Chipping Crew? Any advice from other owners?

[jalexan4]

I bought a logging crew from my fathers company a couple years ago. He is a partner with 3 others in a dealership in south ga. They currently have around 7 logging crews contracted with them. I sold my company in January with the intent of going back into the Marines. However, My wife got pregnant and I've decided to just do the reserves so I wont be dragging her all over the country away from her family. My question is this; I've been looking into buying a chipping crew, Im sure that I will have enough wood to chip between the crews at the dealership. How does chipping compare to logging? what kind of rates can i expect? The start-up cost from the little I've looked into it (I just decided I may do this) look like they are about the same, is this correct? How is the market for chips (there is a mill opening here soon)? Any advice, experience, etc... would be appreciated. I jumped into buying the logging crew too quick without doing my research and it hurt. Im not going to make that mistake again. As stated, any advice or insight woud be very much appreciated. Thanks

 

[371groundie]

one of the mills around here had a program where they would help you buy a chipper. then you had to only sell chips to them till its paid off. you got a slightly better price than somone not in the program, but you couldnt take your chips somwhere else for better money. to your benefit they had to take all the chips you could make.

if i were you i would start calling anyplace that buys chips. one, to see what the markets and prices are like, and two, to see if they offer such a program.

 

[joesawer]

Hmmm Buying the equipment I understand, buying the crew I don't.
Whole tree chippers are big $$$ and high maintenance!

 

[jalexan4]

thanks groundie Ill check into that. Yeah, um, sorry Joe when I said "crew" I was refering to a "company", sorry I probably should have clarified that for certain individuals. Of course if I purchase equipment Im going to need someone to run it. My apologies, I shouldn't have used the terms so loosely in order to not confuse anyone. Thanks for the helpful input.

 

[jon72]

First off you'll need contracts with as many local mills as you can get.Are you planning on cutting your own wood to chip or will you be buying it off of other logging outfits?If your cutting your own wood then you'll be a logging crew with a chipper.Which means you'll need all the logging equipment plus the chipper, trucks and chip vans.If your chipping for other guys then all you need is a mobile crane,chipper and as many trucks and vans to stay chipping and not waiting for trucks to get back.
You will need to know the size and shape of the wood you will be chipping to match with the chipper.My guess is at least 30inch.Anything smaller will burn way to much fuel per load and take way to long to load it.Bigger chippers use less fuel per load,load faster and need the knives changed less often than smaller ones but are way more money!
Thats the basics i guess,keep posting and good luck!

 

[garyischofield]

don't want to be fast and loose

with what is at stake financially,you need to educate yourself completely.After 25 years in the whole tree chipping business I would want to have as many loose ends tied up as possible.There are all manner of operations with proportional stress and responsibility.Point being,small chipper/small headaches.The weak link in the chain is,of course very important.For my operation,trucking was always an issue because of the distance and delays at the mill.To deal with this,we had multiple trailers and preloaded using a landing tractor.Because of the multitude of variables,I hesitate to expound further.Pm me.I built an operation from 200 tons a week to 70.000 tons annually and might be able to help.I've dealt with a myriad of challenges along the way.Gary

 

[hammerlogging]

Not to mention what exactly are the chip specs at the market you're goingto serve.

 

[Jacob J.]

Not to mention what exactly are the chip specs at the market you're goingto serve.

That's a biggie right there, plus what are your wood sources going to be? There guys here getting wood from doing right-of-ways for the power company and the bigger mills. There's a few big operators here also getting wood on stewardship contracts with the state and federal government. As mentioned above, you may end up with a logging operation that has a chipper and vans attached.

Timber Harvesting magazine has recently done several good articles on chipping companies and how they got their start. The article on the Castleberrys is one of the best I've seen in a while (plus I think the Castleberry operation is down in your area.)