U.S. sawmill capacity utilization drops to 65% in Q4 2024

Posted on March 25, 2025   |  

U.S. sawmill and wood preservation companies kept production and capacity steady in 2024, but capacity utilization dropped to 65% in Q4, continuing a decline that began in 2017.

Despite an increase in production capability, actual output remains below 2018 levels, creating a growing gap between potential and real production.

The decline in utilization rates is linked to material shortages, lower orders, and workforce limitations, preventing mills from operating at full capacity.

NAHB assessed U.S. sawmill capacity by analyzing data from the Federal Reserve’s production index and the Census Bureau’s utilization figures.

With domestic production running below full potential, imports play a key role in meeting softwood lumber demand.

Even with tariffs on Canadian softwood lumber, the U.S. continues to depend on imports. The current 14.5% AD/CVD tariff rate could surpass 50% following a Department of Commerce review.

Additional tariffs, including potential duties from the 232 investigation, may raise construction costs, worsening housing affordability in the U.S.