2009 Lumber Prices

[Larry]

I've been thinking the same as snowman...why would any landowner sell hardwood at such depressed prices?  Most landowners are not dependent on a timber sale for income as it happens so infrequently.  Are the loggers getting stumpage from government sales?

[Tom]

Larry,
Loggers around here are having difficulty getting stumpage.  They are going out of business right and left.

[TexasTimbers]

Larry,
Loggers around here are having difficulty getting stumpage.  They are going out of business right and left.

Maybe that's why we are seeing so much logging and pulping going on in our county all the sudden. A county with vitually no logging industry per se, since the the last big sawmill shut down here in the early teens. Timber companies must know that an area that hasn't been logged in a hundered years has uneducated landowners (sellers).

You can go back through my posts here over the years and see where I have mentioned several times I don't understand why we don't have a sustained logging/milling industry here, since we have such great timberlands.

Looks like my little paradise is coming to a close. I won't have a problem getting timber for my own rinky dink operation, but I didn't want to see my little secret forest be discovered. :

[Ron Wenrich]

We don't seemingly have any problem getting stumpage.  Some landowners do need the money, others just can't pass it up.  Cutting timber is found money for some.  And consultants still put timber up for sale since they need to eat too.

[SwampDonkey]

Ron hit the top two items on the list. 1) Money, and 2) I want more of it. :D

[TreeBones]

 I have little real experience buying logs to cut and sell the lumber. The bulk of my income comes from custom milling for homeowners and contractors where I am portable and lumber is used at the mill site.

Its no secret that many big mills have been cutting back and closing because of the drop in demand from the housing market. This affects everyone down the chain, loggers, tree lot owners, truck drivers, resellers and even entire small communities where they live. Ghost towns of the past are a growing threat of today.

Small mom and pop businesses have a track record of hanging in there during the hard times by having the ability to be flexible, cut back and trim expenses along with being diverse and find nitch markets and develop new outlets, by doing secondary processing or expand there product line.

We can all expect to see this next year to push the limits of small operators along with the big boys. The tough and the wise will survive. Small businesses trying to compete with the deep pocket giants wont be fruitful. Watch and you will see the innovators find ways to stay afloat, some will hit pay dirt by filling voids left by those who over extended and close. Creative forward thinkers will lead the way for others to follow by developing new methods of doing business, by capitalizing on the global demand for "Going Green" combined with advancing sustainaibility technology and the use of the internet for 21st century marketing and communication. And as always, utilizing cost effective business practice. This will be the next frontier for business. History has proven that those who look forward and embrace change stand a better chance of weathering the storm.

When times get tough many people isolate themselves when they should be collaborating with others to explore and build new tactics and methods that take advantage of the changing environment of the timber industry and the business world as a whole.  Now is the time to take these difficulties and use them to our advantage. Educating ourselves and the public will greatly help everyone. Networking together as an industry the small sawmill business will continue to grow. This you can be assured because the demand for what we offer can not be filled by large company's who are not geared up for small and portable operations.

Like I said I don't have a lot of experience in buying logs and selling lumber but I can guarantee one thing! Nothing will stay the same....

[TwinCut]

I couldn't agree more TreeBones. I think you have hit the nail on the head and said it very well. What about Wood/Lumber Co-op's in local areas where larger mills have shut down or curtailed production? An organized membership of smaller sawyers and loggers can offer flexability in products, delivery and service as well as being stewards of the land.

Just a thought.

[TreeBones]

TwinCut,
That's a good idea and the right spirit. Pulling together with others in the timber industry to explore every new angle should include woodworkers, tree lot owners and anyone who could benefit. This should be the first place to look for ways to provide an attractive product or service. I have seen many people who are afraid to get together and work with others who do the same thing because they see them as competition and a threat. In reality most of the time the services and products just aren't the same and there is no real competition at all. By working together clients can be directed to a partner business. This can even go as far as passing along some jobs that just aren't profitable to your business and is a better fit for someone else, this works both ways. If I cant do the job for someone who contacts me it is a great plus to be able to direct them to someone who can. People will come back to me for help in the future. A personal recommendation goes a long way to build confidence in a business. Working together has its perks.

[ARKANSAWYER]

  Those left standing in a year or so will come to the table for the feast.  Some who can borrow money and get back in will do well.  Many who have worked hard for generations will just simply fade away.  I see in the trade mags all the pellet places going in and most are going to need 150,000 tons a week in bio-mass.  This will hurt future forest as we "chip" every stick we can.
  GREED just like on Wall Street.  We in the timber industry are the same.  When markets are good we flood them with production trying to make more money then any one else.  When the price dropps we saw more to make up for the loss income.  Just cutting our own throats.  It is the "American Way".
  I just hope under the new Socialist Party we now have when the wealth is spread around that thye see fit to let me at least work at a sawmill.

[TwinCut]

I grew up on a farm here in the Peace River country of Alberta. My Dad grew many crops including Wheat, Barley and grass seed for forage crops for livestock as well as seed for lawns. At the time marketing the grass seed was a problem in the area as there wasn't a grain elevator or buyer near by. It took some effort over a year or so, but many farmers in the area got together and formed a seed Co-op. They hired a manager and sold shares to initially fund the organization. A lot of time was spent developing a market based on a quality product delivered in a timely manner. Today the operation continues after 30 years of success under the direction of those who need and use it.

Maybe this is the kind of organization small outfits need.