Todd Morgan, director of forest industry research at the University of Montana's Bureau of Business and Economic Research, said Tuesday it is the second consecutive year with significant declines in Montana's industry because of national housing issues.
The third quarter was especially rough for Montana wood products facilities, with the July closure of the Stimson plywood facility in Bonner and curtailments at other mills because of weak markets and log shortages related to last summer's fires.
232 million board feet in the same quarter of 2006 and 252 million board feet in 2005.
Production workers averaged 3,115 in the third quarter of 2007, down from 3,527 during the same period in 2006 and from 3,677 in the 2005. Production wages were $30.4 million in the third quarter of 2007, down
$2.3 million from the same quarter in 2006 and $3 million from 2005.
U.S. housing starts peaked in 2005, Morgan said. Through the third quarter of 2007, housing starts were down by about a third from that peak and are at their lowest levels in the past decade.
Lumber prices have declined by nearly 30 percent from October 2005 to October 2007.
The effects of the slowing housing market and corresponding reduction in wood products use and prices are being felt at mills from British Columbia to the southeastern United States.
Morgan said weak markets, mill curtailments and closures can be expected well into next year.
“I haven't seen anything yet indicating a recovery in 2008,” he said.
Reporter John Cramer can be reached at 523-5259 or at JohnCramer@missoulian.com.
|
 |
 |
Add your comment now! Write your comment in the form below.
(Email address is for verification only. If you'd like to email a story, look for the link above)