US Sawmill Output Declines as Capacity Continues to Shrink

According to the latest Federal Reserve G.17 Industrial Production report, with analysis from the National Association of Home Builders (NAHB), US sawmill production fell in Q1, marking the second consecutive quarter of lower output.

Sawmill output has remained largely flat since 2023 after increasing in the post-pandemic period. The utilization rate for sawmills and wood preservation industries was 71.8% on a four-quarter moving average, up from 71.2% in 2025Q4.

The sawmill utilization rate moved higher during 2025 as capacity declined. Sawmill production, based on a four-quarter moving average, was down 0.4% in Q1 compared with 2025 Q4 but remained 1.7% higher than a year earlier. US sawmills’ full production capacity was down 6.0% year-over-year.

Employment in sawmill and wood preservation industries continued to fall, dropping to roughly 82,800 workers in Q1. This marked the 12th consecutive quarterly decline and brought employment to its lowest level since 2010.