Housing slump forces Riley Creek to cut Moyie mill work days

MOYIE SPRINGS - The slump in housing construction will mean extra holiday time for the 105 full-time employees at Idaho Forest Products in Moyie Springs.

Formerly Riley Creek, Idaho Forest Products will be shut down from Nov. 22 through Nov. 30 for Thanksgiving and Dec. 20 through Dec. 28 for Christmas, said plant manager Jesse Short. It's being done in an effort to reduce production by about 20 percent.

"We're trying to be more in line with where we feel demand is," Short said.

In actuality, employees will be without work for the three days before Thanksgiving since Thanksgiving Day and the day after are paid holidays. Riley Creek doesn't operate on weekends.

The same holds for the Christmas holiday.

In addition, Idaho Forest Products, which manufactures studs for new homes and remodeling, is considering cutting hours early next year, he said.

"We told our crews that for the last full weeks of January, February and March, we may only operate on Monday and take Tuesday through Friday off," Short said. "That's to meet the changing demands on the market conditions."

The plan could change if the market improves, he said.

"Currently the open market for stud prices is at $190 per thousand, and the 10-year average price for studs has been $330 per thousand. We're well below the 10-year average," Short said.

The price difference stems from a lack of demand, he said.

Short, however, remains optimistic about conditions improving next summer, but doesn't expect a full rebound.

"Next November and December could be fairly tough," he said. "It's going to depend on how much production comes off the market. Housing starts - we believe are going to remain slow."

Idaho Forest Products currently has no layoffs and operates two, eight-hour shifts Monday through Friday.

Riley Creek over the summer merged with Bennett Forest Industries to strengthen ties to large customers including Home Depot and Lowe's.

In their announcement for the merger, Bennett, which produces about 185 million board feet of wood annually, and Riley Creek, which is more than three times as big, said large home improvement retailers demand suppliers be large enough to guarantee delivery of lumber products.

Bennett and Riley Creek said their merger could eventually lead to expanding the combined 550-person workforce at four mills located in north-central and northern Idaho. Riley Creek brought to the merger facilities located in Chilco, Laclede and Moyie Springs, while Bennett finished work two years ago on its modern mill in Grangeville.