Tagged: timber

OLYMPIA, Wash. – When a massive earthquake destroyed San Francisco in 1906, timber mills in the Northwest went into high gear. They supplied the wood needed to rebuild. Last year, many in the timber industry predicted the Tohoku quake in Japan would cause a jump in northwest lumber exports. But those predictions haven't come true. The recovery after the 3/11 quake is slower than expected.

Oregon's timber dependent counties are still hoping for a federal rescue. But they're creating contingency plans in case Congress doesn't come through with a replacement for historic timber revenue.

Officials from eight counties met with Oregon Governor John Kitzhaber Monday to discuss their options. Some counties say they could become insolvent in the next year without additional funding.

When disaster response in Japan turns to rebuilding, Northwest timber companies and sawmills should see an increase in exports. But an industry consultant says the slow pace of disaster recovery means those new orders may not come for months. 

Stock prices for some North American timber companies spiked in the immediate aftermath of the Japan disaster. Wall Street anticipates a surge in Japanese demand for logs, lumber and plywood to rebuild homes.

There’s good news and bad news for logging and saw-milling jobs in the Northwest. The bad news is new figures out show construction spending dropped in February to the lowest level in more than a decade. The good news is that timber demand from China is soaring.

Russia has traditionally been China’s main wood supplier. An export tax by the Russians combined with the expanding Chinese economy has created an opening for exporters on the West Coast.