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US sawmills warn of accelerating closures as tariffs, weak demand squeeze industry
Fox Businessยท 2025-12-04 04:30
Core Insights - The U.S. sawmill industry is facing significant challenges due to prolonged trade uncertainties, leading to closures and reduced margins [1][6][10] - The Hardwood Federation estimates that at least one sawmill is closing every week, with over 4% of U.S. sawmills lost to closures and consolidations [1][6] - Trade tensions, particularly with China, have severely impacted American hardwood exports, resulting in a loss of approximately 50% market share to competitors [5][6] Industry Challenges - Many sawmills, like Evans Lumber Co., are struggling to maintain operations due to insufficient lumber orders, leading to temporary shutdowns [2][3] - The retaliatory tariffs imposed by other countries have created a volatile environment, tightening margins and altering supply chain dynamics globally [7][10] - The hardwood industry experienced a 20-25% decline in exports during the 2017 trade dispute, with current conditions being described as worse [7][10] Market Dynamics - The shift in consumer preference towards cheaper composite or synthetic wood alternatives is further straining the hardwood industry [10][12] - Sawmills are facing competition from big-box stores that promote vinyl or plastic flooring as premium products, limiting market opportunities for solid hardwood [11][12] - The industry is advocating for government support, with several sawmill owners planning to visit Washington D.C. to seek assistance [15]