BIGFORK, MONTANA – The worst lumber markets in more than 30 years are taking an unexpected toll on some of the most technologically advanced sawmills in the world.

This according to Jim Petersen, executive vice president of the non-profit Evergreen Foundation, which is based in Bigfork. The foundation, which draws some of its support from western lumber manufacturers

“In March alone, more than a dozen western sawmills announced curtailments or permanent shutdowns,” Petersen said. “What needs to be understood here is that these are state-of-the-art sawmills capable of weathering routine downturns in lumber prices, but there is nothing routine about what’s happening in the lumber market at the moment. I’ve worked around this industry for nearly 40 years, and I’ve never seen a downturn as bad as like this one.”

    From northern California north through Oregon and Washington and on east into South Dakota and Wyoming, the news is not good. Nor has the damage caused by the near-collapse of the U.S. housing market been limited to small sawmilling companies.

In recent days, Weyerhaeuser, one of the largest forest products companies in the world, announced the permanent closure of its mill at Dallas, Oregon, as well as cutbacks in its milling operations at four plants: Warrenton and Cottage Grove, Oregon and Longview and Raymond, Washington. The Federal Way, Washington firm lost $1.21 billion - $5.73 per share – in the recently ended quarter. The firm blamed its losses on the deepening global recession, imploding pulp prices and the collapse of the U.S. housing market.

    Separately, Sierra Pacific Industries, California’s largest lumber company and one of the largest privately held forest products companies in North America, announced the curtailment of one shift at its Arcata, California sawmill and the permanent closure of its small-log mill at Quincy. The Quincy closure is particularly painful because the company had high hopes that it could provide a profitable market for small diameter trees that need to be removed from diseased forests in the Sierra Nevada Mountains. But the flurry of environmental lawsuits that have plagued nearby national forests for most o the last 20 years could not overcome, despite the laudable efforts of California’s senior U.S. Senator, Diane Feinstein, and a San Francisco Democrat.

    Other curtailments across the West include Vaagen Brothers small-log mill at Colville, Washington, which shut down February 13 and now isn’t expected to restart until mid-April at the earliest, and Portland-based Hampton Affiliates, which announced that rolling curtailments in effect at its Tillamook, Oregon and Darrington, Washington mills will continue through March.

    Boise Cascade has also eliminated the second shift at its Elgin stud mill in eastern Oregon, which sits dead center some of the sickest mixed conifer forests in the entire federal forest system. The story is the same at Neiman Enterprises, which ha shut down its mills at Spearfish, South Dakota and Hulett, Wyoming.

    The Swanson Group, based at Glendale, Oregon, has indefinitely reduced production at its Roseburg stud mill from 50 hours per week to 20 hours, and it has also laid off more than 40 workers at its Glendale plywood operation. Company president, Steve Swanson, blamed the layoffs on “the housing slump and the overall economic crisis that is affecting the entire country.” Swanson said he had no idea when market conditions would begin to improve.

    Meanwhile, Manke lumber Company announced that it is shutting down its’ sawmills and planer in Tacoma as well as its mill in Sumner, Washington. The news is no better in Coos Bay, Oregon, where Southport Lumber had eliminated a shift at its sawmill, or in Eureka, California where the California Redwood Company and Green Diamond Resource Company have both announced curtailments in their sawmill and woods operations.

    The non-profit Evergreen Foundation draws some of its annual support from western lumber companies. “The collapse of the lumber market has definitely had an adverse impact on our work,” Petersen said. “But we’ve been here before so I know we’ll weather the storm. And we’re in pretty good company. Even the Metropolitan Museum of Art in New York City is laying off staff members. I doubt there is a non-profit in the entire country that is not feeling the negative impacts of the global recession.