Demand for forest machinery remains weak across several major timber-producing markets, with equipment manufacturers adjusting production and staffing as customers hold back on investment. The difficulties have affected factories in Finland and Sweden, where some of the industry's leading producers have faced declining orders.<\/p>\n
The slowdown has continued into the second half of 2026, although conditions vary between manufacturers. Some have maintained production and increased sales despite smaller order books, while others have begun preparing for temporary layoffs. Weak demand in North America has added to the difficulties facing the industry.<\/p>\n
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John Deere Forestry has opened negotiations over possible temporary layoffs at its Joensuu factory in Finland, citing weaker demand for forest machinery and a deterioration in its order backlog.<\/p>\n
The talks involve 367 employees and could result in layoffs lasting up to 90 days. The negotiations are expected to run for two weeks and exclude salaried employees, senior salaried staff and retail personnel.<\/p>\n
John Deere said the measures were being considered to adjust production to current market conditions. No decision on layoffs has been announced.<\/p>\n
The US manufacturer designs and produces forest machinery in Finland, with operations in Joensuu and Nakkila.<\/p>\n
The announcement follows earlier staffing measures at other major equipment manufacturers with production operations in the Nordic region.<\/p>\n
Ponsse's order backlog declines<\/strong><\/p>\n Finnish manufacturer Ponsse has also faced weaker machinery demand, particularly in Finland, Sweden and North America.<\/p>\n In October 2025, the company began change negotiations covering 1,086 employees in Finland, including possible temporary layoffs of up to 90 days.<\/p>\n The market remained difficult during the first half of 2026. Ponsse reported that sales of new forest machines in Finland and Sweden were considerably below the previous year's levels, while customers in the United States and Canada continued to postpone investments.<\/p>\n Its order backlog fell to \u20ac160 million at the end of June from \u20ac192.5 million a year earlier, a decline of approximately 17%.<\/p>\n The company's second-quarter revenue nevertheless rose to \u20ac187.1 million from \u20ac172.3 million. Orders received increased slightly to \u20ac179.2 million from \u20ac177.1 million.<\/p>\n Ponsse returned its Vierem\u00e4 factory to two-shift production in March 2026. Its financial performance has therefore held up better than the decline in its order backlog might suggest, although the company has continued to report weak demand in several important markets.<\/p>\n Komatsu Forest cuts staffing in Sweden<\/strong><\/p>\n Komatsu Forest, part of Japan's Komatsu group, announced workforce reductions at its Ume\u00e5 factory in Sweden in August 2025.<\/p>\n The measures affected approximately 90 positions, including 63 permanent employees and 27 temporary workers. Around 100 salaried employees were also expected to move to reduced working hours.<\/p>\n The company cited weaker orders, uncertainty surrounding international trade and difficult market conditions. It had already announced staffing adjustments earlier in the year.<\/p>\n Komatsu Forest manufactures harvesters and forwarders in Ume\u00e5, supplying customers in Europe and other international markets.<\/p>\n Its reductions preceded John Deere's latest announcement by more than a year, but both decisions were linked to weaker demand for forest machinery.<\/p>\n North American demand remains weak<\/strong><\/p>\n The slowdown has also affected sales outside Europe.<\/p>\n Ponsse reported weak demand for forest machinery in the United States and Canada during the first half of 2026, with customers postponing purchases amid uncertainty in the forest industry.<\/p>\n North American lumber markets have remained difficult, with production curtailments and weak profitability among sawmills affecting the outlook for timber harvesting.<\/p>\n Conditions in Europe have been similarly uneven. Weak construction demand and pressure on sawmill margins have limited the recovery in timber markets, while forestry contractors remain cautious about equipment spending.<\/p>\n For machinery manufacturers, the pressure is increasingly visible in order backlogs. Ponsse's sales increased in the second quarter despite a substantial year-on-year reduction in outstanding orders. John Deere has not disclosed the size of the decline at Joensuu, but its decision to begin negotiations indicates that the current order book may no longer support existing production schedules.<\/p>\n The three manufacturers are responding differently. Ponsse has maintained production at Vierem\u00e4, Komatsu Forest reduced staffing in Sweden last year, and John Deere is now considering temporary layoffs at Joensuu.<\/p>\n With demand still weak in several important markets, the immediate question for manufacturers is whether orders will improve sufficiently to avoid further adjustments during the final months of 2026.<\/p>","protected":false},"excerpt":{"rendered":" Demand for forest machinery remains weak across several major timber-producing markets, with equipment manufacturers adjusting production and staffing as customers hold back on investment. The difficulties have affected factories in Finland and Sweden, where some of the industry’s leading producers … Continue reading