The closure of sawmills in North America

The list of sawmills to be closed is spreading throughout North America

In early September, there was an increase in sawmill closures and production cuts in North America. The greatest pressure is still on Canada, but recent cases in Colorado, Alabama, Louisiana, and California show that adaptation is no longer limited to British Columbia. The crisis is taking on a continental scale, and the causes vary depending on the region.

Canada: the epicenter of the crisis

Canadian sawmills remain the most vulnerable link in the North American timber industry. There are several factors that put pressure on them:

   US duties on Canadian lumber remain one of the key factors squeezing the marginality of Canadian producers. The introduction of new 50% duties on most Canadian wood products (with the exception of softwood lumber) has worsened the situation.

If earlier plant closures were mainly concentrated in Canada, now they have also affected USA. "Recent cases" have been reported in:

• - Colorado
• - Alabama
• - Louisiana
• - California

Reasons for the USA:

• - Old and small enterprises cannot compete with large modern factories.
• - Increased operating costs (energy, labor, logistics).
• - Uncertainty of demand in the domestic market.

Southern states (Alabama, Louisiana, Mississippi, Georgia), where large modern sawmills operate, remain in a relatively good position due to low prices for raw materials and high productivity. However, it is becoming increasingly difficult for older and smaller businesses to survive in a competitive environment.

Causes of the crisis: "regional differences"

"Key factors" of the crisis in the North American sawmill industry:

1. is a reduction in the supply of lumber from North America. The closure of factories leads to a decrease in production volumes, which may support prices on the global market in the medium term.
2. - Redistribution of export flows. Canadian manufacturers losing access to the US market will actively seek alternative markets (China, Japan, Europe), which will increase competition in these areas.
3. - Consolidation of the industry.Large and efficient factories (especially in the southern United States) will strengthen their positions, while old and small enterprises will be forced to close.
4. - Impact on prices. A reduction in production in North America may lead to higher prices for lumber in the US domestic market and in export destinations.

Forecast

Short-term (3-6 months):""

• - Continued closures of sawmills in Canada and the USA.
• &- Further reduction of production.
• - A possible increase in lumber prices amid a reduction in supply.

Long-term (1-2 years):

• - Consolidation of the industry: large, efficient manufacturers will survive.
• - Canadian exporters will diversify their sales markets more actively.
• - Industry recovery is possible only with reduced duties and improved conditions in global markets.

Bottom line

The wave of sawmill closures is spreading across North America, extending beyond British Columbia. Canada remains the epicenter of the crisis: High raw material prices, weak lumber prices, U.S. duties, and logistical problems make production unprofitable. In the United States, closures have affected Colorado, Alabama, Louisiana and California: old and small enterprises cannot compete with large modern factories. The southern states are still resilient, but the general downward trend in production in North America is becoming more and more apparent. For the global market, this means a reduction in the supply of lumber and a possible increase in prices in the medium term.

Tags: #North America #sawmills #closures #Canada #USA #British Columbia #Ontario #Quebec #duties #prices on lumber Переведено [url=http/translate.yandex.ru/]«Яндекс.Переводчиком»[/url]

Edited Moderator (Sept. 15, 2026 18:37:12)