I'm not a expert and can only try to relate to the hardwood lumber that is most common in my area, red oak, white oak, hickory, popular, maple, beech, black walnut, cheery
A friend owns a local sawmill that I worked at for over 20 years maintaining the mill and driving a truck delivering lumber
Years ago they mainly sawed rough cut barn lumber and cross ties for the RR, the lumber was cut to full dimension, a 1 inch board was cut 1 inch, a 2x4 was 2x4
Today they cut lumber for flooring and furniture manufactures along with sawing cross ties and pallet stock from the heart wood (center of the log), heart wood normally contains more knots and defects that flooring and furniture makers don't want
First off I will say that NO fresh sawn lumber is used directly as a finished product other than maybe fencing, the lumber must first be dried either by natural air drying that can take up to 7 years or thru steam heated kiln drying that can take a few days to a few weeks
When lumber is dried it shrinks so a board that was cut 1 inch thick is no longer 1 inch, once dried it is then planed down to get a smooth finish, this can take 1/6 to 1/8 inch from each side to remove the saw marks depending on if it was sawn with a circle saw or band saw, so the end product is now 5/8 to 3/4 inch thick
The dimensional lumber yards that dry and plane lumber to a finished size require the sawmills to cut the lumber thicker to insure there's enough wood to get the proper finished size required by the manufacture of the finished product
The lumber we sawed was 4/4 =1 1/8, 5/4 =1 3/8, 6/4 =1 5/8, 8/4 =2 1/8
Todays production sawmills have computer set works that can be set to change board thickness as little as 1/64 inch.
Most large production saw mills now run all band saws while some still use a circle saw head rig to remove the slabs and square up the log before it's sent thru a band resaw or gang edger to produce the final boards
The last mill we built uses a circle head rig and a band resew
There much more I can add but this is already getting long
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