2 Idaho forest products companies to combine

The combined Bennett-Riley Creek operation will have four Idaho-based mills. Riley Creek brings facilities located in Chilco, Laclede and Moyie Springs, all in northern Idaho, while Bennett finished work two years ago on its modern mill in Grangeville in northcentral Idaho.

At the peak of the residential building boom, Bennett said small contractors made up a significant share of buyers of products including 7- to 16-foot dimension lumber including 2-by-4s. As demand from new construction wanes, however, buttressing business with larger retailers that supply home remodeling and repair jobs will soften the decline, he said.

"Always, we're looking for the customer that when the market is bad, he's still there," Bennett said.

Bennett said having four mills will also help the companies cut some transportation costs by scheduling deliveries to customers from the closest location.