Ear Falls, Ont., reels from its sawmill closure as industry leaders urge Ottawa to fast-track federal relief to protect jobs and stabilize forestry markets.
Ear Falls Faces Uncertain Future After Sawmill Closure
A Community Reeling
The northwestern Ontario town of Ear Falls is facing an economic crisis following the sudden shutdown of its Interfor sawmill, the community’s largest employer. Mayor Kevin Kahoot announced the closure on Friday, confirming the loss of up to 150 local jobs in a town of fewer than 1,000 residents.
Industry Blames Tariffs and Market Stagnation
The Ontario Forest Industries Association (OFIA) attributed the indefinite closure to a combination of U.S. softwood lumber tariffs—now totalling nearly 45 per cent—and flat North American demand. OFIA President Ian Dunn said the news, though anticipated, “doesn’t make it any easier for workers and families who depend on forestry.”
Calls for Federal Action Grow Louder
Industry leaders are pressing the federal government to fast-track relief measures announced in August by Prime Minister Mark Carney, including $700 million in loan guarantees through the Business Development Bank of Canada. Dunn stressed that “companies can’t afford to wait,” warning that without urgent rollout, more communities could face similar fates.
Economic Ripple Effects Across Northern Ontario
The closure underscores growing instability in Ontario’s forestry sector, which exports 97 per cent of its forest products to the U.S., generating nearly $8 billion annually. With limited domestic alternatives, rural towns remain vulnerable to trade and market shocks. The OFIA is working with provincial partners to diversify markets and strengthen local demand, but admits “we’ll never fully replace the U.S. market.”
Diversification Seen as Path Forward
Elsewhere in northern Ontario, the Kapuskasing paper mill recently resumed operations thanks to joint federal and provincial funding. Rick Dumas, president of the Northwestern Ontario Municipal Association, says such support must also drive diversification. “Single-industry towns are fragile,” he said. “When mills close, so do the opportunities that sustain local economies.”
Bridging Forestry and Housing Needs
Dumas also pointed to a glaring disconnect between the push for new housing and the decline of sawmills. “If governments want more homes built faster, they must ensure the lumber supply stays strong,” he said. OFIA has endorsed Ontario’s Advanced Wood Construction Strategy, which promotes mass timber and modular home building as key to domestic growth.
Urgent Need for Skilled Workforce and Market Reform
With youth leaving for jobs elsewhere, Dumas warns that “idle mills mean lost training grounds.” Both municipal and industry leaders agree that recovery will require skilled labour investment, stronger domestic wood markets, and swift federal action to prevent more shutdowns across Ontario’s forested north.
