Boise Cascade to Trim Lumber Operations in Alabama - Modern Distribution Management

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Boise Cascade to Trim Lumber Operations in Alabama

Building materials distributor and manufacturer Boise Cascade determined lumber production in Chapman, Alabama, to be no longer feasible.
Boise Cascade
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Building materials distributor and manufacturer Boise Cascade will shut down some lumber production at its operations in Chapman, Alabama, on Jan. 28, 2024, in a move that will affect about 80 positions.

On Nov. 28, Boise Cascade announced what it called an “indefinite curtailment” due to a combination of challenges, including required future investments and overall profitability.

“It was a difficult and unfortunate decision, but after evaluating a number of factors over the past year, it is not feasible to continue operating at an efficient level,” said Chris Seymour, Senior Vice President of Manufacturing Operations, in a news release.

The plywood operations at the Chapman location will continue.

“We will work with our Chapman Lumber customers to manage the transition between now and the eventual curtailment,” said Mike Brown, Executive Vice President, Wood Products. “We continue to focus on growing our engineered wood products business and supporting the remainder of our manufacturing locations.”

Boise Cascade’s third-quarter 2023 net income of $143.1 million on sales of $1.8 billion dropped 15% compared to 3Q 2022. Year-over-year net income dropped 35% in the quarters. Wood product sales dropped 13% versus 3Q 2022.

In October, Boise Cascade attributed some of the drop to a decrease in multi-family housing starts.

Despite the drop in sales, the company added a new warehouse and distribution facility in Florida and announced it would expand its millwork business with the purchase of BROSCO.

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