Arkansas Sawmills Are Hurting

First posted on 12-03-2008

The credit crisis, home foreclosures and a slowdown in new home construction has all had an impact on the demand for lumber, driving down prices and threatening the existence of sawmills across Arkansas and other parts of the country.

Between 2006 and 2008, the state’s sawmills lost about 3,000 full-time jobs and sawmills continue to struggle with layoffs and downsizing. Many are fighting just to survive. Hardwood sawmill operators have stated they never faced tougher market conditions before.

Some mills, like Bradley Lumber Co. in Warren, in operation since 1903, have been forced to close down altogether and more may follow suit.

According to U.S. Bureau statistics, the lumber industry in Arkansas ranked seventh in the nation for hardwood lumber production with pine lumber production ranking third in the country. The industry provided over 13,000 jobs in the state.

While the market for lumber has dropped off significantly, log shortages throughout the year also took a toll on sawmills. Heavy rainfall from two hurricanes and a wet weather pattern made logging difficult even before the current financial crisis all but closed the door on demand for lumber products.