Local mills buying logs despite downturn in local economy

Bonners Ferry log hauler Don Wells got good news last week.

Despite an 80 percent drop in housing starts since January 2006, Wells will return to the woods as the annual spring thaw comes to an end.

“I was very concerned,” said the owner of Wells Tucking. “Just the way the economy was going, I thought I might not go back.”

“I haul for Tom Foust (Logging) and he’s got quite a bit of work lined up,” Wells continued. “We’re just waiting for it to dry up.”

He can thank places like Idaho Forest Group, which continues to buy logs for its mill in Moyie Springs, and private landowner Forest Capital, which continues to log its 90,000 acres in Bonner and Boundary counties.

Idaho Forest Group in Moyie turns logs into 8- and 9-foot studs used in home construction.

“We are buying logs and we are planning to continue on buying logs at the same levels as last year,” said plant manager Jesse Short.

The mill is operating one shift with 94 employees. A year ago, two shifts were operating with 105 employees.

“We’re taking in enough logs to continue one shift through the end of the year,” Short said.

Idaho Forest Group expects the demand for lumber to remain flat until the first or second quarter of 2010, he said.

“We’re currently experiencing a small build-up in finished inventory,” he continued. “We have to match production levels with demand. Demand is 10 to 15 percent under what we thought it would be. We’ll have to keep a close eye on that.”

Ed Moe, area manger for Forest Capital’s northern area farm, is expecting logging to begin this month. The amount of logging will depend on the demand from the mills.

“As long as the mills are running . . .the company will continue to harvest timber at a lower profit rate because prices (for logs) are down,” Moe said. “There will be a lot less profit, but we have obligations.”

As for Wells, in the 21 years that he’s owned his business, he’s always gone back to work after spring break-up. This year, Wells was laid off in late February. He collected unemployment, which is about half his normal pay.