This report analyzes the sawmill and planing mill industry in the island of Newfoundland using the widely-applied structure, conduct, and performance framework. This framework is based on the premise that the structure of an industry influences the conduct of operators of firms within that industry, which in turn is assumed to influence the industry's performance. The report provides information on such matters as distribution of mills by size and technology, degree of industrial integration and product differentiation, pricing and production of lumber, operator characteristics, economic and technical efficiency of the industry, and the economic impact of the mills. The report concludes with recommendations for improving the industry problems identified in the analysis.