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Wed, Mar 19, 2025 00:50
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Management Side
US federal timber expansion unlikely to solve lumber shortage, report shows

The US president's proposal to increase domestic lumber production by expanding logging on federal lands faces major obstacles, including labor shortages, infrastructure deficiencies, and investment risks. The plan aims to reduce reliance on Canadian and European lumber imports, but experts highlight that the US Forest Service (USFS) lacks sufficient forestry expertise to manage expanded logging effectively. This expertise declined after reduced federal logging during the Clinton administration, and rebuilding it would require extensive training and recruitment. These challenges are compounded by ongoing staffing reductions across government agencies, according to Global Wood Trends 2025.

Even with executive orders promoting federal timber harvesting, legal battles from environmental groups are likely to delay or block proposed logging operations. Additionally, the timber industry faces a severe workforce shortage, including a lack of loggers, truck drivers, road builders, and mill workers. Recruiting and training skilled labor would take time, while restrictive immigration policies further limit the available workforce.

The closure of numerous sawmills in key western states like Montana, Idaho, eastern Washington, eastern Oregon, and California adds further complications. Transporting logs to distant processing facilities would increase costs, making federal timber less economically viable compared to logs sourced from private and state lands.

Investment concerns also hinder potential expansion. Private investors remain reluctant to expand sawmill capacity due to uncertainties surrounding federal timber policies, legal risks, and unpredictable supply levels. Without stable long-term supply, new investments are unlikely.

The report concludes that despite political calls to reduce US dependence on imported lumber, federal timber expansion alone is unlikely to provide a viable solution to the nation's lumber shortage. Imports from Canada and Europe will continue to play a key role in meeting domestic wood demand.

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