would you do it?

[Ianab]

Ian, you can fit 22,000 bf in a 40 footer. 52m3 x 60= $3120 per container.
70,000bf a month=165m3 x 60= $9,900 a month for shipping to India

Yeah, that's the sort of numbers I was thinking.

Ian

[Kansas]

I think that is making a correct decision. A smaller hydraulic mill, maybe used is the ticket. Meanwhile you can research markets a little. Find out what maple and any other species are bringing from loggers. You might be money ahead to put in a smaller kiln and retail some. We sell hard maple for 2.80 a ft. Even if your area doesn't support that price, you would still be money ahead.

The figures you provided indicate around 71 cents a board foot. Minus the 6 cents is 65 cents. I would think a decent maple log would cost 30 to 40 cents delivered to your place. The math don't add up.

[stavebuyer]

I think you made the right call. I don't think .17 will come close to covering the expenses of operating a stand alone bandsaw mill and support equipment. The large bandmills mills that saw 50,000'+ in 8 hours can't run on that margin. With the overrun on a narrow kerf mill added in thats the exact reason you were offered a 5 year run.

You may have made a good connection in the process and I woud think more along the lines of possibly selling him lumber. Your plan would come a little closer if you could benefit from the mills over-run.

[FeltzE]

Lower profit margins require higher througput to make you your dollar, bigger equipment, faster saws, fewer employees. Over all higher effeciency.

Banking on just one income source is dangerous, (I'd need a backup plan) If he slows down you can't make payment and payrole.

Our local commercial sawmills have been closing for the last 10 yrs here in NC, although there are some north of me they are much further than they used to be.

Eric

[Norm]

A couple of times I've jumped in with both feet on a new business, each time I went belly up.

When I did as your going to do I've succeeded. Good luck. 

[alpmeadow]

Gee this was a good post with alot of solid input.  I believe the right decision was made with this support.  We have too, a partime custom milling LT40G28 hydraulic WM operation.  Between custom vs commercial milling operations there are alot of pluses and minuses, and it needs to add up cost, time and revenue wise.  Handling yard operations with storage, (un)loading, side lumber, waste byproducts etc are usually cost and time items that are not often fully accounted for, which we are still wrestling with. We custom cut fir, cedar and pine sourced from our own woodlot.  Recently custom cutting for local building contractors, has worked, knowing that they have to be competitive and profit too.  Keeping it simple, parttime and flexible has worked for us.  Cutting approx 30 m bdft last year has been a good year for us.
Thanks again for being woodwise.