Returns to scale in the Eastern United States logging industry

Stuart, W.; Grace, Laura A.; Grala, Robert K.

doi:10.1016/j.forpol.2010.04.004

Cited by 24 publications

(3 citation statements)

References 8 publications

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“…The estimated production functions found decreasing return to scale as have similar studies of southern loggers (Duc et al 2009, Lebel and Stuart 1998, Stuart et al 2010). The increased crew investments observed in the Coastal Plain suggest that production function estimates are appropriate.…”

Section: Discussionsupporting

confidence: 77%

Logging Crew Attributes by Region in the Southeast USA

Diniz

Smidt

Cooper

et al. 2023

Croat. j. for. eng. (Online)

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Urbanization, shrinking markets, and reduced forestry investment may affect harvesting efficiency in regions of the US South. To monitor these conditions, logging businesses have been tracked by surveys conducted by universities and trade associations. This project used a sampling approach coordinated with FIA utilization studies to sample logging crews based on a harvesting location. The approach was used to develop relationships among firm attributes and site attributes in six southeastern states (AL, GA, FL, NC, SC, and VA) from 2011 to 2018. The data included harvest attributes (location, harvest size and stand type) and logging firm attributes (production, crew labor, crew number, the number of machines by type, and machine age). For crew capital value, an equation was developed for this study using machine number and average machine age. The data from logging crews on 419 harvests were analyzed by region, harvest size, and stand type. Mean values for crew labor ranged from 3.1 to 7.1 workers. The average capital value per crew ranged from $220,000 to $524,000 per crew in the Coastal Plain with a narrower range in the Piedmont. In the Coastal Plain, higher productivity was detected for larger harvests and pine versus hardwood and mixed stands; however, in the Piedmont those trends were less obvious. Ratio of feller-bunchers, skidders and loaders were mostly 1:1:1 or 1:2:1 with 41% and 24% of samples, respectively. There were notable trends among Coastal Plain loggers regarding capital value and productivity with evidence supported by a production function. The differences in Piedmont (e.g., ownership size, market access, terrain, population density, etc.) may combine to limit daily production and labor productivity.

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Section: Discussionsupporting

confidence: 77%

Logging Crew Attributes by Region in the Southeast USA

Diniz

Smidt

Cooper

et al. 2023

Croat. j. for. eng. (Online)

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“…However, Nordic studies have demonstrated that high debt and exclusive reliance on subcontracting seldom pay. In fact, it is difficult to maintain profitability by only increasing production (Stuart et al 2010). Exclusive reliance on engineering solutions may even worsen the business outlook of logging contractors (MacDonald & Clow 1999).…”

Section: International Journal Of Forest Engineering 117mentioning

confidence: 99%

Logging companies in the European mountains: an example from the Italian Alps

Spinelli

Magagnotti

Facchinetti

2013

International Journal of Forest Engineering

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In a total survey of logging companies in Northern Italy, data were collected from six regions (from west to east: Piemonte, Val d'Aosta, Lombardia, Trentino, Veneto, and Friuli-Venezia Giulia). The total number of surveyed companies amounts to 1206. These companies have a total workforce of 3563 operators and harvest an estimated 3.3 million m 3 of wood per year. The North Italian logging industry is dominated by small-scale companies, largely equipped with obsolete, tractor-based technology. Modified farm tractors, winches, and forestry trailers account for over half of the total value of the fleet, which estimated at about €130 million. Twenty percent of this capital is used for cable yarding equipment, which amounts to 350 units. One logging company out of four has both the skills and the equipment for cable yarding. Companies equipped with a yarder harvest almost twice as much wood as the other companies. Seventy companies are equipped with mechanized cut-to-length equipment. They represent 6% of the total number, but harvest about 30% of the recorded annual cut. Companies equipped with mechanized cut-to-length equipment harvest almost four times as much wood as the other companies.

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“…If the unit already operates in the CRS region, it usually is not a good idea to change its operating scale, given that this alteration would decrease scale efficiency. Increasing returns to scale in the logging sector have been reported by practicing foresters in a survey of contractors in New Zealand and the United States by Stuart, et al [54]. Our study focused upon the spatial configuration of the harvested sites and not on the contractors; we presented a more general view of the process.…”

Section: Discussionmentioning

confidence: 95%

Effects of Spatial Boreal Forest Harvesting Practices on Efficiency through a Benchmarking Approach in Eastern Canada

Mazo

Valeria

2021

Forests

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In eastern Canada, harvesting practices and spatial organization of harvested sites are modulated according to ecosystem forest management objectives. We determined how spatial organization affects efficiency by evaluating wood procurement costs. A comparative analysis of efficiency was presented using a non-parametric technique, i.e., data envelopment analysis (DEA), which allows multiple variable analyses of different factors. A database of 50 harvested sites during the period 2015–2018, located along a north-south latitudinal gradient between 46° to 50°, was constructed with variables describing spatial organization (roads and dispersion of patches) and operational aspects (wood procurement costs). The evaluated financial efficiencies show high values greater than 70%. The causes of inefficiency were dispersion of the patches, distance to the mill, and the number of kilometers of built roads. When efficiency values were arranged by latitudinal location, northern sites exhibited a lower value of overall and scale efficiency due to the high values in the wood harvested, and developed road density of the zone.

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Returns to scale in the Eastern United States logging industry

Cited by 24 publications

References 8 publications

Logging Crew Attributes by Region in the Southeast USA

Logging Crew Attributes by Region in the Southeast USA

Logging companies in the European mountains: an example from the Italian Alps

Effects of Spatial Boreal Forest Harvesting Practices on Efficiency through a Benchmarking Approach in Eastern Canada

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