Slowing economy leads to sawdust shortage

U.S. Business
Europe
Asia
World News
Economy
Politics & Policy
Campaign 2008
Earnings
Health
Law
Media & Marketing
News by Industry
Columnists

Sawdust Shock: A Shortage Looms As Economy Slows
By Joel Millman
Word Count: 1,206

Ernie Johnson figured $100-a-barrel oil was bound to happen someday. But the 58-year-old businessman Missoula, Mont., never thought he'd see sawdust at $100 a ton.

The price of sawdust has soared since 2006, up from about $25 a ton to more than $100 in some markets. Blame the housing slump: Fewer new homes mean fewer trees cut for use in construction, which leads to less sawdust and other wood waste, driving up the price.

"I've never seen sawdust so hard to find. We're having to go 400 miles to get it," says Mr. Johnson, the president of Johnson Brothers Contracting, ...