Virginia’s Logging Workforce Preliminary Results of the 2014 SHARP

Logger Survey

Scott Barrett Extension Specialist - Forest Operations

Virginia Tech Department of Forest Resources and Environmental Conservation

College of Natural Resources and Environment

Virginia’s SHARP Logger Survey Provides Characteristics of

Virginia’s logging operations

Logging business owners attitudes about the future

Provides data that allows us to track changes over time

Virginia’s SHARP Logger Survey

Virginia is a diverse state Operations vary substantially and survey data allows

us to make generalizations by regions to describe the logging workforce

Surveys provide a lot of data 2014 survey data is still preliminary

Virginia’s SHARP Logger Survey

Virginia’s SHARP Logger Survey Mail Survey of all VA SHARP loggers Two parts, one for all SHARP Loggers,

one for Logging Business Owners Conducted in 3rd and 4th Quarter 2014 Second comprehensive Virginia logger

survey Previous survey was completed in 2009 Worked with Chad Bolding and John

Munsell Presented some of the results at the

2010 VLA meeting

2014 Survey Response Rates 1600 Questionnaires

mailed to all current SHARP Loggers

847 responses 53% response rate 46% (385) Logging

Business Owners

Lee

Wise

Scott

Dickenson

Washington

Russell

Buchanan

Tazewell

Smyth

Grayson

Bland

Wythe

Carroll

Giles

Pulaski

Montgomery

Floyd

Patrick

Craig

Roanoke

Franklin

Henry

Pittsylvania

Bedford

Botetourt

Alleghany

Bath

Rockbridge

Amherst

Campbell

Halifax

Mecklenburg

Charlotte

Appomattox

Buckingham

Nelson

Augusta

Highland

Rockingham

Albemarle

Fluvanna

Greene Orange

Louisa

Madison

Page

Shenandoah

Frederick Clarke

Warren

Culpeper

Rappahannock

Fauquier

Loudon

Fairfax

Prince William

Stafford

Spotsylvania

Caroline

King George

Hanover

Lunenburg

Suffolk

Surry

Prince Edward Nottoway

Amelia

Powhatan

Dinwiddie

Prince George

Chesterfield

Hampton

Portsmouth

Mountains (100) Piedmont (185) Coastal Plain (67) Virginia county not specified (33)

2014 Business Owner Responses by Region

Operational Differences by Region Mountain operations tend to have lower production levels Often use manual felling (89%) & cable skidders (48%) Primarily hardwood production (82%) Fewer businesses with multiple crews (6%)

Piedmont is a transitional region, often more like Coastal Plain Manual felling (30%), Grapple Skidder (78%) 16 % multiple crew businesses

Coastal Plain operations typically have the highest production Predominantly Mechanized felling & skidding (91%) Primarily Pine Production 27% multiple crew businesses

Average Number of Crews per Business

1.05 1.12

1.43

1.09 1.2

1.47

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

Mountains Piedmont Coastal Plain

Crew

s / B

usin

ess

2009 2014

Average Production Rates by Region Average Loads / Crew / Week Average Tons / Business / Week

11.0

22.2

32.2

10.9

25.8

38.8

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Mountains Piedmont Coastal Plain

Load

s / C

rew

/ W

eek

2009 2014

249

675

1336

262

904

1500

0

200

400

600

800

1000

1200

1400

1600

Mountains Piedmont Coastal Plain

Tons

/ B

usin

ess /

Wee

k

2009 2014

Number of Workers per Crew

2.79

3.26

4.21

2.77

3.29

4.09

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

Mountains Piedmont Coastal Plain

2009 2014

What would you estimate is the total current value for all logging equipment used for producing wood (roundwood and chips) on your harvesting operations NOT including trucks & trailers? dollars

$244,880

$473,804

$748,083

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

Mountains Piedmont Coastal Plain

Average Current Value of Logging Equipment (Excluding Trucks)

In the past year has your total production increased, decreased, stayed about the same?

26%

35%

45%

58% 57%

48%

16%

8% 7%

0%

10%

20%

30%

40%

50%

60%

70%

Mountains Piedmont Coastal Plain

Increased Stayed the Same Decreased

Production levels for all logging businesses (tons/ week/business) A lot of smaller operations with relatively low

production

How much production do the larger operations account for? Businesses sorted by region (Mt., Pied., Coastal) Sorted by weekly production level (tons) Production level divided into thirds Production for each “third” of businesses / total

production reported by region (tons ) So how much production do the “top third” of

businesses account for in each region?

Percent of total estimated production (tons/week) produced by upper 1/3 of businesses (based on reported production)

66.5% 72.5%

68.3% 68.1% 75.1%

69.3%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Mountains Piedmont Coastal

2009 2014

24.9%

22.0% 22.7% 23.2%

19.7%

22.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Mountains Piedmont Coastal

2009 2014

Percent of total estimated production (tons/week) produced by middle 1/3 of businesses (based on reported production)

8.6%

5.5%

9.0% 8.7%

5.2%

7.9%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Mountains Piedmont Coastal

2009 2014

Percent of total estimated production (tons/week) produced by lower 1/3 of businesses (based on reported production)

What percent of the timber that you harvested in the past year came from the following sources? (Should total 100%) Timber I bought or negotiated_____% Contract logging of timber bought by someone else_____%

81%

64% 60%

19%

37% 41%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Mountains Piedmont Coastal Plain

Timber I bought or negotiated Contract logging

What percentage of the timber you bought in the past year came from the following 3 types of sales? (Should total 100% ) Lump sum timber sale_____% Cut on “shares” (landowner receives a set percentage of delivered price received as tract is harvested)_____% Per Unit/ Pay as cut sales (landowner receives a set price per ton/MBF for each ton/MBF as tract is harvested) ___%

21%

31% 31%

65%

42%

13% 12%

27%

51%

0%

10%

20%

30%

40%

50%

60%

70%

Mountains Piedmont Coastal Plain

Lump Sum Cut on Shares Per Unit / Pay as Cut

Does your company use contract trucking? (Circle One) Yes No

15%

33%

57%

19%

35%

62%

0%

10%

20%

30%

40%

50%

60%

70%

Mountains Piedmont Coastal Plain

2009 2014

34%

16%

11% 11%

28%

38%

19%

10% 13%

19%

0%

5%

10%

15%

20%

25%

30%

35%

40%

1-25% 26-50% 51-75% 75-99% 100%

2009 2014

Does your company use contract trucking? (Circle One) Yes No

If YES, what % do contractors haul? (Circle One) 1-25% 26-50% 51-75% 75-99% 100%

Do you currently have markets for biomass (fuel chips) in your area?

8%

37% 38%

54%

68% 64%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Mountains Piedmont Coastal Plain

2009 2014

Do you currently harvest fuel chips?

2%

18%

10% 8%

34%

28%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Mountains Piedmont Coastal Plain

2009 2014

Average Business Owner Age

48.7 51.2

0

10

20

30

40

50

60

Age (

Year

s)

2009 2014

48.4 49.1 47.6 50.4 51.9 50.9

0

10

20

30

40

50

60

Mountains Piedmont Coastal

Age (

Year

s)

2009 2014

86% 81% 91%

14% 19% 9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mountains Piedmont Coastal Plain

Yes No

Do you expect to be operating your logging business in 5 years?

If you plan on being in operation in 5 years, do you expect your production to be more, about the same, or less?

35%

43%

50%

62%

53%

46%

3% 4% 4%

0%

10%

20%

30%

40%

50%

60%

70%

Mountains Piedmont Coastal Plain

More Same Less

Does your company use any of the following technologies? (Circle ALL that apply) Global Positioning System (GPS) Computer mapping Internet E-mail

19% 14%

43% 43%

27% 22%

51% 53%

0%

10%

20%

30%

40%

50%

60%

GPS Computer Mapping Internet E-Mail

2009 2014

Virginia Loggers Association

Awareness of Associations 90.6%

32.0%

85.8%

26.1%

90.7%

26.0%

85.5%

23.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Aware of VLA VLA Member Aware of VFA VFA Member

2009 2014

How do you get information on current events or legislative issues facing the logging industry?(Circle ALL that apply) Trade Magazine (Southern Logging Times, etc.) Associations (ALC, VLA, VFA, VFPA) Word of mouth Internet Company Forester Don’t look for it

66% 61%

31% 31%

18%

5%

58% 59%

25% 28%

25%

5%

0%

10%

20%

30%

40%

50%

60%

70%

Word of Mouth Trade Magazines Associations CompanyForester

Internet Don't Look for it

2009 2014

Percent of Logging Business Owners Indicating VLA Membership

17%

36%

48%

11%

31%

43%

0%

10%

20%

30%

40%

50%

60%

Mountains Piedmont Coastal Plain

% of Business Owners 2009 % of Business Owners 2014

Non-Members VLA Members Crews Per Business 1.1 1.5 Loads Per Crew 18 39 Tons / Week / Business 503 1736 Est. Value of Logging Equipment

$293,793 $907,566

What do VLA Members look like compared to the rest of the Loggers?

Non-members VLA Members GPS 21% 42% Internet 47% 63% E-mail 49% 66% Computer mapping 18% 34%

Does your company use any of the following technologies? (Circle ALL that apply) Global Positioning System (GPS) Computer mapping Internet E-mail

What do VLA Members look like compared to the rest of the Loggers?

Logging Business Owner Attitudes We included a section in the questionnaire to measure

owners’ attitudes on issues and topics that we often hear as concerns or issues related to logging operations.

Owners were provided a statement and then asked to rank their level of agreement with the statements using the following scale:

strongly disagree – disagree – neutral - agree - strongly agree

There is a shortage of qualified truck drivers / trucking contractors needed to transport wood from my operation. There is a shortage of qualified logging equipment operators needed to run equipment on my logging operation.

48% 51%

82%

54% 53%

63%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Mountains Piedmont Coastal Plain

Percent of Owners that Agree or Strongly Agree

Driver Shortage Equipment operator shortage

I am confident that new biomass markets will provide stable long term markets for wood.

0%5%

10%15%20%25%30%35%40%45%50%

StronglyDisagree

Disagree Neutral Agree StronglyAgree

Mountains Piedmont Coastal Plain

41% 43%

50%

0%

10%

20%

30%

40%

50%

60%

Mountains Piedmont Coastal Plain

Percent of Owners that Agree or Strongly Agree

Biomass markets have benefitted my business.

20%

36%

57%

0%

10%

20%

30%

40%

50%

60%

Mountains Piedmont Coastal Plain

Percent of Owners that Agree or Strongly Agree

0%5%

10%15%20%25%30%35%40%45%50%

StronglyDisagree

Disagree Neutral Agree StronglyAgree

Mountains Piedmont Coastal Plain

The outlook is positive for the logging industry in VA

0%

10%

20%

30%

40%

50%

60%

70%

80%

StronglyDisagree

Disagree Neutral Agree StronglyAgree

Mountains Piedmont Coastal Plain

63% 65%

76%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Mountains Piedmont Coastal Plain

Percent of Owners that Agree or Strongly Agree

Virginia’s Logging Businesses Average production rates generally increased from

2009-2014 Many logging businesses in Virginia appear to be

getting larger and more productive, especially in the Piedmont and Coastal Plain

Many operations have responded to changing markets by adding chippers to utilize logging residues for energy

Most plan to either stay the same or increase production over the next 5 years

Fewer operations that expect to decrease production

Virginia’s Logging Businesses There are always challenges Average age of owners is increasing Finding drivers and equipment

operators is a challenge for many Outlook is positive among most

business owners With strong markets, logging

businesses will continue to find ways to succeed and produce the products needed for the future

Virginia’s Logging Workforce Preliminary Results of the 2014 SHARP

Logger Survey

Scott Barrett Extension Specialist - Forest Operations

Virginia Tech Department of Forest Resources and Environmental Conservation

College of Natural Resources and Environment