Despite layoffs, some officials see light at the end of the tunnel
Woodgrain announces another round of cuts

Monday, August 18, 2008 10:30 AM PDT

PAYETTE—Recent reports of more layoffs at Woodgrain Millworks in Fruitland reflect the dismal housing market and sluggish economy the rest of Idaho and the country are experiencing, but at least two officials see some silver lining in the economic forecast.

Reed Dame, president and chief executive officer for Woodgrain, confirmed last week more layoffs at the Fruitland plant, but would not comment on how many people were affected, when it occurred or what departments.

Dame said the company did not want to comment further. However, he said very few people were involved in the layoffs and the action reflects the downturn in the housing market.

It was the second time this year Woodgrain has laid off employees because of the slow housing market. In March, the Fruitland firm laid off approximately 20 employees after a corporate-wide mandate that each division in the nation make cuts.

 Layoffs, however, are not isolated to just Woodgrain. Idaho Department of Labor Payette County manager Jim Smith said other companies in the area have had to dismiss some employees because of the slumping economy. Because the layoffs were not large enough to require federal reporting, however, Smith could not reveal which companies issued the layoffs because of confidentiality.

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“We’re pretty reflective to everything that you see across the state,” Smith said of Payette County’s situation.

He said the county is not seeing the seasonal construction boom it normally experiences each summer, and construction and other trade workers are seeking out the unemployment office earlier than usual.

“They’re faces we’d see every year in the winter time,” he said. “But we’re seeing a lot of these folks now because of the housing market.”

Agriculture, however, appears to be the saving grace of the area at the moment, Smith said.

“That’s our financial backbone right now. That’s what’s bolstering us up,” he said, adding ag workers have plenty of opportunities for employment currently, and agriculture remains a constant in Payette County where other areas are faltering.

 “I feel pretty confident about our county doing well through this whole thing because we just have a pretty stable environment over here,” he said.

Smith said careful planning and economical planting by farmers this year will help the area through the remainder of the year, and overall he said he is  positive about the county being able to push through the current economic situation.

Smith said because of the conservative nature of people in the area, the region will not be hit as bad by economic turmoil and it will be quicker to recover.

Payette County Commissioner Marc Shigeta, who is also a farmer in the area, said high demand for grains, favorable prices for those crops and a moderate summer have led to a pretty good summer for farmers.

“At a point when everything else is losing ground, they’re pretty much holding their own,” Shigeta said. “That has a trickle down effect on our economy in the county.”

While corn and wheat are at their high points, other markets may be suffering because of lesser demand and greater expense to the farmers, which Shigeta said is the only downside of farming.

“With farming, usually if you have a profitable crop, it’s usually expensive in another growing area,” he said.

Shigeta said, thus far, farming is looking pretty strong, which bodes well.

“And thankfully, in the cycles of business, not everything crashes at the same time,” he said.

Still, Smith said he is seeing more individuals unemployed than he would like and reminds people who are looking for jobs the Payette County Department of Labor office has plenty of information and resources available to aid displaced and unemployed workers, including possible financial scholarships.

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