Hard Times Raise Winter Sawmill Layoffs In N. Idaho Unfavorable Cost Factors, Competition Blamed For Increased Cuts

Seasonal sawmill layoffs, common during North Idaho winters, have been worse this year because of tough market conditions.

Industry officials blame high log prices, low pulp prices and continuing competitive pressure from Canadian lumber mills for the short-term cutbacks at area mills.

The latest company to send workers home temporarily is Louisiana-Pacific Corp., which will shut down two sawmills this weekend.

Sixty workers at its Chilco sawmill north of Coeur d’Alene and 55 workers at the Sandpoint mill will be idled until more logs are available and lumber prices improve, said Jim Beldin, L-P spokesman in Hayden Lake.

Farther north in Boundary County, Crown Pacific shut down its Bonners Ferry sawmill this week because of lousy lumber market conditions.

However, the 50 people out of work will return to their jobs on Monday, said Fletcher Chamberlin, spokesman for Crown in Portland.

“It was strictly market conditions,” that closed the mill for a week, he said. Crown went through a similar short-term layoff at its Albeni Falls mill in November.

Lumber prices have been lackluster for a year. Higher prices for pulp chips kept some sawmills running logs through the machinery to produce the green, fresh chips that pulp mills pay top dollar for.

However, Beldin said, lower pulp prices have even hurt that end of the sawmill business, leading to this week’s layoff notices.

Short-term layoffs are common in the lumber business, as mills go through maintenance cycles and as demand for lumber drops during the winter.

Imported Canadian lumber has hurt sawmills like L-P’s, Beldin said. Trade negotiations continue in Washington, D.C., between the U.S. and Canada over transportation subsidies that give Canadian lumber mills price advantages, according to timber leaders.

The U.S. has threatened to impose tariffs on Canadian imports if a trade deal could not be reached.

The combination of these factors threaten the sawmill economy in the Inland Northwest. Many timber experts believe more permanent layoffs and sawmill closures lie ahead unless market conditions change dramatically.

Beldin said there is some optimism that the two L-P mills could re-open by the second week of February, but added that would be very tentative.

The layoffs are certain to raise an already rising Panhandle unemployment rate, especially in Kootenai and Bonner counties.

, DataTimes