Hardware Retailing The Industry's Source for Insights and Information
U.S. sawmill production was unchanged in the third quarter of 2025, according to the Federal Reserve G. 17 Industrial Production report and an analysis from NAHB’s Eye on Housing.
Utilization rates for sawmills and wood preservation industries remained near 70% despite a weakened demand environment from decreased residential construction in the third quarter. U.S. imports of softwood lumber dropped significantly in Q3 2025, as higher duties went into effect. For the full year of 2025, the U.S. imported an estimated 12.7 billion board feet of softwood lumber, the lowest annual import level since 2014.
The sawmill utilization rate, a measure of actual production relative to potential full production published by the Census Bureau, has been falling since 2017, but was up in Q3, increasing from 68.2% to 68.8%. Sawmill production in the third quarter was 1.2% higher than the second quarter and 3.1% higher than a year ago.
Softwood lumber prices fell 4.9% during the quarter, though they remained 3.9% higher than one year ago. Hardwood lumber prices continued to increase, rising 1.0% in the third quarter, the seventh consecutive quarter of price increases in hardwood lumber.
Employment in sawmill and wood preservation industries continued to fall, dropping to around 85,400 workers in the third quarter, marking the tenth straight quarterly decline.
