The United States has lost 31 wood-using pulp mills between 2019 and July 2026, highlighting the mounting pressure on an industry facing aging assets, shifting paper demand, global competition and rising operating costs.

A new white paper from Forisk Consulting, Market Pressures and Policy Opportunities for the U.S. Pulp and Paper Sector, examines the forces influencing mill closures, capital investment and long-term competitiveness across the domestic pulp and paper industry.

The report was authored by Brooks Mendell and Amanda Lang and is based on structured interviews with executives and managers responsible for wood-consuming manufacturing assets across the United States.

Mill Economics Are Increasingly Difficult

Pulp and paper manufacturing operates under a particularly difficult cost structure.

Mills compete in national and international markets for pulp, paper and packaging products, but their wood supply remains highly local.

That means a mill may face global competition from newer production assets while depending on regional timber availability, trucking costs, labor, permitting requirements and state-level regulations.

Forisk said these pressures are being compounded by several long-term market changes, including:

• Shifts in demand for traditional paper products
• Improvements in manufacturing efficiency
• Greater use of recycled fiber
• International trade and pricing dynamics

Together, these factors can reduce margins across both mills and the broader forest-products supply chain.

Amanda Lang, president and COO of Forisk, said the interviews showed that operating conditions differ substantially by mill and region, but several common themes emerged around investment decisions and competitiveness.

Aging U.S. Mills Compete With Newer Global Capacity

One of the most significant structural issues identified in the report is the age of the U.S. pulp mill base.

Many domestic mills are older than competing facilities in South America and Asia, where newer pulp assets can benefit from more modern equipment, larger production lines and potentially lower unit operating costs.

That difference matters in a capital-intensive industry where major mill upgrades can require substantial investment.

When companies evaluate whether to modernize an existing U.S. asset, expand capacity elsewhere or close a mill, operating costs and expected returns can determine where capital is ultimately deployed.

This helps explain why policy predictability is becoming an increasingly important part of mill investment decisions.

Industry Calls for More Predictable Trade Policy

At the federal level, executives interviewed by Forisk identified trade policy as one of the areas where government action could influence industry competitiveness.

The report calls for stable and predictable trade rules, particularly where imported pulp or paper products may benefit from subsidies or other structural cost advantages.

Industry leaders told Forisk they want policies that create a more level competitive environment rather than introducing further uncertainty into long-term investment planning.

Another recommendation is to encourage new and non-competing uses for wood pulp.

This could include policies supporting fiber-based materials where pulp can substitute for plastic or enter new product applications without simply shifting demand between existing paper grades.

Such demand development could be particularly important for regions affected by declining consumption of some traditional printing and communication papers.

Permitting Speed Could Influence Mill Investment

At the state level, permitting was identified as another major concern.

Pulp and paper projects can involve environmental reviews, air and water permits, energy infrastructure and other regulatory approvals.

Industry executives interviewed by Forisk said they want permitting processes with shorter timelines and fewer bottlenecks.

For companies considering major capital investments, delays can increase project costs and affect the economics of modernization.

Brooks Mendell, CEO of Forisk, said regulatory predictability directly influences whether companies invest in U.S. manufacturing.

“Whether streamlining state environmental reviews or establishing fair global trade rules, policy decisions directly dictate how fast – or if – capital moves into U.S. manufacturing facilities,” Mendell said.

Wood Transportation Costs Also Matter

The report also highlights the importance of transportation and insurance costs within the wood supply chain.

Because mills consume large volumes of wood fiber, the cost of moving logs and chips from forests to manufacturing sites can materially affect delivered fiber costs.

Industry leaders identified measures such as higher allowable truck weights and lower insurance costs as potential ways to improve wood-supply economics.

These issues may appear relatively small compared with the cost of building or modernizing a pulp mill, but they can directly affect the competitiveness of facilities that consume large quantities of fiber every day.

For mills operating on narrow margins, incremental changes in delivered wood cost can become significant over a full year of production.

Mill Closures Have Effects Beyond Paper Production

The closure of a wood-using pulp mill affects more than the manufacturing facility itself.

Mills support demand for timber, logging, trucking, maintenance, chemicals, equipment and other services across surrounding communities.

When a mill closes, forest owners can also lose an important market for pulpwood and lower-grade timber.

That can change local forest economics and potentially reduce incentives for active forest management.

Forisk’s report therefore frames pulp and paper competitiveness not only as a manufacturing issue, but also as one connected to forest markets and rural communities.

With 31 wood-using pulp mills having closed since 2019, the industry is increasingly focused on what will determine the survival and modernization of the remaining U.S. assets.

The report’s central message is that companies still see opportunities for domestic production, but future investment will depend heavily on cost competitiveness, market demand and a policy environment that allows manufacturers to make long-term decisions with greater certainty.

Last Updated on 28/08/2026 by Jota Machinery