Forestry & Logging
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 8,100 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.
Industry size & Structure
The average forestry and logging company operates out of a single location, employs 6 workers, and generates $1-2 million in annual revenue.
- The forestry and logging industry comprises about 8,100 companies that employ about 44,500 workers and generate about $12 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
Forestry & Logging Industry Growth
Recent Developments
Mar 28, 2025 - Southern Yellow Pine Futures to Trade on Wall Street
- Exchange operator CME Group will begin trading in Southern yellow pine futures on March 31, 2025, according to The Wall Street Journal. The move comes as more sawmills migrate from Canada to the US to mitigate the effects of rising tariffs. Giving US-grown Southern lumber their own futures contracts will allow sawmills and other forest product industries to better manage their exposure to price fluctuations. Before the launch of Southern yellow pine futures (ticker: SYP), lumber futures excluded southern pine and were based on deliveries of Northern conifer boards, much of it Canadian spruce, pine, and fir. The new Southern yellow pine futures will be settled in cash, allowing speculators to trade without holding lumber inventories.
- Rising tariffs on Canadian lumber imports could prompt more of Canada’s sawmill operators to move some of their operations south of the border, according to Reuters. Tariffs on Canadian lumber could increase to 40% if the Trump administration’s proposed 25% tariff on Canadian imports goes into effect on top of existing levies of 14.5%. The administration has paused tariffs on goods that comply with the United Sates-Mexico-Canada Agreement until April 2. Canadian firms have decamped to the US South in recent years, attracted by the region’s abundant and inexpensive timber supplies on public lands. Much of Canada’s timberlands are owned by the federal government.
- Trade strife may increase lumber prices, which could pinch the margins of prefabricated wood building manufacturers if higher prices can’t be passed on to customers. On March 1, Trump initiated an investigation into whether US imports of Canadian lumber posed a national security threat, according to The New York Times. The inquiry could enable Trump to enact fresh tariffs on lumber imports from Canada on top of a 25% tariff on all Canadian imports that went into effect on March 4 but was paused for a month two days later for products that are compliant with the United States-Mexico-Canada Agreement (USMCA). The White House claims the US has the resources to be self-sufficient in its lumber needs, but US sawmills can’t compete with imports dumped unfairly on the US market. White House officials said lumber supply is a national security issue because the US military is a significant lumber consumer.
- The Northwest Forest Plan (NFP) Advisory Committee has amended a 30-year-old plan for managing 24.5 million acres of federally managed lands in the Northwest, according to the US Forest Service. The committee of 21 scientists, loggers, conservationists, and tribal and government representatives published 184 recommendations to address changing conditions and guide the future of endangered forests in the Northwest. While 113 recommendations are dedicated to Tribal and Indigenous inclusion – left out in the 1994 NFP – the committee also redefined old-growth forests as any stand established before 1825 and recommended prohibiting logging in those stands. The committee also published 26 fire resilience recommendations, including reintroducing fire on the landscape through controlled burns. The Forest Service said it plans to release the draft Environmental Impact Statement for the amendment to the NFP in October.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.