Source: Auburn Machinery, Inc. submitted to NRP
CONVERTING SAWMILL WASTE STREAM MATERIAL INTO HIGHER VALUE SOLID WOOD PRODUCTS USING A TOTAL SOLUTION RECOVERY AND VALUE-ADDING STRATEGY
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0197324
Grant No.
2003-33610-13337
Cumulative Award Amt.
(N/A)
Proposal No.
2003-04043
Multistate No.
(N/A)
Project Start Date
Sep 1, 2003
Project End Date
Aug 31, 2005
Grant Year
2003
Program Code
[8.1]- (N/A)
Recipient Organization
Auburn Machinery, Inc.
(N/A)
Greene,ME 04236
Performing Department
(N/A)
Non Technical Summary
The Sawmill industry is facing a number of serious problems that are undermining its stability as a key industry in many rural areas of the United States. The top ten problems facing the industry are: (1) A declining access to timberlands in some areas, (2) Higher saw log costs, (3) Lower saw log quality, (4) Greater residue disposal problems, (5) Fluctuating lumber pricing, (6) Increasing pressure to operate in a less environmentally harmful manner, (7) Encroaching global competition, (8) Competition from substitute materials, (9) Growing demand for environmentally responsible wood products, and (10) Growing reputation of being an environmentally unfriendly industry. Since most sawmills are located in rural communities, many current and future jobs, along with viable local economies will decline if local sawmills continue to reduce their labor force or close. Since August 2001 over 24 sawmills and secondary wood products companies have closed in Maine and nationally the number is much higher. This project will assist the forest products industry to develop concrete solutions which will help make sawmills more efficient by maximizing their raw material resources. This will be accomplished by establishing a Recovery and Value-Adding (RVA) processing facility at an existing sawmill to demonstrate the technical requirements, and economic viability for establishing RVA processing centers for individual companies and satellite RVA facilities on a regional basis for clusters of companies and by marketing the value-added products manufactured at the RVA facilities.
Animal Health Component
100%
Research Effort Categories
Basic
(N/A)
Applied
100%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
4030650202050%
5110650202050%
Goals / Objectives
OPPORTUNITY: There is a need to increase yield and reduce waste in most sawmills. The conversion of waste stream material into higher valued products offers simultaneous solutions to both needs. The case studies conducted at five sawmills in Phase I confirmed the economic and technical feasibility of solid wood recovery. It also confirmed the continued industry resistance to implementing Recovery and Value-Adding (RVA) systems primarily due to the lack of markets for recovered wood products but also because of a lack of research data from existing operational RVA programs. Initial research shows that it is possible to recover 38-50% of the wood in a sawmill's waste stream and increase waste stream revenue by over 1000%. PROJECT OBJECTIVES: Determine the logistical, technical, raw material and financial requirements for setting up and operating both an in-house RVA program and a regional RVA program and identify the merchandising requirements for selling the products generated from the two working RVA models. DESCRIPTION OF EFFORT: Partner with an existing sawmill to set up and operate an in-house model RVA program; set up and operate a regional model RVA program for processing recoverable material collected from other sawmills; and develop a merchandising strategy to market recovered wood products.
Project Methods
Based on the lessons learned from our Phase 1 research, our Phase II work plan will focus on achieving three goals: 1. Develop a working model for setting up and operating an in-house RVA program; 2. Develop a working model for setting up and operating a regional RVA program for processing recoverable material collected from other sawmills; and 3. Develop a merchandising program to sell the products generated from the two working models. This will be accomplished by partnering with one of the five companies that participated in the Phase 1 research to establish a joint processing facility. This facility will be used to process two types of material, under-utilized stock recovered from its own 13 million board feet per year sawing operation, and recoverable material collected from other sawmills located within a reasonable geographic distance from this site. In the end, this strategic approach will provide the extra research data and additional field experience necessary for the Auburn group to develop an effective Total Solution Program to assist other companies in need of implementing in-house or satellite RVA programs.

Progress 09/01/03 to 08/31/05

Outputs
The focus of this project was to demonstrate that there is a significant volume of under-utilized wood which could be recovered and converted into a wide array of `Saleable' value-added `Environmentally Friendly' products. Phase I focused on identifying the volume of recoverable stock being sent to chippers at five different types of sawmills in Maine. The initial Phase II goal was to set up an in-house and satellite wood Recovery & Value Adding (RVA) operation at one of the sawmills that participated in Phase I. The goal was to demonstrate the feasibility of replicating this system in other areas of the country. Internal problems at the sawmill and the closing of numerous sawmills within the targeted fifty mile project radius, changed the project focus in year two to developing RVA products, securing purchase orders for these items and using these sales to increase interest and participation from wood products manufacturers. Phase I established that 33% to 50% of the wood in many chipper conveyers can be recovered. Phase II developed and promoted a unique collection of RVA wood products to provide Maine wood products manufacturers with a proprietary marketplace advantage. The project's goal was to attract participation from direct and indirect wood product industry stakeholders. Government agencies, trade organizations, non-profits and foundations, industry suppliers, industry members and others were introduced to the vision and industry revitalization potential offered by this project. Our work towards de-fragmenting the industry caused both public and private sector individuals and groups to begin to comprehend that every citizen in Maine is affected by the performance of Maine's largest manufacturing sector. Our efforts to stimulate cooperation amongst all segments of the wood products industry, from lumberjacks to wood product sales teams, facilitated a greater understanding of how the fragmentation of the industry is undermining and weakening its economic viability. Our work with government agencies and individual politicians helped them to better understand the economic, social and environmental benefits that the wood products industry provides and the long term value of initiatives to support and revitalize this manufacturing sector. Our Maine `Made & Green'T initiative encouraged state government to study the potential branding value of `Maine'. Our focus on how wood could play a vital roll in supplying large volumes of products to the global Green marketplace encouraged state government to adopt a goal to double the certified timberland acreage in Maine. The products we developed proved that higher value products could be produced from wood which would otherwise be ground into fuel and mulch. Identifying new Green markets for RVA wood products enlightened many to the potential revitalization opportunities that exist for the wood products industry which is downsizing and the rural communities which are being affected by this trend. Though we did not secure the level of sales we had hoped for, this project opened eyes, imagination, doors and momentum towards accomplishing what we set out to achieve. Commercialization is in progress.

Impacts
The most significant impact of our project was to demonstrate the potential for improving the efficiency and economic competitiveness of wood products manufacturers through the production of environmentally friendly 'Green' wood products from wood recovered from their waste stream. Our efforts substantially influenced Maine's economic development and conservation policymakers to place a renewed emphasis on assisting the wood products industry to become more productive and to have greater access to markets for their products and to adopt more sustainable forestry management practices. To the extent these efforts are successful, the Maine forest products industry may become more economically viable and competitive and the rural communities which depend on this industry to provide jobs and the economic and social infrastructure will receive the support which they need.

Publications

  • No publications reported this period


Progress 10/01/03 to 09/30/04

Outputs
The original focus of our Phase II project was to continue our research into the viability of successfully converting solid wood waste stream materials into new Value-Added wood products. Our proposed approach to this research was to set up a Recovery and Value-Adding (RVA) facility at an existing sawmill and then expand this concept to a regional facility. The research would have collected data on the creation and operation of RVA facilities and the success of these operations to produce recovered wood products which could penetrate the growing 'Green' marketplace. By the time we began implementing our Phase II project, the wood products industry was going through a tremendous downturn and many of the potential sawmills which would have been included in the research were either closed or in serious financial trouble. Consequently, we shifted our focus to the potential merchandising opportunities which could be brought to existing sawmills in order to convince them that recovering underutilized wood offered a real opportunity to improve their long term economic prospects. A major component of this new focus is the green building industry which has become a $130 billion dollar per year effort. In November 2003, we attended the U.S. Green Build Expo in Pittsburg and took three wood products companies from Maine to exhibit in the 'Maine Made & Green' booth. The correctness of this shift in our research plan and design was confirmed through a successful project which grew out of the Expo in which Auburn assisted Robbins Lumber Co. secure an order to provide certified and recovered wood to Colby College for use in a new building being constructed. This happened because we met the architect for the project at the Expo. This new model of bringing together sawmills and wood products manufacturers with buyers, users, architects and designers who want or need recovered wood products is the essence of our new approach. During the first year we focused on the market conditions and opportunities which would influence the success of this project and help us with the long-term profitability of Auburn Enterprises and in particular our business plan for our recovered wood products development and brokerage effort. In the past year, we collaborated with the Maine Wood Products Association to implement an aggressive outreach program for the industry and to determine the best strategy for promoting a viable Green market initiative for recovered wood products from Maine through the 'Maine Made & Green' ('MM&G') Merchandising Program. During the first year of this project, we received additional support through a 'Cluster Enhancement Grant for the Wood Products Industry' from the Maine Technology Institute (MTI) which allowed us to expand the scope of work of our SBIR Phase II initiative. Our merchandising approach was well-received during the first year by Maine's economic development programs, the MTI, and we played a substantive role in the Maine Governor's 2003 Conference on Natural Resource Based Industries. The 'Maine Made & Green' Program is becoming the vehicle for the Maine wood products industry to enter the 'Green' marketplace.

Impacts
As a result of the first year's effort in launching the 'Maine Made & Green' merchandising program for the Maine wood products industry, a new awareness of the potential economic opportunities in the 'Green' marketplace is emerging. There is a renewed interest in certifying forest lands as being sustainably managed and we are assisting a number of wood products companies to develop products for the 'Green' marketplace. A number of new public and private sector buildings are being designed as 'Green' buildings and the builders are looking to incorporate 'Green' wood products which are 'Made in Maine'. The 'Maine Made & Green' merchandising program is providing the link between the building designers and architects, the 'Green' marketplace and wood products manufacturers. We anticipate growing industry participation, increased forestland certification and positive sales of 'Green' wood products from Maine.

Publications

  • No publications reported this period