Sam Sherrill, Ph.D.author, Harvesting Urban Timber: A Complete Guide

March 3, 2010

• This presentation is not about writing a business plan: points covered would be an important part of a plan.
• These are questions to answer and issues to consider even before writing an urban timber business plan .
• After thinking about the answers and issues, you may feel like moving ahead.
• Or, you may feel like sitting down and waiting until the feeling of wanting to start this kind of business goes away.
• Sawing urban logs is easy compared to successfully operating an urban timber business.

Presentation organized around place, scope, and scale:

where will you start an urban timber business,

what urban timber product or products will you produce, and

what size operation will you choose to start with.

PLACE: Five Basic Questions to Ask Yourself

1.  In terms of the size and species of the urban forest,  will your area support an urban timber business?

Few trees of saw log size and marketable species, no business.

The best data source is:

• Local tree inventory that directly measures saw log content of a sample of urban trees.
• David MacFarlane, Associate Professor of Forestry, Michigan State University.¹ Detroit, Lansing, Ann Arbor, MI area.

• Campaign for such a survey in your area using new green business, employment, and waste management arguments.
• Survey results could represent similar areas.

Summary of the MI urban forest saw log survey.

The goal of the survey was to measure the quality, quantity, and accessibility of urban saw timber across different urban land types.  Included public and private land.

Four types of urban areas were identified and sampled in 13 lower MI counties:

• • suburban lots (low-intensity built areas)
  • urban lots (high-intensity built areas)
  • roads and paved areas (e.g., parking lots)
  • parks and golf courses

Findings:

• • Overall, 72% of the trees were judged to be easily or moderately easy to extract, ranging from 50% for low density suburban lots to 99% for parks and golf courses.
  • Total standing urban saw timber in 2005 was about 327 million board feet:
  • 235 million board feet were accessible.
  • 89% of all the saw timber consisted of commercially valuable hardwoods such as walnut, oak, ash, soft/hard maple, hickory, poplar, basswood, and birch.²

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¹MacFarlane, D.W. 2007. Quantifying urban saw timber abundance and quality in southeastern Lower Michigan, U.S. Arboriculture and Urban Forestry 33(4): 253-263.

² Plus 1% non-commercial hardwoods and 10% softwoods.

• • About 4.7 million board feet are available each year from dead and dying trees, assuming about 2% of easy plus moderately easy accessible trees are harvested annually.
  • By USDA FS standards (1 being the highest quality), the distribution for hardwoods is:
  • grade 1:     11%  grade 4:     4%
  • grade 2:     13%   grade 5:   48%
    • • grade 3:     24%
  • Subtotal:            48%                            52%

• • Enough to supply the minimum annual needs of 5 small saw mills.
  • 2% if considered quite conservative, may be much higher given storms and infestations.

Used Detroit survey in Cincinnati in the following way:

Greater Cincinnati area      3809 sq. miles

Detroit, Lansing, Ann Arbor area 6564 sq. miles

Cincinnati tree canopy cover 51%²

Detroit, Lansing, Ann Arbor cover 38%³

.51 x 3809/.38 x 6564 = .78 x 4.7 million bd. ft. = 3.7 million bd. ft. available for annual

harvesting in the Greater Cincinnati area.

Assumes distribution by tree size, quality, and species about equal in two areas.

2.  Without a survey, how do you find out whether your area has enough trees of valuable species?

Look for convergence of information from:

• • • • foresters in parks/public works departments
      • DNR state foresters
      • tree service companies
      • utility companies
      • landfill operators
      • commercial and residential developers
      • owners of large forested properties (e.g.,  Biltmore Estate in Asheville, NC)
      • university departments of natural resources
      • where available, local tree inventory data

• The MI survey focused only on saw logs that yield lumber of uniform quality bought by thousands of board feet at commercial lumber prices.

Survey did not include logs and lumber from trees that are special by virtue of their

• • history,
  • place of origin,
  • personal value, or
  • artistic value because of unusual grain, figure, width, thickness, or flaws (wane, or splits).

• • There is much additional value in special urban trees that urban timber businesses can

• capture beyond their value as commercial lumber.

• • Basically, provenance and distinctive grain and shape are the sources of additional value.
  • Return to this point later in the presentation.

3.  Next question: are local residents, businesses, and governmental agencies likely to support an urban

tree business in a timely and adequate way ?

Example: Asheville, NC versus Cincinnati, OH.

Asheville, specifically the Biltmore Estate Co.

Local investors and woodworkers supported the idea immediately.

• • By contrast, in Cincinnati idea slow to catch on after a ten year effort. EAB infestation forced local action: would not have occurred otherwise.

• • Cities, like people, have personalities.  Some are  open to new ideas and are willing to experiment.  Others, not so much.

May pick area with lower return for other perhaps personal reasons.  You may want to continue living in the city where you live now.

Given the quantum of money and effort you have to invest, you must critically exam the urban area(s) where you are thinking of doing business and look for those that offer the highest annual return.

Be aware that the possible opportunity cost of picking for other reasons — however compelling — is a lower rate of return on your effort and capital.

4.  Specifically, can you get timely local support from the following?

• • private property owners,
  • tree service and utility companies,
  • developers,
  • new business incubators,
  • parks departments,
  • waste management agencies,

• • woodworking community,
  • mill work and cabinet shops,
  • woodworking stores,
  • retail lumber businesses,
  • architects,
  • universities, and
  • media.

Answers will have a major impact on the success of your urban timber business.

5.  What kind of answers are you looking for?

• Property owners: suppliers who will donate tree  from yards and business properties.                                              (Incentive: federal/state tax deduction for  donations.)
• Tree service companies: suppliers who will partner with you to identify saw log trees, buck them in saw  log lengths, haul the logs to the mill for modest fees.
• Utility companies: suppliers who will partner the same as tree service companies.
• Developers: suppliers who will donate trees from land clearing operations.
• Business incubators: cooperatively assist in writing business plan.
• Parks departments: suppliers who will work co-operatively to use felled park and street trees in public projects.  Possible partner in state/federal  grants.
• Waste management: support with grants to develop businesses that divert trees from landfills.  Possible partner in state/federal grants.
• Woodworking community: buyers for furniture, turning, and crafts projects.                              Possible partners on specific woodworking projects for owners of trees.

• Mill work and cabinet shops: lumber buyers.
• Retail woodworking stores: buyers (e.g., Rockler and Woodcraft).
• Retail lumber stores: buyers.
• Architects/interior design: influence buyers and  sellers by incorporating local lumber into design

and building specifications.  Possible partner in state/federal grants.

• Universities: natural resource & business colleges offer advice, student participation, and

Research support.  Possible partner in state/federal grants.

Based on my experience and answers, would I recommend Asheville, NC and equivalent cities?

Definitely Yes.

Would I recommend Cincinnati, OH and equivalent cities?

Probably Not.

Again, the question is: which area provides the greatest return on effort and investment in a timely and adequate way?

SCOPE: Three Questions and Several recommendations

1. From sawing to finished products: what operation or combination of the following operations are you

going to do?

• • sawing,
  • drying,
  • selling lumber, and/or
  • making and selling finished wood products.

2. What basic equipment is necessary to start a modest size urban timber business that can produce dried

lumber?

• • Obviously, mill and truck plus
  • Adequate size and properly zoned property for log and lumber drying & storage

And, for those tight suburban lots (50% accessible), a way to move logs if tree service companies won’t.  Options are:

• • Log carriers and
  • arches (& ATV)

• • Another option, often available at tool rental companies, is a pipe carrier (brand name, Grasshopper) that can be used manually by one person.  Less than 3 feet wide, fits through gates of fenced yards.

Some very large logs may not be easily accessible or easily moved.

What then?  Two options: a slabbing chain saw can reduce logs to manageable pieces for moving and sawing.

Back to the question: What basic equipment is necessary for urban timber business?

• • saw
  • truck
  • log mover
  • slab saw
  • crane truck or trailer with crane
  • hauling trailer
  • forklift
  • kiln
  • metal detector, moisture meter, chainsaw, log jack, winch
  • well equipped wood shop for wood products

3. What Wood Products?

Some saw, dry and sell lumber:

• • Horigan Urban Forest Products, Skokie, IL
  • Asheville Treecyclers, Asheville, NC
  • Far West Products, Sheridan, CA
  • Evan Shively, Marshall, CA

In addition to lumber, some make other products such as flooring:

• • Anderson’s Alternatives, Mendocino, CA
  • Rob Bjorklund, Local Wood, Santa Barbara, CA
  • Dave Parmeter, CA Hardwood Producers, Auburn, CA

• While others produce lumber plus a variety of constructed products such as outdoor buildings and furniture:

• • Don Seawater, Pacific Coast Lumber, San Luis Obispo, CA
  • West Coast Arborists, Anaheim, CA

• Finally, there are those who process or can manage the processing of urban trees into lumber and then make a range of products from furniture to building timber to art works:

• • Paul Discoe, Live Edge, LLC, Oakland, CA
  • John Metzler, Urban Tree Forge, Pittsburgh, PA
  • William Scroggins, Moonstone Redwood, Cambria, CA
  • Sam Sherrill, Urban Forest Craftsmen, Milford, OH

Recommendations:

• • Purchase as much equipment as you can afford to reduce the amount of physical effort expended.
  • Don’t underestimate the impact of injuries and illness on ability to conduct small business.
  • With greater physical effort comes a greater likelihood of muscular and skeletal injuries that can shut down a small operation for weeks and can lead to a loss of paying projects and loss of reputation for reliability.
  • At minimum, two-person operation with each being equally productive substitute for the other.
  • Both able to operate mill with equal skill.
  • Seriously consider a kiln at start-up.  With kiln you alone control the drying process critical to production of lumber and wood products.  Especially so for one-of-a-kind trees.
  • Buy used equipment when possible.
  • Consider building a kiln at start-up (CFF plan).

Market lumber in three broad categories:

• • 1. to meet commercial lumber standards for quality, moisture content, and dimensions
    2. irregular lumber that does not meet commercial standards for quality/dimensions but has artistic value owing to unusual grain, figure, width, thickness, or flaws (wane, splits).
    3. commercial and irregular lumber having additional value owing to
       • history: Liberty Tree
       • place or origin: Biltmore Estate, Asheville, NC
       • personal value: 500 year old family bur oak
       • unusual grain and size: Nakashima walnut

In addition, the argument can be made that urban hardwood products sequester CO₂ for the life of the products, thus reducing an important GHG.

Used as firewood or mulch, CO₂ is released sooner as wood is burned and the mulch decays.

This issue has been examined for wood products from commercial timberlands but not yet from urban forests.   Research on commercial forests plus anecdotal urban timber harvesting experience suggests urban hardwood products may reduce CO2 as much if not more than commercial forest products.  With funding, Sherrill and Bratkovich may have estimates by the end of this year.

SCALE: Five Questions and Some Recommendations

1.  Given choice about scope, how large an operation do  you have in mind?

Assuming an adequate supply of urban saw logs, the answer depends on the sources and collective

level of demand for urban lumber.  Assuming adequate property and two people, to start:

• • LT-70,
  • chain saw/slab saw,
  • truck,
  • trailer with crane,
  • trailer for lumber,
  • log arch/carrier (and ATV),
  • forklift,
  • small kiln/moisture meter

2. Can I start a smaller business with less and work up?

From my experience, can start with small mill (W-M LT-15, for example), pick-up (7’ bed) and trailer

for hauling saw and small logs.

Sent large logs to sawyer with large mill and lumber to closest kiln for drying (this might be a problem, depending on where you live).

Adequate for my furniture making and pen turning.

Does require much manual labor.

3. Has thought been given to the transition from hobby/part-time to full-time business?

Will spend more time operating business and less time sawing.

More time with people and less with wood.  People can be a whole lot more annoying.

4.  What about competition?

• Expect competitors because capital requirements are low and operating skills are modest.
• Entry into this business is easy, so is the exit.
• Can charge higher prices if first, competitive prices if not first.
• Differentiate from other businesses by linking to:
  • tree service companies (referrals to/from)
  • custom furniture makers
  • kilns
  • manage process from tree to finished product

5. What are sources of demand for urban lumber?

1. custom furniture and cabinet makers
2. architectural millwork firms
3. wholesale and retail lumber yards
4. manufacturers of wood products (e.g., plaques, kitchen cutting boards, decorative boxes (including jewelry boxes and humidors), picture frames, shelving, wooden toys, and spindles and dowels.
5. manufacturers of pallets, skid, crates, and dunnage
6. trucking companies for trailer decking
7. amateur and professional woodworkers: turners, crafts, and furniture
8. specific groups such as the Amish that buy logs to make furniture/crafts
9. tree owners: individuals and organizations
10. urban parks and recreation departments: benches, tables, playgrounds, trail steps and rails
11. educational institutions that teach woodworking
12. sawmill and kiln operators
13. architects/interior designers who influence design and use of materials (for LEED credit, for example)
14. railroad companies for ties
15. retail woodworking stores such as Woodcraft and Rockler
16. landscaping companies for retaining walls and steps.

Recommendations:

Actively explore private-private arrangements: example, Biltmore Estate Company with Asheville Treecyclers.

AT acquires all Biltmore logs for free, saws and sells to local wood artisans to make items to sell in Biltmore gift shops.  AT then accepts finished products (taking 10% handling fee) and sells to Biltmore.

Also, private-public arrangements: example, Cinti. Parks Dept. fells public trees (and accepts as donations trees from private property owners), uses private mill owner to saw and privately owned kiln to dry, then sells to the Cinti. Public Schools via local architect for gym floors and furniture for CPS buildings.

To find and be found by buyers of lumber and sources of logs, seek free advertising in local media.

Examples from Cincinnati Enquirer, Chicago Tribune, and Los Angeles Times.

Final points:

• Check site for accessibility of logs: owners don’t always provide accurate information.
• Photograph grounds before and after sawing on-site in case there is question about damage/debris.
• Check the size/quality of logs: confusion between diameter and circumference and about height.
• For furniture, all boards come from owners’ logs, good, bad, and ugly.  Dried boards may not look

as good as they did when just sawn.

• Risk is that lumber is not good enough.  Ok to substitute?
• If drying, charge for storage after 30/60 days.