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
Nov 26, 2025 - Firms Merge to Form Second-Largest Timberland Owner
- 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.
- Logging firms may experience weaker demand and margin compression as lumber prices decline, while many fixed costs remain unchanged or increase. On November 24, lumber futures were trading around $536 per thousand board feet, nearly matching September pricing, which was the lowest level this year, according to Trading Economics. Many lumber buyers frontloaded supplies ahead of tariffs in anticipation of rising housing demand that never materialized. Lumber dealers are offloading bloated inventories into already oversupplied markets, sending prices lower. High mortgage rates and a waning building season have put additional downward pressure on pricing, prompting some sawmills to announce production cutbacks and mill closures.
- America’s largest homebuilders are struggling to sell new homes despite offering 4% mortgages and deep discounts, according to The Wall Street Journal. D.R. Horton and Lennar have slashed prices and added incentives, but demand remains weak, pushing unsold inventory to levels last seen in 2009. Builders are slowing construction, with D.R. Horton cutting starts by 21% year over year for the three-month period through September. Regional gluts in Texas, Florida, Southern California, and Washington, DC reflect rising resale competition, fewer foreign buyers, and economic uncertainty. Investor activity is at a 15-year low, with institutional buyers demanding steep discounts that builders won’t meet. New homes, often located in less desirable areas and targeted at first-time buyers, are more challenging to sell.
- Home builder confidence in the single-family market increased slightly in November, but remained in contraction territory amid sustained industry headwinds, 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 November 2025. Any HMI reading over 50 indicates that more builders see conditions as good than poor. Builders reported that the US government shutdown added to existing challenges, including tariff-related economic uncertainty and rising construction costs. The HMI survey also showed that 41% of builders reduced home prices in November, marking a record post-pandemic high. The average price reduction of 6% was unchanged from the previous month.
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; 58% is classified as private land and 42% 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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