Do Canadian Companies Control Too Much U.S. Lumber?

It's no secret that Canadian companies have made major inroads into the U.S. lumber industry, particularly in the South. But is that a pressing issue?

Don Buckner, CEO of MadeInUSA.com, an e-commerce marketplace dedicated exclusively to American-made products, certainly believes it is. In a press release, he sounds the alarm about the trend of our Northern neighbors controlling an increasing amount of sawmills located in the U.S. He writes:

"West Fraser operates 16 sawmills across the southern U.S., compared to 13 in Canada.
Canfor runs 11 mills in Georgia, North Carolina, Mississippi, and neighboring states.
Interfor manages 13 sawmills in the U.S., accounting for the majority of its lumber output. Additional Canadian firms—such as Tolko Industries (via a Louisiana joint venture), Maibec Inc., J.D. Irving, and Kruger Inc.—also maintain active operations and land holdings throughout the country."

Foreign ownership, according to Buckner, raises several key issues. He writes:

Supply chain autonomy. With essential building materials under foreign control, the U.S. may face increased vulnerability during geopolitical tensions or trade disputes.
Economic retention. While these mills generate jobs locally, a significant portion of profits is repatriated, raising questions about long-term reinvestment in American communities.
Market influence. Consolidated foreign ownership could shape production levels and pricing, affecting U.S. builders, consumers and downstream industries.

While Buckner doesn't get into specifics regarding what the country should or might do to respond, he floats the possibility of "incentivizing domestic ownership, increasing sourcing transparency and evaluating regulatory frameworks around foreign investment in strategic industries."

He concludes: 

"Understanding who controls the supply—and where the profits are going—is essential if we want to ensure long-term economic resilience.”