Loggers Struggle For Profitability, ALC Learns
Low demand for pulpwood and rising expenses have hurt logging companies, according to a recent report. At the recent meeting of the Appalachian Lumbermen’s Club (ALC) in Greensboro, NC, Mike Powell said the number of logging companies across the Appalachian region is declining. He serves as director of forestry programs for the North Carolina Forestry Association.
The forest industry begins with logging and Appalachia loggers are struggling with capital-intensive investments in equipment and rising timber costs, he said. In the past two years, markets for pulpwood and low-grade fiber have shrunk and loggers have few places to move these materials.
Powell said North Carolina’s forests are divided into three regions: western, piedmont and coastal.
The forest sector contributes $40.5 billion in product output annually and more than 144,000 jobs.
In western North Carolina, the Canton paper mill closed permanently and the Roaring River facility was converted from raw fiber to other materials. In the piedmont region, the Riegelwood “Carolina King” paper machine has been shut down and the Roanoke Rapids mill conversion also reduced hardwood pulp demand.
The state and region have been impacted by severe weather events like Hurricane Helene that damaged an
estimated 822,000 acres of timberland in western North Carolina and more than $214 million in timber value lost. More than 75 percent of these forests were privately owned.
Powell noted that forestry is important to North Carolina and generated $59.1 million in county taxes, $219.9 million in state taxes, and $1.1 billion in federal taxes.
The next meeting of the ALC is March 10, 2026 at the Hotel Roanoke in Roanoke, VA. The Spring Beach Meeting is set April 30-May 3 in North Myrtle Beach, SC. More information is available at www.lumberclub.org.
