Feasibility of an integrated manufacturing system for kiln-drying hardwood lumber

This study explores the economics of conventional kiln-drying of hardwood lumber within a wood products industrial park. The facilities examined were: 1) an independent dry kiln; 2) a dry kiln/warehouse; 3) a sawmill/dry kiln/warehouse; and 4) a smaller sawmill/dry kiln/warehouse. Twenty year investment analyses were done for batteries of kilns with annual production capabilities of 1.0, 2.5, and 5.0 million board feet (MMBF) per year. The analyses showed that the 5.0 MMBF scale gives acceptable returns on investment exceeding 15 percent, either alone or with a sawmill and warehouse; the 2.5 MMBF scale gives returns greater than 15 percent with the warehouse and small sawmill operating double shifts. The 1.0 MMBF scale does not give acceptable returns. These returns indicate economies of both scale and integration in hardwood lumber drying.

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