Economics of Manufacturing Structural Lumber from Hardwoods Using the Saw-Dry-Rip (SDR) Concept

Forest Service research has demonstrated that straight structural lumber can be manufactured from low- to medium-density hardwoods such as red maple, yellow-poplar, and sweetgum. The technique is referred to as an SDR system– to saw to full width flitches, dry the flitches, and then rip to desired dimensional lumber width. Analysis indicates that about 50 percent of a sawmill’s trimmed log throughput can be recovered as structural lumber at a processing cost (excluding wood cost) of about $115 per thousand board feet (MBF). Roundwood costs minus revenues from marketable residues need to be added to processing costs to obtain manufacturing costs. Assuming roundwood cost to be $40 per ovendry ton (ODT), manufacturing costs are about $171/MBF, with residues valued at $40/ODT for wood chips, $12/ODT for dry sawdust and planer shavings, and $8/ODT for hogged fuel. The average f.o.b. mill value of lumber output was estimated at about $237/MBF. The SDR sawmill appears to be a viable investment opportunity, based on comparisons of manufacturing costs to likely revenues.

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