wood products manufacturing (including sheets and boards)
  • Responsible for plastic-faced plywood manufacturing
  • Responsible for oriented strand board (OSB) manufacturing
  • Responsible for medium-density fiberboard (MDF) manufacturing
  • Responsible for laminated structural wood members manufacturing
  • Responsible for fabricated structural wood members manufacturing
  • Particleboard manufacturing
  • Responsible for roof trusses manufacturing
  • Responsible for producing wood chips in the factory

Truck Drivers

  • Responsible for transporting plywood and other related products
  • Assists in loading and unloading plywood and other related products
  • Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
  • Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment, such as hazardous material placards.
  • Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
  • Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures

Client Service Executive

  • Welcomes/receive clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with parents and students on the phone, uses every opportunity to build clients’ interest in the organizations’ products and services
  • Manages administrative duties assigned by the HR and Admin Manager or Transport & Logistic Manager in an effective and timely manner
  • Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
  • Receives parcels/documents for Alex Morgan® Plywood Manufacturing Company and distribute mails in the organization

SWOT Analysis

Our aim of starting Alex Morgan® Plywood Manufacturing Company is to test run the business for a period of 2 to 4 years to know if we will invest more money and expand the business all around in the United States of America. We know that there are several plywood manufacturing companies scattered all over the United States of America, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Alex Morgan® Plywood Manufacturing Company hired the services of an expert HR and Business Analyst with bias in startups to help us conduct a thorough SWOT analysis and to help us create a business model that will help us achieve our business goals and objectives.

Below is the summary of the SWOT analysis that was conducted for Alex Morgan® Plywood Manufacturing Company;

  • Strength:

Part of our strength is the power of our team; our workforce. We have a team that can produce top-notch plywood and similar products; a team that are trained and equipped to pay attention to details and to deliver excellent jobs. We are well positioned and we have standard and reliable wood plying and processing machines and delivery trucks. We know we will attract loads of clients from the first day we open our door for business.

  • Weakness:

Our weakness could be lack of finance, high debt burden, cost structure, lack of scale compared to our peers who have already gained ground in the Wood Paneling Manufacturing industry and has the capacity to supply plywood and similar products to any part of the United States of America.

  • Opportunities:

The level of residential construction in the United States heavily influences demand for industry products. Housing stats measures the number of new, privately owned housing units started in a given year, including both single- and multi-unit developments. The number of housing stats is expected to increase in the coming year, presenting a potential opportunity to the industry.

  • Threat:

Activity within the residential construction sector largely determines demand for the Wood Paneling Manufacturing industry. This industry supplies plywood, veneer and other engineered wood products required for constructing homes and furniture; therefore, when demand from the residential construction sector increases, it positively affects the industry. The value of residential construction is expected to fall in the coming year, posing a potential threat to the industry.

MARKET ANALYSIS

  • Market Trends

The market trends as it involves the Wood Paneling Manufacturing industry especially in the United States of America and Canada is indeed dynamic and at the same time highly competitive and challenging.

But one thing is certain, once a plywood manufacturing company can gain credibility, it will be much easier for the company to secure permanent deals/contracts with big time construction companies, furniture manufacturers and wooden product production companies who are always carrying out construction works on a regular basis.

If you are a closer observer of the trends in the Wood Paneling Manufacturing industry, you will notice that the revenue generated by players in the industry has registered a sharp increase over the last half a decade. This is supported by the increase in demand from downstream construction industries.

So also, improvement in the performance from the industry matched with the rapid expansion in demand for plywood and related wooden products in the booming housing market and nonresidential building market in the United States. Going forward, industry revenue is expected to continue growing, albeit at a slower pace.

Our Target Market

Our target market are basically construction companies, woodworking companies and any other company that makes use of plywood and related wooden products. We cover both short distance (inter state) and long distance (intra state).

We are in business to harvest, process and supply timber within the United States. In other words, our target market is the whole of the United States of America and below is a list of the people and organizations that we have plans to do business with;

  • Construction companies
  • Woodworking companies
  • Wooden paneling and partitioning companies
  • Furniture manufactures
  • Carpenters
  • Cottage companies that make use of plywood

Our Competitive Advantage

Our major competitive advantage is the vast industry experience and solid reputation of the chief executive officer of the company and our management team. We were able to highlight some factors that will give us competitive advantage in the marketplace.

Some of the factors are trust, honesty, good network and excellent relationship management, well – qualified and experienced management team, top – notch products, robust fleet operations, direct access to forests and construction sites in the United States of America, our size advantages, cost advantages, supply chain, customer loyalty and strong reputation amongst domestic industry players.

Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we can comfortably work with both individual clients (contractors) and big construction companies.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups plywood manufacturing companies in the United States) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives.

SALES AND MARKETING STRATEGY

We are aware that networking is an effective way to begin building your client base as a business man or woman and we have plans to leverage on all our networks. In view of that, we will look out for gatherings where we can network with captain of industries, construction contractors, wooden products manufacturing companies, woodworking companies and furniture manufacturing companies et al.

As a matter of fact, our first port of call will be to connect with the nearest Chamber of Commerce; we are likely going to get our first major deal from them. At Alex Morgan® Plywood Manufacturing Company all our employees will be directly or indirectly involved in sales and marketing of our services.

We will create provision for our employees to earn commission when they bring in business for the organization. We will also encourage freelancers to work with us; whenever they refer clients to us they will earn a percentage of the deal as agreed by both parties.

Lastly, we will leverage on the power of the media by advertising our services using both online and offline platforms. We will work hard to ensure that get repeated business from any business deal we execute. Part of our strategy is to reward loyal customers and to leverage on word of mouth marketing from satisfied customers.

In summary, Alex Morgan® Plywood Manufacturing Company will adopt the following sales and marketing strategies in sourcing for clients for our business;

  • Introduce our business by sending introductory letters alongside our brochure to corporate organizations, businesses in the construction industry, wooden products manufacturers, furniture manufacturers, woodworking companies and related industries in Grand Forks – North Dakota
  • Print handbills about our plywood manufacturing company and its locations and drop them in public facilities.
  • Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get our message across
  • Creating a basic website for our business, so as to give our business an online presence
  • Directly market our business.
  • Join local plywood manufacturing company associations and chambers of commerce for industry trends and tips
  • Provide discount days for our customers
  • Advertise our business in community – based newspapers, local TV and radio stations
  • List our business on yellow pages’ ads (local directories)
  • Encourage the use of word of mouth marketing (referrals)

Sources of Income

Alex Morgan® Plywood Manufacturing Company will ensure that we leverage on our strength and the opportunities available to us in the U.S. market to generate enough income that will help us drive the business to stability. We will go all the way to explore every available source of income in the Wood Paneling Manufacturing industry.

Below are the sources we intend exploring to generate income for Alex Morgan® Plywood Manufacturing Company;

  • Wooden plywood manufacturing
  • Bamboo plywood manufacturing
  • Veneer manufacturing
  • Reconstituted wood products manufacturing (including sheets and boards)
  • Plastic-faced plywood manufacturing
  • Oriented strand board (OSB) manufacturing
  • Medium-density fiberboard (MDF) manufacturing
  • Laminated structural wood members manufacturing
  • Fabricated structural wood members manufacturing
  • Particleboard manufacturing
  • Roof trusses manufacturing
  • Producing wood chips in the factor

Sales Forecast

One thing is certain, there would always be construction companies, woodworking companies and other related businesses who would need plywood and related wooden products from time to time.

We are well positioned to take on the available market in the United States of America and Canada and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our business and our clientele base.

We have been able to examine the timber harvesting cum Wood Paneling Manufacturing industry market in the United States of America, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

Below are the sales projections for Alex Morgan® Plywood Manufacturing Company, it is based on the location of our company and of course other related services that we will be offering;

  • First Fiscal Year (FY1): $350,000
  • Second Fiscal Year (FY2): $650,000
  • Third Fiscal Year (FY3): $1.2 million

N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown within the period stated above. So also, there won’t be any major competitor (plywood manufacturing company) producing same products as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Our Pricing Strategy

Alex Morgan® Plywood Manufacturing Company have perfected our plans to charge competitive rates since we have minimal overhead compared to our competition in the industry.

We will ensure that we leverage on price to win over customers; our prices will be affordable and negotiable. The fact that our business door is open to both individuals and corporation organizations means that we will have different price range for different category of clients.

We are aware that government contracts come with a bidding template, we will ensure that we abide by such bidding templates whenever we have the opportunity to bid for government contracts. As the business grows, we will continue to review our pricing system to accommodate a wide range of clientele.

  • Payment Options

The payment policy adopted by Alex Morgan® Plywood Manufacturing Company is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Alex Morgan® Plywood Manufacturing Company will make available to her clients;

  • Payment via bank transfer
  • Payment via credit cards
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for plywood and related wooden products purchased without any stress on their part.

Publicity and Advertising Strategy

Despite the fact that our company will be well located, we will still go ahead to intensify publicity for the business.

Alex Morgan® Plywood Manufacturing Company has a long – term plan of supplying our plywood and related wooden products in the United States which is why we will deliberately build our brand to be well accepted in Grand Forks – North Dakota before venturing out to other cities both in the United States of America.

Here are the platforms we intend leveraging on to promote and advertise Alex Morgan® Plywood Manufacturing Company;

  • Place adverts on both print (community – based newspapers and magazines) and electronic media platforms
  • Sponsor relevant community programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, et al to promote our brand
  • Install our Bill Boards on strategic locations all around Grand Forks – North Dakota
  • Distribute our fliers and handbills in target areas
  • Position our Flexi Banners at strategic positions in the location where our plywood manufacturing factory are located.
  • Ensure that all our workers wear our branded shirts and all our trucks are well branded with our company’s logo et al.

Financial Projections and Costing

When it comes to starting a plywood manufacturing company, the major areas that you should look towards spending the bulk of your cash is in the purchase of standard wood plying and processing machines and trucks and of course renting or leasing a well-located facility large enough to accommodate your plant.

Aside from that, you are not expected to spend much except for paying of your employees, maintaining your trucks and fueling. These are the key areas where we will spend our startup capital;

  • The total fee for incorporating the Business in the United States of America – $750.
  • The budget for liability insurance, permits and license – $2,500
  • The amount needed to acquire a suitable office facility with enough parking space for our trucks in Grand Forks – North Dakota for 6 months (Re – Construction of the facility inclusive) – $40,000.
  • The amount required to finance the purchase of the first set of trucks and wood plying and processing machines – $200,000
  • The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
  • The cost of accounting software, CRM software and Payroll Software – $3,000
  • Other start-up expenses including stationery – $1000
  • Phone and Utilities (gas, sewer, water and electric) deposits – ($3,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
  • The cost of launching our official website – $600
  • The amount needed to pay staff for the first 2 months – $20,000
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500

Going by the report from the market research and feasibility studies conducted, we will need about three hundred and fifty thousand (350,000) U.S. dollars to successfully set up a medium scale but standard plywood manufacturing company in the United States of America.

Generating Funds/Startup Capital for Alex Morgan® Plywood Manufacturing Company

Alex Morgan® Plywood Manufacturing Company will be owned and managed by Alex Morgan and his immediate family members. They decided to restrict the sourcing of the startup capital for the private school to just three major sources.

  • Generate part of the startup capital from personal savings and sale of his stocks
  • Generate part of the startup capital from friends and other extended family members
  • Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

BUSINESS GROWTH: Sustainability and Expansion Strategy

The future of any business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business closes shop.

One of our major goals of starting Alex Morgan® Plywood Manufacturing Company is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to sell our plywood and related wooden products a little bit below the average market price for a period of time.

Alex Morgan® Plywood Manufacturing Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Acquiring of trucks and relevant machines and equipment: In progress
  • Leasing of Factory Facility/Yard large enough in Grand Forks – North Dakota: Completed
  • Conducting Feasibility Studies: Completed
  • Startup Capital Generation: Completed
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Promotional Materials: Completed
  • Recruitment of employees and drivers: In Progress
  • Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with key players in the construction industry, woodworking companies, furniture making industry and wooden products manufacturing industry: In Progress
Solomon. O'Chucks