Production Cost Factors in Cross-Laminated Timber Manufacturing: A Comparative Study between North America and Europe

Abstract

Cross-laminated timber (CLT) has emerged as one of the fastest-growing engineered wood products for sustainable and low-carbon construction. Although previous studies have identified lumber as the largest production cost in CLT manufacturing, relatively little attention has been given to how lumber characteristics and upstream supply chain organization influence manufacturing efficiency. This study compares production cost factors in North American and European CLT manufacturing to examine how differences in lumber preparation, manufacturing practices, and industrial organization affect production systems. The analysis draws on interviews with eight CLT producers (four in North America and four in Europe), field visits to three CLT manufacturing facilities and two sawmills, and a review of academic literature and industry reports.The findings indicate that production efficiency depends not only on lumber price but also on lumber readiness, defined as the extent to which lumber is prepared for CLT manufacturing before entering the production line. European producers generally received lumber requiring less downstream preparation, whereas North American producers more frequently processed commodity dimensional lumber through additional drying, planing, and machining prior to panel production. These differences increased processing requirements, material handling, and opportunities for material loss. The study also found that many of the observed differences originated upstream in sawmill operations and supply chain organization rather than in CLT manufacturing technology itself. The study identifies lumber readiness as an important factor influencing production efficiency beyond raw material cost alone and demonstrates how industrial development pathways have shaped contemporary CLT manufacturing systems in Europe and North America. The findings suggest that greater coordination between sawmills and engineered wood manufacturers, together with the development of CLT-specific lumber products and increased product standardization, may improve manufacturing efficiency as the North American mass timber industry continues to mature. By linking lumber preparation, supply chain organization, and industrial development to production costs, this study contributes to a broader understanding of factors influencing the competitiveness of CLT manufacturing.