SWPTS

Program Background

Driven by changes in the timber supply, primary manufacturers of commodity lumber and panel products are finding it difficult to realize the premiums that the mix of high value old growth logs allowed them in the past. Effective manufacturing of products from second growth timber requires the addition of a greater value-added component and a more sophisticated marketing effort to achieve comparable returns. This has been accomplished through the introduction of new technologies in wood processing and more intensive marketing of higher value products leading to the increasing importance of the secondary wood products industry to the economic well-being of the state of Oregon.

The secondary wood products manufacturing industry in Oregon is composed of approximately 800 firms employing more than 22,000 persons in the manufacture of moulding, millwork, windows, doors, cabinets, furniture and specialty wood products. Although overall forest products employment in the northwest has declined, a significant number of jobs have been added in the secondary wood products industry since 1991. In some years, employment in the secondary wood products industry has actually grown faster than overall State employment increases. Primary and Secondary wood products companies now account for between 37% - 42% of all manufacturing employment in Oregon with the secondary sector accounting for approximately 46% of the wood manufacturing jobs.

While primary wood products companies are losing employees, the secondary wood products companies are adding employees. The wood products industry is not dying--it is changing! Almost all of the secondary wood products companies are small businesses (under 500 employees) and most are located in the same communities that are experiencing dislocation as a result of decreases in timber harvests. In order for these companies to remain competitive in a world market, new technologies have been introduced and with the new technology come the need for more training. The Northwest is home to some of the most technologically advanced companies in the industry. However, no targeted training programs existed for this growing industry. Industry training needs are so great that manufacturers send employees to North Carolina and Germany to take advantage of training programs as none exist in the entire Pacific Northwest.