Energy expenses are the third largest cost for the US forest products industries, after raw materials and labor. Over the last decade, electricity prices have risen at an average annual rate of 1.4%, diesel prices by 9.3%, and prices for natural gas for industrial use by more than 100%. Natural gas and electricity account for about two fifths of total energy consumption of the wood products industry.
These higher energy costs undoubtedly negatively impact the industries profitability, which has also been significantly impacted by other issues such as hardwood stumpage prices, higher transportation costs, increasing government regulations, a challenging economic situation, and the ongoing globalization of markets. Given the trajectory of energy prices and the energy intensity of the US hardwood industry, energy consumption and the resulting costs, strategies to reduce energy consumption should be a priority issue in order for our industry to remain competitive. To learn more please visit the
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