📘 Read the full study and download the costing spreadsheet tool in the International Journal of Forest Engineering, Vol. 36 (2025): https://doi.org/10.1080/14942119.2025.2469202. Or, contact Dr. Chad Bolding and Dr. Joe Conrad for more information.
The machine-rate method has long been a cornerstone of cost estimation in forest operations, helping professionals calculate the hourly cost of owning and operating logging equipment. However, the last major update to this method was in 2002, before modern emissions standards, telematics, and today’s high equipment prices.
In their 2025 study, Black, Bolding, and Conrad address this gap by updating the machine-rate methodology using empirical data from 123 machines across 13 southeastern U.S. states. The study replaces outdated assumptions with real-world inputs from equipment dealers, including purchase prices, fuel consumption, repair and maintenance costs, and economic life.
🌲Key improvements include:
- More accurate salvage values based on machine type and usage
- Updated labor and fuel costs using current federal data
- A downloadable spreadsheet tool for easy, customizable cost calculations
- The study also highlights the growing capital investment required for modern logging operations. For example, a conventional whole-tree system now averages $1.1 million in equipment costs, while a swamp logging system can exceed $2.2 million.
For forest industry professionals, this research provides a much-needed update to a critical business tool. By improving the accuracy and usability of machine-rate costing, the study supports better decision-making, rate negotiation, and long-term financial planning in a rapidly evolving industry.
