### Au **gust 2010**  

# Industry Profile: **Residential Wood Heaters**

**Draft Report** 

Prepared for **Larry Sorrels** U.S. Environmental Protection Agency Office of Air Quality Planning and Standards (OAQPS)

Air Benefit and Cost Group (ABCG)

(MD - C439 - 02) Research Triangle Park, NC 27711 Prepared by **Jeffrey Petrusa Stephanie Norris**  **Alex Rogozhin Brooks Depro**  RTI International 3040 Cornwallis Road Research Triangle Park, NC 27709 RTI Project Number 0209897.00 4 . 084________________ _________________ RTI International is a trade name of Research Triangle Institute . RTI Project Number 0209897.00 4 .0 84 

# Indust **ry Profile: Residential Wood Heaters**  **Draft Report**  **Au gust**  **2010**

Prepared for **Larry Sorrels** U.S. Environmental Protection Agency Office of Air Quality Planning and Standards (OAQPS)

Air Benefit and Cost Group (ABCG)

(MD - C439 - 02) Research Triangle Park, NC 27711 Prepared by **Jeffrey Petrusa Stephanie Norris**  **Alex Rogozhin Brooks Depro**  RTI International 3040 Cornwallis Road Research Triangle Park, NC 27709iii **CONTENTS** Section Page 2 Industry

Profile ................................ ................................ ................................ ................... 2 - 1 2.1 Supply

Side ................................ ................................ ................................ .......... 2 - 1 2.1.1 Production Process ................................ ................................ ................... 2 - 2 2.1.2 Product Ty

pes ................................ ................................ .......................... 2 - 2 2.1.3 Costs of Production ................................ ................................ .................. 2 - 5 2.2 Demand Side ................................ ................................ ................................ ........ 2 - 9 2.2.1 End Use Consumer Segments ................................ ................................ .. 2 - 9 2.2.2 Regional Variation in Residential Demand ................................ ........... 2 - 10 2.2.3 National Home Heating Trends ................................ ............................. 2 - 10 2.2.4 Substitution Possibilities ................................ ................................ ........ 2 - 11 2.2.5 Price Elasticity

of Demand ................................ ................................ .... 2 - 12 2.3 Industry

Organization ................................ ................................ ........................ 2 - 13 2.3.1 Market Structure ................................ ................................ .................... 2 - 13 2.3.2 Manufacturing Plants ................................ ................................ ............. 2 - 15 2.3.3 Location ................................ ................................ ................................ . 2 - 16 2.3.4 Company

Sales and Employ

ment ................................ .......................... 2 - 17 2.4 Residential Wood Heater Market ................................ ................................ ....... 2 - 19 2.4.1 Mar

ket Prices ................................ ................................ ......................... 2 - 20 2.4.2 International Competition ................................ ................................ ...... 2 - 21 2.4.3 Future Market Trends ................................ ................................ ............ 2 - 21 References ................................ ................................ ................................ ............................ 2 - 23iv **LIST OF TABLES** Number Page 2 - 1. Costs for L abor and Materials for U.S. Heating Equipment and Hardware Manufacturing: 2008 ................................ ................................ ................................ ..... 2 - 7 2 - 2. Costs for U.S. Masonry Contractors and Single - Family Home Contractors: 2007 ...... 2 - 7 2 - 3. Costs for U.S. Plumbing and Heating Equipment Supplies Wholesalers: 2007 ........... 2 - 8 2 - 4. Costs for U.S. Specialized Home Furnishing Stores: 2007 ................................ .......... 2 - 8 2 - 5. Wood as Primary

Fuel Source for Ho me Heating in the United States: 2006

– 2008 ................................ ................................ ................................ ............................. 2 - 10 2 - 6. Number of U.S. Companies by Business Ty

pe ................................ ........................... 2 - 16 2 - 7. U.S. Wood Heat Equipment Industry by Geographic L ocation ................................ . 2 - 17 2 - 8. U.S. Sales and Employ ment Statistics by

Business Ty

pe ................................ ........... 2 - 18 2 - 9. Profit Margins for NAICS 333414, 238140, and 423720: 2008 ................................ . 2 - 18 2 - 10. Unit Shipments and Percentage of Total Units by Product T yp e: 2008 ..................... 2 - 19 2 - 11. Installation Costs for Average S ys tem by Product Ty

pe (North America): 2008 ...... 2 - 20 2 - 12. Manufacturers’ Price b y Product Ty pe (North America): 2008 ................................ . 2 - 20iii **LIST OF FIGURES** Number Page 2 - 1. Declining Trend in U.S. Housing Units Using Wood Fuel: 1989

–2005 ........................... 2 - 11 2 - 2. Annual Plant Capacity Utilization for Heating Equipment Manufacturers (NAI CS 333414): 2002 - 2006. ................................ ................................ ................................ ......... 2 - 152 - 1 **SECTION 2 INDUSTRY PROFILE**  The Environmental Protection Agency ( EPA ) is considering a revision to the New Source Performance Standard (NSPS) for new residential wood heaters . EPA promulgated the original NSPS for new residential wood heaters including wood stoves in 1988 . Based on a review of the NSPS in 2009, EPA noted significant technological improvements that allow emissions from these sources to be better controlled than the current standard . In light of the recent findings, EPA is proposing to revise the current NSPS standards to improve regulation of wood heaters and broaden the new regulation to cover other residential de vices that use other solid biomass fuels. The proposed revision to the NSPS for residential wood heaters would potentially cover a number devices that include wood stoves, pellet stoves, other solid biomass stoves ; masonry heaters ; fireplaces ; fireplace inserts ; outdoor stoves ; indoor and outdoor hydronic heaters and forced air furnaces ; and coal burning stoves. EPA has developed this industry profile to provide the reader with a general understanding of the technical and economic aspects of the industries that would be directl y affe cted b y the revised NSPS regulation for new residential wood heater s . We begin b y outlin ing the supply

side b y discussing the production process of wood heater and the associated costs and follow this with an overview of the dem and side of the market for residential wood heaters as a primary or secondary

home heating sy stem . We then address the characteristics that define the residential wood heating market and profile the companies that produce wood heating s ys tems. **2.1 Supply**  **Side** W ood heating devices embody a v ariety of products that provide heat and/or aesthetic ambiance for residential consumers both indoors and outdoors by burning wood fuel . Indoor wood - burning devices provide space heating for a single room or area of a re sidential home . Indoor heating devices include freestanding wood stoves, pellet stoves, masonry heaters, fireplace inserts, and forced air furnaces . Outdoor wood heating devices, also known as outdoor wood boilers, or water stoves, are located adjacent to the home they heat in small sheds with short smoke stacks . Other products included in the proposed revisions of this NSPS include low mass fireplaces, open masonry fireplaces, fireplaces, fire pits, chimineas, cook stoves, and pizza ovens .2 - 2

This section provides a general description of residential wood heater manufacturing processes . We then provide more detailed definitions of the indoor and outdoor wood heater products cove red under the revised NSPS rule and the wood fuels used in their operation . **2. 1.1**  **Production Proces** **s** The m anufacturing process for residential wood heaters varies depending on the product ty pe being produced . Generall y, the manufacturing process entail s the assembly of several prefabricated metal components . Major inputs include cast iron, metal products, heat - proof glass, fireproof fabric insulation, refractory brick, and heat - tolerant enamels or coatings. Wood heating devices are ty pically categorized by efficiency ratings . The ratings are based on efficiency

tests that measure the am ount of heating value transferred from a full load of wood or other biomass fuel (fuel type varies base d on the product being test ed) to the living space . Efficiency

tests evaluate two performance metrics that include combustion and heat transfer efficienc y. Combusti on efficiency determines how effective the fire box design is at burning the fuel and extracting its heating value . Heat transfer efficiency tests are conducted in calorimeter rooms equipped with temperature sensors to measure the degree change s in the heated living space and the flue exhaust to determine how much heat from the fire is delivered to the living space compared to the heat lost up the flue (EPA, 2009 ). Thermal output , ty

pically expressed in British thermal units per hour ( B tu/hr) , is the heat output measure that tells the amount of heat produced each hour . A higher Btu/hr rate suggests that a stove will produce more heat per hour than a stove with a lower rating . Depending on design and size characteristics, a space heating device heat output rating ranges between 8,000 and 90,000 Btu/hr . Larger heating s ys tems designed to provide whole home h eating have heat output ratings that range from 100,000 to greater than one million Btu/hr. **2. 1.2**  **Product Types** Wood and Coal Stoves EPA - certified wood stoves are enclosed combustion devices that provide direct space heating for a specific room or area of a home . 1 Cataly tic and non catal ytic wood stoves are two general types of wood stoves available in the United S tates . This desi gnation refers to the design of the combustion sy stem . Non catal ytic combustion sy stems rel y on high temperatures (<1,000°F) within the fire box to fully combust the chemical compounds (combustible gases and

1 EPA - certified wood stoves are those wood stoves that meet the requirements or exceed particulate matter (PM) emissions standards under the current residential wood heater NSPS.2 - 3

particles) in the wood smoke . In catalytic combus tion sy stems, the presence of the catal ytic element lowers the temperature at which wood smoke chemical compounds combust . Cataly tic elements or c ombustion sy stem designs in non cataly tic combustion sy stems are used in existing stoves to meet EPA emission s tandards . Coal stoves are similar in structure and appearance to wood stoves . Most coal stoves are designed to burn hard anthracite coal instead of soft bituminous coal (Houck, 2009 ) , but different varieties of coal have been used in c oal stoves over time. Wood Pellet Stoves and Biomass Stoves Wood pellet and biomass stoves are similar in application to wood stoves but generate heat through the pellet combustion . Wood pellet stoves use tightl y compacted pellets of wood as fuel, whereas biomass stoves can use a variety of pellet ty

pes , including corn, fruit pits, and cotton seed (EPA, 2009 ) . A load of pellets is poured into the stove’s hopper ; then the user sets an internal thermostat that controls a feed device within the stove . The feed device regulates the amount of fuel that is released from the hopper into the heating chamber, which is where the combustion takes place (EPA, 2009 ) . Pellet stoves are more efficient in terms of combustion and he ating than standard wood stoves but require electricity to operate the fans, controls , and pellet feeders (EPA, 2009 ) . Masonry Heaters A masonry

heater is a solid - fueled heating device that is constructed on site using mainly masonry or ceramic materials ( Masonry Heater Association of North America , 1998) . Though masonry heaters and traditional fireplaces are similar in appearance, masonry heaters are used primarily to generate heat , whereas fireplaces typi cally serve a more aesthetic purpose . The heater itself is made up of an interior construction unit consisting of a firebox and a set of heat exchange channels (Cherov, 2008 ) . The hot gas produced during rapid combustion of fuel within the firebox passes through the heat ex change channels, which run throughout the structure and saturate the masonry

mass with heat (Cherov, 2008 ) . After the masonry walls are saturated, the masonry heater radiates the heat into the area for 12 to 15 hours (Cherov, 2008 ) . Masonry heaters can heat a home all day

with out having to burn continuously and are often used in areas where traditional fuel sources are unavailable (Cherov, 2008 ). However, one disadvantage of using a masonry heat er is the lag between the initial burn and the time that the masonry structure actuall y releases sufficient heat (U.S. Department of Energy [DOE] , 2010).2 - 4

Fireplace Inserts A fireplace insert is a typ e of stove that is designed to fit inside the firebox of an existing wood - burning fireplace (Wood Heat Organization, 2010) . An insert is made of steel or cast iron and is often installed in masonry fireplaces or traditional fireplaces to enhance a fireplace’s efficiency ( Hearth, Patio, and Barbeque Association [ HPBA ] , 2010 a) . As an insulated closed door sy stem, a fireplace insert enhances combustion by slowing down the fire and increasing the fire’s temperature (HPBA, 2010 a) . In addition to wood, fireplace inserts can also be fueled with natural gas, propane, pellet, and coal (HPBA, 2010 a) . Forced Air Furnaces A forced - air furnace is a ty pe of central heating s ystem that ty picall y burns cordwood or pellets . A forced - air furnace can be located inside a house or outdoors and provide controlled heat throughout a home using a network of air ducts (EPA, 2009 ) . Outdoor W

ood Heaters An outdoor wood heater, also called a wood - fired boiler, is a ty pe of hydronic heater that is designed to be the home ’ s primary heating sy stem . Wood boilers are located outdoors and have the appearance of a small shed with a smokestack (EPA, 2009 ) . Hydronic heaters burn wood to heat a working liquid contained in a closed - loop sy stem. The heated liquid is then circulate d to the house to provide heat and hot water (EPA, 2009 ) . Hydronic heaters are ty picall y sold in rural areas with cold climate s where wood may be the most readil y available fuel source (EPA, 2009 ) . Indoor and Outdoor Fireplaces Fireplaces are typicall y not sufficient primary heating sources and are often considered more of an aesthetic feature than a functional device. The common low - mass fireplace is a fireplace and attached chimney that can be weighed on a platform scale (EPA, 2009 ) . Not to be confused with masonry

heaters, masonry

fireplaces are traditional fireplaces constructed of brick, stone, or other masonry

materials with a chimney like a traditional fireplace (Fireplaces &Woodstoves, 2010 ) . Fireplaces are also used to enhance the outdoor area of a house . A portable grated cylinder style has a bottom basin surrounded by open grating for a fire, a cooking grate, and a lid (EPA, 2009 ) . A permanent outdoor fireplace is similar to one that would be found indoors . They can be freestanding or attached to the outside of the house (EPA, 2009 ).2 - 5

Fire Pits, Chimineas, Cook Stoves, and Pizza Ovens S everal outdoor appliances involve using wood fuel for cooking or heating . A fire pit is a round outdoor hearth appliance that is designed to replicate the ambiance of a campfire by radiating heat in 360 degrees around the pit (HPBA, 2010b ) . A chiminea is ty picall y construct ed out of cast iron, terra cotta, or clay and burns firewood inside the internal oven . As the fire burns, the walls of the oven absorb heat . After the dome chamber reaches the desired temperature, the fire can be allowed to die down (EPA, 2009 ) . Wood cook stoves are made of cast iron to withstand the high temperatures produced b y the fire (EPA, 2009 ). They are similar in appearance to a conventional stove, complete with an oven and cooking ranges, but are larger in order to accommodate the wood fuel (EPA, 2009 ) . Pizza ovens are made out of a masonry material, such as clay

adobe or refractory

bricks, which can endure high temperatures for an extended period of time (EPA, 2009 ) . **2.1.3 Cos**  **ts of Production** Because of the variety

of products covered under the wood heat source category , different manufacturers use a wide range of materials and have varying labor requirements . Since there is significant diversity in output between the producers in this category , as well as the broader industries in which they

may be classified for data purposes, this section highlights the production costs associated with several of the North American Industry Classification Sy stem (NAIC S) codes under which a si gnificant number of the wood heating equipment manufacturing facilities in our database are included. Table 2 - 1 display s costs for the heating equipment and hardware manufacturing industries . The production of devices like wood stoves, hydronic heaters, an d fireplace inserts is included under the heating equipment category (NAI CS 333414) . In 2008, the total cost of materials used for production represented roughl y 40% of the industry ’s total value of shipments, while labor costs only

accounted for 17% . The hardware manufacturing industry (NAICS 332510) had similar statistics : materials used and annual pay roll account ed for 38% and 18% of the total value of shipments, respectabl y . Masonry fireplace construction and other site - assembled fireplace construction are covered under the two industries displayed in T able 2 - 2 . The new single - family construction general contractors industry (NAICS 236115) covers a broad spectrum of construction activities beyond mas onry

and fireplace construction . Li ke the heating equipment and hardware manufacturing, this is a highl y capital - intensive industry with 42% of the value of the construction work attributed to the cost of materials . Labor accounts for only 12% . For the2 - 6

masonry contractor industry , however, pay roll costs repre sent over 30% of the value of construction work . This suggests that masonry contracting requires a special skill set and a specific degree of craftsmanship . The 2007 costs for plumbing and heating equipment wholesalers (NAICS 423720) are outlined in T able 2 - 3 . This category , which includes the merchant wholesale production of cooking and heating stoves and hydronic heaters, made over $50 billion in sales in 2007. Table 2 - 4 display s the costs for certain home furnishing stores, including those who sell wood stoves at retail prices . The costs for these industries may be more indicative of the wholesale and retail exchanges of wood - heating equipment rather than the actual production process .2-7 **Table 2 -**  **1 .**  **Cost s**  **for Labor and Materials for**  **U.S. Heating Equipment**  **and Hardware Manufacturing :**  **2008**

**NAICS**   ** Based** **Code Meaning of NAICS**  ****

**Based Code Year**  **Number of Em** **ployees Annual** 

**Payroll ($1,000)**  **Production**

**Workers Average**  **per Year Total Cost** 

**of Materials**  **($1,000) Materials,** 

**Parts, Containers,**  **Packaging, etc. Used ($1,000)**  **Cost of**

**Purchased Fuels**  **($1,000) Cost of** 

**Purchased Electricity**  **($1,000) Total** 

**Value of Shipments**  **($1,000)** 333414 Heating Equipment

(except warm air furnace) 200 8 20,619 956,254 12,605 2,685,779 2,242,872 16,490 31,072 5,617,465 332510 Hardware

Manufacturing 2008 36,335 1,571,070 25,488 4,139,425 3,373,896 35,265 67,018 8,948,790 Source: U.S. Census Bureau. 2010 a . American Fact Finder. Sector 31: Annual Survey of Manufactures: General Statistics: Statistics for Industry Groups and Industries: 2008 and 2007. http://factfinder.census.gov . Accessed July 20, 2010. **Table 2 -**  **2 .**  **Costs for U.S.**  **Masonry Contractors and Single -**  **Fa mily Home Contractors**  **: 2007** 

**NAICS -**  **Based Code**  **Me aning of NAICS**  **- Based** 

**Code Year**  **Number of Employees**  **Total Payroll**

**($1,000) Cost of** 

**Materials, Components,**  **and Supplies ($1,000)**  **Total**

**Value of Construction**  **Work ($1,000)** 236115 New

single - family general contractors 2007 259,905 10,834,064 37,676,878 89,282,708 238140 Masonry contractors 2007 232,315 8,250,581 8,594,565 26,984,381 Source: U.S. Census Bureau. 2010c. American Fact Finder. Sector 23 : EC0723SG01: Construction: Summary Series: General Summary: Det ailed Statistics for Establishments: 2007. Released May 18, 2010 . http://factfinder.census.gov.2-8 **Table 2 -**  **3 .**  **Costs for U.S.**  **Plumbing and Heating Equipment Supplies Wholesalers :**  **2007**

**NAICS**   ** Based Code** **Me aning of NAICS**  **- Based**  **Code Year**  **Number of Employees**  **Annu al Payroll** 

**($1,000) Operating** 

**Expenses ($1,000)**  **Sales**

**($1,000)** 423720 Plumbing and Heating

Equipment Supplies (Hydronics) Merchant Wholesalers 2007 87 , 907 4,542,337 8,311,462 50,316,133

Source: U.S. Census Bureau, 2010b. American Fact Finder . Sector 42 : EC0742A1: Wholesale Trade: Geographic Area Series: Summary Statistics for the United States, States, Metro Areas, Counties, and Places: 2007. Released July 23, 2010. http://factfinder.census.gov . **Table 2 -**  **4 .**  **Costs for U.S.**  **Specialized Home Furnishing Stores :**  **2007 NAICS**  **- Based**  **Code Me**  **aning of NAICS -**  **Based Code**  **Year Number of**  **Employees Annual Payroll** 

**($1,000) Sales**  **($1,000)** 442299 All other home furnis hing stores 2007 19,057 3,427,682 27,326,976 Source: U.S. Census Bureau, 2010d. American Fact Finder. Sector 44 : EC0744A1: Retail Trade: Geographic Area Series: Summary Statistics for the United States, States, Metro Areas, Counties, and Places: 2007 . Released July 23, 2010 . http://factfinder.census.gov.2 - 9

**2.2 Demand Side**  Wood - fired heaters are sold exp li citly for use in residential homes . These devices can be included in the original constr uction of a new home or installed later in the life of the home. Demand for residential wood heating devices i s driven by several key

factors that include size, price, efficiency , and fuel ty pe (e.g. , cord wood, pellet wood, or other biomass fuels) . However consumer demand for any one product discussed in S ection 2.1 is driven primari ly by the intended end - use heating application . This section d efines the three major consumer segments that drive demand based on the end - use application . Following this discus sion, we present some national statistics on the variation in residential wood heat consumers in the United S tates . We conclude our discussion of the demand side b y characterizing some of the s ubstitutes for residential wood - burning devices . **2. 2.1**  **End Use Consumer Segments**  The intended end - use heating application is a primary driver of demand for residential heating devices. The U.S. Annual Housing Survey (HUD, 2008) provides a starting point for how to classify

the various ty

pes of residential consumer of heating equipment. For the purposes of this profile we grouped consumers into three major segments based on their desired heating needs that include s whole - house heating, seco ndary or zone heating, and recreational outdoor heating applications . The p rim ary or whole - house heating segment includes homes with no other central heating s ys tem that can provide heating service in or outside the house . In smaller homes , a large stove or masonry

heater may

be sufficient to provide heat to the entire house . However, larger homes ty picall y require an outdoor wood boiler , a hydronic heater , a pe llet - burning forced - air furnace , or some combination of these to meet the consumers ’ heating needs . The s econdary

or zone heating segment includes consumers that desire suppl emental heat from a wood - burning device in homes with an existing central heating s ys tem that serves as the home ’ s primary

heat source . C ordwood and wood pellet - burning stoves are ideal for heatin g a single room or zone with in a home . Smaller m asonry heate rs are also well suited for zone heating needs . Finally , a third component of demand is represented by consumers who de sire a wood burning device for recreational aesthetic heating application s . Outdoor fireplaces, c himineas , outdoor ovens , and pizza stov e s are some examples of the wood - burning devices designed for recreational heating appli cations . The products that address the needs of this consum er segment are primarily

intended to enhance the aesthetics or landscape outside the home .2 - 10

**2.2. 2**  **Regional V**

**ariation in Residential**  **D emand**  Between 2006 and 2008, roughl y 1.7 million out of the 75.3 million occupied homes in the United States relied on wood heat as the primary fuel source for home heating. The demand for wood heat is concentrated in the Northeast , the Northwest, and the northern Midwest regions of the United States . Table 2 - 5 illustrates this regional concentration by listing the 20 states that represent the highest percentage o f households that use wood heat . The second column shows the number of wood - heat users as a percentage of the total homes in the state, while the third column shows the number of wood - heated homes as a percentage of the total users in the United States . These 20 states account for over two - thirds of the total U.S. residential wood heat demand. **Table 2 -**  **5 .**  **Wood as Primary Fuel Source for Home Heating in the U nited**  **S tates**  **: 2006** **–**

**2008 State**  **Percentage of State**

**Owner -**  **Occupied Houses**  **Percentage of National** 

**Owner -**  **Occupied Houses**  **Count** California 2% 9% 165,440 New York 3% 6% 103,74 0 Pennsylvania 3% 6% 100,355 Washington 6% 5% 92,664 Michigan 3% 5% 85,712 Wisconsin 5% 5% 83,040 Oregon 8% 4% 79,637 Ohio 2% 4% 67,665 Virginia 3% 3% 60,579 North Carolina 2% 3% 58,397 Minnesota 3% 2% 43,234 Maine 10% 2% 41,509 Indiana 2% 2% 38 ,550 West Virginia 7% 2% 38,142 Idaho 8% 2% 32,817 Colorado 2% 2% 28,668 Vermont 15% 1% 26,601 Massachusetts 2% 1% 25,870 Montana 9% 1% 24,355 New Hampshire 7% 1% 24,071 **Top 20 Total**  68% 1,221,046 **National Total 100%**  **1,792,741** Source: U.S. Ce nsus Bureau. 2009. American Community Survey : 2006 - 2008 . Available at: http://factfinder.census.gov/servlet/DatasetMainPageServlet?_program=ACS&_submenuId=&_lang=en&_ts= . **2.2.3 National**  **Home Heating Trends** Residenti al d emand for wood fuel has been declining steadil y throughout the United States . Figure 2 - 1 illustrates the number of households from 1989 to 2007 that reported using2 - 11

wood fuel for heating, cooking, or heating water . In 1989, roughl y 15% of all occupied housing units used wood fuel . The proportion of wood - fuel users has declined relatively steady throughout the pas t 20 ye ars . By 2005 , fewer than 9.5 million out of a total 109 million occupied households in the United S tates used wood fuel for heating, cooking , or heating water.

**0 2,**  **000 4,**  **000 6,**  **000 8,**  **000 10,**  **000 12,**  **000 14,**  **000 16,**  **000**

**1989 1991**  **1993 1995**  **1997 1999**  **2001 2003**  **2005 O** **c c** **u p** **i e** **d H** **o u** **s i** **n g** **U n** **i t** **s (** **1 ,** **0 0** **0 s** **)**

**Yea r**  **Figure 2 -**  **1. Declining Trend in**  **U.S. Housing Units Using Wood Fuel: 1989** **– 200**  **5** Source: U.S. Housing and Urban Development [HUD] . 2008. American Housing Survey for the United States . Multiple Years. Table 2 - 5. Available at: http://www.census.gov/hhes/www/housing/ahs/nationaldata.html . **2. 2.**  **4 Substitution Possibilities**  The availability

of close substitutes for wood heating equipment is largely contingent on two key factors: (1) the consumer’s heating needs and preferences and (2) the price and availability

of an alternative heating source . As discussed in S ection 2.2.1, consumers tend to fall into one of three demand segments depending on their desired end use for their heating device . Each consumer group will display varying degrees of substitutability . The relative price of alternatives is also an important aspect of product substitution, which includes the cost of the heating equipment itself and the price and availability of the fuel it requires . For m ost consumers loo king for whole - house heat or single room heat, gas or electric heat provides a common substitute for wood fuel . Electric ity can power central heating s ys tems for whole - house heat and smaller space heaters for single rooms . Since the majority of American ho useholds have eas y access to electric power, these home heating options are often a convenient and low - cost alternative to wood heat . G as - powered central furnaces and room heaters a nd oil powered central heating sy stems are also on the market for residenti al use (DOE, 2009 ) .2 - 12

Although most consumers have homes equipped for gas or electric power, more rural areas of the country have limited access to reliable utilities . Inthese regions, electric or gas heat may not be an available or cost - e fficient choice relative to wood heat. Recreational or aesthetic wood - fired appliances have fewer direct substitutes . Traditional indoor fireplaces and masonry fireplaces can be outfitted for burning natural gas rather than wood . C onsumers may

have a preference for one over the other . Wood fuel can be mes sy and somewhat difficult to store, where as natural gas can be more convenient . Outdoor recreational appliances may

be difficult to substitute directly because many

consumers desire the aesthetic e ffect cre ated b y a wood - burning fire pit or chiminea . Outdoor charcoal or gas grills provide an alternative for outdoor wood - fired cooking appliances, but consumers may not consider these a direct substitute . **2.2. 5**  **Price Elasticity of Demand** Price elasticity of d emand is a numeric measure of the sensitivity of demand following an increase in the product ’ s price . The level of sensitivity is determined b y a number of f ac tors that include availabl y and price of substitutes ( e.g., other ty pes of heating equipment, gas or electric space heaters and furnaces) and the price of complement (wood fuels ) . In preparing this profile, we searched for, but were unable to identify , any empirical estimates of the p rice elasticity of demand for residential wood he ating equipment . Although there are numerous articles estimating the elasticity of demand for residential energy and heating fuels, these estimates focus almost exclusively on electricity, natural gas , and fuel oil. These estimates find that residential energy and heating fuel demand is relativel y i nelastic (i.e. , there are onl y very small changes in demand in response to an increase in energy or fuel prices) . A recent RAND report suggests that in the short term , demand for electricity and natural gas in the residential mar

kets is relatively inelastic (Bernstein and Griffin , 2005 ) . However, the authors of the report also note that sustained higher energy prices in the long term may result in demand for energy becoming more elastic as consumers have time to identify more energy

efficient options . In the absence of empirical estimates, we offer a qualitative discussion of the key determinates of the price elasticity of demand to provide a general sense of whether the consumer demand is elastic or inelastic . As mentioned earl ier , the determinants of elasticity include the degree of substitutability, product necessity, and duration of the price increase. There are a number of close substitutes for residential wood heating devices that include electric and gas furnaces and spac e heaters . The extent to which consumer s are able to substitute2 - 13

between these options is likely to vary depending on geographic location. Overall , the presence of good substitutes will increase the elasticity of demand for wood heating equipment. In contra st , sustained higher prices for heating fuel (i.e. , electricity , natural gas, and fuel oil) may make switching away

from wood heating equipment less likel y, and ultimately mak e demand for wood heating equipment more inelastic . Finally , the magnitude of the cost residential wood heating equipment may also increase the elasticity

of demand . Consumer demand tends to be more elastic when the price of the good represents a large proportion of consumer income (Bernstein and Griffin, 2005) . In other words , consumers become more sensitive to small price changes when considering the purchase of a large household appliance (e.g. , refrigerator, oven range, or heating s ys tem) . **2.3 Industry Organization**  A review and description of market characteristics (i.e., geogra phy , product differentiation, product transportation, entry barriers, and degree of concentration) can enhance our understanding of the mechanisms underl yi ng the wood heating equipment industry . These characteristics provide indicators of a firm ’ s ability to influence market prices by varying the quantity of product it sells. For example, in markets with large numbers of sellers and identical products, firms are unlikely to be able to influence market prices via their production decisions (i.e., they are “p rice takers ” and operate in highly competitive markets ). However, in markets with few firms, significant barriers to entry (e.g., licenses, legal restrictions, or high fixed costs), or products that are similar but can be differentiated, a firm may have so me degree of market power (i.e., to set or significantly influence market prices). In addition, if a product is difficult to transport over long distance (due to weight or hazardous nature), then the market size may be more restricted than one might expect , all other things being equal . **2. 3.1**  **Market Structure** Market structure characterizes the level of competition and determine s the extent to which producers and sellers can influence market prices . Economic market structure typicall y focuses on the number of producers and consumers, the barriers to market entry , and product substitutability . The residential wood heater market contains a number of large producers selling a number of differentiated products along with a large number of small producers . These characteristics suggest a monopolistic competitive market (i.e., somewhere between highl y competitive and less competitive) for large producers who will have some influence over market prices . For small producers, the market will be highly competitive in nature. Inaddition, existing2 - 14

regulatory

requirements for product testing and certifications represent a barrier to market entry for new producers of wood heating devices . Competition in this market may be further constrained b y transportation costs due t o the weight of these products . A similar assessment was determined in the 1986 study by the American Enterprise Institute (AEI) and Brookings Institution Joint Center for Regulatory Studies . The AEI - Brookings report also identified several key factors that influence manufacturers ’ pricing decisions. These factors included production prices, prices of similar products sold by

competitors, transportation costs, combustion technology and efficiency , and consumers’ ability to differentiate products based on brand name and efficiency . Price elasticity of suppl y is a numeric measure of the industry ’s response to a 1% increase in the product price (Landsburg , 2005) . The law of suppl y suggests producers suppl y greater quantities at high er price s as a result of increasing marginal returns for each additional unit produced as average cost per unit of output declines. As a result, the elasticity of suppl y for most industries is positive . Determinants of supply elasticity are flexibility

of sellers to adjust production, the time period being considered in estimating the elasticity. Most manufactured goods have an elastic supply , meaning that sellers can adjust production quickly in response to a change in prices (Mankiw, 1998) . Industries with excess plant capacity are likely to have elastic supply as sellers can ramp up production in a relatively short time frame. Based on 2006 plant capacity utilization data as shown in Figure 2 - 2 , the heating equipment manufacturing industry averaged 6 0% utilization, growing from 59% in 2002 to a maximum utilization of 65% in 2005 and then falling to 54% in 2006 (U.S. Census Bureau, 2007). Similar statistics are not available for more recent years due to discontinuation of this survey following 2006. The available data suggests that there is ample existing capacity to increase production in the short and long term assuming an increase in price of residential wood burning heating equipment.2 - 15 59% 59% 62% 65% 54%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2002 2003 2004 2005 2006**P l** **a n** **t C** **a p** **a c** **i t** **y U** **t i** **l i** **z a** **t i** **o n** 

**Ye ar**  **Figure 2 -**  **2 .**  **Annual Plant Capacity Utilization for Heating E quipment Manufacturers**  **(NAICS 333414): 2002 -**  **2006.** Source: U.S. Census Bureau. 2007. Survey of Plant Capacity: 2006. “T able 1a. Full Capacity Utilization Rates by Industry Fourth Quarter 2002 - 2006”. Census Bureau , Washington DC. Report No. MQ - C1(06). **2 .**  **3. 2**  **Manufacturing Plants** Since 1988, the change in the number of residential wood - fired heater producers is unclear. The U.S. Economic Census reports that between 1992 and 2007 the number of establishments in the industry has remained unchanged. Alternati vel y, the industry association Hearth, Patio, and BBQ Association (HPBA) has suggested that the number of manufacturers of wood - fired heaters fell by 80% following the 1988 NSPS rule , down from approximately 500 to roughl y 120 manufacturers today (Houck an d Tiegs, 2009 ) . For this anal ys is, we were able to identify 635 firms in the residential wood heating equipment industry

in the United States . RTI developed this estimate leveraging a number of different sources that included EPA’s official list of certified wood heater manufacturers, Dun & Bradstreet’s online company database, and a number of industry association membership lists . The estimate includes the manufacturers listed on EPA’s official certification lists (~120 manuf acturer s) . We then expanded this list to include manufacturer s of masonry h eaters and outdoor wood boilers and manufacturers of cook stoves, outdoor fireplaces , and ovens . Table 2 - 6 reports the count of U.S. - based companies in the industry by major busines s ty

pe .2 - 16

Manufacturer s account for over 90 % of the industry and span 14 different NAI CS codes, of which 560 are categorized as NAICS 333414 , as establishments primarily engaged in manufacturing heating equipment (except electric and warm air furnaces), suc h as heating boilers, heating stoves, floor and wall furnaces, and wall and baseboard heating units ( Census Bureau , 2010 ) . Manufacturer s dominate the market, accounting for over 96% of sales for the industry in 2008 . **Table 2**  **- 6**  **. Number of U.S. Companies by Business Type** 

**Business Type Number of**  **Companies Reported Sales**  **2008 ($1,000s)**  **U.S. Market Share**

**(% of Net Sales)** Manufacturers 577 $ 1,285,800 96.60% Masonry contractors 24 $ 7,200 0.54% Wholesalers, distributors 19 $ 34 ,200 2.57% Residential construction 10 $ 3,200 0.24% Retailers 5 $ 600 0.05% **U.S. Total s**  **635 $1,331,000**  **100%** Source: Dun & Bradstreet Marketplace , a company database. RTI International calculations. Masonry contractors are the second largest group of businesses , accounting for 5 % of the companies , and almost all masonry contractors are classified as NAI CS 238140 establishments primarily engaged in masonry

work, stone setting, b ri ck laying, and other stone work for new construction, additions, alterations, maintenance, and repairs (U.S. Census Bureau , 2010 e ). Masonry contractors account for less than 1 % of the industry sales . The remaining 5 % of busine sses are classified as residential construction contractors, wholesalers, distributors, and retail ers . Residential construction contractors are primarily associated with design construction and installation of masonry heaters, outdoor fireplaces, and hydro nic heaters. C ompanies classified as wholesalers, distributors, and retailers do not manufacture products but may be tied exclusively

to a single brand or manufacture r, while others distribute and sell multiple products and brands. **2.3. 3**  **Location** The indus try

is , for the most part , co located in areas of the country with the largest demand for winter heating . Over 50% of U.S. - owned companies are located in 10 states in the northern half of the country . The largest number of companies is located in California , with additional concentrations in the N orthwest, N ortheast, the upper Midwest , and Central Plains . Table 2 - 7 reports the number of U.S. companies for the top 10 states . Additionally,2 - 17

approximately

104 companies operat e in the United States , two - thirds of which are Canadian based c ompanies. **Table 2**  **- 7**  **. U.S. Wood Heat Equipment Industry by Geographic Location** 

**Location Business Count**  **% of Total U .**  **S .**  **Industry** California 63 10% Pennsylvania 36 6% Minnesota 35 6% New York 33 5% Washington 31 5% Ohio 29 5% Texas 29 5% Wisconsin 26 4% Michigan 25 4% Illinois 21 3% **U.S. Total 635**  **86%** Canada 67 9% Other Foreign 37 5% **Industry Total 739**  **100%** Source: Dun & Bradstreet Marketplace , a company database. RTI International calculations . **2. 3.4**  **Company Sales**  **and Employment** Overall sales for the residential wood heating industry totaled more than $ 1.3 billion in 2008 . Based on company data obtained for this profile , the industry employ s approx imately 17,000 workers annual ly . Previous anal ys is suggests that industry relies on seasonal labor, ramping up production in months leading up to winter and reducing employ ment and production during the warmer parts of the year (AEI, 1986 ). Table 2 - 8 presents median sales and employ ment for the industry

by business type .2 - 18

**Table 2 -**  **8 .**  **U.S. Sales and Employment Statistics by Business**  **Type**

**Business Type Number of**  **Companies Median**  **Sales 2008**  **($1,000s) Median** 

**Employm ent**  **per Company** Manufacture rs 577 $ 200 4 Masonry contractors 24 $ 1 00 3 Wholesalers, distributors 19 $ 500 5 Residential construction 10 $ 100 2 Retailers 5 $ 100 2 **U.S. Total s**  **635** $ **200 4**  Source: Dun & Bradstreet Marketplace , a company database . RTI International calculations. Firms manufacturing heating equipment (except electric and warm air furnaces), such as heating boilers, heating stoves, floor and wall furnaces, and wall and baseboard heating units (NAICS 333414) , are classified as small by the Small Busines s Administration (SBA, 2008 ) if they have few er than 500 employees . Looking across the 14 manufacturing - related NAICS codes in our an aly sis, we find that approximately 90% of manufacturer s are considered small businesses based on their reported employ ment compared to the SBA threshold . SBA classifies wholesalers and distributors as small if their employ ment is fewer than 100 workers . Approximately

68 % of the industry ’s wholesalers and distributors are considered small based on the employ

ment data obtained for this anal ys is . SBA thresholds for masonry , construction , and retail firms are based on annual sales. SBA standards for NACIS codes under these business ty pes range between $7 and $33 million in annual revenue . As reported in T able 2 - 8 , median sales in these business categories are far below the range of SBA standards . As one would expect, our anal ys is finds that all 39 firms are considered small based on their reported annual sales compared to the SBA standards for their respective NAI CS code classifications . Profits of Affected Entities Tables 2 - 9 report s profit margins for manufacturer s, masonry contractors, and wholesalers and distributors . The profit margin represents an average of reported profit per unit sales across the industry classified b y the 6 - digit NAI CS code. **Table 2 -**  **9 .**  **Profit Margins for NAICS 333414**  **, 238140, and 423720**  **: 2008 NAICS**  **Code NAICS Description**  **Profit Margin**  **Industry**

**Sales ($10 6** **)** 333414 Heating Equipment Manufacturers 4.3% $70,965 238140 Masonry Contractors 4.7% $9,676 423720 Plumbing and Heating Equipment Supplies (Hydronics) Merchant

Wholesalers 3.4% $58,907 Source: The Risk Management Association. 2008 . Annual Statement Studies, Financial Ratio Benchmarks 2008 -2 - 19

2009. Risk Management Association, Philadelphia: 2008. **2.4 Residential Wood Heater Market**  Residential wood heating device shipments in the United States were relatively consistent from year to ye ar between 1998 and 2005, according to the HPBA’s reported h earth industry shipment data (2009) . Since 2005 , total industry shipments on average have declined annuall y b y 24% . Industry

experts attribute this decline in large part to the broader econ omic downturn and poor housing market . Renewable energy tax rebates offered in 2008 provided some relief for p ellet - fueled devices, resulting in a 1 - ye ar increase in s hipments of 161 % , only to steepl y decline again in 2009 . Table 2 - 10 presents shipment volumes by product ty

pe in 2008. **Table 2 -**  **10 .**  **Unit Shipments and Percent age**  **of Total Units by Product Type : 2008** 

**Product Type Units**  **% of Total Units** Wood stove 166,527 33% Pellet stove 130,381 26% Biomass stove 6,819 1% Wood fireplaces a 180,966 36% Outdoo r fireplaces 6,302 1% Masonry heaters 730 0% Hydronic central heating s ystems 13,385 3% **Total 505,110**  **100%** Source: Frost & Sullivan . 2010. Market Research Report on North American Residential Wood Heaters, Fireplaces, and Hearth Heating Products Market s . Prepared for EC/R Inc.

a Wood fireplaces in this table include both factory -built and site -built models. Outdoor wood boilers are a relatively new product in the market since 1990 . Previous studies have reported annual growth in sales of between 30 an d 128 % , with over 155,000 outdoor wood boilers in use in the United States in 2006 (NESCAUM, 2006 ) . Sales have been regionally

focused in the Northeast and Midwestern states . The NESCAUM report predicts that over 500,000 outdoor wood boilers will be in use before the end of 2010 if trends in annual sales continue to follow growth rates observed between 1990 and 2006. Market data for coal burning stoves are very limited . However , anecdotal evidence suggest s that coal stove use is limit ed to major coal states , including Penns ylvania, West Virginia, and Indiana , where coal is abundant and cheap relative to other heating fuels (Dagan, 2005 ) . Most of the major stove manufacturer s feature at least one coal - burning stove m odel . However , at the time of writing this profile , we were unable to locate any reliable estimate of shipments in the United States for coal stoves .2 - 20

**2.4. 1**  **Market Prices** Residential wood heater prices range from $200 to $50,000 depending on the product ty pe and characteristics . Consumers who purchase these products must also consider the costs of installation, which range between $300 and $6,000 on average . Table s 2 - 1 1 and 2 - 1 2 report the average cost of installation and purchase price for residential wood heating appliances. **Table 2 -**  **1 1**  **. Installation Costs for Average System by Product Type (North America)**  **: 2008 Product Type**  **Installation Cost** Wood stove $500 Pellet stove $300 Biomass stove $300 Wood fireplaces $600 Outdoor fireplaces $350 Masonry heaters $6,000 Hydronic central heating sys tems $2,000 Source: Frost & Sullivan . 2010. Market Research Report on North American Residential Wood Heaters, Fireplaces, and Hearth Heating Products Markets . Prepared for EC/R Inc . **Table 2 -**  **1 2**  **. Manufacturer**  **s ’**  **Price by Product Type (North America) : 2008**  **Product Type Average Price**  **Price Range** Wood stove $848 $200 to $2,800 Pellet stove $1,279 $300 to $3,500 Biomass stove $1,403 $350 to $4,000 Wood fireplaces $450 $150 to $5,000 Outdoor fireplaces $755 $250 to $6,000 Masonry heaters $9,041 $4,000 to $15,000 Hydronic central heating sy stems $7,433 $5,000 to $35,000 Source: Frost & Sullivan . 2010. Market Research Report on North American Residential Wood Heaters, Fireplaces, and Hearth Heating Products Markets , Figure 2. 6 . Prepared for EC/R Inc. Given the specialized skills and materials required to construct a masonry heater, it is not surprising that this product has the highest av erage market price . Hydronic heaters are the second most expensive product partly because of the additional material requirements . The p rice of freestanding stoves and fireplace inserts varies depending on the fuel it burns . Biomass stoves are almost twice as expensive as cord wood - burning stoves for biomass stoves are more similar in construction to pellet stoves . Although no price data exist on coal - burning stoves, costs are comparable to traditional cord wood stoves . Coal stove prices for 2010, collected for this profile averaged $1,338 and ranged between $500 and $3,000 depending on the size and manufacturer.2 - 21

**2.4. 2**  **International Competition** The U.S. market for wood - fueled heating products has been concentrated on the local scale in recent ye ars . Manufac turers concentrate production where wood heat is in demand, which is in the Northeast and Northwest . Some regions of the country have specific emissions requirements on wood burning, so consumers may be restricted to buyi ng stoves and heaters that can cater to local regulations (Frost & Sullivan, 2010) . Domestic producers have traditionall y faced some competition from European manufacturers in certain wood heat markets, but Asian manufacturers have been gaining market share, especiall y in the fireplace market (Frost & Sullivan, 2010) . Asian - based companies, especiall y those in China, have the advantage of low overhead and labor costs (Frost & Sullivan, 2010) . Although the products coming from these producers are lower in price, they

are also lower in quali ty

(Frost & Sullivan, 2010) . However, moneyconscious consumers have been willing to settle for lower quality fireplaces and stoves as the economy remains uncertain (Frost & Sullivan, 2010) . Companies from all over the world have been moving some manufacturing operations to China in an attempt to compete with Asian producers through low - cost production (Frost & Sullivan, 2010) . Still, U.S. manufacturers are likely to increased competition from Asia in the future. **2.4.3 Future Market Trends**  Following a year with an impressive growth rate of 16.4% between 2007 and 2008, the market for residential wood heaters, fireplaces, and hearth products fell v ictim to the recession in 2009 (Frost & Sullivan, 2010) . A weak residential construction market coupled with a tight credit market decreased overall demand in the market for wood heating products, leading anal ys ts to project a 2009 growth rate of - 36.1 % (Frost & Sullivan, 2010). The growth forecast for 2010 is expected to improve relative to 2009 to a rate of - 4.1 % , d ue in part to the residual effects of the severe 2009 winter temperatures and the financial incentive provided by the federal energy efficient tax credit (Frost & Sullivan, 2010) . As the economy continues to recover beyond 2010, demand should trend upward as consumers look to cut heating costs with wood and biomass (Frost & Sullivan, 2010) . New home construction and increased credit availability will further foster demand, which is expected to grow at a compound annual rate of 4.1 % from 2009 to 2015 (Frost & Sullivan, 2010) . The current regional demand patterns are expected to continue , with the Northeast and Northwest regions of the country

driving wood fuel combustion demand, but anal ys ts anticipate that the2 - 22

wood heat product market will be embraced in other areas of the country in which wood and biomass are viable and inexpensive fuel sources (Frost & Sullivan, 2010) . Although the overall residential wood heat market is expected to grow, there may be variation in demand between individual product segment s . Pellet and biomass stoves are expected to lead the way

in demand as consumers look for options with sustainable fuel sources and cleaner- burning technologies (Frost & Sullivan, 2010) . Outdoor wood boilers (hydronic heaters) saw a surge in demand through out the 1990s and mid - 2000s, a trend that is projected to continue (Northeast States for Coordinated Air Use Management 2006) . Future demand for primary and secondary

wood - burning heating devices will be somewhat dependent on the price of wood fuel relativ e to electric and gas heat as well as consumer preferences . Since fireplaces and masonry

fireplaces purchases are based on the added aesthetic value rather than function, future demand will likely stay in line with consumer preferences .2 - 23 **REFERENCES** Ameri can Enterprise Institute (AEI) and Brookings Institution Joint Center for Regulatory Studies . 1986 . NSPS for Residential W ood He aters. Regulatory Impact Analysis . RI N: 2060 - AB68 . http://reg - markets.org/admin/authorpdfs/redirect safel y.php? fname=../pdffiles/2060 - AB68.RIA.pdf . Bernstein, M.A. and J. Griffin. 2005. Regional differences in the price - elasticity of demand for energy . The RAND Corporation. Available online at http://www.rand.org/pubs/technical_reports/2005/RAND_TR292.pdf Chernov, A . 2008 . Masonry Heaters : Planning Guide for Architects, Home Designers, and builders . Stovemaster Website . http://www.stovemaster.com/files/masonry .pdf . Dagan, D. January

7, 2005. “Warming Up to Stoves.” Central Penn Business Journal. http://www.allbusiness.com/sales/1033217 - 1.html . Dun & Brads treet (D&B). 2010. D& B Marketplace . A c ompany i nformation d ata base searchable by NAI CS code . Accessed on July 15, 2010. Fireplaces & Woodstoves. 2010. “Masonry Heaters.” http://www.fireplacesandwoodstoves.com/indoor- fireplaces/masonry- fireplaces.aspx . Fro st & Sullivan . 2010 . Project: Market Research and Report on North American Residential Wood Heaters, Fireplaces, and Hearth Heating Products Market (P.O. # PO1 - IMP402 - F&S) . Prepared for EC/R . Hearth, Patio, and Barbeque Association (HPBA) . 2010a . “ Fireplace Insert Fact Sheet . ” http://static.hpba.org/fileadmin/factsheets/product/FS_FireplaceInsert.pdf . Hearth, Patio, and Barbeque Association (HPBA) . 2010b . “ Outdoor Heating Op tions . ” http://www.hpba.org/consumers/outdoor- living/outdoor- heating - options . Houck , J. 2009 . “L et’s Not Fo rget about Coal .” Hearth &Home December. http://www.hearthandhome.com/articles.html . Houck, J ., and P . Ti e gs. 2009. “There’s a Freight Train Comin’ .” Hearth & Home . December. http://www.hearthandhome.com/articles.html . Landsburg, S . H. 2005. Price Theory and Applications . 6th Ed. Thomson South Western. Mankiw, N. Gregory . 1998. Principals of Economics . Dryden Press. Orlando, Fl.2 - 24

Masonry Heater Association of North America (MHA) . 1998 . MHA Masonry Heater Definition . http://mha - net.org/docs/def - mha.htm. Northeast States for Coordinated Air Use Management (NESCAUM). 2006 . Assessment of outdoor wood - fired boilers . March, 2 006 (Revised June, 2006) . Available at http://www.nescaum.org/documents/assessment - of - outdoor- wood - fired - boilers . The Risk Management Association. 2008 . Annual Statemen t Studies, Financial Ratio Benchmarks 2008 - 2009. Risk Management Association, Philadelphia: 2008 . U.S. Census Bureau. 2010 a . American Fact Finder. Sector 31: Annual Survey of Manufactures: General Statistics: Statistics for Industry Groups and Industries: 2008 and 2007. http://factfinder.census.gov . Accessed July 20, 2010. U.S. Census Bureau . 2010b. American Fact Finder . Sector 42: EC0742A1: Wholesale Trade: Geographic Area Series: Summary Statistics for the United States, States, Metro Areas, Counties, and Places: 2007 . http://factfinder.census.gov. Accessed July 20, 2010. U.S. Census Bureau. 2010c. American Fact Finder. Sector 23: EC0723SG01: Construction: Summary Series: General Summary : Detailed Statistics for Establishments: 2007. http://factfinder.census.gov. Accessed July 20, 2010. U.S. Census Bureau . 2010d. American Fact Finder. Sector 44: EC0744A1: Retail Trade: Geographic Area Series: Summary Statistics for the United States, States, Metro Areas, Counties, and Places: 2007 . http://factfinder.censu s.gov. Accessed July 20, 2010. U.S. Census Bureau. 2010 e . North American Industrial Classification System [NAI CS] Code Definitions Website. Available at: http://www.census.gov/eos/www/naics/ . U.S. Census Bureau. 2009. American Community Survey: 2006- 2008 . http://factfinder.census.gov/servlet/DatasetMainPageServlet?_program=ACS&_submenu Id=&_lang=en&_ts= . U.S. Census Bureau. 2007. Survey of Plant C apacity: 2006. “ Table 1a. Full Capacity Utilization Rates by Industry Fourth Quarter 2002 - 2006 ” . U.S. Census Bureau: Washington DC. Report No. MQ - C1(06). Available at: http://www.census.gov/manufacturing/capacity/historical_data/index.html . U.S. Housing and Urban Development [HUD] . 2008. American Housing Survey for the United States . Multiple Years. Table 1A - 5. http://www.census.gov/hhes/www/housing/ahs/nationaldata.html . U.S. Department of Energy (DOE). 2010. “ Your Home: Masonry Heaters . ” Energy Star Website . U.S. Department of Energy . http://www.energy savers.gov/your_home/space_heating_cooling/index.cfm/my topic=125 70 .2 - 25

U.S. Department of Energy (DOE). 2009 . “ Your Home: Selecting Heating Fu el and Sy stem Ty p es . ” Energy Star Website . U.S. Department of Energy . http://www.energy savers.gov/your_home/space_heating_cooling/index.cfm/my topic=123 30 . U .S. Environmental Protection Agency (EPA). 2009 . Subpart AAA - Standards of Performance for New Residential W

ood Heaters . Discussion Draft. http://www.hpba.org/admin/NSPS Review - Document.pd f . U.S. Small Business Administration . September 2008. Table of Small Business Size Standards Matched to North American Industry Classification Codes. Available at: http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf . Wood Heat Organization . 2010 . “ Fireplace Inserts : The Cure for Cold Fireplaces . ” Woodheat.org . http: //www.woodheat.org/technology /inserts.htm .