Sluggish economy hampers Louisiana timber industry

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10:32 AM, Oct 4, 2012

MARKSVILLE -- The buzz at the Louisiana Forestry Association Convention was mostly about -- no surprise -- the economy.

"Housing starts really drive a lot of this industry and they are down considerably," said LFA Executive Director Buck Vandersteen. "It is scary when you think we have the lowest interest rates for a 30-year mortgage since World War II, yet we don't have a big boom in the housing market."

The sluggish demand has been particularly hard on the state's logging industry.

Louisiana has lost about half its loggers since the downturn, Vandersteen said. Those who remain are "trying to keep their heads above water."

It will take time to recruit and train a new work force, Vandersteen said, meaning if demand were to shoot up quickly, it could cause problems in the supply chain.

The good news, Vandersteen said, is landowners still are planting timber. Louisiana's forest land is growing, he said, and the forests are producing 30 percent more wood than what is being harvested or dying.

"It all depends on the family landowner," Vandersteen said. "Most of them are small operations -- the average is about 40 acres. They're the ones who start the whole chain in what is a multi-billion dollar industry in Louisiana. It all starts with the mom and pop landowner."

Those landowners are looking for new markets, and there is some excitement about the potential for wood products in renewable energy.

Wood is being used as a component in manufacturing synthetic gas -- including at a pilot plant being developed in the Alexandria area by Sundrop Fuels, which will convert woody biomass and natural gas into "green gasoline" that can be used in vehicles.

Wood pellets are being burned as an energy source, particularly in Europe.

"This is not a dying industry," Vandersteen said. "With renewable fuels, we don't know where that's going to take us. It will be exciting to see what potential markets open up."

Vandersteen stressed that the industry is not turning its back on its traditional bread and butter, especially the construction industry. He is hopeful building will ramp up in the near future, though that will depend on the mindset of Americans.

"It's the economic uncertainty," Vandersteen said. "When people start feeling good about the economy, they're more likely to buy homes, buy furniture. Right now, people don't know where the economy is going. People need to know what our taxes going to be, what is health care going to be, do I invest in a business, do I go out of business? Once all that is cleared up, then we can move forward."

The LFA convention is being held Tuesday through today at Paragon Casino Resort. Speakers are covering topics such as new lumber standards for building and water rights issues.

On Wednesday, William "Bubba" Rasberry from Shreveport was recognized as the state's Outstanding Tree Farmer while Jeffrey Martinez was recognized as Outstanding Logger.