Executive Director’s report

From the Executive Director

By Dana Doran

It’s hard to believe, but we’ve closed out another year here at the PLC. The PLC will begin its 28th year representing logging and trucking businesses in the state in 2023. So much has changed since a brave group of businessmen got together to chart their own path, but at the same time, so much has not and the PLC’s relevance and presence continues to grow year after year. 2023 is also the beginning of my ninth year working for this organization and the best group of businesspeople in the state. The PLC has grown immensely over the last nine years, and I truly do believe that the best is yet to come. I couldn’t imagine doing anything else and I take great pride every day trying to defend the great work that our members do in the woods. As we begin anew this January and start another voyage around the sun, I always feel that it is important to reflect on what just occurred before moving forward. As far as I’m concerned, our past is just as important as our future, and we should always make sure we have learned from it before moving forward. What’s different this year is that the view in the rearview mirror looks strikingly similar, regardless of where you’ve been. Normally, the view behind you should be just that, history, and the view before you should be new.

PLC Member and Master Logger George Merrill and Son Logging in Mt. Vernon in Nov. 2022..

Why does it feel that the view in front and the view from behind look just about the same? Have any of you seen the movie, “Groundhog Day”? The comedy with Bill Murray that was released in 1993 and still makes rounds on cable TV annually. Bill Murray, a TV weatherman from Pittsburg visits Punxsutawney, Pennsylvania on February 2nd to see if the groundhog will see its shadow. Meanwhile, he wakes up every morning to the same song and repeats the exact same day for what seems like a full year. It feels to me like we’re living in a real-life version of Groundhog Day here right now. Example #1 let’s look at what happened in the election on November 8, 2022. In what was supposed to be a stereotypical midterm election, where the party in control loses seats to the party not in control, almost the opposite occurred. Here in Maine, it was essentially a Democratic sweep by the majority party. In the House of Representatives, Democratic control stayed virtually the same, 82-67-2. In 2020, it was 80-67-4. Independents caucus with the Democrats so there really is no change. In the Maine Senate, while some seats may have moved from D to R and R to D, again, it’s the same as it was after the 2020 election, 22-13, with Democrats in control and Senator Troy Jackson re-elected for his third

Doran Continued from Page 96 term as Senate President. And finally, in the Governor’s race, Janet Mills was reelected by a large margin, ensuring control by the Democrats, in the House, Senate and Governor’s office for the next two years. And as everyone knows, at the national level, Democrats actually picked up one seat in the Senate and the only minor change was in the House of Representatives with Republicans seizing control of the House with a swap of 9 seats. It’s really hard to believe, but everything looks about the same to me. In a time in our history where divided government is probably needed now more than ever, we have at least two more years of things operating about the same. As Example #2, many of our members applied for the second round of the Forest Growth Initiative (FGI) from the Maine Technology Institute. Applications were due by in the middle of October and an announcement was made on Friday, December 9th which declared what companies will receive the funding. FGI Phase 2, as this latest round was called, was a new grant program from the state, which was supposed to provide much needed capital, “specifically focused on either strategic projects within the state that address significant challenges and long-term threats to the industry, or projects at existing facilities which significantly improve the productivity and competitiveness of the facility. These strategic projects will tackle global market shifts in supply and demand, supply chain disruptions and new technologies that impact the growing, processing and use of natural resources from this key sector of Maine’s economy.” The grant application actually made applicants demonstrate how the projects would benefit the logging industry directly. $14 million was available in the latest request for proposals and suggested expenses may include: • Business-related equipment purchases (capital or expense). • Start-up costs for new programs and/or new markets which may require some initial investment. • Payroll costs and expenses for existing or new hires. • Rent or mortgage payments for business facilities (unless otherwise waived by lessor/lender). • Utilities payments. • Purchase of personal protective equipment (PPE) required by the business. • Design expense and labor expense associated with management of the project. • Replenishing inventory or other necessary reopening and/or operating expenses. • Construction expense on all capital projects. In total, there were 62 applications for these funds and final awards were made to 19 companies. If my math serves me correctly based upon discussions with many of our members this fall, I would guess that almost 50% of the 62 applications for these funds were made by logging businesses. Surprisingly, not one logging business that applied for funding did so with any success. A program that states specifically that it must help logging businesses directly and incentivize growth in the industry, really only went to the same old businesses that probably didn’t really need the money at all. Yet, the businesses that desperately needed the money, like the logging business that wanted to invest in new equipment or grow its business by adding a firewood operation, got left on the outside looking in, once again. Instead, companies that made a killing during the pandemic or are doing extremely well now because of high natural gas prices, were given up to a million dollars each. In fact, $8 million of the $14 million went to well established companies in Maine, some of which

made major growth announcements recently, where this grant money probably had no bearing on whether or not they would grow. One business even received $1 million for operating capital, and they have already been the recipient of close to $10 million in state/federal grants over the last two years. I don’t think I saw, “operating capital” on the list of suggested expenses. Again, it’s Groundhog Day as usual where small family-based businesses trying to make themselves more profitable, that actually could use some public funds to help offset their risk, were left at the curb. If their company isn’t in manufacturing or didn’t issue a press release recently announcing their growth, evidently, they didn’t measure up. It’s really discouraging for those that have been hit so hard lately with lost markets, depressed pricing, and inflation in the range of 50% to have faith in their government when they get overlooked time and time again, especially when their government asked to do a photo op when this program was announced, but conveniently left them out in the end. For Example #3, let’s look no farther than the latest debate at the Maine Legislature regarding the use of surplus funds to assist Mainers with high home heating and electric bills this winter. While it’s very noble of state government to return funds to taxpayers, it seems to me that any program of this kind should not only be surgical, but it should be accountable and have a positive impact upon

our state. The idea that was floated by the Mills Administration and ultimately defeated by the Senate Republicans was to return $450 to each taxpayer that had an income of less than $100,000. I’m oversimplifying things here, At some point, we need to realize that doing but you get the idea. In the plan that was proposed, to get the $450, there more of the same was no requirement other than proving you were a taxpayer because it was done who made less that a certain amount. There was also no before, is not leading to responsibility by the taxpayer to use the funds on anything positive change. Let’s related to heat or electricity either. rethink how things are As a representative of the logging industry, an done and be sure that it helps everyone and not industry that is micromanaged fiercely, I don’t want to be accused of trying to add just those in charge. regulation, but maybe instead of doing the same thing over again by handing out money which could add to inflation instead of helping it, it might be a good idea to add some accountability. As most of you know very well, inflation is generally created as a result of demand, so throwing more government money out there is only going to encourage an even greater increase in prices. I’m not saying that I want to enter the political fray on this and make statements of who was right and who was wrong, but perhaps this is an opportunity to rethink the whole idea and do right by doing good, instead of heading down the same old path. Wouldn’t it be better to provide taxpayer money that could circulate in the state economy, instead of vanishing to foreign countries? And wouldn’t it be better

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Doran Continued from Page 11 16 if instead of encouraging folks to buy more oil, which is counter intuitive to the Governor’s Climate Council initiative, that the funds get used for renewables like wood? Just imagine for a moment if a government program encouraged folks to use cordwood, pellets or wood chips from Maine to heat their homes, but to do so, they had to show proof of payment through a rebate system. This would be an incentive-based system that not only includes accountability, but in the end, the money would circulate throughout the rural Maine economy to help loggers and truckers with desperately needed income. Does wood have be the only source, no, but shouldn’t it be one of the potential sources so that these funds do more than just incentivizing the purchase of more oil? I provide this last example because it’s counterintuitive to think that the next two years will be business as usual and the more things change, the more they stay the same. Hopefully, those in positions of power will start to take a more pragmatic point of view and try to do what is right for all in this state and not just for a chosen few. We all live in Maine because we believe that it is a special place, with special characteristics and the opportunity to enjoy all this it has to offer. At some point, we need to realize that doing more of the same because it was done before, is not leading to positive change. Let’s rethink how things are done and be sure that it helps everyone and not just those in charge. Happy New Year to all and make sure Punxsutawney Phil doesn’t get stuck in the past. Dana