Several factors have contributed to a recent decline in Alaska's wood products industry, including reduced exports to Japan and the closure of two pulp mills in southeast Alaska. However, higher value niche markets are a potential growth area for the industry. In this paper, we consider niche markets for three species that have historically been harvested in low volumes--Alaska birch (Betula papyrifera var. humilis (Reg.) Fern. & Raup), red alder (Alnus rubra Bong.), and Alaska yellowcedar (Chamaecyparis nootkatensis (D. Don) Spach). The extent of the resource, current utilization, and an overview of recent research efforts are examined. Specific marketing recommendations are then provided for each species, based on these evaluations. Wide-ranging opportunities for a variety of primary and secondary wood products exist that utilize character-marked lumber, lower grades of lumber, and material from standing-dead sources. This report concludes with a framework for future research, identifying key opportunities to differentiate Alaska wood products in the marketplace.

A survey determined that installed dry kiln capacity in Alaska more than doubled to an estimated 220 thousand board feet (mbf) within 4 years (2000-2004). This increased ability to produce dry lumber and value-added products resulted from industry efforts to obtain federal funding to support a dry kiln grant program. This report reviews grantees' progress in implementing grant supported projects and their impact on the production capabilities of the Alaska lumber drying industry. Data were collected in early 2005 by using a standard set of questions asked of 19 dry kiln owners. Much of the growth in drying and value-added processing capacity has been concentrated in southeast Alaska where there has been the greatest dry kiln investment. During 2004, the estimated volume of lumber dried in Alaska was 813 mbf, whereas potential annual capacity was estimated to be almost 6,600 mbf. This indicates that Alaska producers are drying just over 12 percent of their potential capacity. Factors that will increase the future production of value-added forest products in Alaska include a continuing supply of economically priced timber, the ability of the industry to support a reasonably priced grading service, and the ability of producers to move value-added products to domestic and export markets.

The kitchen cabinet industry has shown significant growth recently, with expanding residential markets, new cabinet styles, and larger kitchens. This industry represents an opportunity for small Alaska wood producers to create high-value secondary products. In response to recent trends in kitchen cabinet manufacturing and the need to identify opportunities for underutilized species, the Alaska Wood Utilization Research and Development Center has conducted numerous studies evaluating consumer preferences for Alaskas primary hardwoodsAlaska birch (Betula papyrifera var. humilis (Reg.) Fern & Raup) and red alder (Alnus rubra Bong.). These studies explored consumer preferences under a range of marketing parameters, cabinet appearances, and regional market locations. This paper summarizes these studies and offers insights into the potential market for Alaskas hardwoods as secondary wood products such as kitchen cabinets.