More deals between U.S. and Canadian forestry companies are likely as the industry continues to struggle with excess capacity in North America and low prices, according to PricewaterhouseCoopers.

This week’s combination of paper units of Weyerhaeuser and Domtar, a big Montreal-based firm, brought more attention to the trend. Weyerhaeuser, with annual sales of $23 billion, is trying to boost its profitability by jettisoning one of its paper businesses and hopes the move helps fend off hostile takeover attempts by private equity firms.

The industry has been cutting costs for years by closing mills and consolidating. In fact, Weyerhaeuser became a major Canadian operator in 1999 when it bought MacMillan Bloedel. But an acceleration of the trend could further undermine employment in rural parts of Cascadia and continue development away from the industry that largely built this region.