Western Lumber Mills Scale Back

Home Channel News, Oct 8, 2001

Facing increased foreign competition and a weaker U.S. economy, Western lumber mills ratcheted down their production during the first six months of 2001, according to the Western Woods Products Association. Compared to the same period last year, lumber production fell 7.7 percent to 8.5 billion board feet, according to the WWPA's preliminary figures. Shipments were lower by 6.2 percent, and orders dropped by 3.4 percent.

U.S. lumber consumption has dropped by an estimated 1 percent, despite a 0.6 percent rise in housing starts during the first six months of this year. Demand from other lumber-using segments were below 2000 levels, according to the WWPA, which represents lumber producers in 12 Western states and Alaska.

The WWPA blames the decreases, in part, on Canadian lumber shipments to the United States, which rose 2 percent in the first half of 2001. During the second quarter, after the expiration of the Softwood Lumber Agreement at the end of March, Canadian imports rose 30 percent, compared to last year's figures.

Non-Canadian lumber shipments posted gains nearing 5 percent so far this year, led by a 31.3 percent increase in shipments from Europe.