Maine loggers are paying 24% more for goods and services than in 2020, survey shows
File photo / Courtesy, Professional Logging Contractors of Maine
Prices for parts, equipment, services and fuel have risen an annual 24% for Maine loggers since January 2020, according to a new survey.
From machinery to insurance, good and services for Maine logging companies are costing them 24% more than two years ago, the Professional Logging Contractors of Maine announced Wednesday.
That's one of the findings from a new survey by the Augusta-based trade group, which asked members to report their spending on 20 vital goods and services since January 2020.
Price increases ranged from 17% more for equipment and truck insurance to a 30% premium for lubricants and film. The inflation far exceeds the average 8.4% rise in costs for American consumers over the same period.
"While all Americans and industries are facing higher costs, it is clear that Maine logging companies are being hit harder than many at a time when most are already struggling with difficult markets and wood prices that are not keeping pace with rising expenses," said Dana Doran, executive director of the Professional Logging Contractors of Maine.
"Now, spiking energy costs are projected to add even more to the price of most goods and services in the coming months, worsening an already critical situation."
The price increases come on top of other negative economic impacts for the industry during COVID, including a 30% to 40% slump in wood markets in 2020 alone. Many businesses suffered revenue losses, layoffs and lost business, and the closure of a pulp mill in Jay due to an April 2020 explosion also cast a cloud over the industry's future.
Asked about his outlook for the industry in 2022, Doran told Mainebiz, "The belief of our members is that there are many challenges, but also plenty of opportunities in this business because Maine has one of the greatest forest resources in the country and the most hardworking and dedicated loggers in the world."
"With that said," he added, "there needs to be recognition by those that contractors work for that the future is tenuous unless there is a full understanding of the cost burden that is suffocating so many across this industry."
Maine's loggers are a vital part of the state's forest products sector, which is worth an estimated $8.1 billion annually. Logging contributed an estimated $619 million to the state's economy in 2017.
Members of the Professional Logging Contractors of Maine, founded in 1995, are responsible for cutting around three-quarters of the timber harvested from Maine's forests annually.
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