Know Your Numbers. Strengthen Your Mill | Sawmill Benchmarking

If there is one thing I know about hardwood mill operators, it is that you know your own business. You know your people, your equipment, your lumber, and the hundred decisions it takes to keep a mill running every day. You have learned through experience, and you do not need someone from the outside telling you how to run your operation.

I understand that. As NHLA’s Chief Inspector, I spend my time working with mills and talking with the people who keep them running. I also know there is one thing even the most experienced operator cannot see: what is happening inside dozens of other mills. That is where the NHLA Sawmill Benchmarking Study can help.

This study is not about handing your decisions over to a consultant. It is about giving you another tool—a confidential comparison showing how your production, recovery, labor, costs, inventory, energy use, technology, and safety results compare with similar operations. You look at the information. You decide whether it matters. And you decide what, if anything, to do with it.

FIRST, LET ME CLEAR UP A FEW THINGS

When people hear that a program is supported by an organization called the U.S. Endowment, I know what some of you are thinking: Is this a government program? What is the catch? If it is free, what are they getting from me? Those are fair questions.

The U.S. Endowment for Forestry and Communities is not a federal agency or regulator. It is an independent nonprofit forestry organization created in 2006 under the U.S.–Canada Softwood Lumber Agreement. It was capitalized through a one-time transfer established by that agreement and supports practical work intended to keep forests productive, forest products businesses competitive, and forest-dependent communities economically strong.

Its legal tax classification is a public charity, but I would not describe this study as a charity. I would describe it as an investment in better industry information. One mill cannot build a useful industry benchmark by itself. Enough mills have to take part for the comparisons to mean something. The Endowment’s support covers the cost, so participating mills do not receive a consulting bill, subscription fee, or report charge. There is no obligation to buy anything later.

YOUR COMPETITORS WILL NOT SEE YOUR NUMBERS

I also understand why a mill would be cautious about turning over production or financial information. You worked hard to build your business. You should know exactly who will see that information and how it will be used before you agree to anything.

The Beck Group—not NHLA—collects and analyzes the individual mill data.

The Beck Group is an independent forest products consulting firm with experience in sawmill benchmarking. Its staff puts the information into a consistent format, removes company names and identifying details, and reports the results only in combined peer groups.

NHLA does not receive your company-specific production or financial information. Neither do your customers, suppliers, competitors, or other participating mills. Companies are not publicly ranked or compared by name. Your competitor does not get a look inside your operation. Each mill receives its own confidential report showing how its results compare with the group.

That distinction is important to me. I would not ask a mill to consider this study if participation meant handing its operating information to competitors. The value comes from seeing the comparison—not from exposing any one company.

By DANA SPESSERT, Chief Inspector