Softwood lumber mill capacity in North America is roughly 74 BBFT per year – the same level in aggregate as twelve years ago in 2008. One key difference in softwood lumber capacity today versus twelve years ago is location: mills moved from the west to the south. Now, the U.S. South is the largest softwood lumber-producing region on the continent, with one-third of the sawmill production capacity. Mills have closed in Western Canada, and the region lost over 2 billion board feet of softwood lumber capacity in the last two years.

Growth continues for Southern U.S. sawmills with expansions, reopenings, and greenfield projects. Based on announced sawmill builds and expansions, the U.S. South could add an additional four billion board feet of softwood sawmill capacity by 2022. The map below includes announced investments since 2020. It includes 47 mill capacity increases, which includes 12 new mills and four reopenings. Of note, Roseburg Forest Products is building a 400 MMBF sawmill in Weldon, NC. Recently, there have been several new announcements in Louisiana. These include the Canfor 250 MMBF greenfield sawmill in DeRidder, Interfor’s planned reopening of the former GP Dequincy 200 MMBF sawmill, and the partnership with Hunt and Tolko to build a 320 MMBF sawmill in Taylor, Louisiana.

 

For market intelligence and tracking of timberland and mill investments, consider the Forisk Market Bulletin. To produce custom reports and maps, check out Forisk’s North American Forest Industry Capacity Database. Discounted rates available for companies that also subscribe to the Forisk Research Quarterly (FRQ). Email hclark@forisk.com for pricing information and to place an order.