Sawmill Output Slips as Capacity Continues to Decline

U.S. sawmill production fell in the first quarter of 2026, marking the second consecutive quarter of declining output, with production down 0.4% from the prior quarter though up 1.7% year-over-year, according to the Federal Reserve G.17 Industrial Production report. Sawmill full production capacity declined 6.0% year-over-year while the utilization rate rose to 71.8% on a four-quarter moving average, and employment in sawmill and wood preservation industries fell to roughly 82,800 workers, the lowest level since 2010 after twelve straight quarterly declines.