Hot and Cold: Jason Watts Notes the Ups and Downs of the Pulpwood Market
Watts Logging Inc. owner Jason Watts, 37, knows what too much of a good thing can sometimes be. As an operator focusing primarily on first thinnings, it’s good for him that pulpwood demand remains steady. Unfortunately, as with so many cruel ironies of the logging business, a good market for pulpwood can also spell trouble for pulpwood producers. The market gets glutted quickly as mills find too many eager suppliers. In February, Watts said his primary mill outlet was only 20 minutes from the job site, but trucks were facing better than three-hour turnarounds. “It’s backed up like a soup line,” he says. “I knew it was gonna happen. The building side is no good so everybody is cutting pulpwood.”
One area where he doesn’t see too much of a good thing: productive uptime in the woods. “When you’re able to work, you need to be working, not in a shop with something broken down.” That’s his philosophy, and that’s why he believes in keeping newer equipment rather than maintaining older machines. He turns over equipment roughly every three years, after it is paid off but before it reaches 6,000 hours (he notes that the warranty is up at 5,000 hours). “For me, that is better than repair costs.” He notes several other reasons for keeping new equipment, including tax incentives that allow the owner to claim depreciation.
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