Major lumber producers in North America are scaling back production amid weak market conditions, escalating tariffs, and supply constraints. Western Forest Products, one of the largest private employers on Vancouver Island, announced it will curtail 50 million board feet of lumber production in the second half of 2025\u2014equivalent to about 6% of its annual capacity\u2014citing poor market demand, higher U.S. softwood lumber duties, and limited economic log supply.<\/p>\n
The curtailments will take place across the third and fourth quarters of 2025 and include temporary measures such as reduced operating hours, an extended holiday break, and reconfigured shift schedules. The Chemainus sawmill, idled throughout the third quarter, will remain closed through the fourth quarter.<\/p>\n
Western faces additional operational challenges in British Columbia, including delays in harvesting permits and a strike by United Steelworkers Local 1-1937 at the La-kwa sa muqw Forestry Limited Partnership. The company said it will continue to monitor market conditions and available log supply, adjusting operations as necessary.<\/p>\n
Western Forest Products operates six sawmills with a combined lumber capacity of 780 million board feet, four remanufacturing facilities, and two glulam manufacturing facilities. It sources timber from long-term licenses, First Nations agreements, and market purchases, supplementing production through a wholesale program offering specialty products. The company supports roughly 3,300 jobs across nearly 20 communities.<\/p>\n
Weak demand and tariff impacts<\/strong><\/p>\n Lumber prices in North America have experienced a sharp decline, reflecting more than typical market volatility. Futures prices have fallen roughly 25% since early August, dropping to around $522 per thousand board feet.<\/p>\n Interfor Corporation announced a cut of 145 million board feet through December 2025, representing roughly 12% of normal production. Measures include reduced work hours, extended holiday shutdowns, and reduced shifts at mills across Canada and the United States.<\/p>\n Economists note that declining lumber demand is mirrored in broader construction trends. Building permits in the U.S. fell to 1.354 million units in July, the lowest level since June 2020. Meanwhile, construction spending in July totaled $2.139 trillion, down for the third consecutive month.<\/p>\n The market pressures are compounded by international trade conflicts. U.S. tariffs on Canadian lumber, totaling 35%, are raising the cost of imported wood. Canada supplies roughly 85% of lumber used in the U.S., meaning these tariffs significantly affect construction costs, with the National Association of Home Builders warning of thousands of dollars in added expenses per typical home.<\/p>\n Federal Reserve interest rate policies also weigh on the market. Despite a recent quarter-point cut to 4.00\u20134.25%, mortgage rates remain high, keeping potential homebuyers on the sidelines. Lower housing demand further reduces the need for lumber and other building materials.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":96948,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204,5812],"tags":[3305,4017],"class_list":["post-96947","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news","category-global-trends","tag-interfor","tag-western-forest-products","topic-forestry","topic-lumber","topic-price-analysis-and-info","topic-sawmilling","topic-wood-construction","topic-wood-products","area-global","area-north-america"],"acf":[],"yoast_head":"\n