The Great Recession’s Impact on Douglas County

The Great Recession’s Impact on Douglas County

NewsWatch 12 KDRV.com

By Brandi Smith

ROSEBURG, Ore. -- Spread over more than 5,000 acres, Douglas County encompasses the entire Umpqua River basin from Diamond Lake to Reedsport. Its economic history is as rich as the land its first settlers mined.

When the county was established in 1852, people came there looking for gold. But they found something else valuable in the soil: its ability to grow just about anything.

"Prunes grew well here. Nut crops grew well here," said UCC professor Chris Lake. "Kruse Farms had 700 acres of cauliflower a long time ago."

Over time, focus turned to another natural resource; lumber mills started popping up all over the valley. After World War II, things really started hopping.

"I think the best years were mid-50s to mid-60s," said Art Adams, owner of Nordic Veneer, Inc. "There were a lot of mills in the area then, but it was great."

Things steadied in the 1980s. The mills became a way of life for their workers, like 17-year Roseburg Forest Products employee Jeremy Wiest.

"I think it's probably the biggest thing we have in this county, the timber industry," he said. "It was in my family. My dad worked in the industry, worked for Roseburg Forest Products."

Mills are also a way of life for their owners, like Adams. His father owned Nordic when he started working there in 1966.

"It's been a big part of my life my entire life," he said. "This pretty much defines me."

The industry also came to define the county, which made a name for itself as the timber capital of the state, the country and the world. Nearly 8 percent of the people who work in Douglas County work in wood products manufacturing. Compare that to about 2 percent of Lane County or 3 percent of Coos County.

When the 1990s rolled in, the spotted owl and more logging restrictions on federal land did too. The climate was changing -- and for Douglas County, it was not changing for the better.

"We've lost a lot of capacity due to the curtailment of harvesting on government timber lands," said RFP president Allyn Ford. "We cannot manufacture products out of air. We need trees."

Just more than four years ago, the housing bubble burst. What had always been the county's greatest strength was now clearly its greatest weakness.

"In Douglas County, the recession was especially bad because it's still somewhat dependent on manufacturing, especially wood products," said Worksource regional economist Brian Rooney.

New home construction dropped by nearly 70 percent. There were 2 million housing starts in 2007, but in 2012, that number is closer to 600,000. When demand drops that drastically, layoffs are a given. RFP handed pink slips to about 20 percent of its workers.

"Doesn't matter whether you're somebody who pours concrete, if you're a framer, if you're somebody who's in the cabinetry business," said Ford. "You work up the supply chain and into the manufacturing side, it's been devastating."

"t affects every business in this community," said Debbie Fromdahl, Roseburg Chamber of Commerce president, "because those are the folks who are actually spending money in all those different venues."

Unemployment soared from 7.4 percent in 2007 up to 16.2 percent in 2009. Even today, it's nowhere close to those 2007 numbers.

"I've been in the industry for almost 45 years," said Ford, "I guess I have hash marks up and down my sleeve that indicate I've been through quite a few of them. This one -- there's no comparison."

Monday on KEZI 9 News at 6:30, we'll look at how Douglas County's timber industry is bouncing back from the Great Recession.

Oregon's Coquille leaders hope to tap a niche market for wood products certified as sustainable

Published: Thursday, December 30, 2010, 2:22 PM Updated: Thursday, December 30, 2010, 2:43 PM
By The Associated Press



BY NATE TAYLOR COOS BAY WORLD

BRIDGE -- At an elevation of about 1,800 feet, seven miles deep into the Coquille Forest near Bridge, an inspection was taking place.

Equipped with a clipboard and pen, Craig Howard analyzed the landscape, making notes and firing off questions to forest managers.

Provided the auditor didn't see any red flags, the Coquille Indian Tribe would be well on its way to earning approval from the Forest Stewardship Council, authenticating the tribe as a conscientious steward of its ancestral lands.

Tribal officials believe their forest management practices are poised to receive that certification from the FSC, an international conservation organization.

With it, the tribe not only would score points with environmentalists, it could branch out into new markets.

"There is a small niche market for certified wood products," said Jason Robison, the tribe's biological and environmental services coordinator.

"By being FSC-certified, we're able to get into that market and provide a high-quality product to the local mills that are already certified."

By doing so, wood would be carried along a "chain of custody" -- coming from a certified forest and fashioned at a certified mill -- lending the product environmental integrity, if not worth.

"I wouldn't go as far as to say it's worth more," said Paul Beck of Herbert Lumber Co.

Already a longtime customer, Herbert Lumber is one of five FSC-certified mills in the south coast region. It's in Riddle, about 20 miles south of Roseburg.

He said the tribe was wise to pursue certification, even if it doesn't translate to higher profits. It's an important step in establishing credibility, he said.

"I think it's more of a case of somehow gaining recognition in these politically charged times of resource-management issues."

Cal Mukumoto, CEO of the Coquille Economic Development Corp., does see mark-up potential with a seal of sustainability.

"For high-quality wood, there is certainly a premium," Mukumoto said.

The green-building market is ripe with high-dollar products.

And some builders have strict standards.

The U.S. Green Building Council recently ruled that FSC-certified lumber was the only acceptable lumber in LEED-certified projects. LEED, or Leadership in Energy and Environmental Design, is a rating system for green-building design.

Besides meeting self-imposed standards, the tribe adheres to two strict sets of guidelines: the Northwest Forest Management Plan and the National Indian Forest Resources Management Act.

"The Coquille Indian Tribe is the only tribe in the nation that manages according to the same standards and guides as adjacent federal lands," Robison said.

The tribe manages about 5,400 acres of forestland in Coos County, along with the 1,100-acre Empire Reservation in Coos Bay and several smaller parcels.

The tribe allows harvesting only on about 2,300 acres with an allowable salable quantity of 3.5 million board feet over a 10-year period, generating about $13 million, officials said.

"A million board feet employs about 20 full-time jobs," forest engineer Ed Vaughn said.

"Our sales help out the local economy quite a bit."

The Coquille Forest near Bridge abuts private and federal lands. The tribe's property is distinguished by varying tree heights, some spaced apart, others growing in clusters.

"That's our intention, to provide a lot of diversity," said Tim Vredenburg, the tribe's land resources and environmental services director.

"It's more structurally complex at an early age."

The tribe's resource management plan goes beyond environmental interests. Protecting its cultural resources also is a key priority.

Officials say ancestral gathering places such as prayer and vision-quest sites are managed with reverence.

Plus, the plan calls for retention of culturally significant species such as western red cedar and Port Orford cedar, traditionally used in longhouses. Other species are valued materials used in baskets and regalia.

The protection of cultural amenities is considered, among other stipulations, in the designation of an FSC certification, said Craig Howard, a Canadian auditor with the Bureau Veritas, the world's second-largest group of environmental certification providers.

He said his watch list also includes soil disturbances, high stumps, insect damage and flammable materials, among other problems.

He said there's no such thing as a tidy harvest site, but apparent red flags must be addressed.

"We're really looking to make sure that the forest was harvested properly, that the access coming in was good, and that it's growing back," Howard said.

On a recent trip through the forest, the auditor and foresters tromped through foot-sucking muck atop fog-cloaked hills.

The tribe's property is primarily ridge top, buffered from nearby streams.

"When you look at the ridge strategy, that's to stay away from water as much as possible?" Howard asked.

"That's by design," forest analyst Terry Droessler replied.

Though the watershed is cushioned from harvest activities, "we still have a sophisticated water-monitoring program," Vredenburg said.

It's an added precaution implemented by the tribe.

"It's above and beyond," Vaughn said.

Howard couldn't estimate when the tribe would receive a certificate, saying his findings must be reviewed during a long, technical process.

Tribal officials said they didn't expect the auditor would find any surprises.

"I think Craig is going to like what he sees," Vaughn said.

The Coquilles are among a number of tribes currently pursuing an FSC certification, said Brad Kahn, communications director of FSC U.S. in Seattle.

Those already certified include Oregon's Confederated Tribes of Warm Springs, Wisconsin's Menominee Indian Tribe and the Hoopa Valley Tribe of California.

"I think there is a building momentum of tribes looking at certification," Kahn said.

"There is a sense among tribal land managers that FSC aligns with traditional values.

"By achieving the FSC certificate they are communicating values the market understands."

The FSC so far has certified about 130 million acres in North America.