Vancouver, Canada-based Interfor Corporation, one of the largest lumber producers in the world, has decided to curtail its sawmilling operations in response to eroding market conditions. The curtailment will affect 130 employees at the company's Gilchrist sawmill located in Gilchrist, Oregon with the layoffs to commence in late June 2020.
However, the news is not all bad. Due to the cyclical nature of the new construction and refurbishment industry, the need for high-grade lumber will improve in the future as it always has.
According to a company spokesperson, “We know this is a difficult time for our employees, and curtailing the Gilchrist Division was not a decision we made lightly.”
Considerable uncertainty remains as to the duration and extent of the economic impact and in turn, the magnitude of impact on Interfor’s operations, demand for its products, and financial outlook. However, Interfor is well-positioned for this uncertainty with a strong balance sheet and significant available liquidity.
The Company has taken proactive measures to protect the health of its employees, balance its lumber production with reduced demand, and safeguard its financial position in response to COVID-19. Cash conservation actions have been implemented to significantly reduce non-essential operating expenses and discretionary capital expenditures.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?