Builders needed something strong, affordable, and reliable. Nature gave us trees. Engineering gave us OSB. This wood panel has been solving construction problems for decades. And it’s still going strong.
Now, let’s look at how OSB compares with plywood. We’ll also explore the recent trends shaping its use in the building world.
What Is OSB?
Oriented Strand Board (OSB) is a type of engineered wood. It is made from thin strips of wood called strands. The strands are glued together. They are pressed into strong, durable sheets. The strands are placed in layers. The layers often go in different directions. This makes the board strong in more than one way.
How Is It Made?
OSB is made from logs. These logs are usually pine, spruce, or aspen. The logs are sliced into long, narrow strands. The strands are dried. Then they are coated with water-resistant glue. This glue can be phenol-formaldehyde, melamine-urea-formaldehyde (MUF), or PMDI. The coated strands are placed in layers. The top layers run lengthwise. The inside layers run across. The layers are pressed together with heat. This turns them into a solid panel.
Why This Structure Matters
The layered design makes OSB strong. It also makes it stiff and stable. This means it does not bend or warp easily. OSB comes in large panels. Bigger panels mean fewer joints. Fewer joints make it better for walls, floors, and roofs.
Where Is OSB Commonly Used?
OSB is used in many types of construction. It is used for wall sheathing. It is used for roof sheathing. It is used for subflooring. It is also used for roof decking. Another use is in structural insulated panels.
Explore More About OSB here: What is Oriented Strand Board (OSB) & How is it Made?
OSB vs. Plywood
OSB vs. Plywood
If you are deciding between oriented strand board (OSB) and plywood, the choice depends on your job. It also depends on your climate. It even depends on what you expect from your materials.
OSB sheets are usually bigger. This helps speed up work on site. You cover more space with fewer joints. That makes installation faster. Since OSB is made from compressed strands, it gives you a consistent panel every time. You don’t have to worry about soft spots or knots.
Price-wise, OSB is almost always cheaper. For a standard home, it might reduce your costs by $700 or more. It is made from smaller, fast-growing trees like poplar. This is why many people see it as the more sustainable option.
In hot and humid climates, OSB often holds together better than plywood. Plywood can start to peel or delaminate when it is constantly exposed to heat.
Plywood weighs less. This makes it easier to carry and install. It also releases fewer fumes. That matters if you are working indoors or if you are sensitive to air quality.
Plywood handles water better too. It might swell when wet, but it usually dries back to shape. OSB, once swollen, tends to stay that way. This can ruin a floor finish quickly.
Plywood feels firmer underfoot. It is about 10% stiffer. That means fewer squeaks and better support for tile or hardwood floors. When it comes to holding nails and screws, plywood’s grip lasts longer.
The main concern with OSB is moisture. It holds water longer and is more likely to rot, especially if made from softer woods. A major lawsuit proved this when thousands of homes had early OSB failure from decay.
Why Is Oriented Strand Board So Expensive Right Now?
If you have been to a construction site, hardware store, or renovation project recently, you have probably noticed something. Oriented strand board is not cheap. This leaves many people asking the same question. Why is oriented strand board so expensive these days?
The short answer is simple. Demand is higher than supply. But the full answer has more details.
One reason is extreme weather. Over the past decade, the U.S. has seen stronger storms and more frequent natural disasters. Every time a hurricane or tornado strikes, homes need repairs. New structures must be built. Temporary shielding needs to be installed quickly. All of these jobs require large amounts of oriented strand board. When these events happen on top of normal construction needs, the supply chain gets tight.
The OSB industry has also changed. Many small mills have been bought by larger companies. Now, only a few big manufacturers dominate the market. These companies are very efficient, but they produce carefully. They focus on maximizing profits by controlling how much they make. They study past demand, predict future trends, and produce just enough. They avoid making too much or too little.
Here is the problem. The number of buyers is growing, but the number of suppliers is shrinking. This creates what economists call an oligopoly. In this type of market, a few producers hold most of the power. When demand spikes, buyers — including wholesalers, retailers, builders, and even government agencies — compete for supply. Many end up accepting whatever price is offered just to get materials.
A surge in demand can happen for many reasons. Sometimes, everyone places large orders at the same time. Other times, there is a supply issue. A mill might shut down for maintenance. A fire might cause delays. Raw materials might arrive late. When production slows, prices rise.
So yes, oriented strand board costs more now. It is not because of one single reason. It is because of several factors coming together — weather, fewer suppliers, higher demand, and limited production.
Unless there is a major change in how OSB is made or sold, these high prices are likely to stay.
OSB Production Trends in Europe
The 2023 numbers show how the oriented strand board market is doing in Europe. They tell a story of cautious recovery.
In 2023, total OSB production across the EU27, UK, and EFTA countries reached 6.6 million cubic meters.
This was 2.1% higher than in 2022. It was a welcome change after a steep 10.5% drop in 2022.
The decline in 2022 was not surprising. Material shortages played a big role. High energy costs added more pressure. The construction market was still recovering from the pandemic. These issues slowed nearly all areas of the building materials sector.
The growth in 2023, even if small, was a good sign. It showed that demand for OSB is starting to stabilize. Production is still lower than the peak between 2016 and 2019. Back then, annual output was just under 8 million cubic meters. But it is slowly moving back toward those levels.
In 2024, production kept growing. It increased by another 0.5%. That brought the total close to 7 million cubic meters.
This is not a large increase. Still, it shows steady progress. Production had fallen after its peak in 2020. Now, every bit of growth feels like a step forward.
The outlook for 2025 is positive. Experts expect OSB production in Europe to grow by just over 3% per year. The growth will come from more construction activity and a bigger push for eco-friendly materials.
Builders are choosing OSB because it is strong. It is affordable. It is made from fast-growing trees. This makes it good for both performance and sustainability.
The trend is not just in Europe. In 2024, OSB production worldwide reached 36.3 million cubic meters. By 2033, it is expected to reach nearly 50 million cubic meters.
This is steady growth of about 3.6% per year. It shows that OSB is not just recovering. It is becoming one of the main choices for modern, efficient building.
FAQs
How did oriented strand board (OSB) get its name?
In 1965, Armin Elmendorf created a wood panel made from pressed strands. He called it waferboard at first. It took years of changes and testing before people accepted it. Eventually, it was renamed oriented strand board. The name reflects how the strands are aligned in each layer to add strength. It means exactly what it says — strands, laid with purpose.
How heavy is oriented strand board?
The weight of OSB depends on its thickness and the type of wood used. A 12 mm thick panel (about 4×8 feet) usually weighs around 20 kg. It is not very light, but it is manageable. You may need two hands or a helper to move a stack. On-site, most builders find it easy enough to handle.
How is oriented strand board made?
OSB starts with stripped logs. These are often aspen, pine, or spruce. The logs are sliced into long, narrow strands. The strands are dried and coated with moisture-resistant resin. Then, they are pressed into sheets. The outer layers run along the length of the board. The inside layers cross over each other like a woven mat. This is what gives OSB its strength.
How do you paint oriented strand board?
You can paint OSB, but preparation is important. If it feels rough, sand it lightly. Apply a primer made for wood composites. When it is dry, use a good latex paint. Choose interior or exterior paint depending on your space. The texture of the strands may still show, but that is part of OSB’s natural character.
Why is oriented strand board so expensive?
The main reason is supply and demand. There are more builders, more storms, and more global projects. All of these increase demand for OSB. At the same time, only a few big companies make most of it. Prices rise when demand grows or supply falls. Higher costs for raw materials and transport also keep prices high.