Sawmill Shutdowns Led to Massive Job Cuts in Michigan

SEATTLE (Scrap Monster): According to a recent research report, Michigan’s sawmill sector lost several hundreds of jobs, resulting in millions worth output decline.

Basanta Lamsal, Jagdish Poudel, and Raju Pokharel of Michigan State University and the Michigan Department of Natural Resources noted that the state’s forest sector lost $211.55 million in output and around 1,100 jobs between 2019 and 2023, as a result of sawmill closures and reduced timber processing activity. Out of this, only 273 were direct jobs, while the remaining 820 were indirect ones.

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During the five-year period, the number of sawmills in operation declined from 257 to 237. The number of large mills dropped from 48 to 35, whereas small sawmills also fell from 132 to 121. It must be noted that the total sawmill count has been on a declining trend, falling by 31% since 1990.

The timber demand witnessed notable reduction, with total annual roundwood receipts dropping by 27% between 2018 and 2023 alone, falling from 131,773 to 106,911 cubic feet. Consequently, logging operations and forestland management were hit by financial challenges. Lack of adequate compensation to loggers, shortages of logging contractors and rising procurement costs added further pressure to the sector.