Pellet Manufacturer Ready to Compete with Power Co.

A Pellet Manufacturer is poised to go direct to the public in Maine and compete head to head with the local electric utility, offering consumers metered electric power and heat with no up-front capital investment.  The plan is simple really; offer customers what they want.  By providing a no-hassle, metered boiler with a large capacity hopper that needs to be filled only once or twice a month, consumers get cheap, reliable heat and electricity.  In the US we enjoy reliable power, but cheap is not something that is often used to describe the bill we all receive every month.  Wood Pellet boilers cost about 60% less to operate per BTU or KW, than metered electricity in New England.  Mainebiz, an online news outlet, published an in-depth interview with Steve Mueller, President of International WoodFuels.  Mueller’s company has begun construction of a new mill to produce pellets in Burnham, Maine.  The facility will also offer metered electric, wood pellet fired boilers to customers in the Burnham area as an integrated part of their business model.  To read the full article follow the link below.

Mainebiz.biz – Putting the punch in Pellets

International Trade Commission Votes to Pursue Investigation!

November 10, 2009

The International Trade Commission voted unanimously to proceed with an investigation into complaints by major US Paper Companies that Malaysian and other Asian paper producers have dumped cheap imported paper onto the US market and cost the industry hundreds of millions in revenue and thousands of lost jobs.  The vote comes on the heels of several high-profile paper mill closings announced by Georgia Pacific and International Paper.  International Paper alone reduced its workforce at three mills by over 1600.  This figure does not account for the loggers and timber companies affected by their decision.  The accusations are being strongly considered as southern US paper manufacturing facilities are historically some of the most efficient and most productive facilities in the world.  Nonetheless, they do not appear able to compete with virtually free timber, provided by Asian governments as an incentive that appears likely to be declared illegal.  To read the full article follow the link below.

Packaging Digest – ITC Issues Preliminary Determination

South Carolina Logger Improves Safety & Bottom Line!

In Bethune South Carolina, a successful logging operation has created a custom solution that improves worker efficiency and safety.  Lawrence Smith, owner of Smith Timber, has developed several great ideas into real savings and improved safety and the bottom line.  Lawrence got his start many years ago, when his father in law made him an offer he could not refuse.  Frustrated with not being able to find good workers to help him in the woods, he offered Lawrence a hefty salary for the time and a company truck to go with it.  Lawrence soon left Columbia and moved to Bethune to help the family business.  Since then he has worked hard to build on the business he eventually bought.  Smith Timber performs a variety of harvesting services including thinning, clear cuts and in-woods chipping.  Over the years Lawrence discovered that one of his biggest adversaries was fire and minor break-downs like hose failures.  Fire destroyed a brand new Timberking 380 Feller Buncher that he purchased new in 2004.  Fire also nearly destroyed a Peterson 5000G Chipper as well.

To combat this challenge he devoted some time and thought to building a custom firefighting rig that his operators could use in the woods.  The result is very simple in its design and construction and was very inexpensive.  It consists of a 200 gallon tank mounted on a small trailer with a box welded onto the rear for a small gasoline engine and pump.  A hose reel with about 50ft of heavy duty hose and spray nozzle completes the rig.  If a fire breaks out on a piece of equipment at the landing, the rig is stationed nearby to put out the fire.  If it breaks out on a machine in the woods, a skidder operator can easily back up and grab the trailer, carry it to the fire and put it out.  The operator simply fires up the small engine which drives a pump and the operator can place foam fire retardant on target, up to 30ft away.

Lawrence claims the rig has saved him thousands and thousands of dollars not only in reducing loss due to fire, but also in protecting his workers from the incredible heat of an equipment fire.  Often machines are so hot, that a operator will get burned trying to get close enough with an extinguisher to help control a fire.  With the pump trailer, an operator can stand at a safe distance and completely suffocate a fire with the foam retardant.  In addition to the fire suppression rig, Smith also uses a very innovative fuel and tool trailer that he constructed specifically to support his in the woods chipping operation.  “You lose so much time going back and forth into town to replace a hose or get a minor part that it just makes good sense to have as much on the job as possible”.  Smith even fitted the trailers with a microwave and storage for the crew to keep snacks and meal supplies for lunch.  Inside the trailer is a hose machine and a wide range of fittings as well as belts, spare chains, saw teeth, packing kits, filters, extra knives for the chipper, welder and supplies, etc., etc.  “I got so tired of a hose blowing on a machine and the entire crew sitting for half a day.  Now the rest of the crew never stops while we make a hose in the woods or fix a leak on a machine”.  One thing that makes the supply trailer really work well is the hose and fitting maker has supplied Smith Timber with a hose machine and they come out to the woods once a month to replenish his supplies, billing him for what he has used.

The trailer is a very simple thing to construct, starting with a standard loader frame, Smith added a 20ft shipping container and a 3000 gallon tank.  To the underside of the container and the tank on both sides he welded locking tool boxes for power tools, hoses and a pump and pony motor to run the fuel tank.  The major benefit is being able to refuel his machines in less time with a higher pressure hydraulic pump.  He can refill a 300 gallon tank on his chipper in 8-10 minutes, instead of the 30 minutes or more he once waited with a standard 12 volt electric pump and fuel tank.  “It’s hard to be out here 10 hours a day and you are tired and want to get home, then stand there and wait on a fuel pump for half an hour”.

Best of all Smith Timber enjoys a good discount on their insurance because they have the fire suppression trailer on site whenever they are working.  With workers compensation and property and casualty insurance taking an ever bigger bite out of the bottom line, a logger needs all the help he can get.   Smith Timber has a few more secrets that help them reduce fire loss and improve productivity.  One of them is an Ingersoll Rand, High-pressure air compressor.  “I used to clean all my machines with a pressure washer but it just takes too long and when they are done the machine is so wet you can’t see your leaks to fix them.  Now with this air compressor, I can blow trash and pine needles, leaves and wood debris out of a machine in a lot less time and the compressor dries the machine while it is cleaning.  As soon as we are done we can turn on the machine and find leaks immediately.  This is the best investment I have ever made.  This machine keeps all my machines clean and significantly reduces the risk of fire because it helps you find leaks faster.  You have to be careful and be sure to wear a face shield because its high-pressure, but nothing cleans better or faster.”

Lawrence was more than happy to agree to let me post some of his tricks of the trade here on Skidderzone for our visitors to read and enjoy.  If you have some good ideas, tools or techniques that have helped you get a leg-up, please feel free to email or call and I can stop by and see you the next time I am on the road.

Until next time,  God bless you and all our logging and sawmilling communities.

Jesse Sewell

Market Roundup – October 2009

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Weak Dollar Giving Exports a Boost!

I cannot explain why the US market has been so slow to recover but I can tell you that overseas markets are seeing an increase in activity and it is broad based, from Asia to South America to Europe.  Requests for Heavy Equipment from all of these markets are up substantially and orders as well.  If this is an indication that the global market is improving than I am certainly happy for it.  In the past three weeks we have received requests for equipment from five foreign markets that in recent months have been relatively silent.  I would like to think this is due to stronger demand for wood products from all of these regions but my gut tells me it has more to do with the current favorable exchange rate than anything else.

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Rain in Southern US Set to Boost Pulp Prices

In the southern US there has been almost steady rain for weeks and the Gulf States have been hit again just the previous day or two with another system that dumped several inches accross east Texas, Arkansas and Louisiana.  This same storm is now slowly working its way accross Alabama and will put a damper on logging activities that have already been curtailed by a very wet September and early October.  This can only have one effect on pulp prices and that is upward pressure to get loggers back in the woods.  This should be a welcome pre-holiday boost for loggers if prices can move upward and hold for a few weeks heading into the holidays when things tend to normally slowdown, plants schedule shutdowns, etc.  Perhaps this year we will have a more active holiday season than in years past.

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Availability of Credit

WY Campbell publishes an extensive quarterly report on the business activity and strength of mid-market companies in the $10 million to $500 million range.  They continue to cite the availability of credit as the most significant negative factor contributing to a protracted recovery.  The report is excellent and it gives a very thorough analysis of our current market conditions and factors that are both deteriorating and improving.  The conclusion is a positive overall improvement, but doubts as to whether the market will continue to improve unless we can get credit markets moving again.  To see the report in full or download a free copy simply click this link

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If you have a market update, good or bad you would like to share with our visitors please feel free to share a comment by clicking the link below.  We appreciate anything you might have to add from your neck of the woods.

Germany Moving Toward Renewable Energy!

Rueters is reporting that Germany is resisting any new efforts to promote nuclear power as a clean energy option for Europe’s largest economy and the EU as a whole.  German opposition is credited with keeping nuclear energy off the table when the EU drafted its recent ‘Climate Change Strategy’.  All this bodes well for wood industry investors and workers producing fuel pellets and biomass destined for European markets.  Germany is already the largest purchaser of wood pellets for home and commercial energy and heat.  With continued resistance to nuclear, that market will continue to grow at an alarming rate.  Demand for Wood Pellets in Europe has doubled annually for the past 5 years and there appears to be no end in sight.  To read the full article visit the link below.

Rueters – ‘Germany Votes for Nuclear Autumn – Not Spring’

Sold! 2008 CAT 525C Dual Arch Skidder

This machine was just too wide for its current owner and they asked if we could help them find a new home for it.  Two weeks later she is on her way to an overseas buyer who was more than happy to have this immaculate machine with less than 1000 hours.  Often visitors to our site will stop in and look at what we have listed, but never think to ask if we can find them what they need.  YES!  The answer is definitely yes.  We have Agents on the ground in key markets that can help us find buyers if you are selling and sellers if you are buying.  Let us know what we can do to help you buy or sell your next machine.

Jesse Sewell – Forestry Division Manager – 843-617-7793 or jesse@dutchmanglobal.com

Trade War Brewing over Cheap Paper!

Forbes.com is reporting today that the Obama administration is reviewing documents submitted by three major US Paper companies and their Union. They argue in their complaint that Asian paper producers are dumping cheap, government subsidized paper on the US market, driving down the price of uncoated papers (standard type used for home and office printing) and putting thousands of US workers out on the street.  US imports of foreign made paper have doubled on the year from 2008 with the vast bulk of that increase going to Asian producers.  To make matters worse, the environmental record of Asia’s largest producer is the stuff of legend. Asian Pulp and Paper, based in Indonesia, has already earned themselves a total ban from a dozen or more major US retailers (Wal-Mart included) due to their controversial logging practices.  To read the full article follow the link below.

Forbes – ‘Paper – The Next Trade War Skirmish’

2005 HydroAx 670 Feller Buncher with 22″ Hi-Cap Saw!

Excellent, one owner machine in the South, very well cared for, clean and ready to work with nice rubber, cold air and 22″ Hi-Cap Sawhead.  To see more pics and information please follow the link below.

2005 HydroAx 670 Feller Buncher with 22″ Hi-Cap Sawhead

1997 Peterson 5000G Whole Tree Chipper

One owner machine with engine rebuild, numerous enhancements, ready for work and well maintained in good running condition.  For more information and pictures visit the link below.

http://jessesewell.wordpress.com/whole-tree-chippers-grinders-screens-for-sale/1997-peterson-5000g-two-flail-chipper/

2004 Timberking 370 with 2900 Hours!

Very clean, one owner machine, sold new in 2006, well cared for, this unit has plenty of power and a 24″ cut, single post sawhead, 30.5 Tires, follow the link below for more pictures and information.

2004 Timberking 370 Feller Buncher with 2900 Hours!