Death by a thousand cuts
Pacific Northwest corporate history began with timber, and with the demise of Weyerhaeuser it's a fast-fading cultural heritage.
"Weyerhaeuser cuts take a painful toll," screamed the banner headline this week in The Seattle Times. That splash was accompanied by a large photo of a now-former employee of what used to be a forest products giant loading boxes of personal items into his car after receiving his pink slip.
While nothing can compare to the pain of getting fired from a job — in my years as an executive search consultant, I called it the "Royal Order of the Boot" — there is yet pain in watching the company's current machinations. Like the fellow in the photograph, one of 1,500 in this current go around, I'm also a member of the Weyerhaeuser chapter of the Royal Order.
In 1981, I was called into my boss's office at the company's massive Longview, Wash., manufacturing complex for a little talking-to. It was about my attitude and all the trouble I seemed to keep causing with the unions representing company employees.
"Kid, you're nice, but not here," my boss said. "Frankly, you scare the hell out of us." Harshly put, perhaps, but the labor relations office where I worked wasn't known for compassion. Nor, in my then relative youth, did I particularly care, which was my bad, not the company's. It was then I realized that I wasn't cut out to be a corporate guy.
Since then, it's been onward and upward — well, sideways at least. But that's another story.
This story, and it's a sad one, is about watching one more giant figure of the Pacific Northwest shrink into a shadow of its former self.
Decades before there was a Microsoft or a Starbucks, Boeing and Weyerhaeuser represented the business of Seattle and Washington. When Boeing beat feet to Chicago a few years ago, the big "W" was left as perhaps the only game in metro Puget Sound with deep and multi-generational roots — not just fathers and sons, but grand and great grandfathers who had handed jobs down from one to the other.
Founded in 1900 by German immigrant Friedrich Weyerhaeuser, the company grew from holdings of nearly a million acres of Washington Douglas fir timberlands to become an international player in solid wood production, the pulp and paper industry, real estate, rail and freighter transportation (two company vessels were torpedoed and sunk during World War II), and a myriad of industries.
Nothing beats the romance of the woods, and Weyerhaeuser was a huge part of that. Grainy photos of loggers with two-man crosscut saws standing next to old growth timber can be seen in every museum in town. The colorful and descriptive nomenclature of logging resonates with unique symbolism: Bull of the woods, choker setter, whistlepunk, and a term first coined in Seattle, but soon to be part of the national vocabulary, Skid Row or Skid Road.
Somehow, "techie" or "barista" lack the same cultural or emotional impact. And I suspect that neither wear black woolen long johns that go days or even weeks without a wash.
Trees growing on the land and the products made from them are, as much as anything can be, what the Bible calls in Psalm 24 "the fullness of the earth." For more than 100 years out of that fullness, Weyerhaeuser and kindred forest products companies literally built scores of communities, paid for schools from the proceeds of logging on state-owned land, and created thousands of good paying jobs. They left an indelible cultural stamp on the Pacific Northwest, affecting even those who don't know the difference between a couch (pronounced "cooch") from a dandy on a papermachine, or what it means to work the hoot-owl shift.
Only in a company like Weyerhaeuser could you see executives in $1,000 suits all sitting around a conference table spitting snoose into Styrofoam cups. Old habits born in the woods don't die hard — they don't die at all.
Over the years, Weyerhaeuser was in the fish-farming and grass-seed businesses, manufactured private label baby diapers and adult incontinent products, and became a major national player in real estate, home construction, and residential mortgages. Of these, only its interests in Puget Sound-area residential developer Quadrant remain.
During the late 1980s, throughout the 1990s, and into the new millennium, Weyerhaeuser, like its competitors Georgia-Pacific (once Portland-based, now headquartered in Atlanta) and International Paper, had to make a choice: aggressively grow or be taken over by an aggressively growing company. By choosing the former, Weyerhaeuser embarked upon an acquisition and construction program that was impressive by any standard.
The company acquired familiar names such as Vancouver, B.C.-based MacMillan Bloedel and Portland-based Willamette Industries, two Northwest iconic companies in their own right. It also built new facilities such as a then state-of-the art paper mill in Cedar Rapids, Iowa, that, for a time, operated as a quasi-independent entity called Cedar River Paper.
The Cedar River operation was looked at as a model for the future. Manufacturing packaging products out of recycled paper, it featured a mill design and concept — referred to in the industry as a "mini-mill" — tailor made to a raw material not of trees but trash. The mill's paper machine was precision crafted to turn out exactly the amount of product needed, not an ounce more nor an ounce less. Minimal waste, the least amount of energy necessary to get the job done, and a product that was the product of recycling — the only thing lacking were Birkenstock safety shoes.
How green was that valley?
Small, non-union, and team concept-based, it cherry-picked the industry for the best and brightest technical and operations people, salaried and hourly, it could find.
Now, once-crown jewel Cedar River is just another paper mill, owned not by Weyerhaeuser but by industry behemoth International Paper.
And the properties acquired from MacBlo, Willamette, and others? In large measure, gone, sold off, or shut down, never to be seen again.
Starting a few years ago, Weyerhaeuser began spinning off assets. Always committed to focusing only on businesses in which it could be a major player, it now shifted to getting out of many of those businesses altogether. Its printing and writing-grade paper operations became, in a complex trade, part of Canadian-based Domtar Industries.
And just last week, in perhaps the biggest blow of all, Weyerhaeuser closed on the sale of its packaging business to IP. Some 114 facilities, including paper mills, carton plants, and recycling centers, were sold for $6 billion. Besides Cedar River, included among them was another mill Weyerhaeuser built from scratch decades ago, a large complex in Valliant, Okla. Was that part of the Sonics deal?
It's a little like selling off members of your own family. And that ticket to out here just got voided.
With the I-P sale, of the company's approximately 38,000 world-wide employees, some 14,000 or 37 percent of them are now gone in one fell swoop. This cut was used in large measure to justify the cuts at Weyerhaeuser's Federal Way, Wash., headquarters — the hanging garden of Babylon you see driving southbound on Interstate 5 — and other company locations.
What's left of the company represents more of what old Friedrich Weyerhaeuser founded over a century ago: land and trees.
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Comments:
Posted Fri, Aug 8, 9:03 a.m. Inappropriate
...So here's this giant company selling off assets like there's no tomorrow. The headquarters is a stripped-down ghost town. All the company owns any more is a few scraggly trees. But why why why?
I think Mr. St. Clair has done us a disservice. The picture he paints is of a robust corporate giant that suddenly puts itself on a crash starvation diet. What are the economic reasons? Were they losing in the marketplace? Was International Paper beating the pants off them? There is no mention anywhere in the article of any kind of economic pressure forcing their downsizing moves. Perhaps this article was intended only as an atmosphere piece, but really, I'd like to see some analysis.
Posted Fri, Aug 8, 10:38 a.m. Inappropriate
Indeed, Piper, Weyerhaeuser did beat the romance out of the woods. There's certainly nothing romantic about a hill full of stumps.
Frankly, it's hard to feel much respect for old economy companies like Weyerhaeuser. Their business model basically goes as follows: grab as much of the earth's resources as quickly as you can and sell them back to the people. Gee, how innovative and clever.
I have much more respect for the newer companies in the region like Boeing and Microsoft, who actually build novel products that require some brain power and ingenuity. Weyerhaeuser could have been started by any slobbering brute with a toddler's grabby mindset and boat loads of cash.
Posted Fri, Aug 8, 11:17 a.m. Inappropriate
I also think you severely underestimate the abilities needed to run a successful company in any economy. Carnegie, Rockefeller, and the like weren't exactly slobbering brutes, as you put it. "Grab as much of the earth's resources as quickly as you can and sell them back to the people" misses a few crucial middle steps. Without modern industry we'd all be living in villages.
Posted Fri, Aug 8, 11:46 a.m. Inappropriate
Logging takes brains just like any profession. Maybe not to the level of Boeing or Microsoft but you have to know what you are doing. And running a business, any business, takes intelligence and understanding of your product, the consumers and market in general.
Posted Fri, Aug 8, 11:54 a.m. Inappropriate
If that's what you want, perhaps you're the whacko.
Posted Fri, Aug 8, 12:50 p.m. Inappropriate
RE: Old economy companies: Weyerhaeuser has been a very good steward of the land. Sure it would be a wonderful utopia if everybody in the Northwest lived in gleaming skyscrapers slurping lattes while endless virgin forests stretched beyond the horizon. Actually, it would suck, but don't let that get in the way of utopia. Weyerhaeuser pioneered replanting strategies to bring forests back. Maybe they're not "natural" forests by your definition, but there are trees growing there when in generations past the land was left barren (like Britain was). Commercial logging has made housing affordable to all Americans. And those wood houses and the new generations of trees they spawn sequester carbon dioxide from the atmosphere, so even Al Gore should be happy. Sure beats utopia.
Posted Fri, Aug 8, 12:50 p.m. Inappropriate
But that doesn't mean I'm obligated to celebrate these institutions (as seems to be the point of this article) or mourn them when they finally die off.
Whatever the implementation details, "grab as much as you can and sell it for as much as possible" is the essence of Weyerhaeuser's business model. Not much creativity there. As for the implementation details of buying land, cutting down trees, sawing them into lumber, and loading them on boats and trains, that's not exactly complicated stuff. Personally I'm more impressed with the rocket scientists at Boeing.
P.S. Carnegie and Rockerfeller may not have been slobberers, but I think "brute", as in brutal and savage, is a fitting characterization.
Posted Fri, Aug 8, 2:53 p.m. Inappropriate
RE: Old economy companies: Speaking of Boeing, do you think aluminum grows on trees? (I guess even if it did you'd object to their harvesting it.) The point is, our economy has many interdependencies. You may think your life is somehow post-industrial but in order to read this you are relying on a whole host of materials that somebody had to first dig up out of the ground...
Posted Fri, Aug 8, 5:01 p.m. Inappropriate
It's part of our story: While I have no nostalgia for Weyerhaeuser per se, I can appreciate the overall point that what it represents is a big part of our past and identity. The history of the West is full of contradictions that include that fact that we romanticize stuff that was injurious to our environmental health, from cowboys to goldrushers to loggers. My grandfather invented equipment that made it easier for companies like Weyerhaeuser to strip the steep hillsides. My father worked in logging camps out near Neah Bay in the 1930s and told stories that were both wild and sobering, just as the tales by people like Mark Twain or Jack London often were. Environmental devastation wasn't the only legacy: it is about human strength and weakness, bravery and brutality, our foibles and achievements and the sometime butchering of nature to make a place for ourselves. We all contain the contradictions and live them, but it's part of our story.
Posted Fri, Aug 8, 9:46 p.m. Inappropriate
To bad your only argument is name calling. Might try adding something to the conversation next time. Just a thought.
Posted Fri, Aug 8, 9:47 p.m. Inappropriate
RE: Old economy companies: ....and maybe I will work on my spelling ability.
Posted Sat, Aug 9, 9:20 p.m. Inappropriate
RE: Old economy companies: Maybe I'm seeing things. I thought your post had called environmentalists whackos. If it never did, I apologize. If it did and got changed, then I'll stay with what I said.
Posted Tue, Aug 12, 7:12 a.m. Inappropriate
I ever see this type of topics...
I really wonder how it is happened..?
I want to know more about this story...
Nice view...
Thanks for providing new info,
===============
AleX
Washington Treatment Centers
Posted Mon, Aug 18, 8:10 p.m. Inappropriate
They were classics. Each month outdid the last with some sort of bucolic scene from the high-yield forest. Standard fare would be something like a mother bear carefully watching from a stump while her too-cute-for-words cubs played below her, while in the background forested ridge after forested ridge receded into the distance, with the requisite one or two tiny little clearcuts just barely discernable amid the endless sea of forest.
The reality, of course, was mile after mile of stumps, and the bears would have been shot on sight. But I'd still love to see some of those calendars again, although I do not know where any might be found. Who saves old calendars?
Posted Mon, Aug 18, 11:50 p.m. Inappropriate
RE: Calendars?: UW Libraries Digital Collections' Pamphlet and Textual Ephemera Collection?
Posted Sun, Sep 19, 8:54 a.m. Inappropriate
back in the mid 80's Weyco was backing federal legislation that was intended to give large landowners (farmers) significant tax breaks because their land was not in production or producing income during certain periods. one part of the legislation required i believe, that 65% of the corp's income had to be generated by the land holdings. also during this time, Weyco had an eye on Willamette for dual purposes, their production capabilities & their sound retirement portfolio. Word was that Weyco's retirement program was not as sound as everyone (employee's) had been lead to believe. the Willamette & Mac assets under the Weyco umbrella would make them more desireable to whoever came along to buy them out. one point that is not covered is that prior to the massive sale off to IP, Weyco would shutter some plants & sale them whole to an interested party that after the plant was dismantled would ship/barge the components to China where the plant would be reassembled & put back into production. it's unfortunate that the Willamette mills now sit idle. it was a proud & productive Oregon company that was undermined by Weyco's & it's shareholders greed.
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