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U.S. Hardwood Industry Warns of Sawmill Closures and Job Losses
U.S. hardwood industry leaders are warning that weak construction demand, rising operating costs and international competition are forcing sawmill closures and threatening rural employment. Ohio manufacturers are calling for government action to help preserve domestic wood-processing capacity.
Key Points
- Industry downturn: Hardwood executives cite weak demand, elevated operating costs, trade barriers and mill closures.
- Employment pressure: Industry representatives warn that job losses are affecting small businesses and rural communities.
- Raw-material exports: Manufacturers are concerned that shipping unprocessed logs overseas reduces opportunities for domestic value-added production.
- Government action: Industry leaders are calling for measures to support U.S. hardwood manufacturing and protect existing capacity.
MONTREAL (Scrap Monster): U.S. hardwood industry executives are warning that depressed lumber prices, declining construction activity, rising operating costs and international competition are putting sawmills and rural manufacturing jobs under increasing pressure, according to Spectrum News 1.
Robert Kaednick, chief executive of Ohio-based Hartzell Hardwoods, described the industry as being at a crossroads, with multiple economic and trade-related challenges threatening the viability of domestic lumber production.
Sawmill Closures Threaten Rural Manufacturing Jobs
Kaednick warned that smaller sawmills are particularly vulnerable to weak markets and rising expenses, with closures affecting businesses and communities that depend on the hardwood industry.
He characterized the pace of shutdowns as approaching one sawmill per day and cited approximately 40,000 jobs lost over the past decade. These figures reflect his assessment rather than independently established closure and employment totals.
The hardwood industry's difficulties extend beyond sawmilling. Producers also face competition from subsidized foreign manufacturers, changing land-use priorities and challenges maintaining domestic wood-processing operations.
Kaednick said the combined pressures could lead to further losses of U.S. sawmill capacity if conditions do not improve.
Hardwood Manufacturers Raise Concerns Over Raw-Log Exports
Nick Bohlke, president of M. Bohlke Veneer Corporation, also expressed concern about the future of North American hardwood manufacturing and called for greater government attention to the industry's difficulties.
Bohlke identified exports of unprocessed raw materials as a major concern, arguing that sending timber overseas without additional domestic processing limits opportunities to retain manufacturing value within the United States.
For hardwood producers, the issue extends beyond timber sales to the wider economic activity associated with processing, manufacturing and supplying finished wood products.
ScrapMonster Edge: Sawmill Closures Affect More Than Lumber Output
The concern extends beyond declining lumber production. Sawmill closures can reduce demand for harvested timber and disrupt businesses involved in transportation, processing and manufacturing. Industry leaders also argue that exporting unprocessed logs limits opportunities to retain value-added activity domestically.
Industry takeaway: Mill operating rates, hardwood exports, construction demand and confirmed facility closures remain important indicators of the industry's condition. Claims about nationwide closure frequency should be assessed against documented industry data.
Industry Leaders Seek Government Support
Both executives said government action could help address the pressures facing smaller hardwood businesses, particularly those competing with overseas producers and operating under sustained cost pressure.
Bohlke urged policymakers to recognize the challenges affecting domestic hardwood manufacturers and consider measures that could help preserve the industry's production base.
Kaednick warned that continued losses of domestic sawmill capacity could result in more wood-processing activity moving overseas.
Despite their concerns, both executives expressed hope that industry conditions could improve with greater attention to domestic manufacturing and the challenges facing rural businesses.
Courtesy: www.spectrumnews1.com