Economic and technical analysis of CLT production facilities: an application to small and emerging markets

The CLT market is quickly growing and developing in different regions of the world. However, the production and consumption are highly concentrated in Central Europe (Austria, Germany, Italy, and Switzerland). Due to the elevated levels of personalization required for the construction projects, the CLT manufacturing process involves costly and specialized equipment that represents an entry barrier for domestic producers in markets where the demand is small and incipient. This work discusses a production model and supply chain integration for the development of the CLT industry in emerging environments where the product and its properties are not well-known. Furthermore, a comprehensive economic analysis is performed for three small capacity mills designed according to SMEs capabilities. Findings suggest that CLT manufacturing with low-capacity plants (less than 10,000 m³/yr) is profitable but high levels of integration are required. The most influential variables in the economic results are the lumber cost and production volume; therefore, special attention must be paid to the efficiency of the process. Despite the small size of the studied plants promoted by the proposed production and plant design model, the sale price is attractive and competitive.