Historic Downturn in Lumber Markets Shows in Final Totals for 2009

The western lumber industry in 2009 posted its worst year for production in modern history, according to final statistics compiled by Western Wood Products Association.

Sawmills in 12 western states produced 10.39 billion bd. ft. of lumber in 2009, the lowest annual volume since WWPA began compiling industry statistics in the late 1940s. Since 2005, output from western lumber mills has fallen by some 46Vo. The previous modern-day low was in 1982, when western mills produced 13.7 billion bd. ft.

The lack of home building in the U.S. contributed to the historic decline. Just 554,000 houses were built in 2009,a39Vo decline from the previous year. It was the lowest annual total since 1945, when just 326P00 houses were built.

Low demand translated into even lower prices for western lumber products. The estimated wholesale value of the 2009 production was $2.69 billio<r, down 267o from 2008. Five years ago, western mills produced 19.3 billion ft. of lumber valued at

$7.7 billion.

All western states posted doubledigit declines in production. Despite a 197o drop from 2008, Oregon sawmills produced 3.83 billion bd. ft. to lead the nation.

Washington was the second highest producing state in the region and the nation with 3.24 billion bd. ft. in 2009. Mills in California produced 1.44 billion ft., down nearly 25Vo from the previous year.

Lumber production in Idaho totaled 1.1 billion bd. ft., and mills in Montana produced 418 million ft.

Totals for other western states were combined to protect the confidentiality of individual mill data. Mills in South Dakota and Wyoming produced 192 million bd. ft. last year, while the four corner states of Arizona, Colorado, New Mexico, and Utah posted annual lumber production of 167 million ft.

Overall demand for lumber totaled 31.3 billion bd. ft. in 2009, less than half of what was used five years previously. Just 7.3 billion bd. ft. was used for residential construction,