Loggers commiserate over sour economy

Weathering the storm:
Both truck driver Ruddy Trenholm, left, and logging business owner David Slagle attended a panel discussion of the difficulties facing the logging industry.

'Hard Times - Been Here Before' was the name of the panel discussion by logging experts about the effects of the weakened economy on the logging industry at the Sierra Cascade Logging Conference Feb. 11.

Each of the panelists lived through their own hard times and shared anecdotes of their humble beginnings in the logging industry, and the dues they paid along the way.

"When you run out money, you have to use your head and do things better or faster," said panelist Lowell Robinson, who logged for 28 different companies in his lifetime.

"Tough times should bring out the best in us," said panelist Dan Tomascheski of Sierra Pacific Industries, Inc., in Anderson.

"Use a time like this to back off and think about what is important to you," he added.

Tomascheski called the rate of new home construction this year "exceedingly low."

He cited a few lumber mill closings from 2008, but added that most plants would curtail construction while not completely shutting down in 2009.

Tomascheski predicted the industry downturn could pick up in the third quarter of 2009 or in the second quarter of 2010.

"I heard a lot of guarded optimism [from the panel] based on an environment we haven't encountered before," audience member David Slagle said, referring to the sour economy's combination of a credit crisis and a slump in home sales.

Slagle owns Thomes Creek Logging, Inc. in Palo Cedro. He's been in the logging industry for 26 years.

"I did 5 million board feet last year," he said, "but I'll probably only do 1.5 million this year. There's a lot of inventory out there and little is being sold."

Aside from the global economic slump, the panel also cited the difficulties presented by the many forms of political pressure from environmentalist groups and California's regulation of diesel engine exhaust in particular.

Ruddy Trenholm, a truck driver for Sierra Pacific Industries, said that retrofitting his truck to suit air quality standards decreases his mileage per gallon ratio.

He said he didn't want to buy a new truck because "you don't know what's going to happen regulation-wise."

Tomascheski recommended different ways for companies to survive in the economic climate, saying that logging companies should consider diversifying their contracts.

He named Axner Excavating as one business that "does other things besides logging."