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Montana timber industry braces for pandemic effects | State - Fairfield Sun Times

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Timber workers across the West stand a better chance of overcoming pandemic-related economic shocks than many other industries this year, but rural economies still need to brace for more trouble.

“When you’re dependent on one or two primary resources, even minor downturns can wreak havoc,” said Laura Schweitzer of the Council of Western State Foresters during a Western Governors Association webinar last week. “The COVID-19 pandemic is presenting challenges that go beyond economic challenges. It’s things like social distancing rules when you’re trying to meet collaborative goals, or how to get work done on the landscape when you’re struggling to get help from agencies with limited activity or budget cuts.”

Unlike almost every other industry in America, timber didn’t feel much direct shock from the economic lockdown in the early days of the COVID-19 pandemic. That’s because most of the workers were already taking their traditional slow time known as “spring breakup,” when the winter-bound forests are thawing and too muddy to work in.

‘That’s when people are out of the woods, there are no trucks on the roads, and we’re closed down,” said Wes McCart, a county commissioner in Stevens County, Washington. “So far COVID hasn’t had huge effects short-term, especially since timber was also classified an essential business.”

And in Montana, unlike many other states, the construction industry was also allowed to operate during the lockdown. That kept people employed as projects moved forward. Nevertheless, the nationwide house construction forecast has fallen from a predicted 1.6 million starts in 2020 to about 800,000 for the year. That’s better than the post-2008 economic crash level of 600,000 starts, but not the boom time everyone was expecting at the beginning of 2020.

“We dropped in half in a matter of two weeks,” said Julia Altemus of the Montana Wood Products Association. “That could get better by end of year. That’s the biggest issue for us — demand within the housing market.”

To calm some of the economic turbulence, the Forest Service has allowed mills with timber purchase contracts taken before April to delay action for up to two years. Gordy Sanders at Pyramid Mountain Lumber in Seeley Lake said that could make a huge difference for mid-size and small producers who might otherwise be forced to buy expensive trees in a bad market.

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“If you’re locked into an all-expenses sale, some companies couldn’t survive that,” Sanders said. “In a market that’s depressed lumber prices, this gives you more latitude.”

But the safety advisers are still working on how to get work done in the woods without risking virus infection this summer. The Montana Department of Natural Resources and Conservation has pushed back its Best Management Practices audits of forest workers by about two months due to inability for inspectors from multiple agencies to work physically close together, such as sharing vans to worksites. McCart said in Washington state, plans to furlough state workers at least one day a week could hold up permits and analysis work needed before private crews can get to work.

“The Forest Service is telling us they won’t be planting any trees, and they’re not doing any slash-burning this spring or fall,” McCart said on the Friday webinar. Leaving that dead wood on the ground all year can create future fire or bug infestation problems. But sending big crews into the woods can trigger COVID-19 outbreaks that cause more serious trouble, he said.

Montana will not be furloughing any state employees, according to Marissa Perry, Gov. Steve Bullock’s communications director. The state’s Good Neighbor Authority relationship with the Forest Service has also not been slowing down projects so far, Perry said on Friday.

Mill owner Jim Neiman of Wyoming-based Neiman Enterprises said the Black Hills National Forest in South Dakota expects to meet between 60% and 70% of its expected timber sale quota this year due to lack of staff and work restrictions. He predicted that could cause some mills to shut down later this year.

The economic shock waves probably will keep rocking the natural resources industry beyond 2020. Between damage to other parts of the supply chain and the potential of further virus-related safety restrictions, and the usual stochastic calamities like forest fires and droughts, the chances for further interruptions remain high.

“There’s just so much uncertainty,” Altemus said. “We haven’t seen the last of this, but we as an industry in Montana are prepared. We’re preparing for a longer siege than most people are wanting to believe we are looking at.”

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