Imagine just how amazing it is to know that each and every drop of Burney Falls is spring water. Enjoy the change of the seasons. Have a great week, folks!
Good point Dave. Likely because it doesn’t fit the narrative of some of the people on this blog. If you put something together on the $23 billion Weyco/Plum Creek REIT-fest merger it I’ll happily post it here as a featured post. Just email it to me privately. Thanks.
Thanks for the pointer, Steve. Its thesis, for those who want to cut to the chase, is that the merger is like “two brothers splashing around in one bathtub…of a house with nearly 1,000 bathrooms.”
Lumber is one of the most diversified commodity manufacturing industries in the U.S. The top 20 firms account for only 61% of total production. Compare to autos where the top 10 account for over 80% of the market. Wood products manufacturing has never been threatened by monopoly power. On the other hand, collusion and other anti-trust misbehavior have been a chronic issue.
It may also come as a surprise to some that although #1 lumber producer Weyerhaeuser is publicly traded, most lumber manufacturers are privately-held companies. #2 Georgia-Pacific (private, owned by the Koch Bros); #3 Sierra-Pacific (private family-owned), #4 West Fraser (public Canadian-based company that owns southern U.S. mills, too), and #5 Hampton (private). Other privately-owned lumber manufacturers include Boise-Cascade, Roseburg Forest Products, Rosboro, and States Industries. In contrast, all 10 of the top auto manufacturers are publicly-traded companies.
How come no commentary on Weyco/Plum Creek? It’s a big deal?
Good point Dave. Likely because it doesn’t fit the narrative of some of the people on this blog. If you put something together on the $23 billion Weyco/Plum Creek REIT-fest merger it I’ll happily post it here as a featured post. Just email it to me privately. Thanks.
This Forisk Consulting blog post is worth a look.
Thanks for the pointer, Steve. Its thesis, for those who want to cut to the chase, is that the merger is like “two brothers splashing around in one bathtub…of a house with nearly 1,000 bathrooms.”
Lumber is one of the most diversified commodity manufacturing industries in the U.S. The top 20 firms account for only 61% of total production. Compare to autos where the top 10 account for over 80% of the market. Wood products manufacturing has never been threatened by monopoly power. On the other hand, collusion and other anti-trust misbehavior have been a chronic issue.
It may also come as a surprise to some that although #1 lumber producer Weyerhaeuser is publicly traded, most lumber manufacturers are privately-held companies. #2 Georgia-Pacific (private, owned by the Koch Bros); #3 Sierra-Pacific (private family-owned), #4 West Fraser (public Canadian-based company that owns southern U.S. mills, too), and #5 Hampton (private). Other privately-owned lumber manufacturers include Boise-Cascade, Roseburg Forest Products, Rosboro, and States Industries. In contrast, all 10 of the top auto manufacturers are publicly-traded companies.