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A Hatton-Brown Publication HATTON-BROWN PUBLISHERS, INC. Street Address: 225 Hanrick Street Montgomery, AL 36104-3317 Mailing Address: P.O. Box 2268 Montgomery, AL 36102-2268 Telephone (334) 834-1170 Fax 334-834-4525
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Vol. 70, No. 4: Issue 693
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July/August 2022
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Loggers across the country are feeling the pinch from inflation and especially rising fuel costs, according to the 2022 Logging Business Survey beginning on PAGE 10. (Dan Shell photo; design by Shelley Smith)
MIDWEST USA, EASTERN CANADA John Simmons (905) 666-0258 • Fax: (905) 666-0778 E-mail: jsimmons@idirect.com WESTERN USA, WESTERN CANADA Tim Shaddick (604) 910-1826 • Fax: (604) 264-1367 E-mail: twshaddick@gmail.com
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Fuel Cost Analysis A Case For Rate Adjustment
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Log Handling Tech Moving Wood Efficiently
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22 Innovation Way Several New Products
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MyTake DAN SHELL
How’s Your Log Supply Chain? EDITOR’S NOTE: The following editorial ran in the May 2022 issue of Timber Processing magazine and was sent to more than 10,000 mill owners, managers and operators.
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n between looking for extra employees to fill out another shift or solidify the one or two already in place, or perhaps looking for larger vaults to hold the cash they’ve been putting away thanks to record lumber prices, lumber suppliers would be smart to take a look at the health of the supply chain feeding their mills. Ensuring all those nice equipment investments meet projections and ROI numbers requires a consistent flow of quality timber. A mill’s relationship with its contractors or log sources can vary widely as well, from gatewood contractors to “closely held” contractors who work almost exclusively for a given mill or mills. There are also all sorts of financial arrangements with contractors, from cosigning loans to outright buying equipment to fronting repair work—we’ve heard it all. Most of the time it works as suppliers, customers, vendors and markets mesh. Of course loggers will quickly say they’re getting paid the same prices as 20+ years ago, while procurement people will point out timber is a commodity product. Years ago I remember a forester say the true cost of logging lies somewhere between a company crew and lean-running independent contractor. Probably so. But no matter how you look at it, both loggers and mills have the same logistical goal: Get the logs to the mills. And just as mills have been hit with labor and supply chain issues, loggers have as well as the entire industry grapples with pandemic impacts that continue, no matter how much we believe and want to be “over it.” Add the recent inflation run-up and loggers are taking it on the chin: According to a recent survey by the American Loggers Council, in the past year logging contractors have seen an average 25% cost increase across 20 items such as parts and equipment, 4
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and some items like fuel much more. Also, more than two-thirds (69%) of loggers have seen labor price increases of 20% or more. Meanwhile, a recent Timber Harvesting magazine 2022 Logging Business survey shows 40% of loggers either broke even or lost money the past two years, and one out of five loggers (21%) rated their business health as poor to very poor. From a list of a dozen different issues, logging rates and log markets finished #1 and #2, respectively, when loggers were asked their top business concerns. This is not to make the mills out as the bad guys, as almost half (49%) of loggers report price increases the past two years. While it shows some mills are stepping up, it may not be enough across the supply chain. Even with the rate increases almost two-thirds of loggers (60%) reported passing up opportunities to expand in the past two years because of labor issues.
Looking ahead, even more ominous trends are on the horizon: Almost half (46%) of logging contractors are age 60 or over, and almost three-fourths (71%) are 50 or older. It’s those ages that are driving the results of another question, as 37% of those who responded say they are planning to get out of logging in the next five years. One issue for loggers is there’s no clear path for growth, from the commodity price structure to the inability to pass along cost increases. As one logger commented, what business would make the kind of million dollar investments that loggers do with returns of barely 3% and an inability to pass along costs? Not many. At TP we’re all about exploring the latest technology and noting the investments mills make to apply it. There’s the old saw among old time sawmillers that the best log is the cheapest log, but as the industry continues to grapple with labor and supply chain issues, perhaps the best log is a healthier one for all segments of the TH forest industry.
2022 Logging Business Survey
Did posting and running an online survey on logging business health during a time of skyrocketing costs affect the “tone “ of the survey’s results? You bet. Is there any way to sugarcoat the results to make it look better? You mean after fuel prices moderated a bit in May then took off again? No way. Read how inflation and fuel costs are hitting loggers hard beginning page 10. TIMBER HARVESTING & FOREST OPERATIONS
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NewsLines Deere Names Forestry President Deere & Co. elected Ryan Campbell as President, Construction & Forestry Div. and Power Systems. Campbell leads a team focused on the sustainable, profitable growth of the company’s construction and forestry equipment business around the globe as well as the continued success of the Wirtgen Group. He also has responsibility for the company’s engine and powertrain businesses. Campbell brings 25 years of wide-ranging experience to his current position. He was senior vice president & chief financial officer, where he had overall responsibility for John Deere’s finance functions. In this job, he worked closely with other company leaders in launching John Deere’s Smart Industrial strategy. Under Campbell’s leadership, the company also introduced its Leap Ambitions, which align the company’s business and sustainability goals. Throughout his career, Campbell has spearheaded strategic initiatives focused on enhancing the company’s profitability and strategic positioning, developing future leaders. He has been an unrelenting advocate for driving higher levels of commitment to economic and environmental sustainability through John Deere’s digitalization journey. Under Campbell’s leadership as CFO, the company achieved record levels of financial performance. Campbell earned an accounting degree from Simpson College and an MBA from the Booth School of Business at the University of Chicago.
Forest Service Reveals Immediate Plans U.S. Forest Service reported it sold 2.87 billion BF of timber sales (compared to the agency target of 4 billion BF) in fiscal 2021, a decrease from 3.2 billion BF in FY 2020, according to the agency’s Fiscal Year 2023 Budget Justification document. The sold volume was valued at $197 million. The decrease in sales was primarily due to limited staff capacity and nobid sales, according to the agency, adding that the COVID-19 pandemic limited the mobility of timber crews, and field work continued to be difficult to accomplish due to the large fire ac6
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tivity across the Western U.S. Many employees that usually work to prepare timber sales were assigned to wildfire suppression and support. Recovery efforts after large fires, including stabilization work and hazard tree removal, necessitated the involvement of the staff who would typically work on preparing and administering timber sales, the agency stated. FY 2021 sales included more than 500 contracts greater than $10,000, nearly 66,000 small timber contracts and permits, and 20,000 special forest product permits for products other than timber. Various special Forest Management programs contributed to this volume, including volume sold from salvage sale funds, other permanent and trust funds, and the Collaborative Forest Landscape Restoration Program. In FY 2023, the Forest Service has targeted 3.4 billion BF of sales. Increased funding will drive more integration with the hazardous fuels program, allowing the agency to manage the treatment of forest resources better. New investments in forest management funded through the Infrastructure Investment and Jobs Act will also allow for planning and preparing new timber sales, stewardship contracts, and good neighbor authority agreements. The agency expects to increase timber volume output because of these investments with additional increases in volume in FY 2025 and FY 2026. The report notes the agency’s emphasis on innovative uses for wood and wood fiber materials, especially the development of products and markets for small and medium-sized trees, underutilized and low-value forestry residuals, and industrial wood residues. Wood and biomass extraction are not specifically funded at the national level; however, it is a factor in the agency’s national strategy for improving forest conditions and utilizing material removed during forest management and restoration. In FY 2023, the National Forest System will continue to make material available for wood and biomass markets (wood energy and wood products) as a byproduct of restoration work. In FY 2021, the agency sold over 1.9 million green tons of biomass (fresh cut woody material at a green moisture content of half water and half woody material) to various wood energy and wood products markets. The National
Forest System will continue to work with the SPF Wood Innovations Program and R&D to grow markets and infrastructure for biomass production and utilization across the country. The Forest Service continues to work with academic and industrial partners in basic and developmental research to find high-value markets for forest biomass. In cellulose nanomaterials, researchers continue to investigate applications in transient electronics, packaging, oil drilling, coatings, lightweight automobile materials, sunscreen, and manufacturing technology of cellulose nanomaterials. Forest Service lignin research is still in the early stages; scientists are investigating UV absorbing, antimicrobial, and antioxidation properties of lignin to develop new markets for this byproduct of pulping wood. Lignin is currently used as in-house fuel, and new markets for lignin may generate new revenue for pulp mills.
PotlatchDeltic Announces Sawmill Upgrade at Waldo PotlatchDeltic Corp. is investing $131 million to expand and modernize its sawmill located in Waldo, Ark. The project will increase the mill’s annual production capacity from 190MMBF of southern yellow pine dimension lumber to 275MMBF. The company states that the investment will reduce the mill’s operating costs significantly. “The Waldo investment is an exciting strategic growth opportunity and it will position the mill among the lowest cost producers in the U.S. South,” comments Eric Cremers, President and CEO. “The project reflects our belief that housing fundamentals will remain strong.” The existing mill will continue to operate during the project. Work on site will begin in the third quarter of 2023 and is expected to be completed by the end of 2024. PotlatchDeltic owns three sawmills and nearly 950,000 acres of timberland in Arkansas.
Ruling Goes Against Oregon Counties Oregon Court of Appeals reversed a 2019 jury decision that had awarded 15 Oregon counties $1.1 billion over how the State had managed forestTIMBER HARVESTING & FOREST OPERATIONS
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NewsLines lands that had been legally transferred to the State in 1941. The Oregon Court of Appeals ruled that no contract was breached by the State, as had been alleged by the counties. Led by Linn County, the class action suit against the state of Oregon and State Forestry Dept. had alleged that the 1941 law required the State to not only return to the counties a specified portion of the revenues derived from management of those forestlands, but that the State had a contractual obligation under the law to manage the forestlands in a manner so as to “secure the greatest permanent value of such lands” as cited in the 1941 law. The counties said the State had breached this contractual obligation by failing to manage the forestlands for maximum value. However, the Oregon Court of Appeals ruled that the provision or phrase was not a term in a statutory contract between the State and the counties, and consequently reversed the lower court and jury decision. The 1941 Act had authorized the State to acquire by purchase, donation or exchange any “public, quasi-public or private owner” land that was “chiefly valuable for the production of forest crops, watershed protection and development, erosion control, grazing, recreation or forest administrative purposes.” The Court of Appeals noted the Act provided a distribution formula for all revenues derived from these lands. In its decision, the Court of Appeals noted that over the ensuing decades, 15 Oregon counties conveyed hundreds of thousands of acres of land to the State pursuant to the Act, which then became state forests. Then in 1998, the State proclaimed the Greatest Permanent Value rule with regard to these lands, defined as “healthy, productive, and sustainable forest ecosystems that over time and across the landscape provide a full range of social, economic, and environmental benefits to the people of Oregon,” and which directed the state forester to actively manage them in a sound environmental manner to provide sustainable timber harvest and revenues to the state, but not exclusive of other forest resources and environmental goals. The Linn County lawsuit accused the state of a breach of contract for implementing management plans in
reliance upon the GPV Rule that failed to maximize the potential revenue from the lands. Before the Court of Appeals, the State argued that a statutory provision is not contractual unless the legislature clearly expresses its intent to make it so. The Court of Appeals, citing previous cases on State legislative language and intent, agreed that the language and the legislation in this question did not constitute a statutory contract. It’s expected the counties will appeal the decision to the state Supreme Court.
Agency Percolates 4FRI Once Again In March, the Forest Service released its latest Arizona Four Forests Restoration Initiative (4FRI) preferred plan within the draft environmental impact statement as required by the National Environmental Policy Act (NEPA). Called the Rim County Project, the Apache-Sitgreaves, Coconino and Tonto national forests will implement a suite of restoration activities on 991,000 acres over 20 years, including a combination of mechanical thinning and prescribed burning. “Restoration treatments will move the project area toward the desired conditions and initiate the reestablishment of fire-adapted, resilient, diverse and sustainable forested ecosystems,” the agency says, adding that its preferred plan “provides the project area with the greatest protection from the undesirable effects of fire by treating the greatest extent of the project area with a combination of mechanical and prescribed fire treatments.” The plan will also improve overall watershed condition. The agency says the preferred plan “increases forest products supplies to the greatest extent, and will contribute to improve the financial viability of locating forest products industries, including logging firms, sawmills and biomass facilities in northern Arizona.” The plan calls for the implementation of 12 “in-woods processing sites,” though it doesn’t define the makeup of such sites. Due to increasingly catastrophic fires on Arizona’s national forests and a general deteriorating condition of those forests, the Forest Service created 4FRI in order to treat more than 2 million acres across four Arizona national forests. In
2012 the agency contracted with a company to mechanically thin 300,000 acres over 10 years, but the project fell extremely short of the stated objectives and a major reason was due to the limited capacity for biomass disposal. The Forest Service then sought out proposals to restore and utilize more than 500,000 acres over a 20-year contract. Two of the proposals that came in included a sawmill and an oriented strandboard mill, but the Forest Service cancelled the process last September, fearing it would be too risky financially for any one company and possibly for the agency itself. Both of the proposals included Novo Power, a 27 MW biomass power plant in Snowflake, Ariz., as part of the equation for biomass disposal and utilization.
Claw Forestry Plans New Sawmill In Gloster Claw Forestry Services, LLC announced that its affiliate will build a 250MMBF southern yellow pine sawmill in Gloster, Miss. within Amite County. The project represents an investment of nearly $200 million and will create 131 direct jobs and support an additional 200 indirect jobs when operating at full capacity. The new mill will require in excess of 1 million tons of timber annually to produce the stated lumber output. The facility will be located on 65 acres of land, which includes the former Georgia-Pacific site. In connection with the new sawmill facility, efforts are under way to resume operation of the Gloster Southern Railroad. Mississippi Development Authority is providing assistance for infrastructure improvements and site development. Amite County also is assisting with the project. Claw CEO Billy Van Devender comments: “This project will employ the best complement of modern technologies to meet our growing consumer demand for the highest quality product, in a region where we own significant timberland acreage.” Work at the site will begin late in 2022 and startup of the sawmill is scheduled for the first quarter of 2024. Claw Forestry started in 2000 as a natural resource manager and has evolved as a major timberland owner and investments firm in the U.S. South. Its affiliate companies op- 21
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Fuel Cost Analysis When looking for a fuel adjustment, you’d better know your numbers before you negotiate. JOEConrad EDITOR’S NOTE: Earlier this year, as fuel prices took off, the Virginia Loggers Assn. commissioned Dr. Joseph Conrad, Assistant Professor of Forest Operations, Warnell School of Forestry & Natural Resources, University of Georgia, to conduct a fuel cost analysis that includes impact on production and transportation costs, and a fuel adjustment formula. This is a comprehensive third-party objective analysis that producers can apply to their particular operations (report modeled Southern logging operations and may need to be adjusted for other regions) and use as a resource when addressing fuel adjustments needs.
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trucks. Fuel consumption by in-woods equipment can be collected easily. Many machines collect fuel consumption data using onboard computers. If machines do not measure fuel consumption, a fuel meter can be purchased for less than $100. Every time a machine is refueled, the operator should record the date, number of gallons pumped, and machine engine hours. Finally, fuel consumed by log trucks should be measured. It is important to determine the fuel economy of log trucks. Record miles driven from odometers and gallons of fuel consumed. Log truck fuel consumption per ton will obviously vary by haul distance and so it should be calculated on a tract-by-tract basis. Fuel consumption per ton can be calculated using the formula below. Accurate values for tons per load, miles per gallon, and percent-loaded miles are obviously important. Do not assume 50% loaded miles unless there is data to support this value. Log trucks often average 40–45% loaded miles once trips home and moves between sites are counted. Divide gallons of fuel consumed by the number of tons produced to calculate gallons per ton. Make sure that fuel consumption data and production
data cover the same period. Estimates based on a week or a month’s data will be more accurate than estimates based on daily records. Several studies have measured fuel consumption by logging equipment (Greene et al. 2014, Kenney et al. 2014). While this data is several years old, it can get a company in the ballpark if they do not have their own data. These studies estimated that logging equipment consumed between 0.4 and 1.0 gallon per ton to cut, skid, and load. Loggers have shared log truck fuel economy data with me in the past several years and they averaged 4.5–5.5 miles per gallon. This included a mix of loaded miles, unloaded miles, and idling (i.e., real-world conditions).
ecently, I have received several urgent emails from loggers, suppliers, and procurement foresters trying to calculate fuel cost adCalculating Per-Ton Costs justments. This is a good sign in that mills and suppliers want to work with Let’s look at an example using data loggers to address skyrocketing fuel from one month’s production. During costs. On the other hand, it suggests this month the logging crew produced that the previous cut-and-haul rates 8,500 tons of timber and consumed may have been negotiated without care9,909 gallons of diesel (Table 1). Logful consideration of the underlying ging equipment consumed 0.38 gal/ costs involved in harvesting and transton, support vehicles burned 0.05 gal/ portation. (Forgive me if I am too cyniton, and log trucks consumed 0.74 gal/ cal.) Fortunately, calculating a reasonton. All these values will vary from able fuel cost adjustment is simple one harvest to another. I would expect math. However, it does require data, or in-woods fuel consumption to be most without solid data, reasonable estimates. Loggers Most trucks and pieces of equipment track fuel consumption data that’s easily downloaded. should have data while foresters may have to rely on estimates.
Measuring Consumption To calculate a fuel cost adjustment, a logger will need to know how much fuel is consumed per ton of wood harvested. Fuel consumption data should include in-woods equipment, support vehicles (i.e., company pickups, fuel trucks, parts trucks, etc.) and log 8
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consistent, although it would vary based on skidding distance and site conditions. Log truck fuel consumption per ton will vary considerably based on haul distance. At $2.60/gal for off-road diesel and $3.00/gal for on-highway diesel, fuel costs accounted for $3.35/ton of delivered wood (Table 2). When fuel prices increase to $4.60/gal for off-road diesel and $5.00/gal for on-road diesel, fuel costs increased to $5.69/ton of delivered wood. For this logger, a $1.00 per gallon increase in fuel prices increased onboard truck costs by approximately $0.43 per ton. A $1.00 per gallon increase in fuel prices would raise cut-and-haul costs by approximately $1.15 per ton. Cut-andhaul costs would increase even more if haul distances exceeded the 50 miles used in this example.
For this logger, a fuel cost adjustment should add at least $0.43 per ton to the base cut-and-load rate for every $1.00 per gallon increase in the fuel price, or approximately 4 cents per ton for every 10-cent per gallon increase in the fuel price. The cut-and-haul rate should be increased by approximately $1.17 per ton for every $1.00 per gallon increase in the fuel price, or 12 cents per ton for every 10-cent per gallon increase in the fuel price. The impact of rising fuel prices on hauling costs varies substantially by haul distance. At a 30-mile haul distance, a $1.00 per gallon increase in the fuel price increased hauling costs by approximately $0.45 per ton, whereas at a haul distance of 70 miles the same increase in the fuel price increased hauling costs by approximately $1.04 per ton. If haul distances
are highly variable, the fuel cost adjustment should be structured accordingly. A one-size-fits-all fuel cost adjustment may be lucrative at short haul distances and insufficient at long haul distances.
Conclusions The first step to negotiating a fuel cost adjustment is to prepare for the negotiation. Having accurate and upto-date data is essential to calculating a fair fuel cost adjustment. As my father used to tell me, the devil is in the details. Measuring the fuel consumption of each machine and truck is worth the trouble to make sure that the business owner understands his costs. Tracking fuel consumption can also help a business owner detect mechanical issues or even theft. TH
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2022 Logger Survey
Business Health Hit By Inflation Contractors strained by rising costs, inadequate compensation. BYDan Shell
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aken during a time of unprecedented fuel price increases and overall inflationary trends, the Timber Harvesting 2022 Logging Business Survey reflects a logging corps that’s increasingly unable to cover the costs of doing business. More than 300 loggers answered the survey, and tracking logger data from other reports, two-thirds of those who responded to the survey are age 50 or older—including 40% older than age 60. Most who answered run one or two crews (82%) and 5% run five crews or more. More than half (57%) have at least $1 million invested in equipment including trucks and shop-service equipment, and that in-
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cludes 10% with $5 million or more invested in their logging business. Looking at loggers’ collective profit trend the past half-decade, while a quarter of loggers (24%) say they’ve seen an increase in pre-tax profits, 43% report seeing a decrease in profits during the same time. The intensity of profit increase reported is also lower than the intensity of decrease. For example, given six choices to describe a slight, moderate or sharp increase or decrease in profits the past five years, only 2% reported a “sharp increase” while 18% reported a “sharp decrease.” Looking at actual 2021 profit numbers of those who responded, 42% of
loggers reported no profit at all last year, either breaking even (20%) or losing money (22%). A third of loggers (33%) reported 2021 profits of 6% or less, while 14% reported a profit of 7%-10% and 11% reported 2021 profits of more than 10%. Asked to give a general rating of their company’s financial health, an almost equal amount said “good” (25%) and “poor to very poor” (24%). Another 43% said they were muddling through with a “fair” rating of their business’ health, and 8% said their financial health was “very good.” Logger William Money of William C. Money Logging in Texas says that with 30 years experience in a fifth-
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2022 Logger Survey Trucking Spotlight
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2022 Logger Survey
generation company, “I am continually trying to streamline, but in last 18 months we are taking savings every week to keep operating, or selling off old equipment to pay current bills.” Fuel, of course, dominated the survey question asking what items have
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risen most in the past year, as 81% cited fuel costs, followed by equipment (8%), trucking insurance and parts (4% each) and labor (3%). Loggers’ top 3 business concerns, in order, are logging rates, markets and labor. The question uses an average of
all rankings, but the number of loggers who cited rates (67%) as the top concern was significantly higher than the 36% that said markets are the top concern. Labors was cited as the top concern by 35% of loggers. And as if rates, markets and labor
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2022 Logger Survey Labor Focus
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2022 Logger Survey
weren’t enough to worry about, loggers have been hard-hit by supply chain issues that affect logging businesses in multiple ways. More than half of loggers have reported either major supply chain issues that affect profitability (17%) or have at least raised costs (36%) through hassles of getting parts, supplies and equipment in a timely manner. Another 38% of loggers say they’ve been affected but have adapted, while only 9% say they haven’t been hit with supply chain problems.
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There’s data showing mills have generally given rate increases the past two years as demand for forest products soared, yet the comments say the increases haven’t kept pace with inflation. In fact, almost half (47%) of loggers say they’ve seen rate increases the past two years, although only 5% say they were “significant.” Another 42% of loggers said their rates had stayed roughly the same, while 11% of loggers reported a decrease in rates the past two years. According to Jason Hoyle of Tarheel Logging in North Carolina, “The
question does not address the real issues. On paper, logging rates (along with freight rates) have increased slightly, however, not even close to the pace that new machinery, insurance rates, fuel costs, parts and service rates have increased.” Labor Focus—Several questions looked at logging business labor, with several key takeaways: Most loggers hire like they always have, with 95% saying the “local logging grapevine” is most effective, while only 13% say working with local education systems is effective. Working with educators is
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more of a long-term proposition, but that needs to change. “In addition to not having enough money paid by the mills, it’s virtually impossible to expand because of the labor shortage. Nobody wants to work, even at a fast-food joint, let alone operating equipment. If you are not getting paid enough from the mill, how can you afford to pay a decent wage to employees?” says John Croatt of Croatt Enterprises, Minnesota. Only 8% of loggers reported they have a written training program that’s closely followed, while almost a third (31%) say they have no real training process. That’s a big issue, as multiple studies have shown solid training programs are key to employee retention. This also affects overall business success, as two-thirds (65%) of loggers say they have passed up business opportunities during the past two years because of labor issues. According to Vance Wright of Charles A. Wright Logging in Virginia, “Our employees are our greatest asset. Finding good people that can work as a team has become harder and harder. Good teams usually come out ahead. Invest in your team.” Trucking Focus—A set of questions about the trucking end of the logging business showed the two biggest concerns right now are fuel and driver availability: both cited as the top trucking concern by 38% of respondents, followed by insurance, driver quality and regulations. Multiple comments said “all of the above” would have been a better answer. One logger noted that even if the other four issues were resolved, “We still can’t find drivers.” The most common trucking setup is a mix of in-house and contract haulers cited by 43% of respondents. More Foremost Authority For Professional Loggers
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2022 Logger Survey than three-fourths (76%) of loggers who responded run five or less trucks. Interestingly, even with all the tough economic trends and trucking concerns, right at half of those who responded (50%) said they were “happy with current setup.” Just as interesting is the other half of loggers who are looking to do something different, as 23% are looking to add more contract hauling capacity, 20% of loggers want to add more in-house rigs and 8% are looking to get out get rid of their trucks and go all contract. The demand for contract hauling— in addition to the 26% of contractors who already use all contract haulers— is an undeniable trend in the logging business. Assuming the 31% of loggers currently looking to add contract or go all-contract hauling are fairly successful, industry could soon see more than a third of its logging contractors operating without haul trucks.
Survey Comments What the survey shows is loggers are behind the 8-Ball under the current business model, working with commodity prices and unable to pass along costs increases. For contractors operating on margins of 3%-4% or less, fuel prices doubling and a prolonged bout of inflation put them instantly underwater—and brings many other loggers closer to the edge as well. Here’s what loggers themselves had to say:
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“Stagnant rates from the mill along with raising fuel and insurance rates coupled with inflation is going to put most if not all loggers out of business. I have owed and managed a somewhat healthy logging company for 27 years and have never seen the struggles in this industry as I’m seeing now. The outlook is certainly grim.”—Billy Crowley, Tug N Tote Logging, Texas “Logging has always been feast or famine and there have been plenty of tough times. However, in 30 years of logging I have never seen times like this, nor such a multitude of problems with no solutions in sight. I have heard for 20+ years that we were headed for a logger shortage. The time has arrived, and I fear this perfect storm is going to collapse the logging industry.”—Travis Thompson, South Mountain Pulpwood, North Carolina “The logging industry is in big trouble. We are unable to pay and offer benefits to attract and keep good operators. We are missing a generation below the older guys I have so there will be a steep learning curve if we get to the point where we can get qualified employees. The work force we need— operators, mechanics, welders truck drivers, etc.—is not available for the pay they receive.”—Tom St. John, St. John Forest Products, Michigan “The logging force has greatly undervalued itself to the point of extinction. We are the first link in one of the most valued commodities in the world,
and we’re broke.”— Jamie Connelly, Three Gen Inc, South Carolina “The entire structure of the timber business is against the logger. Nobody would start a business with a 1-3% profit margin and the inability to pass on their cost increases to their customers.”—Derek Bray, Braytimber, Florida “My area needs more markets to support our logging force and our timber base. We also need significantly better rates to stay competitive in the labor pool and to help with rising cost off equipment. We have reached a place where production alone cannot sustain the rising cost we are seeing.”—Kevin Callender, Final Fell Logging, Mississippi “I personally feel logging will be around a long time. It will be more innovative, but I look at the change I have witnessed over 40 years and it is today much different from when I started. I do feel that wages will have to increase substantially in the near future to attract the smart people that make this business work. You do not log with ‘bottom of the barrel’ workers.—Bruce Zuber, Oregon “Too many variables right now that all affect cost and profitability. Everything has increased in cost from labor to parts to fuel, however logging rates have only increased slightly and do not compensate for overall expenses. Logging rates should not be set by companies who do not own or operate logging equipment daily.”—Skylar Clark, Heritage Timber Co., Alabama Interestingly and yet ominously, when asked about their future plans fore the next five years, loggers were almost evenly divided by thirds in their responses: 32% are looking ahead for the next half-decade, seeking new business opportunities and expansion; another 33% said they would likely stay in the business another five years but with no expansion plans; while the largest “third” at 36% said they were likely to get out of the business within the next five years. Asked about their business succession plans in the future, 40% of loggers said they had no plan, while 30% said they plan to transfer or sell the business to a son or daughter. Fourteen percent of loggers say they plan to sell out through an equipment dealer or broker, and 6% say they plan on selling-transferring the business to a non-immediate family member. TH
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LogHandling Deere 437E Knuckleboom Loader Designed to deliver maximum productivity and uptime while lowering daily operating costs, the John Deere 437E Knuckleboom Loader is one of the most reliable rugged warriors in the woods. The 52" log grapple smoothly and quickly lifts and holds loads for improved performance in plantation and second-thinning applications. The 52" opening is designed to improve rotator torque and response times for loggers looking to better their landing. The high impact custom steel allows the grapple to lift up to 123,000 lbs., and the rotator to lift around 36,200 per inch. Compared to previous models, the 437E is equipped with 5% more swing torque and lift force. The E-Series Knuckleboom loaders come factory equipped with a complete hydraulic package making refills manageable, improving the user’s ability to do more robust pull-through for delimbing applications. Additionally, each loader requires low maintenance for ground-level oil drainage and filter changes, which simplifies serviceability. The standard cab on the E-Series Knuckleboom Loader also E-Series Knuckleboom Loaders contain maximizes comfort for the operator, offering optimal cooling abilpowerful EPA Final Tier 4 engines that ities that keep you feeling refreshed when faced with warm enviallow users to work longer between fill ups, ronments. Additional enhanced features include LED lighting, large doorway access for easy entry and exit, an in-cab storage while minimizing total fluid consumption cooler, easy to read monitor, Bluetooth and hands-free talk sysand increasing reliability. tems and an overall improved HVAC system to help complete tasks in the most efficient and comfortable manner. To protect the operator’s backside, the rear and left back windows are replaced with heat-deflecting sheet metal to obstruct the sun. In terms of power, the E-Series Knuckleboom Loaders contain powerful EPA Final Tier 4 engines that allow users to work longer between fill ups, while minimizing total fluid consumption and increasing reliability. The pressure-compensated, load-sensing saw circuit on these machines works with a dedicated saw pump to maximize fuel efficiency and hinged-panel doors are useful in providing fast access to service points. The Knuckleboom Loader improves fuel economy up to 8% with its turbocharged diesel engine that provides all the power you need to keep loading, day after day. Visit deere.com
Ponsse Mammoth: Big Productivity The new Ponsse Mammoth forwarder features industry-leading load carrying capacity, efficient K121 loader and excellent fuel economy provide superior costs per cubic meter of trees decked at roadside. The Ponsse Mammoth forwarder has what it takes to ensure productive operations even on the most demanding logging sites. Performing at its best in challenging situations such as plantations and long-distance transport, the Ponsse Mammoth smoothly takes care of business wherever exceptional efficiency and reliability are valued. The Mammoth’s superior performance is based on leading load-carrying capacity and high-performance K121 loader. By seamlessly combining these two key factors with smart power transmission, the Ponsse Mammoth can significantly reduce the overall cost per cubic meter delivered to roadside. Stepless gearbox and advanced hydraulics that utilizes two pumps inThe Ponsse Mammoth smoothly takes care of business wherever exceptional stead of one–as well as sturdy components in general–ensure ideal torque levels are in use at all times. In addition to further improving efficiency, efficiency and reliability are valued. this contributes to Ponsse Mammoth’s durability and helps avoid any unexpected downtime at the site. The frame and power transmission have been designed and synchronized for this particular forwarder, making Ponsse Mammoth swift, agile and fun to drive. It is a real forwarder for real loggers, able to carry the loads of up to 25 tons—and take your logging operation productivity to yet another level. Ponsse Mammoth’s frame structures and sturdy bogies have been designed to withstand loads of 25 tons, even in the most demanding conditions. The trail may not always be smooth and comfortable which means that the new Active Cabin—cabin suspension system, available as optional equipment, is more than welcome. It prevents the operator from swaying in the cabin and helps the operator to keep working. The large load space and smooth transmission and loader control system ensure that Ponsse Mammoth is the most productive forwarder on the market. Unprecedented in the field, the CVT (continously variating transmission) drive ensures that the Mammoth boasts more practical tractive force, enabling faster forest haulage. This improves the machine’s productivity, especially when driving long distances. Visit ponsse.com 20
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LogHandling Tigercat 865 Logger The Tigercat 865 is a purpose-built logger designed for loading and processing applications. The 865 combines power, efficiency and serviceability into a true multi-purpose forestry carrier. The 865 is a 71,000 lb. carrier that offers many advantages over excavator conversions, such as higher cooling capacity, a better operating environment, stronger undercarriage components and extremely efficient and task-optimized hydraulic circuits. The result is higher production, uptime and fuel efficiency for lower operating cost per ton. The Tigercat FPT N67 engine delivers 159 kW (213 HP) at 2,100 RPM. The 865 shares a common platform with the 850 processor and can be configured as a loader with boom options for various grapple styles including bunching, power clam and butt-n-top grapples, as well as grapple saws. Equipped with a live heel boom, along with the optional pull-through delimber and bar saw slasher hydraulic package, the 865 can be configured as a high-performance merchandising loader. This package is well suited to typical Southern U.S. full-tree harThe 865 can be configured as vesting systems. The 865 can also be configured as a high capacity roadside processor, capable of a loader with boom options running large harvesting heads in demanding duty cycles. Dual swing drives profor various grapple styles. vide ample torque and speed for high-performance loading or processing. The high cab improves performance and operator visibility in high decking applications. Service access has been carefully thought out with the ability to step down into the centre of the machine for clear, unobstructed access to the engine and daily service points. Large enclosure doors and a spring assist side service platform provide a large, stable work area for performing maintenance on hydraulic components and changing filters. A large cast counterweight provides excellent stability with a swing-out door that allows access to the engine from the rear of the machine. The 865 features the common high-rise cab from Tigercat’s logger lineup. The large ergonomically designed cab is quiet and climate controlled for maximum operator comfort. A full-length front window, and additional floor windows provide superior visibility with clear sightlines. LED lighting and the rearVIEW camera system further augment operator visibility. Visit tigercat.com
NewsLines 7 erate two sawmills in Mississippi—Vicksburg Forest Products in Vicksburg, and Southeastern Timber Products in Ackerman.
Timber Growth Holding Steady Amanda Hamsley Lang, COO & VP of Client Services with FORISK Consulting, addressed timber supply and outlook during the Wood Bioenergy Conference & Expo Held March 29-30 at the Omni Hotel at CNN Center in Atlanta. Lang, who was one of the event keynoters, said that FORISK forecasts pine sawtimber inventories to increase through 2027 before declining through 2035 in the South. Deferred harvest during the Great Recession (20072009) along with improved genetics and silvicultural practices, which have increased timber growth rates by an average of 1% per acre per year for the past 10 years, lead pine sawtimber inventories to peak in 2027 at a level nearly 75% higher than in 2007 for the region. Lang added that the supply story varies across the region, with some states projecting continued in-
creases in inventory while other states begin to see contraction much sooner depending on local market dynamics. She added that decreased harvesting activity during the Great Recession resulted in fewer replanted forest acres, leading to a dip in the forest inventory for pulpwood-sized trees. Lang said the average pine growthto-drain ratio for the South in 2020 was 1.31, indicating a general oversupply of pine growth relative to demand in Mississippi, Alabama and northeast Georgia, though with tighter or more balanced markets in north Florida and south Georgia, areas of coastal South Carolina and North Carolina, central Texas and Louisiana. But fast-forwarding five years to 2025, the timber supply becomes more balanced across the region, with an average pine growth-to-drain of 1.04, a period during which 10 sawmills and 11 pellet mills come online in the region.
Weyerhaeuser Partners In Carbon Project Occidental’s Oxy Low Carbon Ventures (OLCV) and Weyerhaeuser Co. announced an agreement for the evalu-
ation and potential development of a carbon capture and sequestration project in Livingston Parish, Louisiana. The lease agreement provides OLCV with exclusive rights to develop and operate a carbon sequestration hub on more than 30,000 acres of subsurface pore space controlled by Weyerhaeuser. OLCV will use the land to permanently sequester industrial carbon dioxide (CO2) in underground geologic formations not associated with oil and gas production, while Weyerhaeuser continues to manage the above-ground acreage as a working forest. The lease agreement, with the potential to expand acreage, is a pivotal step in OLCV subsidiary 1PointFive’s vision to develop a series of carbon capture and sequestration hubs within the U.S. 1PointFive plans to build, acquire and operate multiple sequestration hubs on the Gulf Coast and across the U.S., some of which are expected to be anchored by Direct Air Capture (DAC) facilities, to offer storage capacity to point-source emitters, such as manufacturing sites and power plants, with a capacity to sequester up to hundreds of millions of metric tons of anthropogenic CO2.
Foremost Authority For Professional Loggers
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InnovationWay TCi Forestry Dozer
Ponsse Products
Tigercat Industries has developed a forestry dozer, the TCi 920. Seeking to overcome shortcomings that harvesting professionals have experienced when applying standard-build, mass production dozers to forestry operations, the new 920 is designed specifically for use in logging applications. The 920 is powered by the Tigercat FPT N45 Tier 4f engine rated at 101 kw (135 HP). It is equipped with a 190 mm (7.5") pitch heavy duty undercarriage, a responsive and efficient closed loop track drive system, strong, impact-resistant belly pans, and durable structural components throughout. The 920 provides the power, durability and versatility for deck clearing, road building and cleanup activities on logging sites. The carefully designed forestry cab offers the operator clear sightlines augmented by the sloped front hood and rear-mounted exhaust. Visit tigercat.com.
Ponsse has launched a series of new products to improve productivity in sustainable harvesting, including the Ponsse Scorpion Giant harvester and the Ponsse Mammoth forwarder. The Scorpion Giant harvester adds to the Scorpion product range, which was completely upgraded in 2021. It was developed to have more tractive effort, which helps the harvester to be agile even in challenging conditions, including snow, steep slopes and soft terrain. The Scorpion Giant is available with the highly advanced and modern Opti 5G system and the Opti 8 touchscreen computer. The Mammoth forwarder expands Ponsse’s forwarder range to the new category of 25-ton load-carrying capacity, and is equipped with the Continuously Variable Transmission (CVT) and Ponsse K121 loader.
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One of the most prominent new features is the Ponsse Active Seat, developed according to forest machine operators’ requests. The new Active Seat improves usability, as it turns and follows the work environment according to crane movements, increasing the forest machine operator’s productivity. Visit ponsse.com.
Durable Truck Scale The new generation BRT5 Series 3 scale from TrackWeight is more precise (0 ± 1 % accuracy) than previous generations, is easier to install, features a more sophisticated and compact design, is made of ultra-tough components, and the components are under a 3-year limited warranty. The scale is customizable to the type of truck or trailer (tractor trailer, twoaxle, three-axle, four-axle and bi-train)
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InnovationWay and sensors are available for various suspension types (pneumatic, springs, mechanical or inverted blades). Its data acquisition box takes thousands of weight readings per second on truck suspensions and analyzes them with maximum precision for display on the BRT5 dashboard monitor, which displays the total load, axle load, overload alerts, date, time and truck profile. All load information is displayed on the in-cab, 4" monitor in real time, in either imperial or metric, in either English or French. Or, load information can be accessed via a cell phone or tablet combined with the use of TrackWeight’s mobile app—TrackMobile. Visit trackweight.com.
Deere wheeled cutto-length and full-tree forestry teams, aiming to implement IBC’s field proven technology into the MH-Series of tracked harvesters. With IBC, operators no longer need to control each independent boom function separately. One joystick moves the boom tip horizontally, while a second guides it vertically, for faster cycle times and more precise control. IBC also automatically controls swing speed based on the overall position of the attachment. Visit deere.com/en/trackedharvesters
Deere Harvester IBC
Swing Boom Skidder
John Deere announces its latest operator assistance control feature, Intelligent Boom Control (IBC), for the 900 MH-Series tracked harvester. The development of this model is a result of global collaboration between the John
The capabilities of the 6-wheel drive 635H in steep terrain and cable assist applications have been taken to the next level with the integration of a Tigercat designed and built swing boom system introduced on the 635G series skidder.
The additional working envelope and ability to position the grapple well outside of the working track of the machine increases productivity in applications where skidder travel is restricted or limited by terrain characteristics. With the ability to lock the seat and operate the machine from any position with full drive controls, the Tigercat Turnaround 220° seat is an important advantage for swing boom skidding applications. It allows the operator to position the seat at any rearward-facing angle to align the field of view to the working area of the grapple. For cable assisted applications, the skidder can be factory-equipped for tethering with optimally positioned frame lugs and through-the-blade cable routing. Visit tigercat.com
Foremost Authority For Professional Loggers
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AMERICAN LOGGERS COUNCIL 28th Annual Meeting • September 22-24, 2022 Branson Convention Center Branson, Missouri
“The Show Me State”
O
n behalf of the American Loggers Council, the Missouri Loggers Council and the Missouri Forest Products Association, I invite you to attend our 28th Annual Meeting in Branson, Missouri, a visitor’s paradise. Missouri is where the ALC was first organized in 1994 and we are proud to be hosting the 28th reunion of that initial gathering that took place in St. Louis. All events will be based out of the Branson Hilton Convention Center Hotel that is directly connected to the Branson Convention Center, an easy drive from either the Springfield, Missouri Airpor t or the Little Rock, Arkansas airport. Branson offers many opportunities
for you to make this a family affair from our scenic natural attractions to theme parks and nightly enter tainment should you choose to extend your visit. Our contract with the hotel allows up to three days before or after our event at our special group rate. Shawnee and I are excited that you are visiting our part of the country and welcome you to the Mid-West where East meets West.
THURSDAY, SEPTEMBER 22 7 am–5 pm: Registration at hotel (exhibits open) 9 am-Noon: Missouri Virtual Logging Tour (optional) 6 pm–8 pm: Cocktail Welcome Reception at Convention Center (light hors d’oeuvres). Explore Branson for dinner options 8 pm–9 pm: Executive Committee meeting, TBD
FRIDAY, SEPTEMBER 23 6 am–12 pm: Registration at hotel 6:15 am–7:45 am: Breakfast buffet, hotel 8 am–4 pm: Seminars and Guest Speakers, hotel, lunch included 9:00 am–3 pm: ALC Ladies tram tour of Dogwood Canyon, lunch included. Drive your own vehicle or carpool required 6 pm-7 pm: President’s Reception-Convention Center 7 pm–10 pm: President’s Dinner & ALC Auction, Branson Convention Center
SATURDAY, SEPTEMBER 24 7 am-8 am: Registration at hotel 7 am–8 am: Breakfast buffet, Convention Center 8 am–9 am: Board of Directors meeting, Convention Center 9:15 am–11:30 am: Full membership meeting
Shannon Jarvis President
ALC’s Live Auction – Friday, September 23, 2022 Item Name: ________________________________________________________________ Description of Item: __________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ Estimated Value: _______________ Donor: _______________________________________ Contact person: ____________________________________________________________ The American Loggers Council is a nonprofit 501(c)(6)organization. Donations given to the ALC for auction items may not be written off as a charitable contribution. Please have all donated auction items turned in at the registration desk by noon Friday, September 23 to facilitate setting up the event in the Convention Center. Thank you! If you need to ship your auction item to the meeting: Shipments (boxes, packages, etc.) should not arrive at the hotel more than five business day prior to the start of an event or meeting. All shipments should be sent to the following address: Branson Convention Center, 200 E. Main Street., Branson, MO 65616. Please mark clearly on the package “For American Loggers Council Event 9-23-2022.”
CONFERENCE SPONSORS Gold Associate Membership ● Bitco Insurance Co. ● Morbark ● Black Rifle Coffee Co. ● Biomass Power
Platinum Associate Membership ● Tigercat ● International Trucks ● John Deere ● Caterpillar ● Southern Loggers Cooperative ● Sierra Cascade Logging Conference Live Stream Conference Sponsor
28th Annual Meeting Agenda
●
North American Timber Program
12 pm–1:30 pm: Full membership Awards LuncheonSponsor recognition, Presidents Award & Logging Activist of the Year Award 9 am–2:30 pm: Ladies—on your own in Branson 6 pm–7 pm: President’s Farewell Reception, Convention Center 7 pm–10 pm: President’s Farewell Banquet, Roll Call of the States, Timber Harvesting’s Logging Business of the Year Award, Passing of the Gavel, Branson Convention Center
Booking Your Hotel We have made contracts with the Hilton Branson Convention Center Hotel in Branson. Reservations can be made by calling the hotel directly at 1-417336-5400 or their national reservation line at 1-800634-8001. Be certain and use the group code LOG22 when making your reservation to receive the group rate. Room Rates Single/Double Run of House $154.00/night 2 Queen Beds Deluxe Room $154.00/night Group rates apply only to the specific room block as noted above and will be made available three days propr to and three days following the event based upon space and rate availability at the time the reservation is confirmed. All rates are subject to state and local taxes (subject to change). A parking garage is available across from the hotel. The cut-off date is August 19, 2022, and it will be here before you know it!
Getting There The closest airport to Branson is the Springfield-Branson International Airport (SGF)—5 miles or 50 minute drive. (We are exploring arranging shuttle transportation to and from the airport.)
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AMERICAN LOGGERS COUNCIL 28TH ANNUAL MEETING SEPTEMBER 22-24, 2022 • REGISTRATION FORM Please submit one form for each attendee. Make copies if needed. (CIRCLE ONE)
Mr. Ms. Mrs.
Name:________________________________________________ Nickname for badge: ________________________________ Company: _____________________________________________________________________________________________ Logging Association: _____________________________________________________________________________________ Address: ______________________________________________________________________________________________ City:_______________________________________ State:________________ ZIP: __________________________________ Phone:_____________________ Fax:_____________________ E-mail: ____________________________________________
FULL MEETING REGISTRATION INCLUDES: Thursday Virtual Logging Tour ● Thursday Welcome Reception ● Friday ALC Ladies Dogwood Bash ● Friday Seminars and Guest Speakers ● Friday President’s Reception, Dinner & Auction ● Saturday Awards Luncheon ● President’s Farewell Reception & Banquet ● Friday & Saturday Breakfasts ●
REGISTRATION FEES PLEASE CHECK ONLY THE EVENTS YOU PLAN TO ATTEND. WE NEED AN ACCURATE COUNT.
ALC Member Registration Fee: √ ■ Early Bird Registration (postmarked by 8/21/2022) ■ On-Site Registration (after 8/21/2022)
$350.00 $400.00
ALC Member Spouse Registration Fee: √
■ Early Bird Registration (postmarked by 8/21/2022)
$325.00
■ On-Site Registration (after 8/21/2022)
$375.00
Non-Member Registration Fee: √
■ Early Bird Registration (postmarked by 8/21/2022) ■ On-Site Registration (after 8/21/2022)
Included Events √ ■ Thursday’s Missouri Logging Tour ■ Thursday’s Welcome Reception
■ ■ ■ ■
■ ■ $400.00 ■ ■ $375.00
Friday—Logger Breakfast Friday—ALC Ladies Dogwood Valley Nature Park Tour & Lunch Friday—Seminars & Lunch Friday—President’s Reception, Banquet & Auction
Saturday—Logger Breakfast Saturday—Full Membership Meeting Saturday—Full Membership Awards Luncheon Saturday—Farewell Reception/Banquet
Please submit one form for each attendee. **Make copies if needed. Please check ONLY the events you plan to attend. We need an accurate count. I have encloded full payment for the events indicated for the total mount of $_________________ Please make check payable to: American Loggers Council For best rates, please complete and mail or fax by August 21, 2022 to: American Loggers Council • Attn: Registration 3961 Barker Rd. South., Gilbert, MN 55741 Questions? Email scott.dane@amloggers.com CANCELLATION POLICY: Registration cancellation by August 10=full refund; cancellation by August 21=50% refund; cancellation after August 21=no refund. NO SHOW POLICY: Early bird registered attendees that do not cancel by August 21 will be billed.
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EquipmentWorld Tidewater Is Opening Store In Marianna Tidewater Equipment Co. announced the development of a new location in Marianna, Fla., expecting to set up at the
old Safari helicopter site in the Marianna Airport Commerce Park. It plans to be in operation toward the end of June. The business plans to start its newest location with a crew of eight to 10 workers and continue to add personnel for a team of 20 after their first year in the roughly 16,500 sq. ft. building. Tidewater’s Regional General Manager Jackie Fleetwood says the jobs will range from entry-level parts counterpersons to skilled equipment technicians, and that area resident David Pollack will be the branch manager for Marianna. All other hires are expected to be local individuals that will receive on-the-job training in their positions. The company has more than 20 locations across five states in the Southeastern U.S. Tidewater entered into a three-year lease with the city of Marianna in January.
Caterpillar Expands Engine Service Caterpillar is expanding its service replacement engine program for owners of equipment powered by Cat engines, giving new alternatives to major engine overhaul. These options give users the opportunity to replace engines in a timely and cost-effective manner in comparison to a complete machine replacement. The program consists of four options, including new replacement engines, Cat Reman engines, short block engine replacements and heavy-duty long blocks. Available now, Cat offers a broad range of replacement engines for equipment using engines up to a Cat C7.1, or 320 HP. The range provides quality results for a wide variety of heavy-duty applications, such as chippers, grinders, pumps, and compressors. New replacement or Cat Reman engine solutions are faster and easier than a complete rebuild and deliver enhanced uptime and productivity. Additionally, the program helps equipment owners reach their sustainability goals by utilizing remanufactured components that may otherwise be sent to landfills. To get started, customers can contact their local Cat dealer.
TEC Is Named Sennebogen’s Best Sennebogen LLC announced its 2021 annual Dealer of the Year winners, including its Top Dealer— Tractor & Equipment Co. (TEC), based in Birmingham, Ala. Employee-owned TEC operates 20 machine sales and service branches. Envimat, a recent addition to the Sennebogen network and the first from South America to win recognition in Sennebogen’s distributor awards, was second, and Tyler Equipment of East Longmeadow, Maine rounded out the Top three. Chairman of TEC, Dan Stracener, relishes the recognition for his company and his tight-knit team.
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EquipmentWorld
Elmia Wood Back On Track A good mood and a longing to meet again characterized Elmia Wood 2022 held in June in the forest of Bratteborg outside Jönköping, Sweden. The three-day event attracted 26,000 visitors and 270 exhibitors from 22 different countries. Anders Roman, program manager for Elmia Wood, comments: “The fair ran smoothly, thanks in large part to great teamwork, but also thanks to the terrific engagement of the exhibitors and, not least, among all the visitors. It’s been fantastic to encounter the joy and energy along the visitor trail. It’s obvious that many people have longed for the fair as a meeting place.”
(Photos by Murray Brett)
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SelectCuts As We (ALC) See It
Canary In The Woods SCOTT DANE Like the proverbial “canary in the mine” that alerted miners to dangerous conditions, loggers are the “canary in the woods” regarding the timber and forest products industry. Loggers and truckers are “dropping” like canaries. This should be a warning to the timber and forest products industry. If a tree falls in the woods and no one is around to hear it, does it make a sound? Well, a large tree recently fell in the woods, and it made a sound! Bobby and Lori Dane Goodson of the acclaimed series “Swamp Loggers” recently announced that after more than 40 years they have decided to shut down their logging and trucking businesses due to the fact that it was no longer profitable under the current conditions. Instead of “not making a sound” the Goodsons took the opportunity to publicly announce their decision via a YouTube video from their kitchen counter. Making this decision was obviously a very difficult personal choice, but like always Bobby and Lori put the timber industry above their personal privacy and shared this publicly in an effort to bring the current overwhelmingly challenging business environment threat to the attention of those controlling the markets and policies. The Goodsons are the canaries warning the forest products industry that the logging and trucking sector is not sustainable under the current model. The forest products industry and the public policymakers can heed the warning that the Goodsons have shared or ignore it and live with the consequences. Fuel costs have proven to be the “straw that broke the camel’s back.” Some mills have been professional and responsive in providing fuel adjustments, but most have not, and many have only provided a portion of the actual increase in production and transportation costs. Those who feign that they don’t fully know what the additional costs are, employ a tried and true negotiating strategy of requesting that you provide a breakdown so that they can better understand your costs. This is merely a delay tactic that usually results in a response that is: A day late and a dollar short In order to provide loggers and truckers with the resource to respond to this ongoing strategy, the Virginia Loggers Assn. worked with Dr. Joseph Conrad from the University of Georgia to provide an objective analysis of the incremental (10 cents per gallon) additional costs for production and transportation. Unfortunately, this information has not resulted in consistent or adequate fuel adjustments for loggers and truckers from many of the mills. Ironically, the mill inbound supplies and outbound transportation fuel surcharge is not debated by the mills. The vendor tells the mill what the fuel surcharge is going to be and the mills pay it, otherwise the vendors don’t provide the service. The mills just incorporate that expense into the end product cost which has resulted in record profits for many mills. The timber industry is the only industry that allows the “buyer” to dictate the price even when it results in the supplier losing money. 30
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That has to change. Timber unity in the Northwest demonstrated the effectiveness of the timber industry rallying together. If loggers and truckers would practice this unity regarding what they get paid (not in collusion or in violation of anti-trust practices) for their services and products, based on what it costs them, things could change. Loggers and truckers are not indentured servants (although it may seem so with the amount of debt you carry). It is your business, your logging operation, your truck. Nobody can force you to work. The timber industry model is the same as it has been for 100 years with loggers and truckers, whether in lumber camps or independent logging/trucking companies, being told what to do and if they don’t they will be replaced by a logger or trucker who will. Those days are over, there aren’t enough loggers and truckers to play against one another. If someone wants to work for less than it costs, let them, they won’t be around long. As the old saying goes “don’t kill the goose that lays the golden egg.” This refers to killing something that brings one wealth. The loggers and truckers are the “Golden Goose” which has brought record wealth to many in the forest products industry. Those who are benefitting are risking killing the goose that lays the golden egg. A false balance is an abomination to the Lord, but a just weight is his delight. Proverbs 11:1 Meaning one should use an honest scale and pay someone a fair amount, because a laborer is worthy of his wages. Scott Dane is the Executive Director of the American Loggers Council. ALC is a 501(c)(6) trade association representing the interests of timber harvesting and timber hauling businesses across the United States. For more information visit www.amloggers.com.
AdLink Easy Access to current advertisers! http://www.timberharvesting.com/advertiser-index/ This issue of TIMBER HARVESTING is brought to you in part by the following companies, which will gladly supply additional information about their products. American Loggers Council
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