Identifying Optimal Locations for Hardwood CLT Plants in Tennessee: Application of a Spatially Explicit Framework

The prospect of using mass timber products, such as cross-laminated timber (CLT), for building material has increased in recent years because of the advantage of these products over their substitutes in terms of structural rigidity, cost efficiency, and climate benefits. However, the American National Standard developed for CLT currently applies to softwood only. With the expected increase in the market for CLT, the supply chain needs to address the projected rise in demand for hardwood as well. Promoting the production of hardwood mass timber like CLT requires studying the feasibility of quality hardwood lumber supply and identifying the optimal locations for investing capital in CLT manufacturing plants. By presenting a case from Tennessee, this study provides a spatially explicit framework to use a variety of factors such as transportation networks, proximity to sawmills, sawmill capacity, and roundwood supply to identify optimal CLT plant locations. Specifically, fuzzy multicriteria analysis was used to identify potential locations, which provided inputs for a location-allocation model to identify optimal locations for CLT plants. Among the several potential locations, three optimal locations suitable for CLT plants were identified with 12,504 thousand cubic feet (MCF) annual production potential of CLT panels in Tennessee. Although increasing transportation distance for lumber procurement would increase CLT production capacity, it would also result in increased lumber supply costs. Potential investors and regional planners interested in using hardwood forest products can benefit from these findings to locate suitable sites for new investment.