Forestry & Logging NAICS 113

Mar 26, 2026 - Bureau of Land Management Pushes to Increase Logging in Oregon

• The Bureau of Land Management has proposed expanding logging across 2.5 million acres of western Oregon forests, a move that could significantly reshape the logging industry by increasing harvest levels toward 1 billion board feet annually, according to Yahoo. The plan, part of a broader push to boost domestic timber production, would open more O&C lands to logging and potentially restore output closer to historical levels. Industry groups support the proposal, citing economic benefits, job growth, and reduced wildfire risk from overgrown forests. For logging companies, the shift could create substantial new supply opportunities and stabilize long-term operations. However, environmental opposition and regulatory uncertainty may affect implementation timelines.
• On March 24, 2026, lumber futures were about $580 per thousand board feet as a weak housing market offset lumber supply constraints, according to Trading Economics. Key lumber demand indicators, including single-family housing starts and building permits, remain soft. Stubbornly high interest rates remain a drag on new single-family home sales. Despite reduced demand due to the lackluster housing market, supply factors, including combined 45% duties on Canadian lumber imports and sawmill shutdowns, have provided a floor for lumber prices.

• Home builder confidence in the single-family market rose slightly in March, but builders remain concerned about housing affordability, higher construction costs, and shortages of buildable lots and labor, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), rose one point to 38 in March 2026. Any HMI reading over 50 indicates that more builders see conditions as good than poor. The HMI survey also showed that 37% of builders reduced home prices in March to lure potential buyers off the sidelines, although the average price reduction of 6% remained unchanged from February. While the war in Iran and resulting higher oil prices could pose additional challenges, recent executive orders by President Trump aimed at reducing regulatory hurdles to homebuilding are seen as a positive step.
• The North American lumber market enters 2026 with early signs of improving demand but far less supply flexibility than in past cycles, creating conditions for renewed volatility, according to Resource Wise. Housing activity remained weak through most of 2025 due to high mortgage rates and affordability pressures, although confidence strengthened late in the year as rates eased and sales forecasts improved. At the same time, supply tightened sharply, with Canadian production falling amid mill closures, curtailments, and high costs. While US lumber production improved slightly in 2025, it's still dependent on imports. With domestic producers unable to quickly replace lost import volumes, even modest demand growth could strain the market, raise prices, and heighten sensitivity to seasonal shifts, weather, and policy decisions. As 2026 begins, the balance between constrained supply and a tentative demand recovery will shape conditions for producers and buyers.