Economics of Cutting Wood Parts with a Laser Under Optical Image Analyzer Control

A financial analysis using discounted cash-flow techniques was used to determine the economic feasibility of a new laser lumber processing system for use in a furniture rough mill. The projected cost of the system was $790,000 which would replace conventional crosscut and ripsaws costing $256,856. A financial analysis was made assuming only a 5 percent yield increase resulting from saw kerf elimination in a mill cutting 32 MBF (thousand board feet) per day. Other potential laser savings were ignored in the initial study. With this conservative approach, calculated savings for a furniture plant using red oak lumber were $1,210 per day and $1,298 per day when using sap gum. The net present value of the laser investment was $408,024 and the internal rate of return after tax was 22.5 percent. Both values would be considered an excellent investment opportunity in the financial community. Current laser technology, optical analyzers, and computer systems can be used to design a laser lumber cutting system. While the economic feasibility is positive, additional work is required to optimize equipment and develop software control systems needed for a working unit.

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