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“Inflation has moderated, but prices for skilled labor, insurance and materials remain well above pre-2020 levels,” he said.

The country’s lower wages would give the factory a discount on skilled labor, as well as faster transportation times and a lower tariff rate for exports to the U.S.

In a statement, the energy commission acknowledged that “there are many challenges to overcome” with a state-owned refinery, “including the high cost to purchase and operate, the skilled labor and expertise necessary to manage refinery operations, and how the refinery would fit into the state’s transition away from petroleum fuels.”

More than a dozen sawmills have closed in Canada and Oregon, Washington and Northern California as logging operations have struggled with a shortage of skilled labor and higher costs for energy, freight and other inputs.

“But even with that,” he said, “we’re having difficulties. We don’t get the skilled labor. They work for two to three months” and leave.