NAHB: U.S. Sawmill Output Unable to Keep Pace with Rising Demand

SEATTLE (Scrap Monster): The market analysis report published by the National Association of Home Builders (NAHB) states that domestic production from the U.S. sawmills failed to keep pace with the rising demand from housing construction sector since mid-2020. The supply shortage had led to significant surge in home prices.

Although sawmill industry blames labor challenges as one among several reasons for the limited supply situation, the data published by the Bureau of Labor Statistics (BLS) suggests that sawmill industry employment stood marginally higher over the previous year. In October 2021, the sawmill employment totalled 90,100, higher by 2.4% from the same month a year before.

RELATED NEWS:

Forest2Market Launched Lumber Markets Outlook for 2022

Booming Lumber Prices Drive Sawlog to Fresh Peak Levels

During the 12-month period ending September 2021, the sawmill output recorded marginal surge, amidst volatility. The seasonally adjusted sawmill output in September 2021 was marginally higher by 1.2% year-on-year. However, the Q3 sawmill output witnessed 1.3% decline, compared with Q3 2020.

The upswing towards the end of the year had lifted total sawmill production in 2020 by 3.3%, compared with 2019. The production momentum continued over the initial three quarters of 2021 as well.

The gap between output and demand has widened further during the previous year, NAHB report said.