Risk & Business Magazine F.A. Peabody Insurance Fall 2016 | Page 6

Dana Doran

Maine’s Forestry Industry:
Maine’s forestry industry is rapidly
changing. It’s an industry change
that comes along once within several
decades causing upheaval in long held
forestry practices and re-valuation of
our woodlands. Prime softwood forests
are now valued far differently than just
a few short years ago and the demand
for different species of wood, especially
hardwood, has significantly increased in
value. Maine’s forest industry has fallen
on challenging times but most believe
this is just a short term transition with
innovative technologies leading us in
a new direction that will bring greater
diversity in wood products in the near
future. This article features perspectives
from four individuals strongly tied to
this industry and their vision for the
prospects of Maine’s forestry industry.

Insights From
Dana Doran

D

ana Doran is the Executive
Director of the Professional
Logging Contractors of
Maine, PLC. The PLC’s
primary mission is to promote
professionalism in Maine’s woods industry.
The organization also serves as a legislative
advocate for the industry, promotes safety
training and development and is currently
developing a new cooperative purchasing
program for its members. The PLC is an
effective force in the industry with many
successes to its credit.
Dana is passionate about the forestry
industry and its future. He is quick to

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point out that although employment in
the logging industry has been decreasing
from 2000 to 2014, much of that is due to
mechanization and since 2014 the forestry
industry employment has been creeping
back up. In 2011, 11.5 million tons of Maine
wood was harvested and by 2014, the most
recent record, 14.6 million tons were cut.
Currently, Maine’s forest industry, including
both logging and trucking, employs 4,600
workers.

In the past, much of Maine’s wood was
used for newsprint and glossy stock, which
required predominantly spruce and fir
fiber. With the advent of the Internet and
competitive foreign suppliers, the demand
for these products has dropped significantly.
In recent years Maine pulp and paper mills
such as Great Northern Paper in Millinocket
and East Millinocket, Verso in Bucksport,
Madison Paper Industries in Madison
and Expera Old Town LLC have closed
their doors. These closings coupled with a
weakened demand for biomass (wood fiber
used for electricity) have wiped out most of
the demand for spruce and fir pulp logs in
Maine. Couple the above challenges with
last year’s warmest winter on record in
Maine and the low value of the Canadian
dollar which severely affected the export
of Maine’s wood pellet products and you
had the ingredients for a further weakened
demand for wood. Interestingly, the woods
industry south of Ashland is effected more
than the northern part of Maine by these
changes. The industry from Ashland north
was never as dependent on the pulp and
paper industry.
Dana believes, as do others, that Maine’s
forestry industry is going through a
metamorphosis rather than withering away.

The future will bring a more diversified
fiber demand with new technologies leading
the way. One such use is bio fuel, termed
“green fuels”, which has the potential for
replacing petroleum products in several
areas including the production of plastics.
Also, nano-cellular technology removes
the wood fiber from cellulose, the residual,
allowing cellulose to be utilized in the
production of textiles and insulation.
Cross laminated timber has great promise
and exploits soft woods in the production
of vertical beams for construction that is
currently approved for buildings as high
as 10 stories. It’s biodegradable as well.
Furthermore, hardwood demand has
increased and it is utilized in the production
of distinct paper products, including tissue
paper. Niche markets, which include saw
logs and chips for electricity production,
have export potential; however, our ports
are not yet prepared to handle this trade.
Both thermal wood and container board
used in shipping also show promise.
Dana further sees great potential in
exploiting the low pressure steam and
electricity created by biomass plants.
Industrial parks could be built around
biomass plants with the cost effective steam
used for several purposes including wood
drying operations. Low cost electricity
could be a very attractive incentive for high
electricity use operations to locate near
biomass plants.
Dana stated “There are still good jobs in
the wood harvesting industry; however, it’s
becoming more challenging which means
there is a greater need for more training.
There will always be a need for wood
harvesting.” +