Businesses categorized as lumberyards typically include operations which specialize in wood sales, however larger warehouse hardware stores which retail other goods can also be included in this category. The bulk of revenues are obtained from customers engaged as professionals in home construction, contract work or other areas of building. Occasionally, lumber sales are made to individuals engaged in “do it yourself” projects.

Lumber dealers typically purchase their inventory from lumber wholesalers in the Pacific Northwest or Southeast regions of the United States. This business can be very cyclical, for many reasons. Access to materials from logging companies can be halted due to environmental reasons. Futures contracts for lumber can be purchased to hedge the risk of rising costs. Demand for lumber products is affected by construction cycles.

Wood-specific retailers numbered approximately 9,200 as of the recent census. As is the case with many industries, massive consolidation and the dominance of few firms has squeezed out many small operators. Leaders include Home Depot, Lowe’s and Menard Inc, which are credited for expansive franchising and advanced inventory systems. Total industry sales during 2002 were approximately $78 billion, or an average of $8.5 million in sales each.