Colorado is facing more frequent wildfires, a shortage of affordable housing, and limited high-quality job opportunities in rural areas. Businesses that process small-diameter trees (9 inches or less) from wildfire mitigation efforts into mass timber, a class of high performance wood building products, could help tackle these issues while also reducing carbon emissions from the construction sector, which is the state’s third-largest source of pollution.

Challenges to developing a mass timber industry in Colorado include supply uncertainties from federally managed forests and a limited logging and milling infrastructure. However, growing demand for sustainable building materials and updated building codes present significant opportunities for businesses and communities if these obstacles can be addressed.

The study recommends a phased strategy for wood product businesses:

• Rightsize Now (2–3 years): Increase log supply to existing mills and launch small-scale operations producing nail-laminated timber, dowel-laminated timber, and cross-laminated timber. This approach can quickly boost wood product output, strengthen local businesses, and prepare for future growth.
• Plan for Scale (5–10 years): As timber supply expands, scale up to high-volume production of cross-laminated timber, glue-laminated timber, wood fiber insulation, and other advanced products using automated techniques, unlocking new business opportunities and adding value to forest residues.

We would like to express our sincere gratitude to the Gates Family Foundation, Mighty Arrow Foundation, National Forest Foundation, and the United States Forest Service for their generous support. Their contributions have been instrumental in our efforts to efficiently and accurately gather the relevant information for this report. We also acknowledge and appreciate the valuable collaboration of the Colorado Mass Timber Coalition for their tireless work in advancing this initiative.