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What changed in UFP INDUSTRIES INC's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of UFP INDUSTRIES INC's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+110 added−97 removedSource: 10-K (2024-02-28) vs 10-K (2023-03-01)

Top changes in UFP INDUSTRIES INC's 2023 10-K

110 paragraphs added · 97 removed · 84 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

52 edited+17 added−9 removed15 unchanged
Biggest changeOur construction segment is comprised of the following business units – Factory-Built Housing, Site-Built Construction, Commercial Construction, and Concrete Forming. 4 Factory-Built Housing . This business unit designs and manufactures roof trusses, lumber cut and shaped to the customer's specification, plywood, oriented strand board and dimensional lumber, all intended for use in the construction of manufactured housing.
Biggest changeThis business unit designs and manufactures roof trusses, cut-to-size dimensional and board lumber, plywood, and oriented strand board, all intended for use in the construction of manufactured housing. Our customers in this market are producers of mobile, modular and prefabricated homes and, to a lesser extent, recreational vehicles (RV) and cargo trailers.
We currently supply customers in these markets from manufacturing facilities located in many different states, primarily located in the non-urban Northeast, mid-Atlantic, Southeast, Texas, and Colorado. We have intentionally avoided markets that have experienced more severe volatility and demand for housing.
We currently supply customers in these markets from manufacturing facilities in many different states, primarily located in the non-urban Northeast, mid-Atlantic, Southeast, Texas, and Colorado. We have intentionally avoided markets that have experienced more severe demand volatility for housing.
The relationships with our major customers are such that we are either the exclusive supplier of certain products and/or certain geographic areas, or the designated source for a specified portion of the customer's requirements. In such cases, either we are able to forecast the customer's requirements, or the customer may provide an estimate of its future needs.
The relationships with our major customers are such that we are either the exclusive supplier of certain products and/or certain geographic areas, or the designated source for a specified portion of a customer's requirements. In such cases, either we are able to forecast the customer's requirements, or the customer may provide an estimate of its future needs.
Our business segments consist of UFP Retail Solutions, UFP Packaging and UFP Construction and align with the end markets we serve. Among other things, this structure allows for a more specialized and consistent sales approach among Company operations, more efficient use of resources and capital, and quicker introduction of new products and services.
Our business segments consist of UFP Retail Solutions, UFP Packaging and UFP Construction and align with the end markets we serve. Among other things, this structure allows for a specialized and consistent sales approach among Company operations, efficient use of resources and capital, and quicker introduction of new products and services.
The Corporate segment includes purchasing, transportation and administrative functions that serve our operating segments. Operating results of Corporate primarily consists of over (under) allocated costs, the operating results of UFP Real Estate, Inc., which owns and leases real estate, and UFP Transportation Ltd., which owns, leases and operates transportation equipment, are also included in Corporate.
The Corporate segment includes purchasing, transportation, corporate ventures, and administrative functions that serve our operating segments. Operating results of Corporate primarily consists of over (under) allocated costs. The operating results of UFP Real Estate, Inc., which owns and leases real estate, and UFP Transportation Ltd., which owns, leases and operates transportation equipment, are also included in Corporate.
Also, we believe that the diversification and manner in which we operate our business provides an inherent hedge against the inevitable business cycles that our markets experience and over which we have little control. Accordingly, our goal is to provide more stable earnings and cash flows to our shareholders.
Also, we believe that the diversification and manner in which we operate our business provides an inherent hedge against the inevitable business cycles that our markets experience and over which we have little control. Accordingly, our goal is to provide stable earnings and cash flows to our shareholders.
Our diversification and operating practices also mitigate the impact of more volatile lumber market conditions experienced by traditional lumber companies. Retail Solutions segment . Our Retail Solutions segment is comprised of the following business units: ProWood, Sunbelt, Deckorators and UFP-Edge. The Retail Solutions segment is focused on distinct product offerings which are grouped by brands and business units.
Our diversification and operating practices also mitigate the impact of volatile lumber market conditions experienced by traditional lumber companies. Retail Solutions segment . Our Retail Solutions segment is comprised of the following business units: ProWood, Deckorators and UFP-Edge. The segment is focused on distinct product offerings which are grouped by brands and business units.
As a result of these advantages, we estimate we produce approximately 45% of all roof trusses used in factory-built housing in the United States. We also distribute products such as siding, electrical, plumbing, and many other specialty products to factory-built housing and RV customers. Site-Built Construction .
As a result of these advantages, we estimate we produce approximately 45% of all roof trusses used in factory-built housing in the United States. We also distribute products such as siding, electrical, plumbing, and many other specialty products to factory-built housing and RV customers.
Information relating to current developments in our business is incorporated by reference from our Annual Report to Shareholders for the fiscal year ended December 31, 2022 ("2022 Annual Report") under the caption "Management’s Discussion and Analysis of Financial Condition and Results of Operations." Selected portions of the 2022 Annual Report are filed as Exhibit 13 with this Form 10-K Report.
Information relating to current developments in our business is incorporated by reference from our Annual Report to Shareholders for the fiscal year ended December 30, 2023 ("2023 Annual Report") under the caption "Management’s Discussion and Analysis of Financial Condition and Results of Operations." Selected portions of the 2023 Annual Report are filed as Exhibit 13 with this Form 10-K Report.
We believe that the duration of our relationships with many of our customers, which extend over several decades with certain key customers, is a reflection of our strong sales culture and intense focus on providing custom solutions. 2 Our growth, including the growth in the size and number of our customers, generated increased demand for a deeper understanding of the markets we serve as well as the need to offer more complete solutions, services, and products for existing and prospective customers.
We believe that the duration and durability of our relationships with many of our customers, which extend over several decades with certain key customers, is a reflection of our strong sales culture and intense focus on providing custom solutions. 2 The growth in our business, and in the size and number of our customers, generated an increased need for a deeper understanding of the markets we serve, as well as the need to offer more complete solutions, services, and products for existing and prospective customers.
The results and improvements from these investments are shared among the segments. This exchange of improvements and ideas has also prompted better and faster innovation for new products, processes, and product improvements. Importantly, the restructuring allows us to better evaluate market conditions and opportunities and more effectively allocate capital and resources to the appropriate segments and business units.
The results and improvements from these investments are shared among the segments. This exchange of improvements and ideas has also prompted better and faster innovation for new products, processes, and product improvements. Importantly, the restructuring allows us to better evaluate market conditions and opportunities, while effectively allocating capital and resources to the appropriate segments and business units.
Our customers in this market are primarily large-volume, multi-tract builders and smaller volume custom builders. We also supply builders engaged in multi-family and light commercial construction. We currently estimate that approximately 75% of the unit's business is for single-family homes while 25% is for multi-family structures.
Our customers in this market are primarily large-volume, multi-tract builders and smaller volume custom builders. We also supply builders engaged in multi-family and light commercial construction. We currently estimate that approximately 65% of the unit's business is for single-family homes while 35% is for multi-family structures.
As a result of these strengths, we estimate we produce approximately 6% of all engineered wood components used in housing in the United States. Generally, terms of sale and pricing are determined based on contracts we entered into with our customers.
As a result of these strengths, we estimate we produce approximately 12% of all engineered wood components used in housing in the United States. Generally, terms of sale and pricing are determined based on contracts we enter into with our customers.
Item 1. Business. General Development of the Business. UFP Industries, Inc. (“we” or “our”) is a holding company with subsidiaries throughout North America, Europe, Asia, and Australia that supply products primarily manufactured from wood, wood and non-wood composites, and other materials to three markets: retail, packaging, and construction. We are headquartered in Grand Rapids, Michigan.
Item 1. Business. General Development of the Business. UFP Industries, Inc. (“we” or “our”) is a holding company with subsidiaries throughout North America, Europe, Asia, and Australia that design, manufacture and supply products made from wood, composites, and other materials to three markets: retail, packaging, and construction. We are headquartered in Grand Rapids, Michigan.
This business unit designs, manufactures and supplies wood forms and related products that are used by our customers to set or form concrete for various structures, including large parking garages, stadiums, bridges, water treatment plants, and other large infrastructure projects. Our customers in this business unit include general contractors as well as distributors.
This business unit designs, manufactures and supplies wood forms and related products that are used by our customers to set or form concrete for various structures, including large parking garages, stadiums, commercial structures, and infrastructure projects such as bridges. Our customers in this business unit include general contractors as well as distributors.
Additionally, we purchased approximately $911.2 million in plywood in 2022. There are numerous primary producers for all varieties we use, and we are not dependent on any particular source of supply. Intellectual Property . We own numerous patents and have several patents pending on technologies related to our business.
Additionally, we purchased approximately $571.7 million in plywood in 2023. There are numerous primary producers for all varieties we use, and we are not dependent on any particular source of supply. Intellectual Property . We own numerous patents and have several patents pending on technologies related to our business.
These business units include our branded ProWood line of pressure-treated and fire retardant products used primarily for outdoor decking environments, including associated accessories. It also includes our branded Outdoor Essentials line of lawn and garden products, consisting of wood and vinyl fencing options, garden beds and planters, pergolas, picnic tables, and other landscaping products.
This business unit includes our branded ProWood line of pressure-treated and fire-retardant products used primarily for outdoor decking environments, including associated accessories. It also includes our branded Outdoor Essentials line of lawn and garden products, consisting of wood and vinyl fencing and lattice, garden beds and planters, pergolas, picnic tables, and other landscaping products.
See Note M "Segment Reporting" of the registrant's Annual Report to Shareholders for the fiscal year ended December 31, 2022 for our disaggregated net sales by business unit for our Retail Solutions segment. Packaging segment . Formerly known as our Industrial segment, this segment is comprised of the following business units: Structural Packaging, PalletOne, and Protective Packaging Solutions.
See Note M "Segment Reporting" of our Annual Report to Shareholders for the fiscal year ended December 30, 2023 for our disaggregated net sales by business unit for our Retail Solutions segment. Packaging segment . Formerly known as our Industrial segment, it is comprised of the following business units: Structural Packaging, PalletOne, and Protective Packaging Solutions. Structural Packaging .
We serve a wide variety of regional, national, and global customers in several end markets (also referred to by us as "runways") such as durable goods, household goods, agricultural, moving and storage, heavy equipment and automotive. We utilize combinations of various materials through industrial engineering and testing to promote the best value and functionality for our customers. PalletOne .
We serve a wide variety of regional, national, and global customers in several end markets such as building materials, durable goods, agricultural, moving and storage, heavy equipment and automotive. We utilize combinations of various materials through industrial engineering and testing to promote the best value and functionality for our customers.
On December 31, 2022 and December 25, 2021, we estimate that backlog orders associated with our site-built construction businesses approximated $91.1 million and $113.5 million, respectively. We expect that the orders above will be primarily filled within the next fiscal year; however, it is possible that some orders could be canceled. Environmental .
On December 30, 2023 and December 31, 2022, we estimate that backlog orders associated with our site-built construction businesses approximated $79.7 million and $91.1 million, respectively. We expect that the orders above will be primarily filled within the next fiscal year; however, it is possible that some orders could be canceled. Environmental .
Also, the states in which we have a presence are currently benefiting from recent population migration trends in the United States. Freight costs are a factor in the ability to competitively service this market due to the space requirements of these products on each truckload.
Also, the states in which we have a presence are forecast to continue to benefit from migration trends in the United States. Freight costs are a factor in the ability to competitively service this market due to the space requirements of these products on each truckload.
Structural Packaging . This business unit designs, engineers, manufactures and tests custom packaging products primarily made of wood. These products are custom designed and manufactured based upon specific customer needs and requirements.
This business unit designs, engineers, manufactures and tests custom packaging products primarily made of wood and metal. These products are custom designed, often including mixed materials, and manufactured based upon specific customer needs and requirements.
This segment services two of our largest customers, The Home Depot and Lowes, which accounted for approximately 15% and 11%, respectively, of our total net sales in fiscal 2022, 16% and 10%, respectively, in 2021, and 24% and 4%, respectively, in 2020.
The Retail segment services two of our largest customers, The Home Depot and Lowes, which accounted for approximately 17% and 12%, respectively, of our total net sales in fiscal 2023, 15% and 11%, respectively, in 2022, and 16% and 10%, respectively, in 2021.
Also available through our Internet website under "Corporate Governance" in the Investor Relations section is our Code of Ethics for Senior Financial Officers. Reports to Security Holders. Not applicable. Enforceability of Civil Liabilities Against Foreign Persons. Not applicable.
Also available through our Internet website under "Our Company - Governance" is our Code of Ethics for Senior Financial Officers. Reports to Security Holders. Not applicable. Enforceability of Civil Liabilities Against Foreign Persons. Not applicable. 7
We manage the operations of our individual locations primarily through a market-centered reporting structure under which each location is included in a business unit and business units are included in our Retail, Packaging, and Construction segments.
We manage the operations of our individual locations primarily through a market-centered reporting structure under which each location is included in a business unit and business units are included in our Retail, Packaging, and Construction segments. In the case of locations that serve multiple segments, results are allocated and accounted for by segment.
The maximum time between receipt of a firm order and shipment does not usually exceed a few days. Therefore, we would not normally have a backlog of unfilled orders in a material amount.
Due to the nature of our retail and industrial businesses, backlog information is not meaningful. The maximum time between receipt of a firm order and shipment does not usually exceed a few days. Therefore, we would not normally have a backlog of unfilled orders in a material amount.
Competition consists of a number of national and regional building products dealers who also manufacture components and/or provide framing services, as well as many regional manufacturers of engineered wood components.
Competition in site-built construction consists of numerous national and regional building products dealers who also manufacture components and/or provide framing services, as well as regional manufacturers of engineered wood components.
During 2022 our annual purchases of lumber totaled approximately $3.0 billion and consisted of the following species and their respective percent of total lumber purchases: southern yellow pine (60%), spruce-pine-fir (19%), and douglas fir (4%), while the remaining 17% of lumber purchases comprise various other species and imports outside of North America.
During 2023 our annual purchases of lumber totaled approximately $2.2 billion and consisted of the following species and their respective percent of total lumber purchases: southern yellow pine (69%), spruce-pine-fir (13%), and douglas fir (2%), while the remaining 16% of lumber purchases comprise various other species and imports outside of North America.
We quantify our Scope 1 and Scope 2 greenhouse gas (GHG) emissions and are committed to disclosing our Scope 1 and Scope 2 GHG emissions in 2023. 6 We are driven by operational excellence throughout the enterprise and by cultivating a unique culture that provides significant opportunity for professional and personal growth.
We quantified our 2022 Scope 1 and Scope 2 greenhouse gas (GHG) emissions in our fiscal year 2022 Governance Report and plan to disclose our 2023 Scope 1 and Scope 2 GHG emissions in 2024. We are driven by operational excellence throughout the enterprise and by cultivating a unique culture that provides significant opportunity for professional and personal growth.
We believe the breadth of our product offering, scale and geographic dispersion, proximity of our plants to core customers, product innovation initiatives, purchasing and manufacturing expertise, and service capabilities provide competitive advantages in this market.
We believe the breadth of our product offering, scale and geographic dispersion, proximity of our plants to core customers and key vendors, product innovation initiatives, purchasing and manufacturing expertise, procurement advantages, and service capabilities provide us a competitive edge in this market. 3 We supply customers in this segment from many of our locations.
This has allowed us to maintain long-term relationships with many of those suppliers. In turn, this has allowed us to better manage our raw materials inventory (including managed inventory), lower our costs, and mitigate the volatility of lumber prices. 5 We use primarily southern yellow pine in our pressure-treating operations and site-built component plants in the Southeastern United States.
In turn, this has allowed us to better manage our raw materials inventory (including vendor-managed inventory), lower our costs, and mitigate the volatility of lumber prices. We use primarily southern yellow pine in our pressure-treating operations and our site-built housing, structural packaging, and machine-built pallet operations in the Southeastern United States.
This business unit designs and manufactures pallets primarily made out of wood and heat-treated wood. Our pallets are designed and manufactured in numerous sizes and compositions and are used by our customers for shipping a wide assortment of consumer and industrial products. This business unit also includes a large recycling operation of previously used pallets. Protective Packaging Solutions .
Our pallets are designed and manufactured in numerous sizes and configurations and are used by our customers for shipping a wide assortment of consumer and industrial products. This business unit also includes a recycling operation of previously used pallets.
This approach to human capital, which is embedded in the Company's culture, has fostered an environment where our employees often commit their respective careers to UFP Industries, Inc. Environmental, Social, and Governance .
We treat our people honestly and fairly, creating career paths and training opportunities to develop and expand their scope of responsibilities and financial rewards. This approach to human capital, which is embedded in the Company's culture, has fostered an environment where our employees often commit their respective careers to UFP Industries, Inc. Environmental, Social, and Governance .
In neither case, however, will we receive firm orders until just prior to the anticipated delivery dates for the products in question. On December 31, 2022 and December 25, 2021, we estimate that backlog orders associated with our customized interior fixture businesses approximated $136.7 million and $84.6 million, respectively.
In neither case, however, will we receive firm orders until just prior to the anticipated delivery dates for the products ordered. On December 30, 2023 and December 31, 2022, we estimate that backlog orders associated with our customized interior fixture businesses approximated $59.2 million and $90.1 million, respectively. Cancelled orders have been removed from the prior year figure.
Over the last five years, we have added additional products and services to this business unit to meet the increasing demand of our customers to provide innovative solutions to their packaging and shipping needs. Competition in our structural packaging and PalletOne business units is fragmented and includes numerous suppliers of wood components convenient to the customer.
Over the last five years, we have added additional products and services to this business unit to meet the increasing demand of our customers to provide a wider array of innovative solutions to their packaging and shipping needs.
Southern yellow pine is sourced from mills located throughout the states comprising the Sunbelt. Other species we use include "spruce-pine-fir" from various provinces in Canada; hemlock, douglas fir and cedar from the Pacific Northwest; inland species of pine, plantation grown radiata and southern yellow pines from South America; and European spruce.
Southern yellow pine is sourced from mills ranging from Texas to the Carolinas. We also use spruce-pine-fir from both Eastern and Western Canada; hemlock, douglas fir and cedar from the Pacific Northwest; inland species of pine, plantation grown radiata and southern yellow pines from South America; and various European softwoods.
We also provide framing services for builders in certain regional markets in which we erect the wood structure. Commercial Construction . Our commercial construction business unit primarily includes the operations of idX Holdings, Inc.
We also provide framing services for builders in certain regional markets in which we erect the wood structure. Commercial Construction . Our commercial construction business unit primarily includes the operations of idX Holdings, Inc. idX is a designer, manufacturer and installer of highly customized interior fixtures, casework and architectural millwork used in a variety of retail and commercial structures.
While we believe our patent and trademark rights are valuable, the loss of a patent or any trademark would not be likely to have a material adverse impact on our competitive position. Backlog . Due to the nature of our retail and industrial businesses, backlog information is not meaningful.
As we develop proprietary brands, we may pursue registration or other formal protection. While we believe our patent and trademark rights are valuable, the loss of a patent or any trademark would not be likely to have a material adverse impact on our competitive position. Backlog .
This business unit consists of a wide variety of products and solutions, such as corrugate, foam, labels, strapping and films. These products are primarily sold as additional offerings to our structural packaging products and pallets and are generally sold as a means of providing a more complete solution to our customers' packaging desires and requirements.
These products are primarily sold as additional offerings to our structural packaging products and pallets and are generally sold as a means of providing a more complete solution to our customers' packaging needs and requirements.
Information required for environmental disclosures is incorporated by reference from Note L of the Consolidated Financial Statements presented under Item 8 herein. Seasonality . Information required for seasonality disclosures is incorporated by reference from Item 1A. Risk Factors under the caption “ Seasonality and weather conditions could adversely affect us .” Human Capital Management .
Information required for environmental disclosures is incorporated by reference from Note L of the Consolidated Financial Statements presented under Item 8 herein. 6 Seasonality . Information required for seasonality disclosures is incorporated by reference from Item 1A.
These groupings may change periodically as opportunities to gain efficiencies or development of bigger scale and synergy products are created. ProWood and Sunbelt . Our ProWood and Sunbelt business units manufacture and sell treated lumber products, including decking, fencing, lattice and similar products, as well as decorative and functional lawn and garden products.
These groupings may change periodically as opportunities to gain efficiencies occur or development of products that deliver increased scale and synergy are developed. ProWood . Our ProWood business unit manufactures and sells pressure-treated lumber products, including decking, fencing, and lattice, as well as decorative and functional lawn and garden products to building products retailers across the nation.
This business unit designs and manufactures roof and floor trusses, wall panels, I-joists and lumber packages as well as engineered wood components used to frame residential and light commercial projects. We have recently begun to manufacture and sell alternate materials components such as metal trusses, sheathed and pre-finished light gauge metal wall panels and aluminum decks and rail accessories.
This business unit designs and manufactures roof and floor trusses, wall panels, I-joists and lumber packages as well as engineered wood components used to frame residential and light commercial projects.
Our facilities are able to supply mixed truckloads of products that can be delivered to customers with rapid turnaround from receipt of an order. Freight costs are a factor in the ability to competitively service this market, especially with treated wood products because of their heavier weight.
Our facilities supply mixed truckloads of products, delivered to customers with rapid turnaround. Freight costs are a factor in the ability to competitively service this market, especially with treated wood products due to their weight. The proximity of our manufacturing facilities to customer locations is factored into annual sales programs.
Matters of sustainability, health and safety, employee welfare, supply chain management, and community engagement are managed by our executive team, with oversight from our Nominating and Corporate Governance, and Personnel and Compensation Committees.
Matters of sustainability, health and safety, employee welfare, supply chain management, and community engagement are managed by our executive team, with oversight from our Nominating and Corporate Governance and Personnel and Compensation Committees. In March 2023, we published on our website our fiscal year 2022 “Governance Report,” detailing our responsible practices as well as our future outlook.
This business unit manufactures and sells exterior siding, pattern, trim and facia products. These products include traditional wood, engineered wood and modified wood siding with a variety of finish and profile alternatives as well as primed wood trim boards and facia. It also includes interior pattern and trim products, as well as pre-painted and primed shiplap and project boards.
We estimate we manufacture 6% of all composite decking and railing in the U.S. UFP-Edge . This business unit manufactures and sells exterior siding, pattern, trim and facia products. These products include traditional wood, engineered wood and modified wood siding with a variety of finish and profile alternatives as well as primed wood trim boards and facia.
We will share our ESG Report in March of 2023, by publishing on our website, in which we will detail our current state as well as our future outlook. Our manufacturing operations have a long history of environmental stewardship through efficiency and energy savings, waste management, and responsible product sourcing.
We anticipate publishing on our website our fiscal year 2023 Governance Report during the second quarter of 2024. Our manufacturing operations have a long history of environmental stewardship through efficiency and energy savings, waste management, and responsible product sourcing.
These business units also manufacture and sell commodity based lumber primarily to independent, retail lumber yards. Deckorators . This business unit includes the manufacture of wood plastic composite and our patented mineral based, composite decking and related decking accessories, including non-wood railing systems, balusters, post caps, and similar products, as well as customized, non-wood fencing. UFP-Edge .
This business unit includes the manufacture of wood plastic composite and our patented Surestone mineral based composite decking and related decking accessories, including aluminum railing systems, balusters, post caps, and similar products, as well as customized, aluminum fencing. Customers include big box home improvement retailers, regional home centers and wholesale distributors.
See Note M "Segment Reporting" of the registrant's Annual Report to Shareholders for the fiscal year ended December 31, 2022 for our disaggregated net sales by business unit for our Construction segment. UFP Purchasing/Suppliers . We are one of the largest domestic buyers of solid sawn softwood lumber from primary producers (lumber mills).
See Note M "Segment Reporting" of our Annual Report to Shareholders for the fiscal year ended December 30, 2023 for our disaggregated net sales by business unit for our Construction segment. UFP Purchasing/Suppliers . Our purchasing team manages and purchases wood fiber for each of our segments.
We plan to continue to acquire companies with capabilities and product expertise that enhance our ability to offer valuable packaging solutions to our customers. See Note M "Segment Reporting" of the registrant's Annual Report to Shareholders for the fiscal year ended December 31, 2022 for our disaggregated net sales by business unit for our Packaging segment. Construction segment.
See Note M "Segment Reporting" of our Annual Report to Shareholders for the fiscal year ended December 30, 2023 for our disaggregated net sales by business unit for our Packaging segment. 4 Construction segment. Our construction segment is comprised of the following business units – Factory-Built Housing, Site-Built Construction, Commercial Construction, and Concrete Forming. Factory-Built Housing .
This restructuring, focused on our markets, is intended to allow us to better serve our customers, recognize and exploit market opportunities, enhance the efficiency of our operations, and improve the deployment of capital.
That need, combined with our growth objectives, required a structure that would reorient the company’s focus from geography to end markets. Our 2020 restructuring accomplished that objective and now allows us to better serve our customers, recognize and exploit market opportunities, enhance the efficiency of our operations, and improve the deployment of capital.
("idX"). idX is a designer, manufacturer and installer of highly customized interior fixtures, casework and millwork used in a variety of retail and commercial structures representing several end markets. This business unit serves customers throughout North America and to a lesser extent, Asia, in runways such as healthcare, hospitality, quick service restaurants, retail, and financial.
This business unit serves customers throughout North America and to a lesser extent, Asia and Europe, in healthcare, hospitality, quick service restaurants, retail, and financial, offering comprehensive, streamlined solutions and customized products while managing programs from concept through completion, on a global scale.
For 2022, we estimate that we purchased approximately 7% of the 53 billion board feet of North America softwood production. Our purchasing team manages and purchases wood fiber for each of our segments. The significance of our volume and variety of lumber dimensions purchased allows us to consume substantially all of what many of our mill suppliers produce.
The volume and variety of lumber dimensions purchased allows us to consume all grades and dimensions of what many of our mill suppliers produce, effecting and maintaining long-term, beneficial relationships with many of those suppliers.
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As a result, effective January 1, 2020, we restructured the manner in which we manage our business and serve our customers, prompting the formation of three business segments: Retail Solutions, Packaging, and Construction.
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Numerous pressure-treaters exist on local and regional scales with none approaching the volume sold by UFP. We estimate we produce approximately 28% of all residential treated wood, 9% of all wood fencing, and 8% of all fire-retardant wood products. Deckorators .
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We face competition on individual products from several different producers; however, the majority of these competitors tend to be regional in their efforts and/or do not offer the full line of products that are available from us.
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It also includes interior pattern and trim products, as well as pre-painted and primed shiplap and project boards. UFP-Edge is sold to home improvement retailers and two-step distributors. UFP Retail Solutions has numerous competitive advantages.
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We estimate we produce approximately 28% of all residential treated wood, 5-6% of all composite decking and accessories, and 9% of all wood and vinyl fencing in the United States. 3 We supply customers in this segment from many of our locations.
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In Structural Packaging there are regional companies that produce similar product lines, and small single-location competitors in most of our markets. We estimate our domestic market share in Structural Packaging to be 10-12%. PalletOne . This business unit designs and manufactures pallets primarily made of wood and heat-treated wood.
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The proximity of our regional facilities to the various outlets of these customers is a factor when developing and establishing annual sales programs.
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Keys to our success in this business unit are low-cost production through expanded automation, including robotics and high efficiency pallet machines, and the procurement of competitively priced industrial grade wood fiber. In 2022 the company acquired a 50% equity stake in Dempsey Wood Products, LLC, which produces pallet lumber and other industrial wood products in Orangeburg, South Carolina.
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We service this segment with our dedicated regional and national sales teams. We believe we currently supply approximately 15% of all domestic customized structural packaging and have a 10% market share of new machine-built wood pallets. Our Protective Packaging business unit includes recent acquisitions: Advantage Label, Titan Corrugated, and All Boxed Up.
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The lumber Dempsey produces is a crucial product for pallet operations and has been in short supply as larger mills produce less of this type of lumber. PalletOne’s investment in Dempsey helps it secure and grow a critical long-term supply source. There are numerous local and regional pallet manufacturers that compete with PalletOne.
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Our customers in this market are producers of mobile, modular and prefabricated homes and, to a lesser extent, recreational vehicles (RV).
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We estimate that, as the largest supplier, we manufacture approximately 10% of new machine-built pallets nationally. Protective Packaging Solutions . This business unit consists of a wide variety of products, such as corrugate, foam, labels, strapping and films.
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We believe that we have a market share of approximately 3% of the total domestic and architectural millwork market. Concrete Forming .
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Through the acquisitions of Advantage Label in Grand Rapids, MI, and Titan Manufacturing, a highly-automated corrugate converter in Flower Mound, TX, UFP has become a manufacturer of labels and corrugate boxes, two significant growth categories for UFP Packaging.
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In addition, we own numerous registered trademarks and claim common law trademark rights to several others. As we develop proprietary brands, we may pursue registration or other formal protection.
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Competitive advantages for UFP Packaging include: being a low cost pallet producer due to our supply agreements, investments in vertical integration, and level of automation in our manufacturing plants; our scale and ability to serve large global, national and regional customers; design and engineering expertise, coupled with our ability to manufacture structural packaging with mixed materials, allowing us to provide creative, value-added solutions to our customers; single-source supplier offering a wide breadth of products, allowing customers to buy more efficiently.
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On December 31, 2022, we had approximately 15,500 employees. For over 65 years, the success of our company has rested on the skill, motivation and performance of our employees. We treat our people honestly and fairly, creating career paths and training opportunities to develop and expand their scope of responsibilities and financial rewards.
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We plan to acquire companies across the industrial packaging spectrum with capabilities in product categories that allow us to fill geographical gaps that enhance our ability to offer valuable packaging solutions to our customers.
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Customer vertical integration strategies have affected us in certain regions, and we’ve taken steps to mitigate this risk by increasing our value as a supplier through innovation and low cost production. Site-Built Construction .
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Recent acquisitions, including Atlantic Prefab, Inc., Exterior Designs, LLC, and Patriot Building Systems, LLC, and Endurable Building Products have given the company manufacturing capability in alternate material components such as metal trusses, sheathed and pre-finished light gauge metal wall panels and aluminum balconies, decks and rail accessories.
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We’ve made a variety of investments in automation, allowing us to enhance efficiency and capacity in numerous UFP Construction operations. Our recently launched proprietary smartphone application, TrussTrax, provides a convenient, simple way for builders to track orders, shipments and engineered documents 24 hours a day, and has enjoyed wide customer adoption.
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We believe we are one of the top five custom interior environment providers globally and the largest diversified custom solutions provider. Concrete Forming .
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We believe we are unique in our ability to deliver highly engineered, factory-built solutions to job sites. 5 We believe the diversification of the end markets we serve in our Construction segment as well as the breadth of our products and services represent a competitive advantage.
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The three main end markets for softwood lumber in North America – retail, construction, and packaging – align with our three business segments We are the largest converter of solid sawn softwood lumber from North American primary producers (lumber mills). For 2023, we estimate we purchased approximately 8% of the 51.5 billion board feet of North America softwood lumber production.
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Examples include our Deckorators brand of composite decking and railing and its proprietary, patented Surestone technology used to produce mineral-based composite decking; Trusstrax, mobile application offered to our Site-Built customers; and the ProWood brand of pressure-treated lumber and outdoor living products. In addition, we own numerous registered trademarks and claim common law trademark rights to several others.
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Risk Factors under the caption “ Seasonality and weather conditions, including those arising from climate change, could adversely affect us .” Human Capital Management . On December 30, 2023, we had approximately 15,800 employees. For nearly 70 years, the success of our company has rested on the skill, motivation and performance of our employees.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeWhile we believe treated products are reasonably priced relative to alternative products such as composites or vinyl, new alternatives may impact the sales of treated wood products. In addition, new preservatives could increase our cost of treating products in the future. Cybersecurity breaches and a failure in our e-commerce operations and could disrupt our business.
Biggest changeNew alternatives may be developed to replace traditional treated wood products. The manufacturers of wood preservatives continue to develop new preservatives. While we believe treated products are reasonably priced relative to alternative products such as composites or vinyl, new alternatives may impact the sales of treated wood products.
Business combinations involve inherent risks, including assimilation and successfully managing growth. While we conduct extensive due diligence and have taken steps to ensure successful assimilation, factors beyond our control could influence the relative success of these acquisitions. We may be adversely affected by the impact of environmental and safety regulations.
Business combinations involve inherent risks, including assimilation and successfully managing growth. While we conduct extensive due diligence and have taken steps to ensure successful assimilation, factors beyond our control could influence the relative success of these acquisitions. 8 We may be adversely affected by the impact of environmental and safety regulations.
Our sales growth is dependent, in part, upon the growth of the markets we serve. If our markets do not achieve anticipated growth, or if we fail to maintain our market share, financial results could be impaired. 7 We are subject to fluctuations in the price of lumber .
Our sales growth is dependent, in part, upon the growth of the markets we serve. If our markets do not achieve anticipated growth, or if we fail to maintain our market share, financial results could be impaired. We are subject to fluctuations in the price of lumber .
While we have planned for and anticipate a mild U.S. recession in 2023, any one or more of the above macroeconomic factors could result in a more severe and longer recessionary cycle, which would have an adverse and potentially material impact on our business and financial performance.
While we have planned for and anticipate a mild U.S. recession continuing into 2024, any one or more of the above macroeconomic factors could result in a more severe and longer recessionary cycle, which would have an adverse and potentially material impact on our business and financial performance.
If additional laws and regulations are enacted, which restrict our ability to manufacture and market our products, including our treated lumber products, it could adversely affect our sales and profits. Changes in the interpretation of existing laws could also adversely impact our financial results. Climate change - seasonality and weather conditions due to climate changes could adversely affect us .
If additional laws and regulations are enacted, which restrict our ability to manufacture and market our products, including our treated lumber products, it could adversely affect our sales and profits. Changes in the interpretation of existing laws could also adversely impact our financial results. Seasonality and weather conditions, including those arising from climate change, could adversely affect us .
Our bad debt expense as a percentage of sales was 0.15%, 0.01%, and 0.02%, in 2022, 2021, and 2020, respectively. During the most difficult collection period of the Great Recession, from 2008 through 2010, our bad debt expense as a percentage of sales averaged 0.25%. ​ Item 1B. Unresolved Staff Comments. Not applicable.
Our bad debt expense as a percentage of sales was 0.03%, 0.15%, and 0.01%, in 2023, 2022, and 2021, respectively. During the most difficult collection period of the Great Recession, from 2008 through 2010, our bad debt expense as a percentage of sales averaged 0.25%. ​ Item 1B. Unresolved Staff Comments. Not applicable.
Any such outbreak, as well as measures taken by governmental authorities and businesses to limit the spread of this virus, may result in an adverse change in customer demand and our sales, interfere with the ability of our employees and suppliers to perform and function in a manner consistent with targeted objectives and otherwise adversely impact the efficiency of our operations.
Any such outbreak, as well as measures taken by governmental authorities and businesses to limit the spread of any outbreak, may result in adverse changes in customer demand and our sales, interfere with the ability of our employees and suppliers to perform and function in a manner consistent with targeted objectives and otherwise adversely impact the efficiency of our operations.
We continue to monitor our customers’ business activities, payment patterns, and credit profiles carefully and make changes in our terms when necessary in response to this risk. As a result, our accounts receivable aging as of December 31, 2022 was approximately 87% current.
We continue to monitor our customers’ business activities, payment patterns, and credit profiles carefully and make changes in our terms when necessary in response to this risk. As a result, our accounts receivable aging as of December 30, 2023 was approximately 91% current.
As a result, we are vulnerable to additional risks and uncertainties associated with e-commerce sales, including rapid changes in technology, website downtime and other technical failures, security breaches, cyber-attacks, consumer privacy concerns, changes in state tax regimes and government regulation of internet activities.
Additionally, consumers are increasingly shopping online and through mobile commerce applications. As a result, we are vulnerable to additional risks and uncertainties associated with e-commerce sales, including rapid changes in technology, website downtime and other technical failures, security breaches, cyber-attacks, consumer privacy concerns, changes in state tax regimes and government regulation of internet activities.
Our sales to The Home Depot and Lowes comprised 15% and 11%, respectively, of our total net sales in fiscal 2022, 16% and 10%, respectively, in 2021, and 24% and 4%, respectively, in 2020. We may be impacted by vertical integration strategies.
Our sales to The Home Depot and Lowes comprised 17% and 12%, respectively, of our total net sales in fiscal 2023, 15% and 11%, respectively, in 2022, and 16% and 10%, respectively, in 2021. We may be impacted by vertical integration strategies.
We may be adversely affected by the impact of the COVID-19 (Coronavirus) pandemic and similar outbreaks. Disease outbreaks, such as the recent COVID-19 pandemic, could have an adverse impact on the Company's operations and financial results. These outbreaks may adversely impact our business, consolidated results of operations and financial condition.
Disease outbreaks, such as the recent COVID-19 pandemic, could have an adverse impact on the Company's operations and financial results. These outbreaks may adversely impact our business, consolidated results of operations and financial condition.
An increase in foreign tariffs on U.S. goods could curtail our export sales to other countries which was approximately $323.9 million in 2022.
An increase in foreign tariffs on U.S. goods could curtail our export sales to other countries which was approximately $246.3 million in 2023.
The impact of a change in U.S. dollar exchange rates, and inflation, would impact our import purchases and export sales, which totaled $761.1 million and $323.9 million, respectively, in 2022.
The impact of a change in U.S. dollar exchange rates, and inflation, would impact our import purchases and export sales, which totaled $391.2 million and $246.3 million, respectively, in 2023.
Inbound and outbound transportation costs represent a significant part of our cost structure. An increase in fuel and other operating expenses will significantly increase our costs. While we attempt to pass these costs along to our customers, there can be no assurance that they would agree to these price increases.
An increase in fuel and other operating expenses will significantly increase our costs. While we attempt to pass these costs along to our customers, there can be no assurance that they would agree to these price increases. Our total inbound and outbound transportation costs were approximately 9.4%, 7.4%, and 7.3% of net sales in 2023, 2022, and 2021, respectively.
Our lumber costs, including plywood, as a percentage of net sales were 49.6%, 47.7%, and 51.0% in 2022, 2021, and 2020, respectively. A significant portion of our sales are concentrated with two customers .
Our lumber costs, including plywood, as a percentage of net sales were 43.5% in 2023. A significant portion of our sales are concentrated with two customers .
We rely upon information technology systems and network products and the secure operation of these systems and products. Despite security measures, these systems and products may be vulnerable to physical damage, hackers, computer viruses, or breaches due to errors or malfeasance by employees, vendors, or customers.
Despite security measures, these systems and products may be vulnerable to physical damage, hackers, computer viruses, or breaches due to errors or malfeasance by employees, vendors, or customers. We have experienced such events in the past and, although past events were immaterial, future events may occur and may be material.
Our purchases that are impacted by tariffs were approximately $761.1 million in 2022, including UFP’s U.S. import of Canadian Softwood Lumber of approximately $496.1 million, which is the largest imported commodity. In addition, there is a risk that U.S. tariffs on imports and countering tariffs on U.S. exports could trigger broader international trade conflicts that could adversely impact our business.
Our purchases that are impacted by tariffs were approximately $391.2 million in 2023, including UFP’s U.S. import of Canadian Softwood Lumber of approximately $223.8 million, which is the largest imported commodity.
Item 1A. Risk Factors. Pressures from various macroeconomic events, including recessionary concerns, heightened inflation, increased interest rates, rising energy prices, supply chain disruptions, and repercussions from the Russia-Ukraine war, have created, and continue to create, significant economic uncertainty and could materially and adversely impact our financial performance.
Pressures from various global and national macroeconomic events, including recessionary concerns, heightened inflation, uncertainty regarding future interest rates, foreign currency exchange rate fluctuations, recent adverse weather conditions, escalating tensions in the Middle East, the continuation of the Russia-Ukraine war, and potential governmental responses to these events have created, and continue to create, significant economic uncertainty and could materially and adversely impact our financial performance.
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Our total inbound and outbound transportation costs were approximately 7.4%, 7.3%, and 9.2% of net sales in 2022, 2021, and 2020, respectively. 8 New alternatives may be developed to replace traditional treated wood products. The manufacturers of wood preservatives continue to develop new preservatives.
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In addition, it is possible that new legislation or regulation enacted to address the impact of climate change could increase costs for us and our suppliers, including costs associated with raw materials, energy, production, transportation, environmental monitoring and reporting, and capital expenditures. Inbound and outbound transportation costs represent a significant part of our cost structure.
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We have experienced such events in the past and, although past events were immaterial, future events may occur and may be material. Additionally, consumers are increasingly shopping online and through mobile commerce applications.
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In addition, new preservatives could increase our cost of treating products in the future. Cybersecurity breaches or a failure in our e-commerce operations could disrupt our business. We rely upon information technology systems and network products and the secure operation of these systems and products.
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In addition, there is a risk that U.S. tariffs on imports and countering tariffs on U.S. exports could trigger broader international trade conflicts that could adversely impact our business. 9 Our financial results could be negatively impacted by costs associated with product liability, casualty, manufacturing and construction defects, and other claims.
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From time to time, we are exposed to claims relating to product liability, casualty events, manufacturing and construction defects, and similar claims, including as the result of the conduct of our employees and subcontractors.
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These claims could have a negative impact on our results of operation and financial condition, including through increased litigation costs, insurance-related costs, and damage to our reputation and customer relationships. We may be adversely affected by the impact of pandemics and similar outbreaks.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeDue to the nature of our business and historical operating strategy, many of our locations service more than one segment. ​ ​ ​ ​ ​ ​ ​ RETAIL SEGMENT Property Location ​ Number of Properties ​ Property Location ​ Number of Properties Athens, AL ​ 1 ​ Moultrie, GA ​ 1 Bonner, MT ​ 2 ​ Ponce, PR ​ 1 Brunswick, GA ​ 1 ​ Poulsbo, WA ​ 1 Dodgeville, WI ​ 1 ​ Prairie du Chien, WI ​ 2 Elizabeth City, NC ​ 1 ​ Ranson, WV ​ 2 Failess Hills, PA ​ 1 ​ Ringgold, GA ​ 1 Greeneville, TN ​ 1 ​ Rockledge, FL ​ 1 Greer, SC ​ 1 ​ Rockwell, NC ​ 1 Hamilton, OH ​ 1 ​ Saginaw, TX ​ 1 Hampton, VA ​ 1 ​ Schertz, TX ​ 1 Harrisonville, MO ​ 3 ​ Selma, AL ​ 1 Hazelhurst, GA ​ 1 ​ Silsbee, TX ​ 1 Howell, MI ​ 2 ​ Stockertown, PA ​ 1 Janesville, WI ​ 1 ​ Tampa, FL ​ 1 Lansing, MI ​ 1 ​ Tipton, IA ​ 2 Lockhart, FL ​ 1 ​ Union City, GA ​ 1 Louisville, AL ​ 1 ​ White Bear Lake, MN ​ 1 Matthews, NC ​ 1 ​ White Pigeon, MI ​ 1 Moneta, VA ​ 1 ​ Windsor, CO ​ 1 Mosheim, TN ​ 1 ​ TOTAL ​ 46 ​ ​ ​ ​ ​ ​ ​ PACKAGING SEGMENT Property Location ​ Number of Properties ​ Property Location ​ Number of Properties Adairsville, GA ​ 1 ​ Miami, FL ​ 1 Ashburn, GA ​ 2 ​ Milwaukee, WI ​ 1 Auburndale, FL ​ 2 ​ Mocksville, NC ​ 1 Barnesville, GA ​ 1 ​ Morristown, TN ​ 3 Bartow, FL ​ 3 ​ Muscle Shoals, AL ​ 1 Biscoe, NC ​ 1 ​ Nappanee, IN ​ 1 Blanchester, OH ​ 1 ​ New Boston, TX ​ 1 Blue Island, IL ​ 1 ​ New London, WI ​ 2 Bridgeton, MO ​ 1 ​ New Waverly, TX ​ 1 Burnsville, MN ​ 1 ​ Newnan, GA ​ 1 Butner, NC ​ 1 ​ Orangeburg, SC ​ 1 Chaffee, NY ​ 1 ​ Peru, IL ​ 1 Chandler, AZ ​ 2 ​ Port Arthur, TX ​ 1 Chase City, VA ​ 1 ​ Rancho Cucamonga, CA ​ 1 Clarksville, TX ​ 1 ​ Riverside, CA ​ 1 Dallas, TX ​ 1 ​ Robertsdale, AL ​ 1 Eatonton, GA ​ 1 ​ Rowesville, SC ​ 1 Flower Mound, TX ​ 2 ​ Salisbury, NC ​ 3 Franklinton, NC ​ 1 ​ Selma, AL ​ 1 Gilmer, TX ​ 1 ​ Shawnee, OK ​ 1 Grand Rapids, MI ​ 2 ​ Shipshewana, IN ​ 1 Grandview, TX ​ 4 ​ Siler City, NC ​ 1 Hartford, WI ​ 1 ​ Snohomish, WA ​ 1 Hazelhurst, GA ​ 1 ​ Thornton, CA ​ 1 Livermore Falls, ME ​ 1 ​ Warrens, WI ​ 1 Magna, UT ​ 2 ​ Wenatchee, WA ​ 1 Marietta, GA ​ 1 ​ Woodburn, OR ​ 2 Martin, TN ​ 3 ​ Yakima, WA ​ 1 McMinnville, OR ​ 1 ​ TOTAL ​ 76 ​ ​ ​ ​ ​ ​ ​ 10 CONSTRUCTION SEGMENT Property Location ​ Number of Properties ​ Property Location ​ Number of Properties Amsterdam, NL ​ 1 ​ Kyle, TX ​ 1 Athena, OR ​ 1 ​ Lafayette, CO ​ 1 Auburn, NY ​ 1 ​ Lenoir City, TN ​ 1 Aurora, CO ​ 1 ​ Liberty, NC ​ 1 Bangalore, India ​ 1 ​ Locust, NC ​ 1 Belchertown, MA ​ 1 ​ Londonderry, NH ​ 1 Berlin, NJ ​ 3 ​ Mexico City, Mexico ​ 1 Bridgeton, MO ​ 1 ​ Minneota, MN ​ 1 Brooklyn Center, MN ​ 1 ​ Nampa, ID ​ 1 Burlington, NC ​ 1 ​ Naugatuck, CT ​ 1 Cedar Hill, TX ​ 1 ​ New Hartford, NY ​ 1 Chesapeake, VA ​ 1 ​ New London, NC ​ 1 Chicago, IL ​ 1 ​ New Windsor, MD ​ 1 Clinton, NC ​ 1 ​ Ontario, CA ​ 1 Concord, ON ​ 1 ​ Ooltewah, TN ​ 1 Conway, SC ​ 1 ​ Parker, PA ​ 1 Cordele, GA ​ 1 ​ Pearisburg, VA ​ 1 Dayton, OH ​ 1 ​ Plainville, MA ​ 1 Delano, PA ​ 1 ​ San Antonio, TX ​ 2 DuBois, PA ​ 1 ​ Seattle, WA ​ 1 Edwardsburg, MI ​ 1 ​ Shippenville, PA ​ 1 Elkhart, IN ​ 1 ​ Sidney, NY ​ 1 Folkston, GA ​ 1 ​ Stafford, TX ​ 1 Fredericksburg, VA ​ 1 ​ Stanfield, NC ​ 1 Gordon, PA ​ 1 ​ Swindon, Witshire ​ 1 Granger, IN ​ 1 ​ Temple, TX ​ 1 Haleyville, AL ​ 3 ​ Washington, NC ​ 1 Helix, OR ​ 1 ​ Westbury, NY ​ 1 Hillsboro, TX ​ 1 ​ Wilton, NH ​ 1 Hudson, NY ​ 1 ​ Wujiang City, China ​ 1 Jefferson, GA ​ 1 ​ TOTAL ​ 66 ​ ​ ​ ​ ​ ​ ​ ALL OTHER SEGMENT Property Location ​ Number of Properties ​ Property Location ​ Number of Properties Apasseo el Grande, Mexico ​ 1 ​ Gunter, India ​ 1 Attibele, Anekal Taluka ​ 1 ​ Hyderabad, India ​ 1 Bangalore India ​ 1 ​ Kaniyur, Coimbatore, India ​ 1 Baramati, District Pune, India ​ 1 ​ Lacolle, Quebec ​ 1 Bengaluru, India ​ 1 ​ Miami, FL ​ 1 Cambiago, Italy ​ 1 ​ Mordialloc, Australia ​ 1 Carole Park, Australia ​ 1 ​ Nanekar Wadi, Chakan, Pune, India ​ 1 Chateauguay, Quebec ​ 1 ​ Nuevo Leon, Mexico ​ 1 Doddaballapur, Bangalore ​ 1 ​ Port Melbourne, Australia ​ 1 Durango, Mexico ​ 2 ​ Savli, Vadodara, India ​ 1 Erskine Park, Australia ​ 1 ​ Taluk, Kanchipuram District, India ​ 1 Greater Noida, India ​ 1 ​ Victoria, Australia ​ 1 ​ ​ ​ ​ TOTAL ​ 25 ​ ​ ​ ​ ​ ​ ​ CORPORATE SEGMENT ​ ​ ​ ​ Property Location ​ Number of Properties ​ ​ ​ ​ Grand Rapids, MI ​ 2 ​ ​ ​ ​ Kearneysville, WV ​ 1 ​ ​ ​ ​ Milwaukee, WI ​ 1 ​ ​ ​ ​ Spring Lake, MI ​ 1 ​ ​ ​ ​ TOTAL ​ 5 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ We own all of our properties, free from any significant mortgage or other encumbrance, except for approximately 113 facilities which are leased.
Biggest changeThe following tables summarize our property locations assigned by the primary segment the plant serves. ​ ​ ​ ​ ​ ​ ​ RETAIL SEGMENT Property Location ​ Number of Properties ​ Property Location ​ Number of Properties Athens, AL ​ 1 ​ Miami, FL* ​ 1 Bartow, FL ​ 2 ​ Moneta, VA ​ 1 Belchertown, MA ​ 1 ​ Mosheim, TN ​ 1 Bennett, IA ​ 1 ​ Moultrie, GA ​ 1 Bonner, MT ​ 2 ​ Ponce, PR ​ 1 Brunswick, GA ​ 1 ​ Poulsbo, WA ​ 1 Callao, VA ​ 1 ​ Prairie du Chien, WI ​ 1 Dodgeville, WI ​ 1 ​ Rancho Cucamonga, CA* ​ 1 Elizabeth City, NC* ​ 1 ​ Ranson, WV* ​ 1 Fairless Hills, PA ​ 1 ​ Ringgold, GA ​ 1 Fort Worth, TX ​ 1 ​ Rockledge, FL ​ 1 Grand Rapids, MI ​ 1 ​ Rockwell, NC ​ 1 Greeneville, TN ​ 1 ​ Saginaw, TX* ​ 1 Hamilton, OH ​ 1 ​ Schertz, TX* ​ 1 Hampton, VA ​ 1 ​ Selma, AL ​ 2 Hazelhurst, GA ​ 1 ​ Silsbee, TX ​ 1 Howell, MI ​ 2 ​ Stockertown, PA ​ 1 Idabel, OK ​ 1 ​ Tampa, FL ​ 2 Janesville, WI* ​ 1 ​ Thomaston, GA ​ 1 Kearneysville, WV* ​ 2 ​ Tipton, IA ​ 1 Lansing, MI* ​ 1 ​ Union City, GA* ​ 1 Lockhart, FL ​ 1 ​ White Bear Lake, MN* ​ 1 Louisville, AL ​ 1 ​ White Pigeon, MI ​ 1 Matthews, NC ​ 1 ​ Windsor, CO* ​ 1 ​ ​ ​ ​ TOTAL ​ 54 ​ ​ ​ ​ ​ ​ ​ PACKAGING SEGMENT Property Location ​ Number of Properties ​ Property Location ​ Number of Properties Adairsville, GA ​ 1 ​ Martin, TN ​ 1 Ashburn, GA* ​ 1 ​ McMinnville, OR* ​ 1 Auburndale, FL* ​ 1 ​ Milwaukee, WI ​ 2 Barnesville, GA ​ 1 ​ Minneota, MN* ​ 1 Bartow, FL ​ 2 ​ Mocksville, NC ​ 1 Blanchester, OH ​ 1 ​ Morristown, TN ​ 1 Blue Island, IL* ​ 1 ​ Muscle Shoals, AL ​ 2 Burnsville, MN ​ 1 ​ Nappanee, IN ​ 1 Butner, NC ​ 1 ​ New Boston, TX ​ 1 Chaffee, NY ​ 1 ​ New London, WI ​ 2 Chandler, AZ* ​ 1 ​ Newnan, GA ​ 2 Chase City, VA ​ 1 ​ Newton, NC ​ 1 Clarksville, TX ​ 1 ​ Orangeburg, SC ​ 1 Clearfield, UT* ​ 1 ​ Parker, PA ​ 1 Dallas, TX ​ 1 ​ Peru, IL ​ 1 Delano, PA ​ 1 ​ Port Arthur, TX ​ 1 Douglas, GA* ​ 1 ​ Prattville, AL ​ 1 Eatonton, GA ​ 2 ​ Riverside, CA* ​ 1 Flower Mound, TX ​ 2 ​ Robertsdale, AL ​ 1 Forsyth, GA ​ 1 ​ Rowesville, SC ​ 1 Franklinton, NC* ​ 1 ​ Salina, KS* ​ 1 Gilmer, TX ​ 1 ​ Salisbury, NC* ​ 1 Grand Rapids, MI ​ 2 ​ Sharon, TN ​ 2 Grandview, TX ​ 5 ​ Shawnee, OK ​ 1 Harrisonville, MO* ​ 1 ​ Shipshewana, IN ​ 1 13 Hartford, WI ​ 1 ​ Siler City, NC ​ 1 Hazelhurst, GA ​ 1 ​ Snohomish, WA* ​ 1 Kansas City, MO ​ 1 ​ Thornton, CA* ​ 1 Lawrenceburg, TN ​ 1 ​ Warrens, WI* ​ 1 Livermore Falls, ME ​ 1 ​ Wenatchee, WA ​ 1 Magna, UT* ​ 1 ​ Woodburn, OR* ​ 1 Marietta, GA ​ 1 ​ Yakima, WA ​ 1 ​ ​ ​ ​ TOTAL ​ 77 ​ ​ ​ ​ ​ ​ ​ CONSTRUCTION SEGMENT Property Location ​ Number of Properties ​ Property Location ​ Number of Properties Athena, OR ​ 1 ​ Jefferson, GA ​ 1 Auburn, NY ​ 1 ​ Jeffersonville, IN ​ 1 Aurora, CO ​ 1 ​ Kyle, TX ​ 1 Bangalore, India ​ 1 ​ Lafayette, CO ​ 1 Belchertown, MA ​ 1 ​ Lenoir City, TN ​ 1 Berlin, NJ ​ 2 ​ Liberty, NC ​ 1 Berthoud, CO ​ 1 ​ Locust, NC ​ 1 Bridgeton, MO ​ 1 ​ Londonderry, NH ​ 1 Brooklyn Center, MN ​ 1 ​ Nampa, ID* ​ 1 Burlington, NC ​ 2 ​ Naugatuck, CT ​ 1 Cedar Hill, TX ​ 1 ​ New London, NC* ​ 1 Chesapeake, VA ​ 1 ​ New Waverly, TX* ​ 1 Chicago, IL ​ 1 ​ New Windsor, MD ​ 1 Chicopee, MA ​ 1 ​ Ontario, CA ​ 1 Clinton, NC ​ 1 ​ Ooltewah, TN ​ 1 Conway, SC ​ 1 ​ Pearisburg, VA* ​ 1 Cordele, GA ​ 1 ​ Plainville, MA ​ 1 Dayton, OH ​ 2 ​ San Antonio, TX ​ 1 DuBois, PA ​ 1 ​ Shippenville, PA ​ 1 Edwardsburg, MI* ​ 1 ​ Sidney, NY ​ 1 Elkhart, IN ​ 2 ​ Stafford, TX ​ 1 Folkston, GA ​ 2 ​ Stanfield, NC ​ 2 Fredericksburg, VA ​ 1 ​ Swindon, United Kingdom ​ 1 Gordon, PA* ​ 1 ​ Temple, TX ​ 1 Granger, IN* ​ 1 ​ Washington, NC ​ 1 Haleyville, AL* ​ 1 ​ Westbury, NY ​ 1 Hillsboro, TX* ​ 1 ​ Wilton, NH ​ 1 Hudson, NY ​ 1 ​ Wujinang, China ​ 1 ​ ​ ​ ​ TOTAL ​ 62 ​ ​ ​ ​ ​ ​ ​ ALL OTHER SEGMENT Property Location ​ Number of Properties ​ Property Location ​ Number of Properties Abu Dhabi, United Arab Emirates ​ 1 ​ Erskine Park, Australia ​ 1 Apaseo el Grande, Mexico ​ 1 ​ Noida, India ​ 1 Bangalore, India ​ 3 ​ Guntur, India ​ 1 Carole Park, Australia ​ 1 ​ Hyderabad, India ​ 1 Castellón, Spain ​ 1 ​ Lacolle, Canada ​ 1 Chennai, India ​ 1 ​ Mordialloc, Australia ​ 1 Coimbatore, India ​ 1 ​ Nuevo Leon, Mexico ​ 1 Deer Park, Australia ​ 1 ​ Port Melbourne, Australia ​ 1 Dubai, United Arab Emirates ​ 1 ​ Pune, India ​ 1 Durango, Mexico ​ 2 ​ Vadodara, India ​ 1 ​ ​ ​ ​ TOTAL ​ 23 ​ ​ ​ ​ ​ ​ ​ CORPORATE SEGMENT ​ ​ ​ ​ Property Location ​ Number of Properties ​ ​ ​ ​ Grand Rapids, MI ​ 2 ​ ​ ​ ​ Spring Lake, MI ​ 1 ​ ​ ​ ​ TOTAL ​ 3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ * Due to the nature of our business and historical operating strategy, many of our locations service more than one segment. ​ We own all of our properties, free from any significant mortgage or other encumbrance, except for approximately 74 facilities which are leased.
We believe all of these operating facilities are adequate in capacity and condition to service our existing markets. 11
We believe all of these operating facilities are adequate in capacity and condition to service our existing markets. 14
Item 2. Properties. Our corporate headquarters building is located in suburban Grand Rapids, Michigan. We currently have approximately 218 facilities located throughout the United States, Canada, Mexico, Europe, Asia, and Australia.
Item 2. Properties. Our corporate headquarters building is located in suburban Grand Rapids, Michigan. We currently have approximately 219 facilities located throughout the United States, Canada, Mexico, Europe, Asia, and Australia. Depending upon function and location, these facilities typically utilize office, manufacturing, and indoor and outdoor storage space.
Removed
Depending upon function and location, these facilities typically utilize office, manufacturing, and indoor and outdoor storage space. 9 The following tables summarize our property locations assigned by the primary segment the plant serves.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeItem 4. Mine Safety Disclosures. Not applicable. Additional Item: Executive Officers of the Registrant. The following table lists the names, ages, and positions of our executive officers as of February 4, 2023. ​ ​ ​ ​ ​ Name Age Position Matthew J. Missad ​ 62 ​ Chariman of the Board and Chief Executive Officer Michael R.
Biggest changeThe following table lists the names, ages, and positions of our executive officers as of February, 2024. ​ ​ ​ ​ ​ Name Age Position Matthew J. Missad ​ 63 ​ Chairman of the Board and Chief Executive Officer Michael R. Cole ​ 57 ​ Chief Financial Officer and Treasurer Patrick M.
On July 19, 2000, Mr. Cole became Chief Financial Officer of the Company. Patrick M. Benton joined us in 1993. In 2008 he became Operations Vice President of the South Texas Region, and on July 1, 2014, he became Executive Vice President of UFP Eastern Division – North. On February 1, 2017, Mr.
Cole became Chief Financial Officer of the Company. Patrick M. Benton joined us in 1993. In 2008 he became Operations Vice President of the South Texas Region, and on July 1, 2014, he became Executive Vice President of UFP Eastern Division – North. On February 1, 2017, Mr.
PART II The following information items in this Part II, which are contained in the 2022 Annual Report, are specifically incorporated by reference into this Form 10-K Report. These portions of the 2022 Annual Report that are specifically incorporated by reference are filed as Exhibit 13 with this Form 10-K Report. 12
PART II The following information items in this Part II, which are contained in the 2023 Annual Report, are specifically incorporated by reference into this Form 10-K Report. These portions of the 2023 Annual Report that are specifically incorporated by reference are filed as Exhibit 13 with this Form 10-K Report. 15
Missad joined us in 1985. In February 1996, Mr. Missad was promoted to Executive Vice President of the Company. On July 13, 2011, Mr. Missad became Chief Executive Officer of the Company. Michael R. Cole joined us in 1993 from the international public accounting firm Deloitte & Touche. In December 1999, he was promoted to Vice President of Finance.
Missad was promoted to Executive Vice President of the Company. On July 13, 2011, Mr. Missad became Chief Executive Officer of the Company. Michael R. Cole joined us in 1993 from the international public accounting firm Deloitte & Touche. In December 1999, he was promoted to Vice President of Finance. On July 19, 2000, Mr.
Cole ​ 56 ​ Chief Financial Officer and Treasurer Patrick M. Benton ​ 53 ​ President of UFP Construction, LLC Scott A. Worthington ​ 52 ​ President of UFP Packaging, LLC William D. Schwartz, Jr. ​ 45 ​ President of UFP Retail Solutions, LLC David A. Tutas ​ 53 ​ General Counsel, Chief Compliance Officer and Secretary ​ Matthew J.
Benton ​ 54 ​ President of UFP Construction, LLC Scott A. Worthington ​ 53 ​ President of UFP Packaging, LLC William D. Schwartz, Jr. ​ 46 ​ President of UFP Retail Solutions, LLC David A. Tutas ​ 54 ​ General Counsel, Chief Compliance Officer and Secretary ​ Matthew J. Missad joined us in 1985. In February 1996, Mr.
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Item 4. Mine Safety Disclosures. Not applicable. Additional Item: Executive Officers of the Registrant. Our executive officers are appointed annually by our Board of Directors. There are no family relationships among these officers and our directors nor any arrangement or understanding between any of these officers and any other person pursuant to which the officer was appointed.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeItem 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities. (a) The information relating to market, holders and dividends is incorporated by reference from the 2022 Annual Report under the caption “Stock Performance Graph.” There were no recent sales of unregistered securities. (b) Not applicable.
Biggest change(a) The information relating to market, holders and dividends is incorporated by reference from the 2023 Annual Report under the captions "Market Information for Our Common Stock" and “Stock Performance Graph.” As of February 3, 2024, there were approximately 2,566 record holders of our common stock.
(2) Average price paid per share. (3) Total number of shares purchased as part of publicly announced plans or programs. (4) Maximum number of shares that may yet be purchased under the plans or programs. Effective February 15, 2022, our Board authorized an additional 1.5 million shares to be repurchased under our existing share repurchase program.
(2) Average price paid per share. (3) Total number of shares purchased as part of publicly announced plans or programs. (4) Approximate dollar value of shares that may yet be purchased under the plans or programs.
(c) Issuer purchases of equity securities during the fourth quarter: ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Month (1) (2) (3) (4) September 25 – October 29, 2022 21,804 68.99 21,804 1,372,444 October 30 – November 26, 2022 15,102 ​ 69.82 15,102 1,357,342 November 27 – December 31, 2022 — ​ — — 1,357,342 (1) Total number of shares purchased.
(c) Issuer purchases of equity securities during the fourth quarter: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Month (1) (2) (3) (4) October 1 - November 4, 2023 208,057 ​ 96.48 208,057 $ 173,335,471 November 5 - December 2, 2023 — ​ — — ​ 173,335,471 December 3 - 30, 2023 — ​ — — ​ 173,335,471 (1) Total number of shares purchased.
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This authorization expired on February 3, 2023. On February 3, 2023, the Board gave management authorization to repurchase up to 2 million shares by February 5, 2024. Item 6. Selected Financial Data. The information required by this Item is incorporated by reference from the 2022 Annual Report under the caption "Selected Financial Data."
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Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities.
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There were no sales of securities by the Company during fiscal 2023 that were not registered under the Securities Act of 1933. (b) Not applicable.
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On and effective as of July 26, 2023, our board authorized the repurchase of up to $200 million worth of shares of our common stock through the period ending July 31, 2024, which supersedes and replaces prior authorizations. Item 6. [RESERVED. ] Not applicable.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeItem 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The information required by this item is incorporated by reference from the 2022 Annual Report under the caption "Management’s Discussion and Analysis of Financial Condition and Results of Operations."
Biggest changeItem 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The information required by this item is incorporated by reference from the 2023 Annual Report under the caption "Management’s Discussion and Analysis of Financial Condition and Results of Operations."

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe estimated fair value of notes payable included in current liabilities and the revolving credit facility approximated the carrying values as these debt instruments have interest rates that fluctuate with current market conditions. 13 Expected cash flows over the next five years related to debt instruments, excluding debt issuance costs, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($US equivalents, in thousands) 2023 2024 2025 2026 2027 Thereafter Total Long-term Debt: ​ ​ ​ ​ ​ ​ Fixed Rate ($US) $ 17 $ 40,817 $ 132 $ 136 $ 149 ​ $ 225,389 $ 266,640 Average interest rate 5.06 % 4.22 % 9.20 % — ​ ​ 9.20 % 3.54 % ​ Variable Rate ($US) $ 2,925 $ — $ — $ — ​ $ 5,465 ​ $ 3,300 $ 11,690 Average interest rate (1) 9.20 % ​ — ​ — ​ ​ — ​ 4.13 % 1.04 % ​ (1) Average of rates at December 31, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Biggest changeThe estimated fair value of notes payable included in current liabilities and the revolving credit facility approximated the carrying values as these debt instruments have interest rates that fluctuate with current market conditions. 16 Expected cash flows over the next five years related to debt instruments, excluding debt issuance costs, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ($US equivalents, in thousands) 2024 2025 2026 2027 2028 Thereafter Total Long-term Debt: ​ ​ ​ ​ ​ ​ Fixed Rate ($US) $ 40,098 $ 671 $ 194 $ 212 $ 40,232 ​ $ 185,383 $ 266,790 Average interest rate 4.01 % 9.45 % 9.45 % — ​ ​ 4.27 % 3.36 % ​ Variable Rate ($US) $ 2,802 $ — $ — $ 3,692 ​ $ — ​ $ 3,300 $ 9,794 Average interest rate (1) 9.45 % ​ — % ​ — % ​ 5.44 % — % 3.33 % ​ (1) Average of rates at December 30, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
On December 31, 2022, the estimated fair value of our long-term debt, including the current portion, was $242.1 million. The estimated fair value is based on rates anticipated to be available to us for debt with similar terms and maturities.
On December 30, 2023, the estimated fair value of our long-term debt, including the current portion, was $241.4 million. The estimated fair value is based on rates anticipated to be available to us for debt with similar terms and maturities.

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