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PalletCentral • July-August 2020
palletcentral.com
T
he U.S. hardwood sawmill
industry and the wooden pallet
and container industry are
highly interconnected.
To be successful, hardwood
sawmills require solid markets
for industrial products like
pallet cants and lumber, railroad
ties, board road, and crane mats.
This industrial market group accounts for 59 percent
of total Eastern U.S. hardwood consumption,
according to Hardwood Market Report estimates.
Importantly, the pallet and container sector, alone,
utilizes 41 percent of all hardwood consumed in the
Eastern U.S.
Similarly, the pallet and container industry
depends on hardwood to meet about 45 percent
settling
Un
The Hardwood Industry
Under Duress
By Hardwood Market Report
SUPPLY
Times
iStockphoto.com/Smederevac
of its wood raw material requirements. It would be
hard pressed to replace that fiber, particularly for
companies in the Northeast and Midwest, which
are most reliant on hardwoods.
Unfortunately, diminished economic activity
resulting from coronavirus mitigation efforts
severely disrupted business for both industries in
the last several months. Overall demand for pallets
and containers fell sharply, with especially steep
drops from market sectors not deemed essential by
governments. Many operations experienced sales
declines of 50 percent or more almost overnight.
For the hardwood industry, the drag on business
from the pandemic is the latest in a series of
setbacks.
Let's examine the state of the hardwood sawmill
industry, with a particular focus on trends in
