Dan Shell photo design by Shelley Smith)

Business Health Hit By Inflation

Contractors strained by rising costs, inadequatecompensation.

Taken 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 includes 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 saysthat with 30 years experience in a fifth-

BYDan Shell

Trucking Spotlight

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 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

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.

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

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

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:

“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

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. E-Series Knuckleboom Loaders contain The standard cab on the E-Series Knuckleboom Loader also powerful EPA Final Tier 4 engines that allow users to work longer between fill ups, maximizes comfort for the operator, offering optimal cooling abilities that keep you feeling refreshed when faced with warm environments. Additional enhanced features include LED lighting, while minimizing total fluid consumption large doorway access for easy entry and exit, an in-cab storage and increasing reliability. cooler, easy to read monitor, Bluetooth and hands-free talk systems 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

The Ponsse Mammoth smoothly takes care of business wherever exceptional efficiency and reliability are valued.

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 instead 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, 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

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 hydrauliccircuits.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. a loader with boom options for various grapple styles. The 865 can also be configured as a high capacity roadside processor, capable of running large harvesting heads in demanding duty cycles. Dual swing drives provide 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 increases 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 evaluation 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.

TCi Forestry Dozer

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 Products

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 wascompletely upgraded in 2021. It was developed to have more tractive effort, whichhelps 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.

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)

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 Harvester IBC

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 Deere wheeled cutto-length and full-tree forestry teams, aiming to implement IBC’sfield proventechnology into the MH-Seriesoftracked 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/tracked-

harvesters

Swing Boom Skidder

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