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Not out of the woods


Logging industry observers expect a wave of layoffs in Maine
BANGOR DAILY NEWS PHOTOS BY GABOR DEGRE
A Treeline Inc. de-limber machine (left) and a crane work at a harvesting operation in T2-R8 on timberland owned by an investment group. Treeline owner Brian Souers said that because of the slump in demand he may have to lay off as many as half of his employees. The workers said that this year they will finish the winter harvesting season much earlier, one of the earliest shut-downs ever. Buy Photo
HOULTON, Maine — James Hogan was a logger at Louisiana Pacific Corp. for 21 years when he was first laid off in 2004. He spent four years scrounging odd jobs and selling personal property to keep solvent before getting hired as a woodloader at Treeline Inc. of Lincoln in July 2008.

The 46-year-old town man had almost recovered from that financial disaster, clearing $600 for a 55-hour workweek, when Treeline laid him off on Jan. 28. Since then, Hogan has searched for logging work from Fort Fairfield to Bangor without success.

“I am sitting home here doing nothing and it’s driving me crazy,” Hogan said Wednesday. “I am calling people I know, looking on the computer, doing everything I can, but there ain’t much out there.”

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Logging industry observers expect to see more laid-off loggers, and soon. Exact numbers are not kept, but state forestry officials estimated Friday that as many as 2,500 loggers work in Maine.

The worldwide recession, shrinking demand for new housing construction, plummeting newspaper and magazine markets and continuing constriction of the state’s papermaking and pulpwood industries are hammering loggers into the most severe downturn in their history, they say.

“If we were still paying the price for diesel that we were paying five or six months ago, we would not be in business,” said Sandra Brawders, executive director of Professional Logging Contractors of Maine, a lobbying organization that represents 176 logging and forest products companies.

“We are not getting hit as bad as the [Great] Lakes states. They were almost done back in December,” Brawders said, “but it’s still pretty bad here.”

The shrinking markets, she said, are forcing a commodities recession. It cuts so deeply and across so many industries that even woodsmen, who provide the forest products industries’ most fundamental element — and who are usually the most insulated against recession — are facing severe difficulties.

“I don’t think anybody has ever seen how quickly and how far the markets have collapsed,” said Keith Van Scotter, owner of Lincoln Paper and Tissue LLC of Lincoln.

“How bad it’s been depends on the type of market,” he added. “The paper markets are down 15 to 25 percent, the housing industry has been down for quite a while, and there’s been an unbelievable collapse in the pulp markets. Prices have gone down in pulp by 50 percent.” Loggers traditionally have tailored their efforts to the broad needs of the state’s forest products industry. Yet those needs, like the industry itself, have shrunk. When sawmills and the housing market flourished, hardwood was the best crop. When that market died, paper mills and biomass energy producers that used pulp became the loggers’ best customers. Then those markets plummeted.

“In October, over a period of a week or two, when the dollar became strong overseas and foreign pulp producers’ [product] became cheaper, it was like a switch went off,” said Brian Souers, owner of Treeline. “What had been selling well at a good dollar suddenly stopped selling at all at a poor dollar.”

“The mills have been working their butts off trying like heck to be creative running different products, but the bottom line is there’s just too damn much wood around. They don’t need it and they can’t sell it. So things are coming to a screeching halt,” Souers added.

There’s hope for new markets, Souers and Brawders said. As Gov. John Baldacci announced Tuesday, Old Town Fuel and Fiber will produce wood pulp for the papermaking industry and work closely with researchers at the University of Maine to develop new technologies for converting pulp-processing waste into a renewable biofuel.

The state’s wood pellet industry is another newcomer. Maine has only two large-scale pellet producers, according to the Pellet Fuels Institute, a nonprofit association that serves the pellet industry. Corinth Wood Pellets LLC is in Corinth and Maine Woods Pellet Co. is in Athens. A third company, Northeast Pellets, LLC, is lo-cated in Ashland.

“The wood they were able to take in has absolutely saved us,” Brawders said.

“But the pellet market is really small,” Souers said. “It must be under 5 percent of the whole market. It doesn’t hurt, but it doesn’t noticeably help.”

With at least two more pellet mills under construction or in the planning stage around the state, that might change, particularly if home energy prices soar as they did last winter.

In the meantime, Souers’ company will finish work by the end of March, instead of mid- to late April, when mud season, or the spring thaws, typically start. And instead of furloughing five to 10 of his workers during the six-week season, Souers expects that as many as half of his 50 workers will be laid off for two or three months.

“We will throttle back 20 percent of production. We were moving upward of 300 truckloads of wood last fall per week at the peak,” Souers said. “This summer I don’t think we will even do half that ... Not in 30 years have I ever seen anything like this before.” Nor has Hogan, who is looking for any kind of employment he can find.

“I have a couple applications in at the post office, Homeland Security at Fort Fairfield as a security guard. I am pretty open,” Hogan said. “I don’t want to flip burgers at McDonald’s, but if that’s what it comes to, that’s what I will do.”

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Comments
16 comments on this item

Which one is "Bulldog"?

captian-obvious: Its unfortunate you feel that way. Next time, you'll know not to watch. What exact industry are you employeed by?

captain_obvious: It's unfortunate you feel that way. Next time, you'll know not to watch. What exact industry are you employed by?

captian oblivious

you must be from southern maine

I watched it last night and I thought it was a great show. It's to bad that people are jealous like you, captain obvious.

I thought the show was borring....like watching a home video.....big deal hauling logs and maybe firing a guy...I can hardly wait to tune in next week lol

I am from the Great Lakes State of Upper Michigan, yes we are also in a bad way. But my dear late husband was not in the forrestry, but the iron ore mining business, They are laying off a ton of men also. I feel fortunate that I am a retired widow and don t need the job, or the medical benefits

Hey Captain Obvious...what are you the Captain of....a snow BLOWER???? Get a life, your not saying much for MAINE TRASH....look in the mirror much?

Hey Scollins327...get any other channels????

I don't understand why politicians keep clinging to free trade and globalization like it is the best thing since sliced bread. It is nothing but a gift to corporate America that creates massive layoffs to the American labor force in favor of slave wages paid to laborers in third world countries. NAFTA is no better. I wonder if free trade is a trade off of American jobs for Chinese jobs so they will keep buying our worthless bonds so we can keep propping up our fake economy? These huge bonds we keep selling to foreign countries seems like paying credit card debts with credit cards. You are just spinning your wheels and aren't getting anywhere. What we are seeing is the result of political administrations, both Republican and Democrat, that were and are arrogant and corrupt. Government sold out it's labor force, it's middle class, and now it's selling out our kids. Sad, really,really sad.

Hopefully Kate123 and her hero The Gov will come and save you all in the logging and paper industry!

Growing up from the Houlton area I know allot of the employees from LP and they have always been considered ‘hard workers’, I think it’s a shame that Houlton Is shutting down and forcing their younger generation out let alone their dedicated ones that stick with a company for 20+ years. Counties need to stick together and fight for one another in order to keep businesses running and their younger ‘home town people’ reasons to stay and hopefully contribute to the economy. Seriously; what is our society coming to when we can’t help out our fellow town’s person?? It’s a shame! No wonder there are towns and cities shutting down! Where in the hell does this leave our children to turn? Let’s hope Obama gets it straight!

LP is hanging in there still. They actually are one of the few in the forest industry still operating in the county. We need to keep our logs here so our Maine citizens can cut and process them, not cut them and ship to Canada. The article is right, if it weren’t for biomass such as Boralex there wouldn’t be anyone left in the woods! To bad they are on the bubble as well with the PUC supporting foreign power over clean green local power.

Value added is where it is at, that value needs to be added locally so Mainers can benefit from the numerous jobs it creates!

CAPTAIN_OBVIOUS IT SEEMS YOU HAD EVERYTHING HANDED TO YOU ON A SILVER PLATTER. LOGGING IN MAINE HAS BEEN HERE FOR GENERATIONS. MY GRANDFATHER WORKED IN THE WOODS AND USED A CROSSCUT SAW TO FALL TREES AND USED A TEAM OF HORSES TO HAUL THE LOGS OUT. I STARTED IN THE WOODS AT 15 YEARS OLD. MOST OF US USED CABLE SKIDDERS, CARRIED A CHAINSAW ON OUR SHOULDER IN CROTCH DEEP SNOW IN WINTER AND IN SUMMER FOUGHT +90 DEGREE WEATHER AND SWARMS OF BLACKFLIES IN SUMMER. WE DID WHAT WE HAD TO TO MAKE A ENDS MEET. AT 52 YEARS I NO LONGER DO THIS KIND OF WORK, BUT I DO WORK ON THE LOGGING EQIPTMENT AND LOVE EVERY SECOND OF IT. THIS WAS OUR WAY OF LIFE. WHAT WAS YOURS? ( GET A LIFE)

THIS SHOW IS A GREAT EXAMPLE OF WHAT THE WORK IS IN THE MAINE WOODS, THIS IS HOW PEOPLE FROM MAINE SURVIVE, IF YOU DO NOT LIKE IT (CAPTAIN-OBVIOUS DUMMY) MOVE OUT OF THE STATE. WE DO NOT NEED YOU HERE.

Loreeross, thank you! Some of these issues and mill closings may have been escalated by the bad economy, but mills in Maine have been shutting down for years, even before the economic crisis. NAFTA, CAFTA, and the agreement with Colombia that they're trying to pass now is not good for American workers and the middle class. It's also important to realize that it's not helping the workers or the economies in these other countries either. I know mostly about the effects on Mexico and Central America, but they're getting screwed too. They might have the jobs, but they don't pay enough to buy the products and that paired with the influx of things like cheap American corn into their markets is making life tougher and tougher. We have to ask ourselves why we've seen more illegal immigration, and this is at the heart of it. These free trade agreements are only good for the corporations, the people at the top. We have to start working together to change the way things are done, and that means joining forces with the immigrants who have come as economic refugees and who would rather make a living at home. There's an international movement for a fair global economy brewing and we should all be a part of it in one way or another to keep jobs here in Maine!

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