WOOD PRODUCTS MILL IMPROVEMENT - AN IMPORTANT COMPONENT OF RURAL-DEVELOPMENT

This paper discusses the results of a study that was conducted to help the management of a small specialty wood products mill in Alabama dev elop a plan and strategy for improving the profitability of its wood p roducts operation. This study was undertaken as part of an outreach pr ogram to extend technical assistance to existing wood-using industries so they can continue to maintain economically viable operations, part icularly in areas plagued by persistent economic problems of low incom e and employment. It was determined that the mill could realize signif icant increases in profit if production were increased either by reduc ing downtime or increasing materials flow through the system. Also, in creased production could be realized by reducing the current product s ize allowances by 50 percent. Furthermore, increased sales of by-produ cts such as wood chips, sawdusts, and bark would enable the mill to ga in more profit. Specific recommendations on how these improvements cou ld be achieved and estimates of the maximum rational investment needed were presented to the mill management.