OMAK, Wash. – Nationally, economic news has been horrendous; with businesses and companies closing frequently. That scenario certainly applies to American Indian business as well, and the recent closure of the Colville Indian Plywood and Veneer plant is another to fall victim to economic woes. If there is any good news related to it, it’s that the closure is temporary, although no one can forecast when it might reopen.
The plant is located in Omak, Wash. and is one of 17 operated by Colville Tribal Enterprises Corporation. It employed about 230 people; roughly 200 of them will be released. Those that remain will be used in maintenance, security and things that don’t require actual production of plywood. “We cannot control the market price of our plywood,” said Troy Johnson, CTEC chief executive officer. “Our workers have continuously improved production and the timing of this market reduction is unfortunate.”
The plant began operation in March 2002. It suffered a devastating fire in 2006 which halted production for several months, but had been in full operation again since February 2007.
Combined employment by CTEC and the Colville tribal government normally fluctuates near 2,000 employees, so the loss of 200 jobs due to the plant closing is significant. “It’s a very significant number. That will balloon out into much larger numbers when it comes to the actual economic impact we’re going to have on surrounding communities,” said Jeanne Jerred, chair of the tribal business council. “We are the largest employer in this part of the state. When our economy goes down it impacts the support services, the retailers, as well as other areas.”
She said the natural resources wood products produced at the Omak plant are directly related to the economy of the nation itself and the slump in the housing market. “This not only impacts the financial institutions but also every other component that goes into building, marketing, financing and keeping a house.” And she doesn’t know when the plant will reopen, “too many components come into play to put a finger on an actual date.”
The tribe and CTEC are working together to help those who need it most. The organizations are helping people “sign up for unemployment; arranging for access to other programs that are available for them. We are doing our very best to educate them to available programs to get through this with the least amount of difficulty possible,” Jerred said. “We are going to have to be very strong and pull together in order to come through on the other side when things start picking up. We’re going to do everything we can to help our people.”
Tony Johnson, tribal executive committee chair, summed up the situation, saying, “We anticipate reopening the plywood side when the market conditions bounce back.”
