Canadian wood products manufacturers continue to operate at levels far below peak capacity, as softening demand for lumber and engineered wood products, combined with new tariffs and duties, have created a very difficult environment for Canadian producers. That is according to new data from Statistics Canada, which shows that capacity utilisation in December fell to just 70.3 per cent, its lowest level since July 2024 (69.6 per cent). A sharp decline from 74.5 per cent in November, as producers look to life beyond the United States.

Capacity utilisation is widely viewed as a key measure of how intensively manufacturers are using their production lines, and the latest figures suggest a broad‑based slowdown. In addition to the drop in wood manufacturing, Statistics Canada also reported that “furniture and other related product manufacturers” saw utilisation fall by more than 4.9 per cent over the same period, sliding from 79.1 per cent in November to 74.2 per cent in December.

Source: Statistics Canada