43 minute read
Stumpin’
SOUTHERN STUMPIN’
By David Abbott • Managing Editor • Ph. 334-834-1170 • Fax: 334-834-4525 • E-mail: david@hattonbrown.com
Best In Show
After having been postponed due to Covid last year, the rescheduled Mid-South Forestry Equipment Show returned to Starkville, Miss. just a week ago as I’m writing this, on September 17-18, 2021. This year’s event was muggy enough but not, in my opinion, as blazingly, soul-crushingly hot as I remember the 2018 version was. Instead, the threat of rain loomed over us both days, but held off for the most part. The ground was muddy and there were occasional light showers both days, but not the torrential downpours we feared, at least not till the show was about over. The sun even peaked out a few times.
All in all I’d call this year’s Mid-South a success, with bigger crowds on Saturday than I think many people expected. More importantly, many quality connections were made, according to the exhibitors with whom I spoke.
In fact, what I heard over and over from ex hibi tors: “We could sell five machines right now on site, and we have the orders…but we can’t fill those orders because parts are on a six-month backlog.” Some variation on that was repeated to me a dozen or so times last weekend. Business is good…maybe a little too good, because the supply and delivery chain is just so backed up and understaffed at every level, seemingly in every industry. There are housing shortages, car shortages, labor shortages. Hopefully this will all even out soon as supply and demand regain a sustainable equilibrium.
Look for pictures of the Mid-South Show starting on page 24.
Cas Winstead proposed...
Decent Proposal
Mid-South 2021 will certainly stand out in the memories of at least a few who attended. Not least among them will undoubtedly be the members of the Winstead family. Larry and Samantha (Sam) Winstead own L&S Logging, based in Philadelphia, Miss. One of their three kids, Cassidy Winstead, 27, was asked to run the skidder at Tigercat dealer B&G Equipment’s demo site at Mid-South on Saturday, September 18.
“Cas has loved logging all his life and has worked his summers driving a skidder for us since he was 12,” according to his mom Sam. “After high school, we encouraged him to at least give college a try. That lasted ONE semester and he decided it wasn’t for him. He wanted to log!” Cas has worked for his parents at L&S Logging full-time since he was 19. He started out on the skidder before graduating to the cutter, and he can run the loader and drive a truck when he needs to, too.
Cas met Sara Aultman, 24, last October and they’ve been dating ever since. Sara, from Seminary, Miss., is a registered nurse in the NICU at the University Medical Center in Jackson.
When Cas got the invitation from B&G to demo at the show, he decided this was the perfect opportunity to put into motion a plan he’d had for a few months. You know where this is going. He had already bought a ring back in July. He asked his parents to bring the ring to the show. Sara was taken completely by surprise; no doubt her first logging show will be one she won’t soon forget. And yes, she said yes; the date is set for February 2022.
Congratulations, Cas and Sara!
... and Sara said yes.
Bright Idea
Among the things that caught my attention at Mid-South: Swamp Fox Agency, a logging insurance company based in Moncks Corner, SC, displayed what it has dubbed “the visible trailer.” The trailer was painted a high visibility orange and had extra lights installed along both sides. “We wanted to display it as an example to show people how easy it is to make a log trailer visible to the public,” according to Swamp Fox sales exec Jeremy Barclay. The total cost of adding the lights was $80, plus the cost of the paint job— pocket change next to the cost of paying out damages in the event of an accident.
This trailer itself was in an accident. It be longed to a Swamp Fox client. Early one morning while the sky was still dark, another vehicle drove right into the side of the loaded log trailer. The trailer at the time was painted jet black, Barclay says, and in the low light, low visibility conditions of the early morning, the driver couldn’t see the trailer in time. “The side impact caused some severe bodily injury to the other driver,” Barclay reveals. “Needless to say there was a significant claim and there was no question of liability on our truck. But after analyzing the wreck, we started asking what could have been done to mitigate the severity of the accident.”
The insurance company decided that making the trailer more visible with brighter color paint and additional lighting along the sides of the trailer could have prevented or at least reduced the severity of the accident. “DOT requirements for lights are pretty minimal and only on the back,” Barclay points out. “If the driver could have seen this trailer a little sooner, it would have helped. Instead of saying this is what should be done, we decided to just do it to show everyone how easy it is to do.”
One concern some loggers voiced: if they add extra lights and those lights go out, can they be ticketed for it? Barclay says no. “We talked to FMCSA; any light added beyond DOT requirements, if it becomes inoperable, will not be an out of service violation.” So, adding the extra lights to reduce the risk of an accident does not increase the risk of a fine. Prevention is pretty much always better than cure, so it all sounds like a good idea to me.
Till next time…excelsior! SLT
Extra lights and brighter paint should make this trailer safer.
Triple Play
■ At GMD Logging/Dennis Trucking, Dennis boys Paul, Mark and Mason are three of a kind.
By David Abbott
ALBAMARLE, NC
Truly a family business, GMD Log ging, Inc. is a three-man front in the woods. The company takes its name from the initials of owner Gregory Mark Dennis, who goes by his middle name. Mark, 48, logs with his brother Paul, 46, and his son Mason, 19. Meanwhile Mark and Paul’s dad, Rick, 67, helps with the hauling component under separate-but-related entity Dennis Trucking, Inc.
Dennis Trucking is actually the older of the two companies. After many years of hauling for other loggers, including working with some other family members in the wood industry, Mark decided to start GMD six years ago. He at first planned to roll his trucks under the banner of the new incorporation, but ultimately opted to leave them under Dennis Trucking. It was easier to keep the two companies
From left, Mark, Mason and Paul Dennis
separate than to go through the rigmarole of obtaining new DOT numbers.
It’s just the three of them in the woods, and there are no employees outside the Dennis family except for one driver on the trucking side, Ronnie Starnes. Though the brothers can swap out or fill in as needed, generally, Mark mans the loader and Paul operates the cutter. Mason, the youngest Dennis man, can run the skidder or the second loader. He also recently got his CDL and plans to start driving a truck for his dad and uncle.
Iron
Mark figures GMD hauls an even split between roundwood and chips most of the time, but it varies from tract to tract. With a Morbark 3036 drum chipper, they started chipping a little over a year ago, mostly for tops and undergrowth that can’t be merchandized. “We bought the chipper because pulpwood has been hard to get rid of for the last five or six years,” Mark says. “It was getting so that we were sitting half a week because we couldn’t get rid of pulpwood. So we got hooked up with Enviva and started hauling chips, and that has been working out.”
This spring, Mark purchased a 2021 Barko 595B loader with CSI delimber/ slasher 4400 classic package while his older loader was down for repairs. That machine, a 2007 Tigercat 234 loader, has accumulated right at 18,000 hours and is still working every day with its original engine. Mark reports that the knuckleboom has presented few problems beyond ordinary wear and tear: “It’s been a good one.”
Since they’ve only had a two-loader setup for about six months, they’ve been trying different configurations to decide what works best. Sometimes one merchandizes or feeds the chipper while the other loads trailers, other times they both work side by side. Either way, they say the combination has been very effective for them so far.
A ’19 John Deere 748L-II skidder normally follows a ’16 Tigercat 720G rubber tire feller-buncher, but when Southern Loggin’ Times visited in Au gust, that machine was in the shop getting a new saw disc installed with dealer John Woodie Enterprises (JWE) in Statesville. JWE provided a loaner Barko 830 to keep GMD going in the meantime. “Some other dealers sell you something and they’re done with you, but if you’re down, John Woodie is helpful,” Mark says. “If you need something, he’s good to work with and his salespeople help you out.”
JWE also took the opportunity to let their customers demo a TimberPro TN 725D tracked feller-buncher that day. The Dennis boys had been wondering if a track cutter might not be of some use to them when working on steep hardwood hills and muddy lowlands. “It’s just us three out here; we don’t use a topping man,” Mark points out. “We try to stay off the ground and the heads on the track machine might help us out with delimbing hardwoods.” The TimberPro impressed them, but they’ve decided to hold off on that for now.
While JWE is their Barko dealer and
James River in Mt. Gilead is the John Deere dealer for the Dennis crew.
The Dennis brothers started chipping for Enviva last year.
John Woodie Enterprises loaned GMD this Barko while their Tigercat cutter was in the shop.
Mark added a second loader earlier this year; the '21 Barko feeds the Morbark.
Mark bought the Tigercats used, the Dennis clan also enjoys a good relationship with John Deere dealer James River Equipment in Mt. Gilead. GMD Logging uses ECO-Tracks to keep their Deere skidding in muddy ground. Mark says it is easier to get those on and off than it is to dual tires up: “It takes a half a day to put outer dual tires off and on.” And, he adds, “We don’t need flotation; we need something to grab for traction.”
Maintenance routine is to change oil and filters every 250 hours on every piece and to grease it all weekly. They track hours by writing it down on filters. Chipper blades are changed as frequently as needed according to the type of wood they’re processing, and the terrain; sandy ground dulls the knives quickly.
Any major repairs go back to the dealer or to local mechanic Danny Harrington at Danny’s Truck Service in Norwood. “He’s done all our en gine and transmission work for the last 20 or 25 years,” Mark reckons. The Dennis brothers also have a shop at their parents’ farm. “We take the chipper there more than anything else, to do maintenance where it’s dry and cool and out of the sun,” Mark says.
Markets
On the transportation side, Dennis Trucking has four tractors, by Mack and Kenworth, pulling a mix of log and chip trailers from Evans, Kaufman, ITI and Pitts. Pinnacle Trailer Sales in Wilmington is their dealer.
They haul an average 45 loads weekly to markets in both the Carolinas and sometimes a little bit to the edge of Virginia. Enviva Pellets in Hamlet, NC is their main chip market. When they haul treelength pulpwood, they generally send it to Domtar Paper in Bennettsville, SC. Pine logs go to H.W. Culp Lumber Co. in New London.
GMD is versatile enough to tackle a variety of tract types, from first thinning pine plantations to hardwood swamps and hills. Most of the time they work on private land. For the last four years, timber buyer Tony Gathings of Midway Land and Timber in Laurinburg, NC has been keeping them busy. “He’s been very good to work for,” Mark says. “He was a logger before and that makes a big difference.”
Insurance is through Southeastern Agency Group out of Greensboro. Safety concerns are discussed as they come up in real time.
Dairy Roots
Mark and Paul grew up on a dairy farm with 250 Holsteins and row crops. “We grew up helping him as soon as we were old enough to milk a cow, and he taught us how to work,” Mark says. Their dad was a second-
generation farmer, but after all his children had graduated high school, Rick sold the milk cow business in 1995. “He was about ready to get out of it and he told us, ‘Either y’all want this thing or you don’t,’” Paul recalls. “None of us wanted it because we grew up on it and we knew it was hard work.” The brothers laugh now at the idea that logging was easier than farming, but there was an advantage. “We can cut this off on weekends, but the cows are still there every day,” Paul says.
Paul went to the woods and Mark started driving a log truck, working for their uncle Jerry Flake, who was at the time one of the biggest loggers in North Carolina. Flake, brother-in-law to Rick’s wife Becky, was also featured in SLT about 20 years ago. After selling out the dairy business, Rick also started driving a log truck. After a couple of years, Mark bought a truck from Flake and started Dennis Trucking, and Paul bought his own fellerbuncher and started contract cutting. Mark and Rick hauled for
Paul until he got out of the business in 2011.
Paul went to work in a gun shop for a couple of years, and at
Ed wards Wood Products for about a year. Meanwhile his dad and brother kept trucking and logging, going into business with their cousin Jerry Lynn Flake (son of their uncle Jerry for whom they first worked). Eventually,
Mark wanted to go on his own and by then Paul was ready to get back in the woods, so GMD was born.
“We’ve kind of been all around it, but we keep coming back to logging, that’s for sure,” Paul says with a grin.
Rick Dennis may have gotten out of the dairy business in ’95, but he still farmed until just last year. While also driving a log truck, he continued row cropping corn, soybeans and wheat. “I just farmed my place and kept most of my equipment till last year,” he says. “I got to where I didn’t have time for it, and I’m getting too old, too.” He had to have back surgery two years ago and started sub leasing his land to someone else. “I couldn’t do it all anymore.”
Mason graduated in 2020 and followed his dad and uncle right to work in the woods. “I tried to get him to go to college,” Mark says. “He was a good golfer in school and made all conference in golf. They said he could have gotten a golf scholarship. I said boy you need to go do that but he insisted it wasn’t for him.”
There is a third Dennis brother, the first of Rick’s three sons in fact, and the only one who did decide school was for him. “Our older brother was smart and went to college,” Paul says. Bill Dennis, 50, is a nurse anesthetist.
Mark has a younger son, Reid, 14; there’s no verdict yet on what he plans to do. Paul is married to
Allison Lowder Dennis, whose dad has been working for Culp
Lumber Co. for more than 15 years. Mark and his wife Amanda have been married for 21 years, and she helps sometimes with running errands for the company. SLT
Mason Dennis, left, with his grandad Rick Dennis, center, and dad Mark Dennis, right
Family Function
■ Usher Land & Timber has an activist spirit for cattle and forestry in the Sunshine State.
By Patrick Dunning
CHIEFLAND, Fla.
They say life is what happens while you’re making other plans. Lynetta Usher Griner and her husband Ken Griner, both 65, didn’t plan on running Usher Land & Timber, Inc., a farming, cattle and logging operation that was in Lynetta’s family. Just over 30 years ago, Lynetta was a civil law attorney with her own private practice in Chiefland after graduating with a Juris Doctor degree from the University of Florida, while Ken was running his family’s General Motors car dealership locally after graduating from Davidson College. Life had other plans in store for them, though.
Though its current incarnation was established in 1992, the company’s roots go back more than a century. In the early 1900s, E. T. Usher, Sr. operated a turpentine business in rural north Florida. Under his son, Usher Jr., that business evolved into a small pulpwood operation in the 1940s. Usher, Jr. also bought a farm and raised a handful of cattle as a hobby.
After graduating from Florida Southern College, E. T. Usher III, who went by Tommy, joined his father in managing the family business in 1984. By then they were operating under the name E. T. Usher Co., Inc. Tommy was Lynetta’s brother.
Tragedy struck in 1989 when Tommy died in a boating accident; he was 29 years old. Their father, E.T., Jr., had turned the company over to his only son, and was no longer able to keep it going on his own. Lynetta knew she had a responsibility to her family; she couldn’t let their heritage die with Tommy.
So Ken sold his dealership, Lynetta closed her practice and they got involved in the family business. “Another big driver in our decision was not just the business but the farm,” she says. “When Ken and I came back, he started growing that side of the business. We felt it was important to give back to our respective industries. He got more involved with cattle and I with forestry.”
From left: Steve “John” Fisher, Vice President; Eric Handley, forester; Lynetta Griner, corporate secretary and treasurer; Ken Griner, President
Timber harvesting is the foundation of the business and funds Usher Land & Timber’s cattle and farming operations, though the family’s focus on commercial cow-calf programs has become more sustainable of late.
Lynetta, corporate secretary and treasurer, and forester Eric Handley, 35, oversee Usher’s timber harvesting division. Handley purchases standing timber from landowners through bid sales and private negotiations.
Ken manages cattle and farming operations with their son, ranch manager Korey Griner, 34. The Usher family owns 7,000-plus acres with 2,500 acres under conservation.
Among the company’s three logging crews, Usher employs 35 total, including 10 truck drivers, three full-time mechanics and four office employees.
In the last few years Usher formed a site-prep business for raking pine needles, burning piles and roller chopping. Handley says it helps when buying wood from his area’s growing small landowner population. Florida tracts require more site-prep, Handley says, and growing season never ends, so competition is prevalent.
“We do the site prep, clean it up, burn these nasty tops and may get what it cost,” Handley explains. “Biggest reason is it helps me buy wood. We are cutting 35% chip-nsaw. Our mill specs are a lot smaller, which they should be.”
Usher hauls nearly 150 loads per week to eight mills in north Florida.
Operations
When Southern Loggin’ Times found Usher Land & Timber this past spring, one crew was performing a fifth-row thinning prescription on 250 acres owned by a private landowner. The Levy County tract features a quarry and a handful of small lakes. Nearly 99% of the timber they harvested here was slash pine.
While some logging operators trade tractors every three to five years, Usher runs its machines longer, sometimes replacing the original motor and running it again. Engine swaps occur less often with newer model machines. Their crews run Caterpillar loaders, Tigercat feller-bunchers, and Tigercat and John Deere skidders ranging years 2010-2020. In theory, Handley says, Usher purchases one tractor a year, on average.
“We run all brands,” Handley says. “We chase the dollar; whichever one has the best deal, we buy it. From a construction standpoint, Tigercat’s motor issues have changed because they changed brands of motors. Emissions changed a lot of stuff but for a while there we bought John Deere because it was the last of the tier three, and Cat was a little bit further down the line. We bought two loaders before they transitioned to the full-fledged tier four.”
Ken affirms, “It’s a dichotomy with Cat skidders and Deere skidders because their older motors were bullet proof. Then as everything became more complex and emissions started dictating, Tigercat had some advantages from a construction standpoint.”
Usher Land & Timber looks to Beard Equipment in Perry for John Deere machinery and Tidewater Equipment, Maxville, for Tigercat, while Ring Power Corp., Perry, provides service and sales for Caterpillar woods equipment.
Two of Tommy Usher’s closest friends, brothers Steve “John” Fisher and Spencer Fisher, serve as the company’s shop mechanics. Usher Vice President, John, was a classmate and lifelong friend of Tommy and began working with the company when Tommy was head of Usher operations. The two Fisher men make engine swaps look easy, Handley says, and have over 62 years combined experience in general maintenance, radiator/air conditioning and injection pumps repair.
Woods equipment is serviced every 250 hours and trucks every 12,000 miles using Delo 400. Routine maintenance includes changing oil and filters, complete lubrication application, checking transmission and rear end oil levels and all safety equipment, tires and brakes.
“Our ability to accomplish so much mechanical work in house has a tremendous impact on our financial success,” Lynetta says. “By repairing equipment internally we are able to save money, not only on the cost of repair but also on down time for equipment. The equipment is repaired on our schedule and not dependent on someone else’s schedule. The quality of our internal repair work is superior to any work that could be performed by an outside source. That in itself is a savings for Usher Land & Timber.”
Hauling
Usher runs 10 all-white CH-613 Macks ranging years 2003-2006, pulling a mix of McMillan, Big John and shop-built trailers. “Stevie John and Spencer’s uncle, who used to work here, built several trailers,” Handley says. “He was a great welder; they are all phenomenal mechanics.”
When Ken was purchasing the company’s timber, trailers were built to haul treelength material. With mills changing their specifications, Usher Land & Timber had to convert. Handley says, “Those trailers were built to haul whole tree and had cages and couldn’t haul double bunk so we were forced to update our trailer fleet.”
Usher uses strobe lights, flashing cab lights and maintains scales at the company’s headquarters to ensure fully loaded trucks meet weight requirements and are safe for hauling. The company deals with Nextran Truck Centers, Lake City.
Markets
Approximately 150 loads of various wood products are hauled to eight different mills in north Florida per week. Handley keeps a year’s worth of timber tracts purchased ahead for the company’s three crews and says markets have been strong in 2021.
Georgia-Pacific, Foley, originally constructed by Proctor & Gamble in 1954 and previously Buckeye Technologies, Inc. until GP’s acquisition in 2013, is one of Usher Land & Timber’s go-to mills. Loads are also hauled to GP, Palatka; pulpwood logs to Southern Fuelwood, Newberry; Derby Gold Pine Shavings, Williston; WestRock, Maxville; Cross City Lumber, Cross City; Resolute Forest Products, Cross City; and Robbins Mfg., Lake City.
Back in Ken’s days of cruising timber it was easy to merchandise wood several different ways. “I had a lot of tools in my toolbox that don’t exist for Eric,” he says. “When I was cruising we’d have to dot grid and manually walk the boundary. As independent loggers we had a good relationship with every mill we hauled to, (and) had a lot of different markets.”
Ken adds that formerly, mills
From left: Willie Mack, (retired) fill-in loader operator; Donnie Cason, skidder operator; Eric Handley, forester; Dwayne Rains, truck driver; Johnny Kirkland, butcher/crew leader
were more supportive of the logging industry both financially and time wise. “Mills have changed from a people-oriented business to a commodity-type business,” he believes. “(They’ve) shifted all the risk to the logger. It’s unsustainable in my opinion. A lot of people from our industry from our era still come by today and ask about old employees because they know who worked for us. You don’t know who’s who anymore. No investment in relationship anymore. Not true of all mills, though.”
With some sawmills’ pricing mechanisms becoming more short term, Handley is thankful to be a supplier for Derby Gold the past two years because of their consistent demand. Usher has gravitated from the big mills’ open market to smaller niche operations to remain diverse.
“People ask where we haul wood. We take it to whoever unloads it that day,” Handley says. “It’s nonstop moving; every week is different. It used to be I call them and say hey they’re selling this wood, I want a price for 12 months. Now their first question is ‘how much volume and when are you going to it?’ If I tell them I don’t know they’ll say well I Cattle Operations
Usher Land & Timber runs a commercial cow-calf operation, led by Ken and Korey Griner, at the Usher family’s 7,000-acre ranch in Levy County. They reserve 2,500 acres for conservation and lease it for hunting. Customers pay to have their calves reared on the farm and participate in a custom-feed operation with proven success.
Usher’s cattle division has 750 heifers, 3,000 calves and 17 bulls participating in a seedstock program and stocker program, utilizing nearly 6,000 acres of pasture and timberland in Florida and 5,200 acres in Kansas.
Ken currently serves on the Executive Committee of the Florida Cattlemen’s Assn. and served as President from 2017 to 2018. He currently serves on the Board of Directors for the National Cattlemen’s Beef Assn.
Recently, Ken has transitioned his focus to artificial insemination, a cattle breeding method using frozen straws of a bull’s semen. “It’s a game changer for us. There’s a lot of science people don’t understand about the cattle business. That’s
Handley keeps a year’s worth of timber tracts purchased ahead of his three logging crews.
become our focus.”
Usher Land & Timber also participates in a seedstock program, “Profit Proven Genetics,” which is designed to grow animals that thrive in Florida’s climate. Usher’s latest venture, Florida Cattle Ranchers, is dedicated to producing beef sold in Florida to strengthen local farmer markets and reduce stress on cattle.
Korey oversees day-to-day operations on the farm. He, along with two other full-time employees, manage calves from weening till ready for the grow yard, develop heifers and aggressively pursue artificial insemination.
On average, Usher’s cattle turnover rate is 18-20 months depending on markets. Finishing cattle in Florida is a new thing,
Korey says, but the company has gained enough experience on the commercial side to be sustainable.
“We’ve done it long enough to cut out a lot of leg work as far as cross breeding,” Korey says.
“These animals are designed to perform in a feed lot, while surviving in Florida.”
Activism, Awards
The Griners are known for their involvement in Florida’s cattle and forestry associations. Their achievements, some listed below, only scratch the surface of Lynetta’s and Ken’s efforts to improve their respective industries in the Sunshine State.
Lynetta served as President of the Florida Forestry Assn. from 2012 to 2014 and was the first woman elected President of the 90-year-old organization at that time. She has served as Agricultural Appointee to the Acquisition and Restoration Council since 2008. Lynetta currently serves on the Board of Directors of Drummond Community Bank and on the Board of Trustees of the Florida Chapter of the Nature Conservancy. She was named Florida Woman of the Year in Agriculture by Florida Commissioner of Agriculture Adam Putnam in 2013. In 2018 Lynetta was selected as the Swisher Sweet International/Sun Belt Ag Expo Florida Farmer of the Year.
In 2001, Usher Land & Timber was named Logger of the Year by the Florida Forestry Assn. and the Southeastern Wood Producers Assn. In 2002, Usher was named Southeast Logger of the Year and in 2003, National Logger of the Year. Forest Resources Assn. (FRA) presented the regional and national logger awards. In 2016, Ken was named Outstanding Rancher & Leader by Farm Credit of Florida and the Florida Cattlemen’s Assn. SLT
Logger Survey
■ Timber Harvesting’s 2021 survey results: labor, insurance, pandemic recovery and red-hot markets.
NOTE: This article originally appeared in the July/August 2021 issue of Timber Harvesting, another Hatton Brown publication.
By Dan Shell
Logging contractors across America are continuing to work through pandemic effects that are still being felt by all businesses, against a backdrop of continually increasing insurance and other business costs and an exploding forest products market with the highest lumber and panel prices in history, a phenomenon that hasn’t trickled down much to the contractor base so far.
The Timber Harvesting Logger Survey gauges the health and outlook of loggers across the country and gives the industry a snapshot of current conditions and insight into ongoing trends. Special thanks go to the almost 500 loggers who took the time to fill out the survey.
Aging contractor base— One of the first questions the survey asked was the logger’s age, and the results in 2021 show a continued trend toward an aging logging force. Since early this century, the number of loggers over the age of 60 has doubled: 15 years ago, 15% were over 60. By 2016, after a major economic downturn and decent recovery, the number of loggers over age 60 was 22%. In Timber Harvesting’s most recent Logger Survey in 2019, the percentage of loggers over the age of 60 was 29%. As of 2021, just under one-third of all loggers (32%) are older than age 60. Meanwhile, 24% of contractors are age 50-60, 23% are between 41-50, 15% are age 31-40 and 5% are 30 or younger.
The graying of the upper end of loggers’ ages is also reflected in the percentage of younger loggers age 40 and under that continues to fall: In 2006, 26% of loggers were 40 or younger, and in 2016 some 23% of loggers were 40 or younger. Yet in 2021, only 20% of loggers are 40 or younger.
Trend toward larger compa-
nies—An industry that’s showing an aging contractor base and fewer young contractors stepping in to replace them will likely see a trend toward larger companies, and that’s happening in the woods right now.
While the logging industry is dominated by smaller logging companies that run one (64%) or two (15%) crews, the percentage of loggers reporting they operate five or more crews has more than doubled in the past 15 years to just under 8% of all logging companies. In 2006 just 3.5% of loggers reported running five or more crews, a number that moved to 4% by 2016. This also reflects generally good markets for many loggers, with lumber markets on fire and an economy coming back from the COVID pandemic.
Also in 2021, 8% of loggers reported running three crews, and 4% of loggers reported running four crews.
The trend toward larger companies is also reflected in overall logging business investment levels. In 2021, 62% of loggers reported overall investment of $1 million or less; 29% of loggers reported total investment of $1-$2 million; 6% of loggers have investments of $2 million to $11 million; and 2.5% report investments of more than $11 million.
Financial health—During the past two years that include market fluctuations, natural disasters, a presidential election and a historic pandemic that has rocked the economy and labor market, loggers’ self-reported financial health has stayed remarkably stable and even improved a bit as the percentages of those on the low end of the scale report their fortunes improved somewhat.
In 2021, just over 51% of loggers reported their company’s financial health as “Good” (38%) to “Very Good” (13%). That’s virtually the same as 2019, when 50% of loggers reported the same thing. What’s changed is the percentage of loggers who reported their financial health as “Poor” to “Very Poor” has gone down, from 15% in 2019 to 12%
today. It may not seem like much, but that’s a 20% decrease. Meanwhile, the percentage of loggers seeing their financial health as “Fair” has ticked up a bit in the past two years, rising to 36% today from 32% in 2019.
Interestingly, despite a general consensus that the Southeast U.S. is the primary growth region for forest products as evidenced by major capital investment there the past few years, less than half of Southeast loggers (7%) rated their business health as “Very Good” compared to 16% of Northern contractors, and 17% of Western contractors.
Asked to estimate their pre-tax profit percentage for 2020, loggers reported a slight uptick in profitability since 2018, but not much. The relatively good news is that only 31% of loggers reported either breaking even (13%) or losing money (18%) the past two years, compared to 33% in 2019.
The percentage of loggers reporting a 2020 pre-tax profit percentage of more than 10% was virtually unchanged from two years prior— 21% both years. Going down the scale, 20% of loggers report a 2020 pre-tax profit percentage of 7-10%, while 16% of loggers report a profit level of 4-6%, and 12% of loggers reported margins of 1%-3%.
During the past two years, more loggers (22%) have downsized their operations than expanded (18%). Meanwhile, right at 60% of loggers say their businesses have remained the same the past two years. A whopping 78% report that operating a logging business today is more challenging than two years ago.
Markets & Mills—Timber Harvesting asked loggers to look at three broad markets over the past two years: sawlogs, pulpwood and
biomass-fiber. Only sawlogs had a net positive response, as 31% of loggers said their sawlog markets have improved compared to 17% who said their sawlog markets have been reduced. Meanwhile, 40% of loggers say their pulpwood-chip markets have been reduced in the past two year compared to 15% who say they expanded. Likewise, 35% of loggers say their biomassfuel wood markets have been reduced the past two years, and only 16% have seen expansion.
Loggers were also asked to judge nine different log categories, and rate which three were the most profitable to produce since mid-2020, when forest lumber and plywoodOSB prices truly took off. The most profitable product since then is hardwood sawlogs, chosen by 47% of loggers. Softwood sawlogs are second-most profitable, said 42% of loggers, followed by hardwood veneer plylogs that are cited as most profitable by 38% of loggers.
The remaining categories ranked by profitability are: pulpwood (paper mill) for 20% of loggers, softwood plylogs cited by 17% of loggers, and pulpwood (packaging plant) for 14%. The bottom three log profitability categories are OSB logs (13%), pellet mill logs (11%) and fiber-hog fuel logs (9%).
Looking at the same time frame, which has seen lumber and panel prices skyrocket since mid-2020 to historic levels, Timber Harvesting asked loggers what they’ve seen from their consuming mills in terms of changes to cut and haul rates, quotas, etc. Almost half (46%) said they had seen no real change in their compensation or load volumes since mid 2020. For the other half it’s a mixed bag ranging from the 30% of loggers who said they have seen rate increases (10%), fewer quotas-more loads (10%) and more consistent work (10%), to the 24% of loggers who said they have seen tighter quotas (12%) and even rate reductions (12%).
That almost one-fourth of loggers have seen reductions in rates or load volumes during a time that mills are making huge amounts of money brought some pithy comments from readers. “We’ve seen no real raise in logging rates….but a HUGE increase in demand for logs,” one logger said. Another summed it up: “We don’t know who’s getting (the money from) all this big increase in lumber prices, but it sure ain’t us!”
Asked about the best way for loggers to increase their compensation and cut and haul rates, almost half, 48%, said better negotiation was the key. Another 20% of loggers said that the trend toward bigger loggers is the second-most likely way for loggers to see an increase. Nine percent of loggers said third party certification such as the Master Logger Program is the best way to see an increase. Just under 4% of loggers said state licensing systems such as those for building contractors or plumbers is the way to see a compensation boost.
“We’ve got to have either fewer loggers or more markets,” said one respondent.
Even so, while lumber and panel markets are red hot for mills they are increasingly a sore spot for many loggers, who commented that wood-consuming mills should be sharing some of the windfall, either as a general principle or as a strategic investment in strengthening the supply chain. More than a few comments spoke of the need to form cooperatives or even unions to enable loggers to operate sustainable businesses. “Increased markets and competition are the only things that will drive up prices in our area,” said one logger. Another added, “Rates won’t go up until so many loggers have gone out of business that the mills can’t get the fiber they need.”
One contractor who said he’d been in the business more than 30 years and never seen the use for a co-op until now has changed his tune. “Band together and demand more money. The wood industry is $33 billion dollars and 150,000 employees and not a dime of it happens without loggers,” said one reader.
Operations—Controlling costs is always a concern for loggers, and the impacts of the pandemic are still being felt for many. Asked what actions they had taken in the past two years to keep costs down, the top three actions have been selling equipment (34%), negotiating better terms with suppliers (32%) and the tried and true “owner’s pay cut” taken by 31% of loggers. Diversification was chosen by another 31% of loggers. Nine percent of loggers say they’ve bid out some of their suppliers to lower costs.
While 21% of loggers say they laid off employees during the past two years to cut costs, only 12% said they eliminated one or more crews. Of those who dropped crews, more than 75% dropped only one. Asked for specific steps they take to attract and retain employees, 74% said they ensure competitive pay packages; 50% use production bonuses; 35% offer paid vacation; 25% offer health insurance; 24% provide regular raises; and 12% offer profit-sharing plans.
The survey asked about how loggers are making use of the Internet and social media in their businesses. The top usage? Buying and selling equipment, cited by 51% of loggers. Learning how other loggers solve mechanical issues is next, say 37% of loggers. Other uses: 20% use it to find employees; 19% to find timber; 17% to demonstrate professionalism and educate the public. To network with other loggers, 48% report they are a member of a Facebook loggers’ group of some type.
One commenter urged caution, pointing out that it’s not just loggers who look at these groups. While many loggers or their employees like to share posts and videos of “wild and crazy” logging adventures, “The lack of PPE and posts of equipment tearing up the land in some of these groups is shocking,” the logger noted.
Equipment—Many manufacturers are offering equipment with telematics that monitor everything from fuel usage to property lines and allow loggers to closely track production and costs. Asked about such technology, 52% of loggers say they don’t run equipment that has such features. Another 23% of loggers say they have equipment that does offer such features but they don’t use them. Meanwhile, 19% of loggers have it but only monitor certain reports. Only 6% of respondents say they try to take full advantage of all such technology can offer.
Asked what equipment purchases they had planned this year, the largest category of responses— 35%—said “None!” Of those in a buying mode, the top purchase for 2021 is skidders (10% of loggers). Another 9% each cited the venerable chain saw, knuckleboom loader and feller-buncher for purchase this year. Six percent of loggers say they are planning to purchase a trailer this year, and 5% of loggers say they are looking to buy an excavator or cut-to-length harvester. A cable machine (tower, jammer, swing yarder), dozer, cut-to-length forwarder or processing head were each cited by 3% of loggers, and 2% are looking for a chippergrinder machine.
Concerning loggers’ costs for maintenance-repair, tires and other parts and supplies (not fuel), 58% report they spend $100,000 or less, pointing up the many small producers in the industry. Another 28% of loggers spend between $100,000 and $300,000 annually on maintenance-supplies, while 10% report spending between $300,000 and $500,000. Just over 4% of loggers report spending $500,000 or more on maintenance-supplies.
Piece of Your Mind—In conclusion, the Logger Survey has asked this question for years: In the next five years, do you plan to stay in the business and look to grow, just hang on or get out?
This year, following the wild ride of the pandemic and ongoing high demand markets in some areas and faltering demand in others, only
40% of loggers say they are in it and looking to expand, and now 39% say they are good for another five years but not looking to grow. Most ominously, 20% say they are looking to get out of the business within the next five years. That’s a 25% increase in the number of loggers looking to get out over five years ago.
A big part of the Timber Harvesting Logger Survey is the general comments section where we ask loggers for their thoughts on the industry and its future. This year, 89 loggers gave us a piece of their mind.
“Since we have to produce more to make more it’s a fast paced job. Logging should not be a hurryhurry job. To ensure the safety of others and us we need to get paid more so we don’t have to rush. Insurance, equipment, supplies, labor: All these things have gone up year after year, but guess what remains the same? What loggers get paid. This has not changed in the 25+ years that I have been in logging. To be competitive you lose money on your trucking also. What you get paid for a long haul never adds up to what the mileage really is. Never thought I would have millions of dollars invested in a business and have someone else tell me what I am going to do the job for.”
“Logging is an honest, satisfying, yet challenging occupation that is cyclical, volatile, and susceptible to many outside forces, the greatest of which is good markets. The other biggest reality is that the cost of equipment to both purchase and maintain is ever increasing, along with insurance costs. So, I would venture to guess that we are much like farming in that the biggest producers do well when markets are going good, but a significant portion of the logging capacity is still made up of medium to smaller size operations where long-term sustainability ends up being the question. Most loggers do what they do because they are born into it, love the woods environment they work in or maybe not smart enough to do something else (Ha!). But if they really considered the investment vs. return for the risk (markets/weather, etc.), they would be hard pressed to consider it truly viable/sustainable. However, many businesses (not just logging) are in the same boat, so I suppose that it ends up being ‘to each his own’ and people keep doing it because they don’t know what else they’d do—or until they can’t anymore or sell out or hit bankruptcy. Not really negative, just a hard reality.”
“Logging is my life, I would probably never quit, but we are being forced out. We don’t get cost of living increases. We work in an industry that doesn’t consider or adjust our logging rates based on what it’s going to cost to log each tract. Mill expectations continue to grow, implementing new regulations and assessing penalties without an increase in logging rates. Equipment costs, insurance expenses, fuel, and payroll, just to name a few of the big ones, make it nearly impossible for the good ones to stay in business. As I see it the mill is its own worst enemy. We can’t work without a mill and they can’t operate without loggers. If things don’t change we will all suffer.”
“I feel if the logging industry could form a company that could furnish health insurance for families, we wouldn’t have near the problem finding employees.
Health insurance is the first question most future employees ask about. We furnish employee health insurance but most want family members to be involved.”
“Logging today requires a degree in business, forestry, mechanical engineering and environmental and computer sciences from either a university or the school of hard knocks. That said, the logging profession is still compensated as if it is a career of just labor. Because of this, anyone with one of these degrees are choosing to take a job in another industry that does compensate for their degree.” SLT
Back On Track
■ After Covid delays in 2020, Mid-South Forestry Equipment Show returned to Starkville, Miss. in September.
With college football season back, Rotobec gave the three most local fanbases--Alabama in Tuscaloosa, left; Ole Miss in Oxford, right; and the hometown team, Mississippi State in Starkville, center--something to cheer for.
ALC's Dane at MLA's meeting
Attendees lined up at registration to get into the show, which took place Friday and Saturday, September 17-18, at Mississippi State University's John W. Starr Memorial Forest and the Charles E. Burkhardt Pavilion and Site.
24 l OCTOBER 2021 l Southern Loggin’ Times