Right now, the U.S. lumber industry is facing serious headwinds. Sawmill closures are happening at a rate we haven’t seen in years—and it’s not just an industry issue. This has a ripple effect on local communities, the supply chain, and even the future of responsible forest management.
Why Are Sawmills Closing?
It boils down to a perfect storm of market challenges that’s hitting mills across the country:
Lumber Prices Are Stagnant: Despite inflation hitting almost every other sector, lumber prices have been stuck near decade-old lows. Sawmills simply can’t operate profitably when margins are this tight.
Rising Operational Costs: While prices stay flat, costs for labor, fuel, insurance, and transportation keep climbing. That squeeze is forcing many mills to shut their doors permanently.
Trade Pressures: The U.S. government is set to more than double tariffs on Canadian softwood lumber imports, pushing duties north of 34%. That adds massive pressure on Canadian mills that serve roughly 25% of U.S. lumber demand—and those costs inevitably ripple into the U.S. supply chain.
Recent Mill Closures Making Headlines
Companies like Canfor recently announced the closure of its Darlington and Estill mills in South Carolina, taking 290 jobs with them and wiping 350 million board feet off the market annually. This isn't an isolated case—closures are stacking up across the U.S. South and West.
The Real Impact – It’s Not Just About Lumber
When a sawmill closes, the impact goes far beyond the mill itself:
Jobs Disappear: It’s not just the mill workers—loggers, truck drivers, mechanics, and local suppliers all feel the hit. These aren’t just jobs; they’re careers that support entire families in rural communities.
Communities Suffer: When a major employer in a small town shuts down, it affects everything from the coffee shop on Main Street to the school district’s funding.
Forest Health Takes a Hit: Fewer operational mills mean less capacity for processing dead, diseased, or overgrown timber. That directly impacts forest restoration efforts and increases wildfire risk in some regions.
What’s Next?
The truth is, the U.S. lumber industry is at a crossroads. We’re looking at a future where fewer mills mean tighter supply and likely higher prices for quality wood products. For those of us who rely on responsibly sourced lumber for custom homes and fine applications, this is something we’re watching closely.
At the same time, it’s a stark reminder of how connected this industry is to the health of rural economies—and to the stewardship of our forests.