Industry News Roundup

By Scott Dane

Like the proverbial “ca nary 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 truck- Dane ers are “dropping” like ca nar ies. 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 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 re spond 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 re sults in the supplier losing money.

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 antitrust practices) for their services and products, based on what it costs them, things could change.

Loggers and truckers are not in dentured servants (although it may seem so with the amount of debt you carry). It is your business, your logging operation, your truck. No body 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” that 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. Since there is a proverbial theme to this As We See It column—the Goose that Lays the Golden Egg, the Straw that Broke the Camel’s Back, the Tree Falling in the Woods, and the Canary in the Mine—I want to close with a Biblical Proverb:

“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 Executive Director of the American Loggers Council. Visit www.amloggers.com.

Caterpillar is expanding its ser vice replacement engine program for owners of equipment powered by Cat engines, giving new alternatives to major engine overhaul. These options give users the op por tunity to replace engines in a timely and cost-effective manner in comparison to a complete ma chine replacement. The program consists of four options, including new replacement engines, Cat Re man engines, short block engine replacements and heavy-duty long blocks.

Available now, Catoffers a broad range of replacement en gines 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 com pressors.

New replacement or Cat Reman engine solutions are faster and easier than a complete rebuild and de liver 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.

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 (2007-2009) 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 growth-to-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.

Mississippi logger T.O. Rich ard son’s GGKATM Promotions has announced the 1st Annual Central Mississippi Logging Expo to be held at T.O.’S Plaza at 111 Mount Moriah Road in Edwards, Miss. on June 25, 2022. Gates will open at 7 a.m.

Mississippi Forestry Assn.’s John Auel will be offering continuing education hours for loggers and foresters. There will be three sessions at 9 a.m., 1 p.m. and 3 p.m. Refreshments will be available, live

music is planned and there will be activities for the kids.

Richardson, whose T&T Logging, LLC also posts professional logging videos on his YouTube channel T&T Logging Show, ad mits he could spend his time more profitably logging than producing a show. However, for him, it is not about the money; as a man of faith, he believes he’s following a higher plan with this endeavor. T.O. says his goal for the expo is to bring people together in the local community in a spirit of unity and positivity.

Admission is $10. For more information contact T.O. at 601339-1652.

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 ex cess of 1 million tons of timber an nually 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.

BID Group reports it has received the turnkey order from Claw For estry Services to provide the greenfield sawmill. BID will manage, de sign, build, equip and provide full startup services. Claw CEO Billy Van Devender comments: “This project will em ploy the best complement of modern technologies to meet our grow ing consumer demand for the highest quality product, in a re gion 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 operate two sawmills in Mississippi—Vicksburg Forest Products in

Vicksburg, and Southeastern Timber Products in Ackerman.