NAICS 423310 Quarterly Industry Report
Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 423310Sector: Wholesale Trade (42)Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 423310 draws on data from the U.S. Census Bureau[5] economic profiles, Bureau of Labor Statistics[6] employment surveys, and SBA size standard publications[7]. Our research team tracks lumber commodity pricing, housing start volumes, and building material distribution trends to provide valuation context for lumber wholesale operations. Updated quarterly, each data point is sourced to its originating federal or institutional database.
Industry Snapshot
Key metrics for the lumber, plywood, millwork, and wood panel merchant wholesalers industry.
Industry Definition & Overview
Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers (NAICS 423310) encompasses establishments primarily engaged in the merchant wholesale distribution of lumber, plywood, reconstituted wood fiber products, wood fencing, doors and windows and their frames of all materials, wood roofing and siding, and other wood or metal millwork. These distributors purchase products from sawmills, panel manufacturers, and millwork producers, then resell them to building material dealers, contractors, and industrial buyers.
The lumber wholesale channel is closely tied to residential and commercial construction activity. Distributors maintain yard and warehouse inventories of dimensional lumber, engineered wood products, hardwood and softwood plywood, oriented strand board, and finished millwork. According to the U.S. Census Bureau[5], this classification covers both wood products and doors and windows of all materials, including vinyl, aluminum, and fiberglass. Lumber commodity pricing is highly volatile, driven by housing starts, tariff policies on Canadian softwood imports, and sawmill production capacity.
Distributors in this industry range from large national reload and distribution operations to regional lumberyards serving local contractor markets. Many firms provide value-added services like custom millwork cutting, pre-hung door assembly, and window unit configuration. Relationships with builders and framing contractors drive recurring order volumes, and delivery logistics are a critical competitive factor for firms serving active construction job sites across their service territory.
What's Included in This Industry
- Dimensional lumber wholesale distribution
- Plywood and oriented strand board wholesale operations
- Millwork and molding wholesale distribution
- Door and window wholesale operations (all materials)
- Engineered wood product wholesale distribution
- Wood fencing wholesale operations
- Reconstituted wood fiber panel wholesaling
- Wood roofing and siding wholesale distribution
- Hardwood lumber wholesale operations
- Metal millwork and door frame wholesale distribution
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Wholesale Trade | 42 |
| Subsector | Merchant Wholesalers, Durable Goods | 423 |
| Industry Group | Lumber and Other Construction Materials Merchant Wholesalers | 4233 |
| NAICS Industry | Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers | 42331 |
| National Industry | Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers | 423310 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 423320 | Brick, Stone, and Related Construction Material Merchant Wholesalers | Brick, stone, and related construction material merchant wholesalers distribute masonry products rather than wood-based building materials through parallel channels |
| 423330 | Roofing, Siding, and Insulation Material Merchant Wholesalers | Roofing, siding, and insulation material merchant wholesalers distribute nonwood exterior products that complement the wood roofing and siding covered here |
| 423390 | Other Construction Material Merchant Wholesalers | Other construction material merchant wholesalers distribute additional building products like glass, concrete, and hardware not covered by the lumber classification |
| 444110 | Home Centers | Home centers operate retail lumber and building material departments that purchase wholesale inventory from distributors in this classification |
| 321911 | Wood Window and Door Manufacturing | Wood window and door manufacturing produces the window and door units that flow through wholesale distribution to dealers and contractor supply operations |
| 321912 | Cut Stock, Resawing Lumber, and Planing | Cut stock, resawing lumber, and planing mills produce milled lumber products distributed through wholesale channels to construction and industrial buyers |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 10.2% | 711 |
| 2 | Texas | 8.4% | 590 |
| 3 | Florida | 7.7% | 535 |
| 4 | New York | 5.0% | 347 |
| 5 | North Carolina | 4.6% | 324 |
| 6 | Georgia | 3.8% | 263 |
| 7 | Washington | 3.7% | 257 |
| 8 | Pennsylvania | 3.5% | 246 |
| 9 | Ohio | 3.1% | 214 |
| 10 | Oregon | 3.0% | 213 |
% Of Establishments
0%
10%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
400
Total SBA Loans
$337.3M
Total Loan Volume
$843K
Average Loan Size
11 yrs
Average Loan Term
10.06%
Average Interest Rate
3,224
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[7] classifies Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers under NAICS 423310 with a size standard of 200 employees. Many regional lumber distributors and building material wholesalers operate below this ceiling. Qualifying firms can access SBA lending programs[8] for yard expansion, inventory financing, delivery fleet investments, and working capital to manage the cash flow demands of volatile lumber commodity pricing. Eligible businesses can access SBA 7(a) loans[9] for working capital, equipment, and acquisition financing, while 504 loans[10] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | TD Bank, National Association | 32 | $53.3M | $1.7M |
| 2 | Pathward National Association | 16 | $40.0M | $2.5M |
| 3 | GBC International Bank | 8 | $38.8M | $4.8M |
| 4 | Newtek Bank, National Association | 16 | $27.6M | $1.7M |
| 5 | Midwest BankCentre | 8 | $26.2M | $3.3M |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 423310?
NAICS 423310 covers merchant wholesalers distributing lumber, plywood, engineered wood panels, millwork, molding, doors, windows, wood fencing, and wood roofing and siding. These include national reload distributors, regional lumberyards, millwork specialists, and door and window distribution companies. Per the U.S. Census Bureau[5], the classification covers doors and windows of all materials, not just wood.
How is NAICS 423310 organized within the classification hierarchy?
This code belongs to Industry Group 4233 (Lumber and Other Construction Materials Merchant Wholesalers), Subsector 423 (Merchant Wholesalers, Durable Goods), and Sector 42 (Wholesale Trade). It shares Industry Group 4233 with 423320 (brick and stone), 423330 (roofing and siding), and 423390 (other construction materials).
What is the SBA size standard for NAICS 423310?
The SBA[7] sets the size standard at 200 employees for this industry. Businesses with fewer than 200 employees qualify as small businesses for federal contracting preferences and SBA-backed loan programs.
Which NAICS codes are most closely related to 423310?
Sibling codes 423320 (brick and stone), 423330 (nonwood roofing and siding), and 423390 (other construction materials) distribute other building products. Home centers (444110) are major retail customers. Per Census Bureau NAICS references[11], the key distinction is that 423310 covers wood products plus doors and windows of all materials.
What industries interact most with lumber wholesalers?
Residential builders (236118) and commercial contractors (236220) are the largest customer segments. Wood panel manufacturers (321219) and sawmills (321912) supply inventory. Per Bureau of Labor Statistics[6] industry data, employment in lumber wholesale distribution tracks closely with housing construction cycles.
What specific activities are included in NAICS 423310?
Activities include purchasing and distributing dimensional lumber, plywood, OSB panels, hardwood, millwork, molding, doors, windows, wood fencing, and wood siding. Many distributors provide value-added services like custom cutting, pre-hung door assembly, and window unit configuration. Per Census Bureau definitions[5], the merchant wholesale function of taking title to building materials defines this classification.
Can lumber wholesalers access SBA loans?
Yes. Lumber wholesalers with fewer than 200 employees qualify for SBA loan programs[8] including 7(a) loans for inventory financing and working capital, 504 loans for yard and warehouse facilities, and microloans for equipment purchases. Inventory financing is especially important given the volatility of lumber commodity prices.
Where are lumber merchant wholesalers concentrated in the United States?
Lumber wholesale operations concentrate near major construction markets and timber-producing regions. The Pacific Northwest, Southeast, and Northeast support significant distribution activity due to proximity to sawmills and active construction markets. States with high housing construction volumes like Texas, Florida, California, North Carolina, and Georgia host numerous lumber wholesale and distribution operations serving local builder demand.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA size standard publications sba.gov
- [8]SBA lending programs sba.gov
- [9]SBA 7(a) loans sba.gov
- [10]504 loans sba.gov
- [11]Census Bureau NAICS references census.gov
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