More timber mills in Montana face closure unless harvests from national forests are increased, a report on the state’s forest products industry has concluded.
University of Montana economist Charles Keegan revealed his findings at the Montana Wood Products Association’s recent annual meeting.
Mr Keegan, who presented the “Sustaining Montana’s Forest Products Industry” report, said one or two mills will close in the next year without a growth in harvest levels.
Mr Keegan said a 15% growth in the state’s annual timber harvest would sustain the industry. But a 15% reverse could shut at least four mills.
The research shows the number of mills with a capacity of at least 10 million board feet has reduced from 38 in 1976 to just 19 last year. It also claims that a 40% decline in milling capacity is a direct result of a corresponding fall in harvests from national forests.
Mr Keegan believes the state’s timber processing facilities are operating at 85% of capacity and need 800 million board feet of timber a year, 100 million board feet more than last year’s harvest levels.
