Barriers to logging production and efficiency in Wisconsin

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ABSTRACTApproximately one-third of Wisconsin loggers left the industry in recent years, prompting concerns about logging capacity. In addition, research suggests seasonal barriers to timber harvesting in the state, which may result in seasonally low utilization of remaining capacity. A 1-year study of logging capacity utilization was conducted in Wisconsin beginning in late September 2014. Thirty participating loggers provided weekly reports describing number of loads delivered; hours worked; and number of loads lost due to weather, breakdowns, and other reasons. Logging capacity utilization was calculated by dividing loads delivered by the sum of loads delivered and loads lost. Logging efficiency was calculated using stochastic frontier analysis (SFA). For the SFA model, the output variable was delivered loads per week, input variables were man-hours worked and capital invested per week, and six environmental variables were included in the model. Logging capacity utilization averaged 72% when spring break-up shutdowns were excluded and 64% when these weeks were included. The primary causes of lost production were weather (11.5% reduction in delivered loads) and equipment breakdowns (3.8%). Logging efficiency averaged 64%, as measured by stochastic frontier analysis, with mechanized crews significantly more efficient than chainsaw crews (p < 0.01). Productivity was highest during winter (p < 0.01) and efficiency was higher during winter than summer (p < 0.01). This study suggests that adequate logging capacity exists to support current forest industry demand. Adequate capacity also exists to increase production outside the winter months; however, weather-related downtime and restrictions on timber sales make this difficult.