The USDA Forest Service is created to conserve forest resources and stabilize markets. The first plywood plant is built at St. Johns. Logging with oxen is on the wane. The Great Depression begins. Distribution of mills changes from the Columbia River to the margins of the Willamette Valley, Bend, Klamath Falls, Lakeview, and LaGrande.
Most lumber is marketed in rough form.
The major focus of the lumber industry moves from northwest to southwest Oregon. The chainsaw is invented. The theory of sustained yield is applied to Oregon land grant forests by the US Department of the Interior. Oregon becomes the major lumber state in the nation. The first sawmill is built in the Willamette Valley.