Industry Questions Timber Sale Losses

A report that U.S. Forest Service The Forest Service timber sale pro' timber iales lost more than $88 nil- gram generated $2.1 billion of ecolion last year is providing ammo to nomic activity in 1996 and over $4.7 preservationists calling for an end to billion as recently as 1991. The proiederal timber sales. But, the record gram generates over 60'000 direct, loss figUre was calculated using a new, indirect and induced rural jobs, 82,000 unorthodox method of accounting. less than in 1989-

..The Clinton Administration seems Timber revenues (as high as $1.5 willing to manufacture any excuse to billion in 1989) helped offset the costs end fideral timber harvests," said of this $3.3 billion agency. During the Independent Forest Products Associa- last 10 years, Forest Service employee tion president Frank Gladics. "But the productivity (measured by amount of forest Seryice's decision to expense timber volume sold per employee) fell the cost of road construction in the by more thanT0%o. year the road is built, rather than Each year, ! billion bd. ft. of timber iepreciating the cost over the lifetime worth over $858 million dies in of-the road, is an outage." National Forests, enough to build ing was relegated to the minor leagues of strategic initiatives in the retail industry," he says. "After all, merchandising was the business, and it was always believed on-the-job training was best. Besides, one could always recruit top people awaY from competitors."

Today, top training initiatives include:

' Improving communication of strategies companywide.

Training managers to work effectively with cross-functional teams, deal with different levels of motivation, overcome gaps in suPervision, and balance tasks with coaching and developing.

InduStry

Previous Timber Sale Program 520,000 average size houses' Infonnation Reporting System reports dealt with roads in " o'"y that tne nS

Training DOubles

' Using specific perfomrance standards, clearly defined competencies and measurement tools.

. Becoming more business focused and bottom-line oriented, in contrast to the psychological and motivational approaches frequentlY used in the 1980s.

"Traditionally, management train- demands all private landowners Dollars spent for senior executive adhere to. "Tlie Forest Service has training by retail organizations have now adopted an accounting practice doubled since 1995, according to which would put any other landowner Michael Patrick of training program in an IRS office for a long talk," provider MoHR Retail Learning Gladics said. "Given this Adminisna- Systems. tion's aversion to selling timber, it's a Most new training is intended to wonder they haven't found a way to maximize productivity and build core charge the cost of the Department of competencies. Defe-nse against the timber program." lf you enioy tolking lumber wilh peoPle who know how ifs Produced, where ifs produced, ond who Produces il, coll us. We hove ovel 175 yeorc'expedence ot your disposol.

. Having retail c.e.o.s, c.o.o.s and v.p.s of operations participate in management training sessions, particularly those devoted to long-term planning.

!lfl! r)Cfut\. illt(l ' ttsc o1 n0 hcrhieiclcs.

Andrc said that environntentallyrnindcrl 1'orcstrv ntakcs cconornic sensc firr the crtv. rr liich relrcs on tintber revenucs for ntunicipal pro.jccts. "We cut l'ewer trecs than othe r landowners, but we earn lnorc money tor each tree cut." Andre said, explaining that the higher price is partly due to the better quality wood produced by longcr grorving cycles. In 1 995, Arcrrta allegedly earned 30o/o more thrrrr trlhcr lrndowners-$727 per thousand bd. fi. of redwood compared to tltc regictnal average of $535.

In thc last l'cw rnonths, the number of' licres ol' SmartWood-certified comnrclcial lirrcsts in Northern Califbrnia has riscn I'rorn 13,000 to 41,000. Nationally, thc ar.nount of certified land has ntore than doubled in the last year to -J.) ntrllron acres. Worldwide, certillcd acreage has grown to l6 million acres in more than 20 countries.

SmartWood's Walter Smith points to a vibrant Arcata forest to explain why certification provides more than financial benefits. "What is uniquc nbout this site is that it's not about to bc logged-it already has becn logged, and the forest wasn't destroycd in the process," he said. "Three years ago, 9U truckloads of timber were f'elled and hauled fiom this site, yet the fbresI remarns, and water quality, wildlife ancl rccreation are protected."