Softwood sawmill capacity increased by 1.4 billion board feet last year, driven by a 1.1 billion board feet increase in manufacturing in the U.S., according to data from Forisk. While wood product companies have announced significant investments to increase the capacity of existing mills, lead times to get new equipment remains long, according to the American Wood Council (AWC), suggesting expansion projects will not support increased capacity until at least 2022.
However, the AWC says despite high levels of product and investment from manufacturers to upgrade and expand mill capacity, unprecedented levels of demand still exceeds current supply. The AWC says the “most immediate opportunity” to address constraints to lumber supply is to focus on transportation and workforce limitations. Both challenges existed prior to the coronavirus pandemic, but have been exacerbated by the current situation.
