Spearfish Sawmill Lays Off 50 Employees Amid Timber Sale Reductions

Neiman Enterprises Blames U.S. Forest Service for Job Losses

Neiman Enterprises, the owner of a sawmill in Spearfish, South Dakota, has announced the layoff of 50 employees at Spearfish Forest Products. The company alleges that the U.S. Forest Service is to blame for the job losses, citing reductions in the Black Hills National Forest timber sale program as the direct cause. The Forest Service, through a spokesman, declined to comment on the situation.

The layoffs come as a significant blow to the local community, with approximately 150 employees remaining at the Spearfish sawmill and an additional 15 staying on at the associated Spearfish Pellet Company. This is not the first time Neiman Enterprises has blamed the Forest Service for job losses; in 2021, the company announced the closure of its Hill City sawmill, eliminating 120 jobs.

Timber Industry and Forest Management Debates Intensify

Neiman Enterprises is one of several companies that bid for the right to purchase and harvest timber from designated areas within the Black Hills National Forest. While these companies profit from the timber sales, they also play a crucial role in managing the forest by thinning trees, which can help reduce the risk of severe wildfires and tree-killing mountain pine beetle infestations. Logging and prescribed burns serve as a substitute for the natural thinning historically achieved by wildfires, which are now suppressed by the Forest Service and other modern landowners and managers.

The debate surrounding logging in the Black Hills National Forest has intensified since 2020, when Forest Service researchers reported that severe wildfires and a pine beetle epidemic had significantly reduced the number of trees suitable for logging. According to their findings, the forest contained only half of the trees needed to sustain the level of timber sales allowed in the forest plan.

However, some members of the timber industry dispute these research findings. Ben Wudtke, executive director of the Black Hills Forest Resource Association, a timber industry trade group, stated in Neiman’s news release:

“We have more timber now than in the ’70s and ’80s when the Black Hills National Forest was selling twice the amount of timber. History has shown again and again that decisions like that to reduce the Black Hills National Forest timber sale program are dangerous and come with serious consequences.”

Calls for Inclusive Discussions on the Future of the Black Hills

Dave Mertz, a retired former Forest Service employee in the Black Hills, emphasized the need for a balanced perspective on the issue. He expressed sympathy for those losing their jobs but stressed the importance of inclusive discussions among stakeholders to determine the best path forward for the Black Hills.

“I am sorry people are losing their jobs. I’m sorry that it’s gotten to this point. But there needs to be some serious discussion between the various stakeholders on how to move forward for the best future of the Black Hills, and that needs to include everybody.”

Timber Sales Decline and Economic Impact

The Forest Service measures timber volume in a unit called “CCF,” with 1 CCF equaling 100 cubic feet. Timber sales in the Black Hills National Forest have been declining since reaching a modern high of about 253,000 CCF in 2008, with a 20-year low of just under 100,000 CCF in 2023. Neiman Enterprises was the second-largest purchaser of Black Hills National Forest timber by volume last year, according to Forest Service data.

Table 1: Black Hills National Forest timber sales in 2008 and 2023

The loss of well-paying jobs at the Spearfish sawmill is expected to have a significant impact on the affected employees, the local community, and the economy. Eric Jennings, a Lawrence County commissioner, expressed concern about the long-term consequences of losing sawmills and the ability to manage the forest, drawing comparisons to the devastating wildfires experienced in California.

As the debate surrounding timber sales and forest management in the Black Hills National Forest continues, it is crucial for all stakeholders to engage in constructive dialogue to find a balance between economic interests, environmental sustainability, and the well-being of local communities.