Story by David Knight,
Co-Publisher/Executive Editor

Back in February, the H-B editorial team moved forward with Timber Harvesting’s 2011 Logging Business Survey, its third since 2003. We did it reluctantly because we knew what we’d find: a depressing situation overall. As usual, some harvesters are faring better than others, but the study found the majority downsized, profit-starved, working far below capacity, choking on regulations, reeling from record high operating costs, and stressed to the hilt. They are bleeding financially, wearing out equipment, often cutting marginal timber and see little relief this year or next.

The survey gave loggers the opportunity to express themselves, and many did, rather articulately. (See story, page 10.) Here are some samples that convey various points of view:

— “I’m a fourth generation logger and I lose or break even three-fourths of the time. I am streamlined and pretty efficient—as efficient as you can be without newer equipment. It’s a bad time in this business for all concerned, from the mill to the landowner, but as usual the logger is stuck in the middle with no where to go.”

— “Too many loggers are being forced to log cheap, therefore the mills see no reason to respond. Wood yards are full so mills see no problems or issues. Wood buyers (generally) have no idea as to the real cost of logging, therefore they put too much money on stumpage and commission and not enough on log and haul costs.”

— “Equipment has increased 38% the last five years but rates stump-to-truck have actually decreased. We loggers who were set up on high production have no outlets now. It’s only a matter of time until the logging force dries up.”

— “Sooner or later logging rates will increase and the tide will turn for those still around. The logging force of today will not be the logging force of tomorrow.”

— “I do custom road work and other dirt jobs, which pay better and are less stressful on the equipment and me. As loggers we’re doing too much for too little and it’s our fault for not doing something different. We have the talent and equipment.”

— “Haul distances have substantially increased, turnaround times at mills remain poor and low lumber demand causes fewer quality tracts to be available.”

— “With mills wanting all the benefits from dispatch trucking, our cash flow has been taken to new lows.”

— “Fuel prices and other expenses change very quickly and our rates are not as quick to change, but overall I feel very lucky to work for a company (sawmill) that is always looking out for me (as an upstart logging company). I bought all new equipment and trucks and am well pleased with the opportunity the company gave me.”

— “To make money today you must have good employees, excellent equipment, multiple markets, tracts lined up ahead and very little downtime. We have discovered from our exceptional record keeping that we cannot own trucks. Loggers who don’t keep good records fail to understand that they are simply subsidizing trucks out of their cut and haul rates. Because of the low freight rates we are forced to use, the quality of contract trucks we can hire is the worst I have ever seen. In the event of a major accident, it would seem that people involved in setting these freight rates would be liable, doesn’t it?”

— “Supply/demand says there is opportunity for higher rates. We just have to be patient. They will come.”

— “Mills and timber companies have actually told us that until the loggers figure it out and work together, they are going to keep taking the lowest bidder. Most don’t care what is good for the industry, but what is good for them and their shareholders.”

— “I am glad that I am retiring and do not have to worry about the future of the industry.”

— “Now we are being paid by the ton, not by the cord, and we lose another 10%.”

— “Pay has to increase and availability of credit has to improve to maintain operations and to bring new people in.”

— “Without loggers the (forest) industry would not survive. Could anyone survive when they get a 40% cut in pay?”

— “Competition for stumpage in my area is very strong, with mills leading the way. Still, 2010 was a good year for me, but it was the first good year I had in three years.”

— “The logging industry is going to die if we do not pull together to make it better.”

— “A logger will never be paid what he is worth. I contract for Weyerhaeuser and have not seen a raise in 10 years. The reason I stay is because it is a secure company. I always have timber to cut, even if it is cheap.”

— “I cannot afford newer machinery anymore, nor can I afford the cost of maintaining the old. I will probably be joining many of my fellow former loggers who are already in the oil industry.”

— “Dealers and mills are using us to the last drop before any increase in rates and we are dumb enough to try and keep going.”

— “If the Forest Service doesn’t kick loose with more timber sales I am afraid logging in Montana is going to disappear.”

— “We’re in the process of refinancing equipment. If the bank will not refinance this week we may be finished.”

— “I see no daylight at the end of the tunnel. Looks piss poor. Any suggestions?”