New Hampshire's Sawmills Face Challenging Times

A second New Hampshire, white pine sawmill is closing its doors, leaving dozens of long-time employees searching for new jobs.

Timco of Center Barnstead follows Davidson Industries of Woodsville, another sawmill which made its own announcement it was shutting down in the coming weeks as well.

What is happening to New Hampshire's white pine sawmills? To answer that question, we must look back at how the industry developed and, in addition, we must look at the factors challenging all manufacturers throughout the United States.

In New Hampshire, white pine is king, or so the King thought. The industry developed prior to the American Revolution, when King James of England declared all white pine trees suitable for mast-making the property of England. The colonists revolted and in 1737 a "Mast Tree Riot" broke out in Fremont. Soon after, New Hampshire patriots joined the American Revolution.

White pine remains a serious timber species. White pine timbers frame many of the state's historic structures, white pine boxes moved products from fish to ammunition for World War II, and more recently, white pine enjoys national markets as flooring, paneling, door and window trim, furniture, and log cabin stock. White pine is indeed a versatile wood sought for its easy workability and warm patina.

With harvesting levels remaining below growth, white pine is positioned to provide a sustainable supply of timber for the regions' sawmills. White pine demand has increased dramatically in the last decade due to a soaring economy and a disruption of West Coast sources of ponderosa and sugar pine, a result of environmentalist pressure on federal land policy. White pine filled the gap and expanded markets dramatically to include new customers such as Midwest window manufacturers.

The species represents 66% of the state's sawmill production and is now shipped throughout the country. Due to the demand, New Hampshire's 10 largest, white pine sawmills increased production and invested in new technology to improve accuracy, utilization, and quality -- all things progressive companies do to remain competitive.

Despite all that, New Hampshire's sawmills, both hardwood and softwood, struggle to remain profitable. The high cost of logs due to intense competition is one factor. Competition comes from other mills in the region as well as from Quebec. The NH State Forester's office estimates 30% of wood harvested in New Hampshire is processed in Quebec.

In addition, like all manufacturers, high energy costs, labor rates, and soaring insurance premiums have contributed to a slim profit margin. If that isn't enough, wood from other countries is beginning to flood the markets. Countries such as New Zealand and Chile have huge plantations of radiata pine, a satisfactory substitute for white pine, which are mature and ready for harvest. Eastern Europe is shipping "Russian" pine (Pinus sylvestris) and Baltic birch plywood to the U.S. at competitive prices. The combined pressure of rising costs and low-priced imports have caused a few of the white pine sawmills to make the difficult decision to close.

Is this the end, will we no longer smell the comforting smell of freshly sawn white pine? Will the hardwood sawmills soon follow? Will New Hampshire's landowners lose all hopes of maintaining a working forest?

No, I don't believe so. New Hampshire is the second most forested state in the country, at 84% of the land cover. Many private landowners, who represent 80% of the forest land and the state and federal forests (20%), actively manage their forestland resulting in a flow of forest products to meet consumer needs across the country. Over one thousand loggers and truckers work across the landscape to deliver wood products to manufacturers.

Many private landowners generate needed income which helps to pay their taxes and to retain the forest as forest. This way they are not forced to sell their property to the highest bidder, which may lead to land development. As long as New Hampshire can maintain a substantial forestland base, the wood will grow and have the potential to support local manufacturing. Wood from other countries may be subject to international policies, transportation challenges, and fluctuation in currencies, thus leading to uncertainty.

New Hampshire's forests are an economic engine that drives tourism, as well as manufacturing. And, the forests contribute to clean air, water, wildlife diversity, recreation, and scenery. As long as we have our forests, a strong land and work ethic, and an industry focused on customer service and quality, the industry will survive.

Sarah Smith Associate Professor/ UNH Cooperative Extension Specialist, Forest Industries