-October 9,2019-
from Builder Magazine
According to The Bend Bulletin, things in the timber business are not going well due to a construction slowdown, tariffs, and falling prices. “Right now lumber is very cheap. In the last year prices have dropped about 30%,” said Bruce Daucsavage, head of Ochoco Lumber. “It’s an unpredictable market, and we’ve seen big swings. You have to stomach those swings.”
The price drops have rattled Oregon’s timber market. In March, Swanson Group closed its mill in Glendale. Then in April, Georgia-Pacific Wood Products announced it would close its lumber mill in Coos Bay. In May, Stimson Lumber Co. announced it would cut 60 jobs at Forest Grove. Even the Deschutes National Forest has been affected, with contracts for timber sales going without bids.
“We’ve stayed in business. Ochoco has never shut down due to market conditions. When the market goes up we want to make sure we are the preferred company, so we ride the highs and lows because we think customer loyalty is extremely important. It’s a difficult thing to do,” said Daucsavage.
Daucsavage said his company, which employs around 100 people, has weathered the storm by lowering prices for its wood and by diversifying into biomass, a product that is turned into wood pellets that can fuel power stations instead of coal. The company also creates wood chips to be used for the production of paper.