Takeaways from an Oregon mill’s shutdown
Malheur Lumber Company, a sawmill based in the picturesque, mountainous heart of Oregon in the small town of John Day, has ceased operations after 41 years in business.
The statement announcing the company’s closure, which was published by Elkhorn Media Group, offers a transparent, sobering explanation of the decision to shut down. It also illuminates key problems and challenges facing LBM companies—and especially those operating in rural areas. “The current cost of operating a small manufacturing business in the rural part of the state seems no longer sustainable,” the company writes, adding that it simply could not consistently marshal a reliable enough workforce to make ends meet. Malheur Lumber employed 76 workers at the time of its decision to close.
Going into more detail, it writes:
“Malheur Lumber has faced several hurdles throughout their years of operation, and as a whole we were able to weather the difficulties and continue operations. We have spent several years trying to find solutions to the challenges we face today as have others; we are just one of many wood manufacturing facilities and other small businesses that cannot resolve them successfully or alone.”
As for more specific issues that proved too difficult to overcome, the company cites a “lack of a willful/drug-free workforce and a lack of housing to enable recruiting from outside the area.”
Additional reasons for shutting down included:
- Market conditions of lumber over the last couple of years
- Cost of manufacturing (due to inflation)
- Low/inconsistent production (due to lack of employees)
- Continuing layering of governmental regulations upon small business in Oregon
Do any of those pain points sound familiar? As companies continue to grapple with the three-headed monster of inflation, lumber prices and labor shortages—not to mention the related issue of housing availability and affordability—those operating in more rural locales often have an even steeper hill to climb.
Read Malheur Lumber’s letter in its entirety below:
Malheur Lumber Company has regretfully decided to permanently shut down its operations in John Day, Oregon. Our intent is to operate this facility until all log inventory has been milled to a finished product and to allow Sales and Shipping to work with our customers for delivery. We employ 76 full and part time employees and we will be working with them and keeping them informed as we develop next steps. With the announced closure of the biomass facility at our plant site, the company is researching further related opportunities. Over the next several weeks we will work on getting a strategic plan in place which will allow us to answer more in depth questions.
We are proud to have been a part of this community for 41 years of continuous operations. We want to thank the hundreds of loyal current and past employees along with their families that have helped to make our operations and contributions impactful within our county for so many years. Also, during this time we have worked with and supported the greater portion of the local businesses, trades people and leaders in Grant county and neighboring towns, and it has been an honor.
Malheur Lumber has faced several hurdles throughout their years of operation and as a whole we were able to weather the difficulties and continue operations. We have spent several years trying to find solutions to the challenges we face today as have others, we are just one of many wood manufacturing facilities and other small businesses that cannot resolve them successfully or alone. The current cost of operating a small manufacturing business in the rural part of the State seems no longer sustainable; lack of a willful/drug free workforce, lack of housing to allow to recruit from outside the area, market conditions of lumber over the last couple of years, cost of manufacturing (due to inflation) and low/inconsistent production (due to lack of employees) and continuing layering of governmental regulations upon small business in Oregon.
As Ochoco Lumber enters its 100th year of operations in Central and Eastern Oregon, the company would like to recognize the local Forest Service workers, county and city leaders, elected officials of the State, certain members of the environmental community, non-profit association members involved in good forestry practices, and our loyal customers all who have helped in our success. We especially would like to thank our Senators Wyden and Merkely who have led the government in finding solutions to forest health issues in our local public forests which has provided a secure and robust timber supply.
We look forward to meeting with you all over the next several months to address your questions and listen to your concerns.
