Assessing the characteristics and supporting factors that lead to logging machine value loss in the Southeastern United States

ABSTRACT Forest harvesting machines have become technologically advanced, making them more productive but also more complex and expensive to purchase. Logging contractors have the challenge of deciding the right duration for operating their machines to optimize the high initial capital investment of purchasing new equipment. We evaluated the decline in ground-based mechanized logging equipment value in the Southeastern United States and determined baseline value loss trends for equipment based on several operational factors. Based on 920 machine listings from common equipment trading internet sites, predictive models were developed for the listed used price of tracked and wheeled feller-bunchers, tracked and trailer-mounted loaders, and wheeled skidders resulting in R2 values of 0.75 or higher. Machine age (yrs) proved to be the most significant predictor of the listed used price for all machine types. Tracked machines were listed at significantly higher prices (p < 0.0001) and ages (loaders p = 0.0921 and skidders p = 0.0007) than their wheeled counterparts. A survey of equipment dealers and logging contractors was also conducted to ascertain key considerations of machine value retention and for replacement. Lack of preventative maintenance was ranked as the most likely factor that leads to premature equipment replacement. Equipment dealers consistently recommend significantly lower machine hours at time of replacement than logging contractors. The results from this study provide predictive models and qualitative reasoning regarding machine value loss and decision-making from both equipment dealer’s and logging contractor’s perspectives.