Softwood lumber plays a critical role in U.S. housing construction. This study examines the dynamics of the U.S. softwood lumber industry using an Unobserved Components Model (UCM) applied to annual production data from 1965 to 2017. The model decomposes production into trend, cycle, and irregular components, while also incorporating GDP growth as a key economic driver. Results show a clear cyclical pattern with an average period of 19.6 years. Within the UCM framework, holding the trend and cycle components constant, a one-percentage-point increase in GDP growth will raise softwood lumber production by 0.595%. The stochastic cycle emerges as the primary driver of production variability, while economic shocks exert a secondary but meaningful influence. These findings offer insights into the industry's cyclical nature and inform strategies for enhancing market stability and resilience.