Lots of timber, too few loggers?

Almost a third of regional logging firms cited poor or very poor profits in 2003, according to a regional survey by UW–Madison and Michigan State University.

About 23 percent of the logging firms in Wisconsin and the Upper Peninsula also said they did not expect to be in business in five years, citing economic pressures as the predominant reason.

The regional logging sector is financially pinched between increasing timber harvesting costs and mill prices that have not kept pace in the short term. Also of concern is the general financial condition of the logging industry, coupled with a graying of firm owners and the apparent lack of new loggers, says UW–Madison researcher Mark Rickenbach.

Despite the large potential drop in timber harvesting capacity, the ultimate impact on timber supply is unclear, says Rickenbach.