Authors: James T. Walters, former Extension Associate, Department of Forestry, College of Natural Resources, Virginia Tech and James E. Johnson, Associate Dean of Outreach, College of Natural Resources, Virginia Tech.
Publication Number: 420-144, posted March 2000
Chapter 8: Enhance The Local Economy With Your Forest Management Activities
Sustainable community development is the development of an area with consideration given
to long-term success and prosperity. Forests are an important component of sustainable
development in western Virginia. The timber in our forests is one of our most important
resources, and it is particularly important because it is a renewable resource. Resources
such as coal are also important to the region, but well-managed forests can provide a
continuous supply of resources in the future. Therefore, forest management is a very
important concern when we plan for long-range growth in our region.
The management activities you perform in your forest have an important impact on the local economy. When it is feasible, it is a good idea to support the local economy with these activities by dealing with local contractors and promoting local markets for forest products.
Strategy #1: Deal with Local Forest Management Contractors
Some forest management activities are specialized and require special technical skills or expensive equipment. Specialized contractors who operate over a large region usually perform these activities. However, most of the forest management activities you will perform in your forest can be performed by local contractors. Some of these activities are labor-intensive and require no special skills or equipment.
When you deal with local forest management contractors, you are adding money to the local economy. The contractor's workers will spend this money on food, housing, and other living expenses. Money spent locally is an important component of a sustainable community. You can increase your business with local contractors by making a list of local contractors when you prepare for management activities, comparing local workers with contractors from outside of the area, and giving local contractors an opportunity to bid on the management activities you undertake in your forest.
It is a good idea to maintain a good list of forest management contractors so you will have contacts when you need to perform activities in your forest. Contractors you might include on this list are loggers, planting contractors, herbicide applicators, prescribed burn contractors, and firewood cutters. You might add this list as an appendix to your forest management plan.
You can work with your consulting forester or the county forester to develop your contractor list. Foresters will know the contractors that operate in the area. Although you may want to keep a current list of contractors, you should certainly update this list at least six months before you plan to start any management activity. You will then have time to choose a local contractor who will do a good job in your forest.
Before you choose a contractor to work in your forest, it is a good idea to compare local workers with contractors from outside the area. It is wise to compare contractors based on availability, quality of work, and cost. You can contact each contractor on your list to inquire about availability and cost. Your forester and other landowners can probably tell you about the quality of work of prospective contractors. A good contractor will have a good reputation.
When you have investigated each contractor and have developed a list of information about each, you can begin to evaluate each contractor. The most important evaluation criterion is the quality of work. An inexpensive but poorly-conducted job will usually cost more over the long run than a better job that was more expensive. If you are concerned about the timing of an activity, then availability will also be an important evaluation criterion. Regardless of the evaluation criteria you choose, you might give special consideration to local contractors.
When you are ready to choose a management contractor, you may decide to ask interested contractors to submit bids for the job. Your forester can write a description of the tasks to be performed, and each contractor can submit a bid on the complete job as specified. It is a good idea to reserve the right to refuse any or all bids and to encourage local contractors to bid on the job.
When you have collected all of the bids, you can sit down with your forester and evaluate them based on price and the reputation of the bidder. If cost and quality of work are similar, then you might choose to work with a local contractor. You might also consider the flexibility of local contractors when assessing bids. Local contractors are often smaller and can therefore perform the work to your specifications and meet your schedule. However, avoid local contractors who are unavailable or are not capable of performing the work to meet your required standards.
Strategy #2: Promote Local Markets for Forest Products
Value is added to a product when it is changed by further processing or by marketing. For example, a wood moulding plant adds value to lumber by carving it into a product that is useful for homeowners and builders. Likewise, a lumber wholesaler adds value to lumber by collecting quantities of lumber and distributing it to retailers.
One of the best ways to improve a local economy is to increase the value of products that are leaving the region. For example, we could promote the furniture industry so that more lumber is manufactured into furniture in western Virginia. Currently, much of our lumber is shipped to furniture plants in North Carolina. Producing more furniture in our region would create more jobs and increase the need for support businesses. It is obvious that you probably cannot directly start new industries. Encouraging the development of new businesses is the job of economic development officials in the local government. However, you can promote local businesses by recognizing the contribution of your resources to the local economy and identifying markets for special and unique products.
Your forest resources are an important input to the local economy, both directly and indirectly. The forest is directly related if it provides raw materials to local industries. Your property taxes also provide direct income to the local government. Your forest is indirectly related to the economy because its appearance can influence tourism, recreation, and other activities. Regardless of the activities you perform in your forest, it can be an important local economic input.
Special and unique products do not fit into traditional categories of forest products. Examples of special and unique products are musical instruments and custom, handmade furniture. Many of these products require special skills to manufacture. Unique and special products have important value within the local economy.
You might identify markets for special products by consulting with your forester or by simply going to local events such as craft shows and flea markets. You are likely to find local artists who use wood products. You might offer materials from your forests in support of these products. Sometimes these materials are of low quality or are cheap. For example, a local craftsman might use sections from stumps to make chairs and tables. You might even get ideas of products you could produce from materials in your forest.
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