Harvest utilization rates and strategies for enhanced value recovery during primary processing in the central appalachian region

West Virginia has an abundant forest resource base that has underpinned portions of its economy for decades. These forests support a diverse primary and secondary forest products industry. A common thread that ensures the continued success of the forest industry, from the private landowners to the manufactures of fine furniture, is the strength of the logging and primary processing components of this supply chain. The purpose of this research is to evaluate the use of raw materials on logging operations, to understand the financial and operational aspects related to pulpwood merchandising, and to investigate new strategies for the development of standard hardwood log grades.;Whole-tree and landing-based utilization rates were determined from data collected on 30 active logging jobs in West Virginia during 2008. Utilization is defined as the amount of volume that is delivered to market over the total volume harvested for individual tree stems. On average, 3.6 markets were used by the loggers sampled. The average whole-tree utilization rate in the woods was 88% and was over 97% on the landings sampled. No relationship between the number of markets and utilization rate was determined. Results from this study provide estimates on the efficiency of forest resource use as well as the characteristics and quantity of material being left after harvest.;Roundwood merchandising operations have been seen as a potential way to supply raw materials to bioenergy facilities at competitive costs. The feasibility of developing such a facility in the central Appalachians was investigated. The purchase and subsequent merchandising of over 188 tons of hardwood pulpwood resulted in negative net revenues for all species studied. Handling cost was one of the largest contributing factors. As markets and pricing change, the metrics developed in this analysis can be used to produce new estimates of merchandising profitability.;Hardwood sawlog yield information is an important component that helps define hardwood sawmill profitability. This research investigated the use of cluster analyses and ordinal logistic regression in segregating red oak sawlogs based on potential revenue. A combination of statistical classification and an applied approach was found to be the best method for developing log grades. The final log grading table presented is not without problem; however it is the first comprehensive investigation of log grades in over 45 years and will help to begin the dialogue towards the development of a standardized hardwood log grading system

Landowner willingness to engage in long-term timber leases in West Virginia, USA

As global competition increases for wood-based products, the need for more efficient supply chains becomes increasingly important. In the forest products sector, these supply chains involve individuals and firms ranging from private forestland owners with standing timber to factories producing final finished products. Under the assumption that ‘transparent’ supply chains are beneficial to members within the supply chain, the authors are investigating how this transparency can be increased and what benefits might accrue to private forest owners who are associated with a specific supply chain under a long-term agreement. In recent years, hunting lease agreements between family forest owners and various organized hunt clubs or individuals have become commonplace in the Appalachian mountains of West Virginia. Can long-term timber leases become a new opportunity for landowners, forestry professionals, and wood-based industries? This paper describes a survey of private forestland owners in West Virginia that investigated the perceived concerns, benefits and barriers landowners have with regard to entering long-term timber leases with forestry professionals and timber firms

Decline in the U.S. Furniture Industry: A Case Study of the Impacts to the Hardwood Lumber Supply Chain

Traditionally, the wood household furniture industry has accounted for a sizeable portion of total hardwood lumber use in the United States. However, for more than a decade, imports have gained an increasing share of the hardwood furniture market, and lumber consumption by this industry has declined dramatically in the last 5 years. We used a case study methodology to investigate the impacts of this decline on the hardwood lumber supply chain. Eleven companies within the hardwood lumber supply chain were chosen as cases: 3 furniture manufacturers, 5 primary producers, and 3 components manufacturers. Seven core questions were asked during each interview and primary producers were asked two additional questions. Questions ranged from the impact of lean manufacturing techniques to the effects "green" certification may have on the industry. Furniture manufacturers appeared to be more optimistic regarding the future of the domestic furniture industry compared to the primary and components manufacturers. Furniture market declines have been quickly replaced by the cabinet and solid wood flooring sectors; however, the supply chain must continue to strategically develop new markets in the event of a housing sector slow down

Economics of Merchandising Pulpwood in West Virginia

There has been renewed interest in determining the feasibility of pulpwood merchandising yards in the Appalachian region. Intensive merchandising is a potential way to supply raw material to traditional markets as well as current and new weight-based pulp markets at a lower cost. The feasibility of developing a hardwood pulpwood sorting merchandising yard in West Virginia was investigated. More than 171,000 kg of pulpwood was procured for this project. The majority of the pulpwood purchased was red and white oak followed by black cherry and hickory. Results indicated that between 3.6 and 6.0 t of pulpwood was needed to saw 1 m3 of lumber. The merchandising operation resulted in negative net revenues for all species studied. Handling cost was found to be one of the most important issues leading to this finding. However, it was found that merchandising low-quality sawlogs on the log-landing could be profitable. The cost and revenues reported in this study represent a complex blend of pricing and product yields that are dynamic with time. As weight-based markets, such as engineered products and bioenergy, expand and competition increases with traditional markets, inputs could be refined which would create a new set of merchandising options for roundwood