Forestry & Logging NAICS 113
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Industry Summary
The 8,000 companies in the US forestry and logging industry are involved in natural resource management and harvesting. Companies may own and manage the land and harvest the trees and plants, or provide contracted services to public and private landowners. Over 1 billion trees are planted in the US annually – the equivalent of three plantings for each tree harvested.
Worker Injuries And Fatalities
Despite efforts by the industry to reduce injury rates, logging ranks as the most dangerous occupation in America.
Pest Infestations
The spread of invasive plants, diseases, and insects that target woodlands are growing and destroying timber stands in the US.
Recent Developments
Jan 26, 2026 - Modest Lumber Demand Recovery in Delicate Balance with Tight Supply
- 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.
- Home builder confidence in the single-family market dropped in January amid continued affordability concerns and high construction costs, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), fell two points to 37 in January 2026. Any HMI reading over 50 indicates that more builders see conditions as good than poor. The high end of the single-family market is faring relatively well compared to the medium- and low-end, which are pressured by high home prices and mortgage rates. Down payments have become a particular sore spot among many potential buyers as home prices remain elevated. However, as of January 15, the average mortgage rate fell to 6.06%, marking the lowest rate in three years, according to Freddie Mac. The HMI survey also showed that 40% of builders reduced home prices in January, which marked the third consecutive month when the share of builders offering discounts was 40% or higher.
- On January 23, 2026, lumber futures retreated to about $590 per thousand board feet from a three-month high of $614.5 on January 20, according to Trading Economics. Lumber futures pulled back amid weak pending home sales and weaker restocking. Pending home sales in December were down more than 9% from the month before, which damped the outlook for improved new-home demand ahead of the spring building season. Lumber distributors suggest orders are slowing even as sawmills boost production to build inventories. Improved sawmill activity could suggest stronger demand for logs.
- Rayonier and PotlatchDeltic plan to merge in an all-stock deal valued at $7.1 billion, creating the second-largest US timberland owner with 4.2 million acres and a significant sawmill presence. PotlatchDeltic’s mills in Arkansas, Idaho, Michigan, and Minnesota are expected to benefit from higher tariffs on Canadian softwood lumber, which have lifted US prices amid volatile housing and construction markets. Recent sawmill curtailments and trade barriers have tightened supply, positioning the merged company to capitalize on stronger domestic demand. Nearly a million acres in the Northwest will support log supply where federal harvests have declined, while Southern holdings provide cost-efficient lumber production despite oversupply.
Industry Revenue
Forestry & Logging
Industry Structure
Industry size & Structure
The average forestry and logging company operates out of a single location, employs 6 workers, and generates $2 million in annual revenue.
- The forestry and logging industry comprises about 8,000 companies that employ about 49,700 workers and generate about $15.7 billion in annual revenue.
- The industry consists of foresters that maintain woodlands and loggers that harvest timber.
- Over 1 billion trees are planted in the US annually – the equivalent of three plantings for each tree harvested. The US has recorded over 50 consecutive years of net forest growth that exceeds yearly harvest, according to the North American Forest Foundation.
- About one-third of the US is covered in forest; 56% is classified as private land and 44% is public.
- 94% of firms have fewer than 20 employees.
- The industry's gross output is volatile and can change 20% from year to year.
- Large companies include ALRT Corporation, C & C Logging, Huffman-Wright, and the timber operations of vertically integrated companies like Weyerhouser, Mid-South Lumber, Green Diamond Resources, and PotlatchDeltic.
Industry Forecast
Industry Forecast
Forestry & Logging Industry Growth
Source: Vertical IQ and Inforum
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