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U.S. Lumber Coalition Challenges CNBC's Reporting on Softwood Lumber

The U.S. Lumber Coalition and the American Loggers Council have expressed their disappointment regarding a recent CNBC article titled 'Why The U.S. Might Increase Duties On Canadian Lumber Again.' They claim the piece presents a one-sided perspective that overlooks critical viewpoints from American lumber producers and loggers, who are working tirelessly to meet the softwood lumber demands in the U.S. housing market.

Andrew Miller, the Chair of Stimson Lumber Company and Chair of the U.S. Lumber Coalition, stated that the article inaccurately suggests that the volatility of lumber prices and import duties are pricing consumers out of the housing market. He emphasized that the reality is different; lumber constitutes only 1-2% of the overall sale price of a newly built home. Moreover, he argues that current lumber prices are relatively low compared to historical norms and that they have not increased in line with inflation, making the claims presented by CNBC not just misleading but also nonsensical.

Scott Dane, Executive Director of the American Loggers Council, echoed these sentiments, highlighting that the enforcement of trade laws against Canadian unfair practices has been beneficial for domestic lumber capacity. Since 2016, there has been a significant increase in American lumber capacity, which oversaturated the market and equated to enough material to construct around two million U.S. homes. Miller adds that while there have been challenges, the potential for U.S. loggers to boost production remains strong, especially given that growth exceeds consumption in numerous instances.

The coalition pointed out that while the average sales price for new homes skyrocketed between 2015 and 2024, the increase attributed to lumber only accounted for approximately $901 — about 0.57% of the overall rise. In contrast, the significant profit margins of homebuilders and the increases in prices for other materials like steel and concrete reveal that the challenges in home affordability cannot be solely attributed to softwood lumber pricing.

Miller called for attention on important factors influencing home prices, such as land, labor, and various regulatory hurdles, arguing that these are more decisive in the market than lumber costs. The coalition remains steadfast in its support for the U.S. government to enhance the supply of domestically produced lumber, reinforcing the message that the enforcement of U.S. trade laws is vital for ensuring both housing affordability and a viable lumber market for producers.

Both organizations advocate for greater awareness of domestic lumber production’s contributions to housing affordability. The objective is to underline the effective measures already underway, which lead to an even more robust softwood lumber supply crucial for building American homes without exorbitant costs.

More information about their positions and initiatives can be accessed through the U.S. Lumber Coalition and the American Loggers Council's respective websites, where they seek to inform and engage with all stakeholders in the lumber and housing markets, ensuring a balanced and fair discussion regarding the future of lumber trading in the U.S.

About the U.S. Lumber Coalition

The U.S. Lumber Coalition is made up of small and large softwood lumber producers who actively strive to address issues related to unfair lumber trade practices from Canada. Their mission is to advocate for fair practices that enable domestic lumber businesses to flourish without the hindrance of unfair foreign competition.

About the American Loggers Council

The American Loggers Council represents the interests of loggers across the United States, advocating for fair opportunities in the sector and promoting sustainable forestry practices. They aim to improve industry standards and provide necessary information about logging operations.