The recent economic crisis has greatly affected how companies conduct business. To be competitive, companies had to make changes to their product lines, distribution channels, marketing, and overall business strategies. This study was conducted to describe and analyze the log supply component of the hardwood forest products distribution chain and to investigate changes over the past 5 years. State forestry utilization and marketing specialists were interviewed to gain a regional overview of log distributions systems, followed by a survey that resulted in 57 responses from log distributors/brokers/wholesalers from 24 states. Results indicated that, on average, respondents received the majority of their logs from gatewood purchases, and the majority of logs purchased went directly into the sawmill market. From 2007 to 2011, logs sold to sawmill and veneer markets decreased by 6 and 7 percent, respectively, and logs sold to export markets increased by 30 percent. Respondents indicated that increasing fuel and trucking costs, followed by logger shortages, had the greatest negative impact on business operations. In contrast, increasing log exports had the greatest positive impact. Most respondents indicated that although current economic conditions have affected the way they conduct business, they have been able to find ways to adapt. Services such as providing log delivery, bucking logs to desired lengths, and procuring hard-to-obtain species helped companies in the log business remain competitive.

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Accurate and timely product costing information is critically important for companies in planning the optimal utilization of company resources. While an overestimation of product costs can lead to loss of potential business and market share, underestimation of product costs can result in financial losses to the company. This article introduces a product costing program called WoodCite that was specifically developed for small and medium-sized hardwood dimension and components manufacturers. WoodCite is a Microsoft Access application that allows companies to determine product costs and to create competitive bids based on their company and product information. The program uses a regression model to estimate the overhead cost of a product based on historical cost information provided by the user. WoodCite was developed with input from members of the Wood Components Manufacturers Association. The application is available for free at Virginia Tech's Wood Products Web site (http://woodproducts.sbio.vt.edu/woodcite).

U.S. hardwood sawmill log procurement practices are evolving because of the recent economic recession, market and supply chain shifts, and changing landowner objectives, among other factors. The objective of this study was to characterize the log procurement practices of hardwood sawmills and to characterize the role that log brokers play in supplying the sawmill industry with raw material. To meet this objective, a mail survey on hardwood log procurement practices in the U.S. hardwood sawmill industry was conducted. Survey respondents highlighted several factors that had major effects on their businesses, including "Increasing fuel and trucking cost," "High logging cost," "Unpredictable log supply," "Log shortages," "Logger shortages," and "Low log quality," among others. Results showed that large sawmills tend to rely more on gatewood from loggers and stumpage harvested by company contract loggers than do small-and medium-sized sawmills. This study failed to find an increase in the role of log brokers as an intermediary between landowners and hardwood sawmills during the last decade. Moreover, sawmills indicated only a limited demand for log broker services, with log delivery and the procurement of specialty logs identified as being the most highly demanded broker services.

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