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such times. But state and federal lands are less responsive, and the logs har- vested there must be sold through the fair market.
“It can be years from the time they offer the sale and it’s sold until the har- vest,” Morgan said. “The timber-supply issue hasn’t changed much and that’s keeping the price of logs high.”
Finding enough logs to keep the mills running is the first order of business for timber producers, Morgan said, and then they deal with the ever-changing markets.
While lumber markets present a challenge to mill owners, the markets for plywood and fiberboard are thriv- ing. Tom Ray, vice president of north- west resources and manufacturing for Plum Creek, said his company feels pos- itive about its manufacturing base this year based on housing starts.
“We’ve had very strong results from our MDF (medium-density fiberboard) and plywood operations so far this year,” Ray said. “We’re pretty positive for the rest of the year. Lumber prices are still depressed but we think you’re going to see more traction with the end of the year.”
Wildfires pose threats to both Stol- tze and Plum Creek land, though both companies said so far there haven’t been major burns. But fire restrictions keep logging projects shut down for most of the day; at Plum Creek, Ray said they figured the more-stringent rules were coming for the summer, so they stock- piled logs in anticipation.
Otherwise, the closure of the BNSF Railway line due to the Sheep Fire near Essex caused consternation for Plum Creek. The rail line reopened on Aug. 22, but the threat remains.
“Seventy percent of our MDF goes out by rail,” Ray said. “It’s a very import- ant link.”
Morgan said housing starts weren’t as strong as anticipated, though they hit 1.2 million in July, which is the most sinceOctober2007.Anotherfactorthat may affect local timber producers is the ending of the softwood lumber agree- ment (SLA) on Oct. 12.
The SLA ended a lumber trade dis- pute between Canada and the U.S. in 2006, and had a nine-year time limit. It was extended for two years in 2012, but there has been little in the way of nego- tiations between the two countries to renew it.
“Come October and November, when the Canadian softwood lumber agree- ment ends, I think some folks are ner- vous that the Canadians are going to flood the market with lumber,” Morgan said. “In the short run, it could be tough for a lot of U.S. lumber manufacturers.”
Still, the Montana timber industry continues to evolve, Morgan said, and there may be headway in regards to accessing forests for harvest.
“The wood-products industry in Montana has gotten more efficient,” Morgan said. “We have the technology and the resources here, it’s just a matter of being able to connect the dots.”
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TRANSACTIONS
WEEKLY BUSINESS BRIEFING
RED LION INN, MACKENZIE RIVER PIZZA OPEN IN POLSON
The new Red Lion Inn & Suites has opened in Polson, along with an adjacent MacKenzie River Pizza Co. restaurant.
The new three-story hotel on Ridgewater Drive offers 80 rooms, an indoor pool and large meeting rooms. The site will include 3,000 square feet of meeting space for conventions and special events, as well as community gatherings.
The new hotel was built over
the last seven months in the
Ridgewater Subdivision near the Mission Valley Aquatics Center and across from WalMart.
MacKenzie River opened its new restaurant next to the hotel. It is the latest site to open in Montana, following the addition of new restau- rants in Kalispell and Missoula.
The company now has 14 restaurant across Montana, three in Idaho, two in Indiana, three in Washington and one in North Dakota. MacK- enzie River is headquartered in Whitefish and managed by the Glacier Restaurant Group.
Opening, moving or expanding a business in Northwest Montana? If you would like to be featured in “Transactions,” please email information to [email protected]
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AUGUST 26, 2015 // FLATHEADBEACON.COM
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