AHE to Close Mill at Warren Sept. 27

MONTICELLO, Ark. – South Arkansas recently received news that AHF will be closing its facility in Warren with a closure date of Sept. 27, 2024, immediately affecting the local and state economy. Using economic software, an analysis of the immediate economic effects of the closure was calculated by Rebecca Montgomery, an economic analyst for the Arkansas Center for Forest Business at the University of Arkansas at Monticello.The loss of 130 jobs at AHF will produce a total loss 275 jobs across the region resulting in the loss of $16 million in labor income, according to the analyst. County tax revenues will decline by $350,000 and state tax revenue will decline by $1.6 million. Arkansas' gross domestic product (GDP) will decline by $36 million. Though the initial impacts of the loss will be difficult, it will not be permanent as AHF workers find other jobs the economy will recover. Closure of the mill not only will affect residents of Bradley County but will have a ripple effect across the region and state, Montgomery said. Hardwood sawmills in South Arkansas will soon feel the effect of the closure as they work to find new outlets for their products. There are several possible reasons for this closure, Montgomery said. As the economy begins to slow down due to rising interest rates, housing starts have begun to decline. In the current economic environment, consumers are more sensitive to pricing when buying new homes or remodeling and often opt for less expensive flooring to save money. AHF stated in a press release that the company recently acquired two sawmills in West Virginia and invested over $25 million in the Beverly and West Plains, Mo., plants to increase their capacities and capabilities. Unfortunately, the Warren facility was not chosen for improvements. With this capacity increase within the company, the Warren facility was selected for closure. "While we are indefinitely i...