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Logging and the trucking of wood supports 9,366 Maine jobs either directly or indirectly, as well as a range of industries and communities across Maine, according to a new analysis of the most recent figures available.
The Augusta-based Professional Logging Contractors of Maine this week released the study, "The Economic Contribution of Logging and Trucking in Maine," which was conducted by the University of Maine and the Margaret Chase Smith Policy Center.
The study says the logging and woods trucking industry also contributed an estimated $619 million to the state economy in 2017, the latest figures available.
“This study demonstrates the vast impact logging has on the Maine economy and highlights its role as the foundation of the state’s entire $7.7 billion forest products industry,” Dana Doran, executive director of the Professional Logging Contractors of Maine, said in a news release. “It also shows what Maine stands to lose if the mounting challenges to the logging industry are not overcome.”
To better understand the nature of the harvesting industry in Maine, analysts combined a traditional input-output analysis with primary data gathered from member companies of the Professional Logging Contractors, the trade association representing companies that together account for more than 75% of all timber harvested in Maine. Census data and information from the U.S. Bureau of Labor Statistics was also incorporated.
In addition to overall economic impact and jobs, the study and associated research presented a range of findings.
“The inevitable conclusion based on a review of the new study and of the wage and employment study released last year is that logging is a critical Maine industry under threat that must be preserved if the state is to avoid a collapse of its forest products industry and the deep and irreversible impacts that would have on Maine’s economy, rural communities, and character,” Doran said. “The challenges facing loggers are not insurmountable, but failure to overcome them would be disastrous for Maine.”
Doran said that one key to the future of the increasingly complex logging industry is education, such as the Mechanized Logging Operations Programs the PLC has created in partnership with the Maine Community College System. The program is currently recruiting students for its fourth 12-week class, scheduled to begin June 22 in the Old Town area. For more information, click here.
Education programs at the community college will not address the labor shortage.
Competitive wages and stable employment will. Very simple equation. Always has been. Wages and contracting rates will not rise sufficiently until more firms go out of business and available labor declined further.
Supply and demand.
If you are a TIMO or REIT, best to think about adjusting your business model as to asset value of your land and transactional values for new acquisitions going forward. Adjust accordingly or finance and operate your own logging and trucking crews. You pick.
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