
Figure 1. Number of full-and part-time sawmill employment in Wisconsin, 2015-2023. Data Source: IMPLAN. / Graphic Credit: Ram Dahal, Wisconsin DNR
By Ram Dahal, DNR Forest Economist, Madison
Ram.Dahal@wisconsin.gov
Residential home construction heavily depends on wood products like lumber. When housing starts increase, the demand for softwood and hardwood lumber and engineered wood products typically rises, and vice versa.
The home building market experienced a variety of challenges in recent years due to stay-at-home orders during the COVID-19 pandemic. In the second quarter of 2020, the US experienced a reduction of more than 25% in new privately owned housing starts compared to the previous quarter. Almost all regions experienced similar downfall (Figure 1).
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