Michigan Sawmill Closures Trigger Wider Economic Losses, Study Finds

According to a new study published in Forest Policy and Economics, Michigan’s sawmill sector lost 273 direct jobs between 2019 and 2023, but the ripple effects extended far beyond the mills themselves. The analysis estimates that nearly 820 additional jobs were cut across the state economy, with total output declining by about $211.6 million.

The research, led by Basanta Lamsal, Jagdish Poudel, and Raju Pokharel, used data from the Michigan Department of Natural Resources mill survey and the state’s Social Accounting Matrix to model the broader effects of sawmill closures. The authors found that labor-intensive sectors like logging and transportation bore disproportionate losses, underscoring the role of sawmills in regional supply chains.

Between 2018 and 2023, the total number of sawmills in Michigan fell from 257 to 237. The number of large mills dropped from 48 to 35, while small mills declined from 132 to 121. Roundwood receipts tell a similar story: Total annual consumption fell nearly 19% over the past two decades, from 131,773 cubic feet in 2000 to 106,911 cubic feet in 2023. Most of that decline occurred in the past five years, when receipts plunged by about 27%.

The authors conclude that policies supporting mill modernization, stronger supplier linkages, and workforce transition programs could help mitigate economic disruptions tied to future closures.