Over the years, there have been plenty of proverbial canaries in the coal mine that repeatedly warned about a looming economic crisis, a virtual perfect storm that would be equal parts over-consumption, unsustainable development, deregulation, "free trade" and irresponsibility on the part of corporations and consumers.
If the sobering economic headlines of the past few months teach us one thing it should be that much of our current economic system is significantly flawed and that a new economic model--based on the principles of sustainability and local and regional self-sufficiency--is desperately needed.
Fortunately, Montana is in a unique position to lead this effort towards greater sustainability. A future where local farmers and ranchers grow our food, Montana workers produce clean and green energy for our homes and the ingenuity of our businesses combines with the skills of our workforce to protect and restore the environment, while also producing locally-made products that enhance the quality of our lives.
Locally, we've witnessed the timber industry hit particularly hard by the economic crisis with recent announcements of lay-offs and closures. As tough as this news has been, it's not entirely unexpected since the industry is tied to the housing and credit sectors of our economy, which have all but collapsed. After all, we're experiencing the worst housing slump since the Great Depression and the steepest decline in lumber consumption ever.
Consider a new analysis from the Western Wood Products Association, which pointed out that new housing starts have declined by 50 percent since 2005 and the volume of lumber used in new home construction has been cut in half in just two years. A situation this respected industry source characterized as "a body blow to lumber mills."
Or how about a recent Associated Press article, bluntly titled Lumber industry threatened by glut of unsold homes, which opened with "The glut of homes in foreclosure, vacant, or stuck on the market has the nation's lumber industry hanging on by a limb."
Our region is clearly not immune from these stark economic realities. As Potlatch Corporation laid off 600 workers this month in neighboring Idaho, their spokesman said, "The wood products market is at a 25-year low and the amount of orders from our customers is not improving, so we unfortunately have no choice but to balance our product inventory with demand."
Closer to home, when Plum Creek Timber Company recently laid off nearly 60 workers in the Flathead Valley, a company vice president explained, "Market prices are depressed and don't currently cover the costs of production."
Just how depressed are market prices for lumber? Back in 2005, a lumber mill could expect to fetch close to $500 for 1,000 board feet of dimensional lumber. Today that lumber mill could expect to get $180. And that's if they can even find anyone to purchase the lumber, which in today's market is a huge "if."
Last month, as Tricon Timber of Mineral County laid off 45 workers, the Missoulian article opened with, "No one's buying what Tricon Timber of St. Regis has to sell."
Equally as blunt, was Tricon's president as he told the Clark Fork Chronicle: "We are getting to the point where we're not getting any offers [for our products]."
And earlier this year, as Stimson Lumber was closing down its mill in Bonner, Mont., the company's vice president told mill workers "We are in the midst of one of the worst housing markets of our working lifetimes--most producers simply cannot sell the lumber they have made."
Understandably, people are concerned and there is a natural inclination to "do something." The past few years have seen an increase in collaborative efforts that have brought together diverse interests, including the WildWest Institute, to find common ground on bona-fide restoration and fuel reduction projects. While much work remains to be accomplished, to date agreements have been reached on a set of statewide Restoration Principles and collaborative projects are under way across the state.
Unfortunately, outside of these successful and emerging collaborative efforts, there is an aggressive effort behind the scenes to "bail out" the timber industry with an ill-conceived initiative divorced from economic reality and any concept of sustainability.
Led by the Missoula Area Economic Development Corporation this initiative is based entirely on a "wish list" compiled during a few meetings with timber mill owners and logging lobbyists.
The initiative calls for "immediate action" to increase national forest logging in Montana by 330 percent, double state land logging and a includes bizarre plan for the state to seize control of a million acres of national forests, purportedly for even more logging.
I certainly wouldn't blame you if right about now you're asking yourself, "So, if the economic crisis has caused a steep decline in wood consumption and lumber mills can't even sell their products why in the world are we looking to dramatically increase logging on all public lands in Montana?"
But wait. There's more. This initiative calls for Montana taxpayers to foot the bill for timber industry exemptions from fuel taxes and discounts for vehicle registration.
One state legislator has even drafted a bill to give the entire timber industry a two-year tax holiday. Sorry, but does Plum Creek really need a tax holiday paid for by hard-working Montanans?
If we are going to "bail out" the timber industry, shouldn't Montanans at least demand that any taxpayer dollars go towards efforts that truly put the industry on a path towards sustainability instead of simply just offering up more public resources and tax dollars to produce lumber products that can't even be sold?
For those interested in a more detailed discussion of what a more sustainable path might look like, the Montana Community Development Corporation's well-researched and well-reasoned "A New Business Plan: Moving Forest Businesses to Long Term Environmental and Economic Sustainability" should be required reading.
Interestingly enough MCDC's "New Business Plan" contains this statement on page one, which strongly calls into question the approach favored in the "wish list" put together by the timber industry and MAEDC.
"It will be natural and logical to hear and consider somewhat simple solutions to the woes facing Montana timber mills. One might be, 'open up the National Forest System timber treasure chest, and at very low cost.' Another idea could be, 'provide financial resources to bridge mills through the current down cycle.' But these types of solutions ignore the perfect storm of globalization and new environmental realities that have changed the entire operating environment for Montana timber businesses. Unilateral supply solutions, or short-term financial aid packages, assume that the timber business hasn't changed. Therefore they are like a Band-Aid solution for a patient presenting a compound fracture. It may be important to stop the bleeding, but you won't save the patient."
And while the timber industry and their political supporters are fond of giving the impression that there isn't any logging going on in Montana and all the timber industry's problems would be solved if we simply cut down more trees on the public lands, MCDC's "New Business Plan" correctly points out:
"Montana's public and private forestlands have consistently supplied about 750 million board feet of supply over the past 10-15 years. While there will probably be a moderate decrease in this number over the next 10 years, Montana has supply, and this supply will be used in one form or another by businesses who put together environmentally and economically sustainable business plans in Montana [emphasis added]."
The WildWest Institute supports sustainable economic development in Montana and has been sharing some of our solutions. For example, let's work together to ensure that every home and business built in Montana is made out of Montana wood products, in addition to being as energy efficient as possible. After all, this would help solve some market issues, while also reducing costs--and greenhouse gases--from shipping products around the country.
Or how about collecting construction waste, which is currently dumped in our landfills, for use in high-efficiency boilers? Or developing businesses that would use sustainably harvested blue-stain pine for locally made cabinets and furniture?
This months's election shows that American's want substantial change and are hungry for a clean and green future. I'm confident that if we work together we'll find sustainable solutions that benefit our economy, workers and environment.
Unfortunately, the timber industry's "wish list" for greatly expanded logging of public lands and unprecedented tax breaks represents the same type of short-sighted, unsustainable development and over-consumption that got our country into this current economic crisis to begin with, and it should be rejected accordingly.
Matthew Koehler is executive director of the WildWest Institute. You can learn more at: www.wildwestinstitute. |
