PLC Logger's Voice Winter 2017

Executive Director’s Message
New Beginnings
Dana Doran
2016 was a year that many in this industry would
like to forget. A year of market reductions, lower prices,
increased operational costs and too much wood for too little
demand. The closures of Old Town and Lincoln and the
reduction in capacity at Verso Androscoggin in 2015 bled
into 2016 and started a chain reaction that turned a bad
dream into a nightmare.
As we look to 2017, most are anxious for what the
future may hold because of the experience of 2016. I can’t
say that I disagree with them at this precise moment, but
I’m hopeful that the new year brings a fresh opportunity for
greater investment and new beginnings.
Winter has always proven itself to be our go time.
A time that energizes this industry to exceed expectations
and prove time and time again why Maine loggers and
truckers are the best in the world. Winter is generally the
most profitable time of year since markets have been
starved from a fall/early winter slow down and the
operating conditions provide an opportunity for peak
production. That said, something this winter not only feels
different, but is different.
There is simply too much wood in yards across the
state and some see a very short winter on the horizon;
which is too bad since we had the driest summer that any of
us can remember and the winter is off to a good start with
cold temperatures, snow and frozen ground.
As I have been out visiting and talking to our
membership throughout the state this fall and early winter,
the majority feel that 2017 will bring much of the same and
are already predicting a major industry contraction in the
spring and summer of 2017. There is probably too much
logging capacity for the markets that we have available and
inevitably, something must give. Businesses will contract,
some will leave the industry altogether and this transition
will lead to a major transformation in 2016-17 and maybe
beyond. However, in down times we cannot just sit back
idly and wait for something new to save our industry.
Loggers do what loggers need to do to survive, we know no
other way.
As I look at the role of the PLC right now, I would
like to think that we are taking the same approach as our
membership. We need to fight, scratch and claw our way
out of this, working smarter and not harder collectively
because there is too much on the line. Our membership has
payments to make, employees that rely upon them and
mouths to feed. The reality of this transformation is
sobering and just as loggers and truckers deal with this
adversity, the PLC will do the same.
I know that many of you feel like you are working
harder right now than you ever have to protect what
remains. On many a recent day, it has been challenging to
find a ray of sunshine that will keep you going. I can
empathize with you since it feels that we are doing the
same thing.
The PLC recognized this market shift in 2015 in a
very public way and works every day to protect the future
for logging and trucking, trying to find opportunities for
cost savings and eliminating impediments so that when
new opportunities present themselves, the foundation will
be cracked but not dismantled. There are positives that we
can point to which will help rebuild our future, and more on
the horizon every day.
As this issue goes to press, two of our
achievements from 2016 are now creating positive change
for our industry, saving you money and sustaining
important markets.
On January 1, 2017, off road fuel used in logging
operations became tax exempt in the state of Maine. This
crowning achievement was passed in the 2 nd session of the
127 th Legislature in April 2016 and was signed into law by
Governor LePage with enthusiastic support. This new tax
exemption will provide immediate cost savings and it
couldn’t come at a better time. Information regarding how
to take advantage of this new exemption has been in our
weekly emails but if you need further information, please
contact the office and we can help you.
On Tuesday, December 13 th , the Maine Public
Utilities Commission approved the allocation of $13.4
million to ReEnergy and Stored Solar, LLC for the
sustainability of the biomass electric industry and in turn,
loggers and truckers. The funding for this subsidy was
approved by the Legislature and the Governor after they
worked collaboratively with the PLC in the spring of 2016.
ReEnergy’s facilities in Ashland and Fort Fairfield will be
sustained for the next two years and the former Covanta
facilities in West Enfield and Jonesboro, which were
purchased by Stored Solar, LLC, are in the process of
restarting. This also means that the fuel purchased for these
four facilities must come from Maine landowners and must
be harvested and trucked by Maine loggers. Good news like
this couldn’t have come at a better time and this initiative
wouldn’t have moved forward without the PLC and its
membership at the table every step of the way.
As we all know, there are no quick and easy
solutions to improve our floundering markets. To right size
our ship and put Maine back on the map for the long term,
active planning of a long-term strategy to ensure the health
of our industry as well as the entire forest products value
chain has never been done before and there is no better
time than the present.
Now, for the first time, a comprehensive strategy
for the state’s forest products industry is in the early stages
of development through the efforts of a federal Economic
Development Assessment Team (EDAT) task force that the
PLC has played a critical role in.
At the same time, a special Commission to Study
New Beginnings Continued Page 9
The Logger’s Voice ▪ Winter 2017
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