Steven R. Rogel was elected chairman, president and chief executive officer of Weyerhaeuser Co. on April 20, 1999. Prior to assuming the title of chairman, Rogel served as president and chief executive officer and a member of the board of directors since Dec. 1, 1997.
In 1966, he began his career with St. Regis Paper Co., where he worked until 1970. From 1970 to 1972, he was assistant manager at St. Anne-Nackawic Pulp and Paper in Nackawic, N.B., Canada. He joined Willamette in 1972 as technical director at the company’s operations in Albany, Ore. He was named president and chief executive officer of Willamette in 1995, and served in that position until joining Weyerhaeuser Co. in December 1997.
Rogel received his bachelor’s of science degree in chemical engineering in 1965 from the University of Washington in Seattle. He completed the executive education programs at Dartmouth College and the Massachusetts Institute of Technology in 1982 and 1989, respectively.
He serves on various boards, including the American Forest & Paper Association and the World Forestry Center. He is a director of the Kroger Co., Union Pacific Corp., Vice President of Administration for the Western Region Boy Scouts of America and co-chairman of the Wood Promotion Network.
Q How would you describe the current economic conditions in this country?
A Generally strong today, employment is steady and inflation is in check. I have some areas of concern, such as housing, which has fallen sharply. The Federal deficit is too high and still growing, as is our trade imbalance.
Q What are your economic prognostications for the coming 12 months?
A I expect to see economic growth slowing over the next 18 months. As a homebuilder, we have seen the downturn coming for several months and with a downturn in homebuilding there is a high likelihood of a downturn in the economy.
Q Are there any economic road signs or warnings that the federal government should be concerned about?
A One early warning sign I see is the increasing rates of default, foreclosure and late payments on mortgages. It leads me to wonder if the Federal Reserve may have moved interest rates too high, which could result in stifling the economy.
Q Globalization: How will it affect our economy in the coming 12 months? What are your thoughts on how it will affect your business sector?
A Globalization is a bit of a mixed blessing for the U.S. It means both cheaper goods for U.S. consumers, but ultimately results in lower wages and benefits and even the jobs of U.S. workers. Our sector has been affected for several years. In particular, for our corrugated boxes used for shipping U.S.-manufactured goods which have faced such tough foreign competition. The result for us is that we must change the way we operate our company so that we can better reach and compete in the global marketplace.
Q How will the value of the dollar affect us and affect your business sector?
A For most manufacturers who export from the U.S., a weaker dollar is helpful. However, if you manufacture outside the U.S. for the U.S. market, such as we do in Canada, the weaker dollar is a burden.
Q How do you define the nature of your business? Do recent economic trends require you to rethink that definition?
A We now operate in a global economy whether or not we want to. Recent economic trendsin global manufacturing make it more difficult to operate exclusively in North America. For example, technologically advanced newer mills in low-cost regions outside North America are particularly difficult to compete with from our North American base. Technology has changed the playing field, and new assets in low-cost regions are more efficient than our older equipment North America.
Q Education: What do you believe this country has to do to retain the economic and political advantage that it has enjoyed for so long? Do you have to offer educational or remedial training now that you once did not have to?
A I believe we need empirical achievement standards to measure both students and teachers. We must take steps to ensure children have the necessary social skills and are ready to learn when they start school so that teachers can concentrate on teaching.
Our company offers remedial training, even in such basics as reading, writing and math. Work from the forest to the factory floor now requires a better basic education. Jobs that formerly demanded low skills now require college level training. We offer training in fields such as technology, strategic thinking and communication skills for supervisors and managers. We can’t pay high wages without growth in skill levels, so continuing education is important to our success.
Q Tort reform: How much does the present tort law add to your business or business sector costs each year? What needs reforming first?
A Current tort law has the potential to put any company out of business. This creates a climate that makes leaders and managers more conservative and less willing to take risks.
I endorse civil justice reform because the current system has become too costly and complex for all participants. The cost and time it takes to participate in litigation is a cost that we all bear, so reforms that treat all participants fairly and equally are imperative.
Q Regulatory reform: How big is the regulatory burden on your business or business sector? What would you like to see reformed first?
A It’s a huge burden. In many cases, U.S. companies are hindered by regulatory burdens that many foreign companies do not have. Regulatory processes must be streamlined to remain effective but not burdensome. Oversight of administrative agencies must be more rigorous to maintain a balance of appropriate regulations while maintaining a healthy business climate.
Q Safe and reliable energy supply: Will the demands of your business sector lead to more energy requirements? How would you like our government to deal with this? What do we need to do to ensure energy independence or sovereignty for this country in the future?
A We are working hard to reduce our energy use, and having some success. In our sector, more energy will only be required if there is facility growth.
Government must provide incentives to business to employ energy saving technology to allow us to modernize our equipment earlier in its life cycle. New energy sources, such as biomass, hold promise as a renewable, greenhouse gas-neutral technology, especially when the carbon sequestration effect of large-scale tree planting is factored in.
We must also be willing to consider nuclear power, fully developing our existing fossil fuel resources and exploring alternatives to fossil fuels.
My five tips for young people for success
1. Get the best education you can; be well-grounded in math and science; develop excellent written and verbal communication skills.
2. Cultivate good manners, they come in handy!
3. Get a job in your teenage years; seek varied work experience and develop a variety of skills.
4. Participate in at least one extracurricular activity in school such as sports, music, art, theater or other interest.
5. Find an interesting hobby; it could lead to a career.
The hardest business decision I ever had to make
Closing a mill or other operation. The impact on the people and communities can be devastating.
Part of Examiner’s The American Economy series.
