Portable Sawmill Business

[CC Stone]

I've been reading this forum for the last 2 weeks hoping to gain some knowledge on portable sawmills and the portable sawmill business. I am having trouble finding anyone in the business where I live. I know of 2 people right now who need logs milled on their land and can't find anyone to do it. Being a home builder whose income has been cut by 75% over the last 2 years, I am thinking seriously of getting a portable mill and starting a new business. My only experience with logging is cutting logs into firewood with a my chainsaw and wood splitter. I am curious if anyone here would like to share some opinions on the do's and don'ts of the business. Any type of input would be greatly appreciated.

CC

 

[mountainlake]

Sounds like you live in a good area, I have around 20 Amish mills around me but still do OK being portable and people a ways away don't know about the Amish mills. If your going to saw as a business get a mill with hydraulics either new or used, some things are a log loader, toe bards to raise either end of a log, a chain turner which is way faster than the claw type turners, hyd log stops and clamp, power feed and power up and down, computer setworks which really speeds up cutting and make accurate lumber. At least a 25HP gas but a diesel will use 1/2 the fuel and have way more power. If you know how to fix things thats a big plus. Steve

 

[Sawyer Rob]

Sounds like you live in a good area, I have around 20 Amish mills around me but still do OK being portable and people a ways away don't know about the Amish mills. If your going to saw as a business get a mill with hydraulics either new or used, some things are a log loader, toe bards to raise either end of a log, a chain turner which is way faster than the claw type turners, hyd log stops and clamp, power feed and power up and down, computer setworks which really speeds up cutting and make accurate lumber. At least a 25HP gas but a diesel will use 1/2 the fuel and have way more power. If you know how to fix things thats a big plus. Steve

You took the words right off my keyboard...

Rob

 

[mtngun]

If you know how to fix things thats a big plus.

Can't argue with that. :biggrinbounce2:

Depends on your local situation but as a home builder you should have a pretty good knowledge of what's out there.

My only concern is that every laid off Joe and his brother is getting into firewood cutting or custom milling. Meanwhile, some established custom mills don't have much work due to the slow economy. I think most of these new guys will eventually fizzle out, and the market will be flooded with used mills as they sell off their equipment. In the meantime, it's hard to find a used mill, and the ones you do find command a healthy price.

In my neighborhood several people have tried the custom sawmill business and it didn't work out for them. We have no valuable species to mill, just pine and fir, so that really narrows the market down.

But, since you have potential customers lined up, presumably lots of valuable hardwoods in your area, and another career to fall back on, it might work out for you.

We aren't allowed to link to that other forestry related forum but suffice to say there is one and they specialize in the type of business you are contemplating. You might want to post the same question over there, if you haven't already.

 

[CC Stone]

I really appreciate the advise. There are several things I am concerned about. Equiptment, advertizing, what to charge for services.

Equipment: I have been to several websites of manufacturers but, not having been in the business before, its hard to know how to get the most bang for the buck.

Advertizing: Where to advertize and what to spend on future revenue generation?

Charging: I have yet to find anyone with a portable mill to ask. There are 3 stationary mills locally. They are charging anywhere from $120 to $200 per 1000 board feet. But the customer has to bear the costs of all transportation to and from the mill.

 

[mountainlake]

Advertize in your local papers, craigs list, make up some flyers and hang them on bulletin boards.
Maybe look for a used mill with all the goodies, sawmill exchange has quite a few listed. My brother just bought a Timberking with all the goodies for $22500 brand new, nice simple mill. You should be able to find a low hour used one for around $15000 +, way less than a new car or pickup.
A lot of guys charge $250 to $350 a thousand for portable milling with a bandsaw, if those stationary mills are using a circle mill you'll get 20 to 30% more lumber which about pays for the sawing. I charge by the hour most of the time which can come out as low as $150 a thousand with good easy to cut logs up to $300 a thousand with small crooked logs, if you go by the bf you would want to charge more for small crooked logs. Steve

 

[huskyhank]

I really appreciate the advise. There are several things I am concerned about. Equiptment, advertizing, what to charge for services.

Equipment: I have been to several websites of manufacturers but, not having been in the business before, its hard to know how to get the most bang for the buck.

Advertizing: Where to advertize and what to spend on future revenue generation?

Charging: I have yet to find anyone with a portable mill to ask. There are 3 stationary mills locally. They are charging anywhere from $120 to $200 per 1000 board feet. But the customer has to bear the costs of all transportation to and from the mill.

The soft home building market, which you've already experienced, depresses the prices paid for wood. There is activity but its slower than a couple of years ago.

If I were you I'd back into the project this way - determine prices and volume in our local market. Find out who is buying what and how much they pay, then see if you can match those prices and make any money on the investment needed to produce the lumber.

I'd look around the edges into the niche markets. A big established sawmill will kill you on commodity work. Here's an idea to look at - build garages, gazebos and outbuildings for clients using timbers you mill on their property. (or where ever you can get free wood) Cute designs, live edge lap siding, exposed detailed ends on beams. Anything to separate you from a guy building basic buidings with big box store commodity materials.