Effect of labour costs on wood harvesting costs and timber provision

Abstract

Efficient forest operations are essential for forest enterprises, who provide wood and numerous ecosystem services for the society. Important factors influencing the efficiency of forest operations, and thus the harvesting costs, are the level of mechanization, the harvesting method applied, the forest road network, and the training of the labourers. The cost of labour, i.e. salaries, is another important driver of harvesting costs. However, its effect on and relative importance for overall harvesting costs is poorly described in the scientific literature. Thus, this study aims to analyse the influence of labour costs in more detail, especially on the country-wide wood harvesting potentials. In addition, we aimed to cross-compare the effect of labour costs with the effect of switching to a more efficient harvesting method. For this purpose, we calculated timber harvesting costs with varying salaries for all sample plots of the Swiss National Forest Inventory (NFI) for both, the currently applied harvesting method recorded in the NFI, and the potential best suitable harvesting method. A 1% change in labour costs affects harvesting costs by 0.33–0.77%, depending on the harvesting method applied. The influence is larger for systems that involve a large share of motor-manual work and for cable-based methods. Changing labour costs by ± 30% affects the number of plots for which timber harvesting is economically feasible, by 5 to 15 percent points. The effect of switching from the current to the best suitable harvesting method is comparable to that of reducing labour costs by 15–30%. These results indicate that the efficiency of wood harvesting can be increased with further mechanization and does not require cutting salaries of forestry personnel. In that, our results may inform forestry planning and policy making at regional to national level.