Economic & Social Impact
Economic Impact
Tradewinds' annual revenue is projected to be $20 to $30 million. This income represents new income for the State. This manufacturing facility provides jobs not dependent on tourism, state or federal government or military spending.
The Department of Land and Natural Resources has already received $67,500 from the Waiakea Timber Management Area lease. Over the next ten years, approximately $500,000 per year will come to the State under the terms of our lease. This money is coming from a virtually untapped and renewable resource that has been sitting idle for decades.
Another benefit to the State is less tangible. Deserved or not, in the financial world, Hawaii has a reputation for being unfriendly to new business. The existence of a new world-class manufacturing facility will demonstrate that it is possible to start a new manufacturing business in Hawaii. The veneer mill will support an open log yard, which will buy and sell logs to woodworkers and other local enterprises. The yard will also buy trees from local growers. We believe that small landowners will choose to convert under-utilized grazing lands to forest when they can see the economic advantages of growing trees.
Tradewinds is funded by a combination of private equity and debt. To date, we have raised over $7 million for use in design, engineering, equipment, permitting, and land purchases. The total construction cost is estimated to $45 to $50 million.
Social Benefits
Many families on the Hamakua Coast have been fragmented by the need to find good jobs. It is not uncommon to find that both parents must work outside the home, leaving the keiki in the care of others or unsupervised. Talking to school-age kids, you frequently hear the opinion that their only real prospects for good jobs are on the Mainland or other islands. The value of ohana to the people of Hawaii is well-known and families do not want to be separated.
The Hawaii State Department of Business & Economic Development has designated the Hamakua Coast as an “Enterprise Zone.” This means the State and County have joined forces to stimulate new job development by way of tax and other incentives for businesses trying to get established. Tradewinds Forest Products expects to be a significant economic engine for this cause.
Since the sugar companies left, the jobs available tend to be in support of the tourist trade—hotel work, retail and other service industries. These are not true family wage jobs and they are usually not located where the people needing jobs are living. Tradewinds will provide a wide range of employment opportunities close to home.
Tradewinds owns the building complex which currently houses the O’okala Post Office. The post office was in very poor condition with a leaky roof, rotted railings, etc. at the time we purchased the mill site.
We have refurbished the building and are establishing a lending library for the community’s use. The room housing the library is also available for members of the community to use for meetings.
We believe that education is the key to economic advance. We are working with the community college system to develop a workforce training program and will establish a $25,000 scholarship program for our employees and their families. Discussions with prospective employees have shown a gratifying response to the possibility of receiving training.
One element of our operation will be the presence of fire suppression equipment and trained staff. We hope to coordinate with County fire officials to develop a volunteer fire department to serve as a first response unit for the town of O’okala as well as any incidents occurring on the mill premises. In 2005, one of our employees lost their house to a fire, so it is clear that the need is real.
The current unemployment rate in Hawaii has started to rise, but is still fairly low. What isn’t reflected in the statistics is how many of the employed are working for substandard wages, working multiple jobs, and spending hours commuting to work. Many local families have watched their children go to the Mainland seeking work because there were few prospects for desirable employment here.
O’okala is in the heart of the Hamakua Coast, the long-time home of the sugar industry on the Big Island. After the demise of the sugar industry here, families who had worked in the sugar industry for generations found themselves without employment. O’okala was designated a “slum and blight” area by the Federal Government. No new business has successfully started in O’okala for many years.
When the mill is fully operating, we expect to have 100 employees. These employees will be working for family wages with full benefits. There will also be probably forty or more contractor jobs such as loggers, truck drivers, planters, etc. Economists say there is a “multiplier” of two to three additional jobs for every new basic industry job created.