Forest products

Housing Wisconsin: Home Building Trends, Outlook

Housing Market Index (HMI) Survey, March 2025. Source: NAHB/Wells Fargo. / Graphic Credit: Brian Zweifel, Wisconsin DNR

By Brian Zweifel, DNR Forest Products Specialist, Dodgeville
Brian.Zweifel@wisconsin.gov

Variability and uncertainty seem like key words to describe many things right now, but the words apply especially to current housing markets.

The home construction and remodeling industry is a key driver of forest products markets and can be an important indicator of future demand. Softwood lumber and engineered wood products such as oriented strand board, plywood and laminated beams and joists are used in home construction. Hardwood lumber, however, is used to manufacture flooring, cabinets and other millwork items for interior applications.

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Programs Support Forestry, Forest Products Industry

United States Department of Agriculture logo.

Elle Soderberg, DNR Forest Products Specialist, Green Bay
Elle.Soderberg@wisconsin.gov

Communities across Wisconsin have significant economic growth opportunities thanks to several key funding and support programs offered by Rural Development, a division of the U.S. Department of Agriculture (USDA). These programs provide vital resources aimed at improving infrastructure, businesses and entrepreneurs across the country.

The Business & Industry Loan Guarantees program is designed to assist businesses in rural areas by offering loans that help promote economic development, job creation and improved services in communities that need it most. Through this initiative, businesses can access funding they may not have otherwise qualified for, thus enhancing their ability to expand and create new opportunities for local residents.

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A Closer Look At Red Pine In Wisconsin

Wide-angle photo of a red pine tree stand in Wisconsin.

A stand of red pine trees towers over its Wisconsin stand. / Photo Credit: Wisconsin DNR

By Ryan Heiderman, DNR Forest Inventory Analyst
Ryan.Heiderman@wisconsin.gov

Of Wisconsin’s almost 17 million acres of forest land, the red pine forest type currently covers approximately 815,000 acres. Of those red pine acres, 80%, or 656,000 acres, are planted.

Overall, the acres of red pine have increased substantially since the cutover period of the early 1900s (Figure 1), particularly from planted red pine. In the 1939 report summarizing Wisconsin’s first periodic forest inventory, the authors give a dire warning stating that, with the exception of jack pine, the pine forests are almost gone, having been depleted and deforested in the decades prior.

Chart showing trends of red pine forest type acres in Wisconsin

Chart showing trends of red pine forest type acres in Wisconsin. The asterisk indicates that stand origin was not designated prior to the 1983 inventory. / Graphic Credit: Ryan Heiderman, Wisconsin DNR

This early inventory indicated much of the deforested sandy pine forest had become occupied by aspen, paper birch and scrub oak. They went on to say while natural regeneration might be expected eventually, indications were that it would be slow, and planting seemed to be the only recourse if early reforestation was to be accomplished.

Reporting on the next periodic inventory in 1956, the authors highlighted that red pine acres were ‘coming back’ and white pine acres fading. They reported that much of the tree planting that had been done since the previous inventory was mostly red pine. Echoing the advice from the earlier inventory report, the authors again stated the importance of forest planting – saying reforestation could increase the acreage of productive forest land, but the planting job was a big one. At the time, they reported some 148,000 acres of the red pine forest type. They reported that over half (53%) of these red pine acres were on public lands. Today, more than 60% of red pine acres are in privately-owned forests.

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Impact Of Home Building On Wood Products Sector

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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Eastern White Pine CLT Research Moving Along

A five-ply panel of Eastern white pine from Wisconsin being formed into cross-laminated timber in a press at Michigan Technological University. / Photo Credit: Wisconsin DNR

By Alex Anderson, DNR Forest Products Specialist, Tomahawk
Alexander.Anderson@wisconsin.gov

As part of the Wisconsin Department of Natural Resources Forest Products Services mandate to explore new markets for species considered underutilized in the state, a research project was proposed to evaluate the viability of Eastern white pine (EWP) in cross-laminated timber (CLT) panels.

CLT has become increasingly popular in the U.S. during the last decade-plus, after the product was determined to be an effective alternative to traditional concrete and steel construction for multi-story construction in Europe. It is created by pressing dimension lumber (2x4s and 2x6s, typically) into large panels where each layer runs perpendicular to those above or below it, similar to plywood. This construction method allows for large structural panels to be created entirely from wood.

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Rotstop® C No Longer Available In North America

Photo of a worker manually applying fungicide, imbued with blue dye, to a freshly cut tree stump to fight the spread of fungal diseases such as Heterobasidion root disease.

A worker manually applies fungicide, imbued with blue dye, to a freshly cut tree stump to fight the spread of fungal diseases such as Heterobasidion root disease. / Photo Credit: Wisconsin DNR

By Kyoko Scanlon, DNR Forest Pathologist, Fitchburg
Kyoko.Scanlon@wisconsin.gov

The manufacturer, Lallemand Plant Care, recently decided to remove Rotstop® C fungicide from the North American market.

As a result, the product is no longer available for purchase in North America. If you already have the product and have stored it in an appropriate space, you may still use it as a preventative treatment for Heterobasidion root disease (HRD) as long as the expiration date has not arrived.

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Forest Products Grants Announced

A man wearing a yellow hard hat and safety glasses measures a piece of wood in a lumberyard with stacks of wood in the background.During National Forest Products Week, the USDA Forest Service announced it is making nearly $34 million in funding available through its Wood Innovations, Community Wood and Wood Products Infrastructure Assistance grant programs. The Forest Service is seeking proposals that support crucial links between resilient, healthy forests, strong rural economies and jobs in the forestry sector. Funding for these programs is intended to spark innovation, create new markets for wood products and renewable wood energy and expand processing capacity. You can read the full news release on the Forest Service’s website.

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Larry Krueger Shares Insights From Forest Products Industry Career

Photo credit: Larry Krueger.

The people who make Wisconsin’s forest products industry function are vast and varied. It’s estimated that more than 123,000 jobs in the state are tied to the forest industry. From the foresters and woodland owners caring for the forest to the loggers and truckers getting the logs from the forest to the sawmills and pulp mills throughout the state to the workers creating finished wood and paper products, it takes a wealth of passionate people to produce the many forest products you depend on every day.

Larry Krueger, a co-owner and sawmill manager of Krueger Lumber, is one of those working in the heart of Wisconsin’s forest products industry – fitting, as Krueger said he was born into it.

“My father Herb Krueger started Krueger Lumber in 1969,” Krueger continued. “The more you see the beautiful, natural products from our forest, the more you grow to love and appreciate its beauty.”

In his role, Krueger wears many hats. His day at the mill begins at 6:15 a.m. with a hard hat as he tours the sawmill to ensure smooth operations.

“I speak to various workers at different production points, checking for any problems and to see what’s new. I walk from the sawmill to the dry kilns and warehouses. I stop at the different lumber grading areas, speaking to the graders about any questions or issues they are seeing in the kiln-dried lumber being re-graded for quality,” he said.

Selling kiln-dried lumber is one of Krueger’s top priorities; after ensuring everything is running smoothly, he trades in his hard hat for a sales pitch.

“Throughout the rest of the day, I speak with and email regular and potential customers,” Krueger said. Continue reading “Larry Krueger Shares Insights From Forest Products Industry Career”

How Wisconsin’s Forests And Climate Initiatives Are Shaping A Sustainable Future

A man in a reflective vest stands next to a large stack of tree logs in a snow-covered yard.

Wood stores carbon throughout its life. Photo credit: DNR

Wisconsin’s forests and forest products have a dual role in climate change. They are impacted by climate change, but also help mitigate its effects by storing carbon in wood products from sustainably harvested forests.

Sustainably managed forests in Wisconsin provide essential raw materials for more than 1,200 wood product companies and 280 logging businesses. Annual forest growth in the state significantly exceeds the volume harvested. In 2013, Wisconsin’s primary wood-using mills received 307 million cubic feet of industrial roundwood, while net growth reached 576 million cubic feet — an impressive 18 cubic feet of wood growing every second – and enough to fill Camp Randall Stadium roughly 108 times over.

When sustainably harvested wood is used in long-lived products such as lumber, furniture, windows and doors, it stores carbon throughout its life, only releasing it back into the atmosphere when it decays. Compared to concrete and steel, wood is gaining popularity as a building material due to its carbon-storing capacity ­– about half of dry wood is carbon – and its renewability. Additionally, it requires a less energy-intensive manufacturing process.

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The Economic Powerhouse Of Wisconsin’s Forest Products Industry

A man wearing a yellow hard hat and safety glasses measures a piece of wood in a lumberyard with stacks of wood in the background.

Wisconsin exported around $1.3 billion worth of forest products in 2022. Photo credit: DNR

The economic impact of Wisconsin’s forests cannot be understated.

The annual value of products from Wisconsin’s forest industry is over $24 billion, representing 2.3% of the state’s gross domestic product. Forest industries in Wisconsin employ around 58,000 individuals.

The economic influence of Wisconsin’s forest products industry extends to other sectors through inter-industry transactions and household spending. The forest products industry contributed an additional 66,000 jobs and $13.1 billion in output, bringing the total to over 123,000 jobs and $38 billion in production tied to the forest products sector. To help contextualize the scale of that impact, consider this: For every ten jobs in the forest products industry, 11 jobs were created in other areas of the economy.

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