The Northwoods, long thought of as Wisconsin’s vacationland, is striving for a more diverse economy. 
Forestry, a traditional industry strength, and health care, a sector growing, in part, because of 
tourism, are a source of optimism 
for the region’s future.

In the Woods
Lumberyards and paper mills have been defining the northern Wisconsin industry landscape for generations. The region — defined as Forest, Iron, Lincoln, Oneida, Price and Vilas counties — boasts the high-quality hardwood that rivals any lumber on earth. But the recession hit the forestry industry hard.

A recent survey by the American Forest and Paper Association reported that Wisconsin leads the nation in forestry jobs with 57,000. “It’s OK that we’re leading the nation now, but the fact of the matter is that in 2008, we had 103,000 jobs,” says Henry Schienebeck, executive director, Great Lakes Timber Professionals Association (GLTPA).

“Three years ago, I said I hoped this is a slow, steady recovery, but I didn’t mean this slow,” adds Troy Brown, president of Kretz Lumber. Employee-owned Kretz Lumber, Antigo, established Northwoods roots in 1929 and is still going strong as a major employer in Langlade County. Known globally for the kiln-dried products it distributes to manufacturers, it is one of many yards working to sustain the forests that keep the industry alive.

The forest products industry accounts for 14 percent of all manufacturing jobs in the state, and the paper industry alone ranks as Wisconsin’s second-largest manufacturing industry. The state has been the nation’s top papermaker for 50 years, producing more than 5.3 million tons of paper and 1.1 million tons of paperboard annually. Paper employs more than 40,000 people, many in the Northwoods.

The greatest loss of business has occurred in logging and forestry activities, down 15 percent since 2008, and wood furniture and wood products manufacturing, down eight percent.
Brown says he is optimistic that when the housing market turns, which is predicted to happen in the next five years, that the Northwoods’ reputation will make it a major player in the world market for hardwood products.

“When it hits, it will hit big,” Brown says of the market. “There are already people hedging on that. This thing’s going to take off and when it grows, it will grow big time.”

Challenges
One stumbling block are state rules and regulations that Schienebeck says are hindering the use of the area’s natural resources for market sale.

“We’re still having difficulties getting enough raw materials,” he explains. “We’re not taking enough off the national forest to keep the mills going. They are actually importing wood from Canada, and it’s been a real hardship on jobs. It’s driving the cost up and driving us out of competition a bit.”

Transportation is another challenge. Exportation to countries such as China, with a fast-growing middle class, is a place where “Wisconsin folks have been very active in developing markets, but we have some transportation issues we have to work out yet,” Schienebeck says.

Diesel costs and freight rates to ports are a problem as well. “When we saw gas and diesel approaching $4 a gallon, people who normally make their living from working in the woods were unable to harvest the lumber and get it to the paper mill or other spot at an affordable rate,” says Joe Hegge, director, Grow North Regional Economic Development Corporation, a nonprofit organization with a mission to create, sustain and promote an environment conducive to regional economic development and prosperity. “Now that prices are going down, it will trigger some activity.”

The forestry industry professionals are discussing one approach that could curb these costs: A central yard where logs can be hauled and then dispersed efficiently. It would service multiple counties and save transportation dollars.

Sustainability
Managing the forest gives the industry a competitive edge while maintaining a supply for the next generation.

“We want to use those resources in the most positive way we can to stimulate the economy and create jobs,” says Hegge.

As a third-generation logger in an industry that is employing fourth and fifth generations of families, Schienebeck says that “when people say we’re destroying the forest, it’s far from the truth. We’re depending on it, so why would we want to destroy our way of life?”

The counties, he adds, do an excellent job of managing the forest resource while creating a reliable income stream for their local communities, because management ensures regeneration and years of work.

“We have become very conscious in this industry of the sustainability of our product, and we have quite a bit of notoriety for that,” says Brown. “That’s one of the things I think everyone in this business in this part of the country feels really good about and why we do business.”

Growing a community of health care
The health care sector in the Northwoods, where 47 percent of the homes are second residences, is focused on providing specialty care in an area where there is a low permanent population.

“This skews the census numbers and looks far smaller in terms of the people who actually are receiving services here,” says Hegge.

“There is a high desire to retire in these communities,” explains Sheila Clough, president of Ministry Howard Young Health Care in Woodruff. “Our patient volumes increase during the peak season, which requires the hospitals to increase staffing during those times.”

Clough oversees the Howard Young Medical Center and Ministry Eagle River Memorial Hospital, both in resort areas, which are the largest employers in those communities.

Hegge adds: “People in this area really feel good about the health care they are getting. The income level to be able to afford health care and the access to it puts us in quite a good situation.”

Twenty to 30 years ago, Wausau had one hospital. It was adequate, says Hegge, but for any for special services, people had to go elsewhere.

Not anymore.

Over five years, Aspirus has grown from two hospitals to six, says Duane Erwin, president and CEO of Aspirus Inc., based in Wausau, with multiple clinics throughout the service area, ranging from Wisconsin Rapids to Superior.

“It’s been tremendous,” he says. “I think one of the reasons why is (that) our board recognized back in the early 1990s that it was going to be important to be a regional provider.”

Aspirus and the Wisconsin College of Osteopathic Medicine are exploring the possibility of a medical schol in Wausau to meet the growing demand.

Aspirus employs more than 5,500 people and boasts a home health system that logs more than one million miles a year.

Health care connectivity
Serving as regional health care providers offers some challenges, and there is a need for programs that reach out to the various populations as well as those in the most remote locations.

One such program is the Ministry system’s Hospital Elder Life Program (HELP), which works to improve the health care outcomes of seniors during and after hospital stays and prevent unplanned readmissions. LIFENET is another Ministry program that offers an electronic link between emergency responders and the hospital emergency departments. “This technology allows doctors in the emergency departments to see and review critical information on the patient prior to them arriving,” Clough says.
 
At Aspirus, a $500,000 matching grant from the federal government will allow the provider to offer more services to this remote area through telemedicine, the ability to connect physicians and patients via an Internet connection.

“The first area we’re embarking on is having tele-health visits by a cardiologist,” says Erwin. “If someone has been seen at Aspirus, had an open heart procedure or some diagnostic testing, when they return to their community, they are able to maintain the contact with their physician through telemedicine.”

The innovations have set new standards for health care in the Northwoods, and Aspirus has become a hub for high-level care, including a neonatal intensive care (NICU) program, Level II Trauma program, genetics, robotic surgery, and the state’s second-largest open heart surgery program.

Hegge says a level of friendly competition among health care providers here benefits the residents and visitors of Wisconsin’s Northwoods. “It tends to raise the bar and build up services in some of those areas.”

Collaboration, Erwin says, is the key to meeting each community’s health care needs and creating a system of efficiencies. “That’s what health care is all about,” he says. “It’s about getting the highest quality care at the lowest possible cost, which means eliminating all unnecessary duplications and redundancies; that’s what we’re trying to do.”

The system has promoted steady employment and low turnover in the area. Aspirus Wausau Hospital is ranked nationally as a magnet hospital for nursing excellence and is certified by the American Nurses Credentialing Center as an attractive place to work.
“I think the stability of Aspirus on the marketplace has been very important,” says Erwin. “Our board represents our entire service area and views Aspirus as a community asset.”

The need for speed
While health care providers are looking for new and innovative ways to provide care, a challenge remains for all people and industries here: Reliable Internet access is not always available in the Northwoods.

And improvement, notes Hegge, is needed for industrial growth.

“We know a number of corporations would like to come here, but until we resolve some of these infrastructure issues, it’s challenging,” he says.

Another challenge is a population drop among full-time residents. The 2010 census reported that 20 Wisconsin counties lost population while the state grew six percent as a whole. Two counties in the Northwoods, Iron and Price, saw big losses of 14 percent and 10.5 percent, respectively. The decline is a challenge affecting business and schools and some say faster Internet is needed to turn around the population decline.

Hegge says that large employers have invested in broadband for their facilities in order to attract employees and customers. Working from home is a way of life Hegge says many people would likely jump at but the lack of affordable, reliable Internet service prevents them from pursuing. The same can be said for those looking to stay in the area and earn an advanced degree online, or at a local community college.

“I think we need a patchwork quilt of solutions, and we have people working on that, both in the private and the public sectors,” Hegge says. “When you look at the return on investment for those things, if it stimulates the economy, creates jobs, and people pay taxes at a greater level, we start to gain some ground rather than lose it.” 

By Jen Bradley

Jen Bradley is a freelance writer living in East Troy.

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