WASHINGTON–(BUSINESS WIRE)–The U.S. Hardwood Lumber industry has a heavy reliance on export markets
for its survival, and is being devastated by the ongoing trade dispute
with China. Domestic mills have suffered sharp declines in export sales.
Operations have been shuttered. Jobs lost. Communities, reliant on good
paying hardwood jobs, ruined.
“The hardwood industry is a fully integrated industry, from logging to
manufacturing finished consumer goods like flooring, cabinetry,
moldings, railway ties and many other products,” says Hardwood
Federation Executive Director, Dana Lee Cole. “The ongoing trade dispute
with China and the declared tariffs on U.S. hardwood products are
serious threats to the viability of the industry, and the people it
employs.”
In 2018, U.S. hardwood producers shipped products worth $3.9 billion to
global markets; $1.9 billion to Greater China, including Hong Kong and
Macau. As a result of the impacts of tariffs imposed in the fall of
2018, the U.S. had a trade surplus of $1.293 billion in hardwood lumber,
down from $1.475 billion in 2017.
Over the last three quarters, hardwood exporters lost $153 million per
quarter, as a result of the 10 percent tariffs imposed by China. When
the current tariffs increase to 25 percent, a steep acceleration of
loses is expected. Clearly, dependable, long-term export markets are
essential to the sustainability of the hardwood industry.
According to a recent economic impact study conducted by the Washington
D.C.-based Hardwood Federation, the U.S. hardwood products industry is
an important contributor to the U.S. economy, adding $348 billion to the
economy, overall. Additionally, hardwood producers and manufacturers
directly support more than 685,000 jobs in 25,000 facilities, generating
$35 billion in annual income.
Related industries, including transportation, retail, forest ownership
and logging, support more than 1.1 million jobs, generate an additional
$67 billion in income, and add another $212 billion to the economy.
“If these tariffs continue in this current application,” says Cole, “our
logging and sawmill production will disappear as an industry sector, and
the secondary jobs and manufacturing companies depending on loggers and
sawmill operations will quickly follow.”
The Hardwood Federation represents 26 U.S. hardwood-focused trade
associations, state forestry and lumbermen organizations. Please visit the
Federation website for more information.
Contacts
Media Contact
Dana Cole
Executive Director
Hardwood
Federation
[email protected]
202.463.2705
