From what’s been explained to me, plywood is made by stripping a thin layer from a tree trunk (think like a massive vegetable peeler running against a spinning log) to make a very thin sheet of wood. Sheets are cut to size and pressed together in alternate directions with some sort of solvent to hold the entire sheet together.
I don’t know for a fact if the same process applies to 2 x 4s or other such cuts of wood, but this is how plywood is created
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