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NE Landscape Committee February 15, 2012

NE Landscape Committee February 15, 2012. Steve Betzler. Dave Chura. Forest Products Industry of MN The Past The Next 10 years Logging Infrastructure Cost Pressures NE Landscape Timberlands and Outputs. Tim J. O’Hara. Minnesota Forest Industries. Boise – International Falls.

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NE Landscape Committee February 15, 2012

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  1. NE Landscape Committee February 15, 2012 Steve Betzler Dave Chura • Forest Products Industry of MN • The Past • The Next 10 years • Logging Infrastructure • Cost Pressures • NE Landscape Timberlands and Outputs Tim J. O’Hara

  2. Minnesota Forest Industries

  3. Boise – International Falls Specialty papers Imaging Papers Label release papers Splox Delivery system

  4. Verso – (Sartell) –– UPM-Blandin (Grand Rapids) Coated and uncoated publication papers • Financial printing • Commercial printing • Catalogs/Magazines • Book publishing • Inserts • Educational materials • Manuals • Direct mail •

  5. Sappi – Cloquet Cloquet Mill At-a-Glance Annual Production Capacity: 330,000 metric tons of paper and 455,000 metric tons of pulp Products: McCoy, Opus, Flo sheets End Uses: annual reports, advertising brochures, fine art books

  6. NorBord – Solway

  7. Potlatch – Bemidji 2 x 4’s Finger-Joint Studs

  8. Hedstrom Lumber – Grand Marais Paneling—Siding—Dimension Lumber—Chips/Bark

  9. Primary Wood Using Facilities and Utilization (2010) Aspen 49% Softwoods 27% Other Hardwoods 24% Source: MN DNR, MFI

  10. US Mill Closures and Curtailments Source: PPRC

  11. Panel Board Mill Closures and Curtailments

  12. Paper and Wood Product Manufacturing Jobs (NAICS 321, 322) Source: US Census of Manufacturers

  13. Who Supplies the Timber—2005 and 2010 2010 2005 Source: MFI, MN-DNR

  14. Wood Utilization by Sector 2006 and 2011 2011 2006 Source: MFI, MN-DNR

  15. Cost Pressures—Timber Supply / Forest Management

  16. Lumber Mills Structural timber (SFP) Engineered Wood Products Siding Fiber board Paper Mills Publication and writing papers NE Landscape Wood Product Facilities

  17. Housing Starts

  18. Wood Products Production Index (2007=100)

  19. OSB Production Index (2007=100)

  20. Composite Framing Lumber Index ($/1,000 thousand board feet) Source: Random Lengths

  21. Composite OSB Composite Index ($/1,000 sq’ feet) Source: Random Lengths

  22. Paper Consumption

  23. US Paper Production (index 2007=100)

  24. Forest Product Indices (2007=100)

  25. Production Index – Are Forest Products Still in Recession?

  26. The Next 10 Years – Paper Manufacturing Steve Betzler MN Power

  27. Logging Infrastructure Dave Chura MLEP

  28. Logging Operation and Type – 2012

  29. Logging Infrastructure

  30. Operation Size - 2012

  31. Membership Trend 2005-2011

  32. Logging Infrastructure

  33. Cut to Length $500,000 Conventional $600,000 Grinder $250,000 Chipper $150,000 Trucking: Lowboy  $20,000 Van Trailer            $7,500 Walking Floor Trailer $20,000 Semi Tractor $45,000 Trailer w/ Ctr Mount Ldr  $25,000 Average Capital Investment* *reflects estimated market value of used equipment with mid range hours/use

  34. Costs Associated with Production of Lumber Source: Minnesota Forest Industries

  35. Costs Associated with Production of Oriented Strand Board Source: Minnesota Forest Industries

  36. Costs Associated with Production of Paper Source: Minnesota Forest Industries

  37. Transportation Energy Reliable and Affordable Timber Supply (Forest Management) Cost Pressures Facing Industry

  38. Access (all season access) Maintain forest road infrastructure and bridges Indentify good access high productive areas for long-term management Increase transportation weights (interstate) MN Law allowing additional weight hauling with sixth axel estimated savings of $8.3 million, annually. Cost Pressures--Transportation

  39. Cost Pressures--Transportation

  40. Policy that Increase Energy Costs Negatively Impact the Forest Products Industry. Credit for Renewable Energy Generation? Cost Pressures--Energy

  41. Cost Pressures--Energy

  42. Cost Pressures--Transportation

  43. Energy—MN Forest Products Industry • Capital investments of more than $500 million in co-generation facilities. • More than 1.2 million tons of wood waste are used to generate electricity. • Mills with co-generation facilities meet 11-75 percent of energy needs. • 32 percent of energy needs are self generated (SG) • 28 percent of energy is produced from biomass or water (hydro). Source: Minnesota Forest Industries

  44. NE Landscape Forests – Forestland Ownership Forestland 5.7 MM ac. Source: FIA

  45. NE Landscape Forests – Timberland Ownership Forestland 4.6 MM ac. Source: U.S. Department of Agriculture, Forest Service, Northern Research Station

  46. NE Landscape Forests – Who Supplies the Timber 2010 Source: U.S. Department of Agriculture, Forest Service, Northern Research Station

  47. Harvest and Timber Sold (2006-2010 avg) by Ownership Source: U.S. Department of Agriculture, Forest Service, Northern Research Station, MFI, MN-DNR

  48. Timberlands Age-class NE Landscape Source: U.S. Department of Agriculture, Forest Service, Northern Research Station

  49. ASPEN Timberlands Age-class NE Landscape Source: U.S. Department of Agriculture, Forest Service, Northern Research Station

  50. NE Landscape Forests – Harvest, Mortality and Growth (timberlands) Source: U.S. Department of Agriculture, Forest Service, Northern Research Station

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