Portable Sawmills

Trudi Edmeades, Peterson Portable Sawmills
The portable sawmill industry was born in a spirit of DIY (do-it-yourself), allowing property and log owners to complete the entire milling process on site using their own equipment. As sawmill manufacturers continue to develop and expand the concept, creativity, combined with the latest technology in engineering and building materials had produced ideas that sawmillers couldn’t even dream of just a few decades ago.

That’s good news for buyers, but it also means the number of products available now makes choosing the right equipment for the right job an unenviable and daunting task for the first time buyer. To make the right choice there are five key questions you need to ask yourself.

1. What is the business? Is it going to be a hobby, a small business, or a commercial operation? This will determine whether the emphasis is on production rates or making a profit, labour requirements etc.

2. Who is your market? Where is the timber going? If it’s being sold to a local retailer, what specifications do they need and what is their turn over each year? Can you transport your timber? Is there a guy down the road selling the same thing?

3. Where is your supply? Where will you get your logs from, and will it be a dependable, continual supply? The size and species can also determine blade choice and mill dimensions. Is there a seasonal harvest? Will you be paying for the supply and transport of the logs?

4. What are your costs? A rough budget must be calculated whether you are looking to make a profit, recover your outlay, or just enjoy yourself - otherwise you might get a shock further down the track. Set up costs like insurance, permits if working with native wood, safety gear and storage areas are often forgotten in the wake of the obvious costs like log transport, fuel, repairs and maintenance etc.

5. Where is your site? Although portable, many mills remain at the same site and one must choose this place carefully. Where will the timber be stacked, stored or dried? Will the area get muddy and washed out during winter? Do you have room for excess sawdust and possibly more equipment in the future? Will trucks have easy access? Is it protected from thieves and vandals?

And most importantly, make sure you see and feel the machine in action. Ideally get to a shootout, as that is your best way of comparing similar machines and seeing their potential. Find an owner in your area (manufacturers should provide you with this) and spend a day working with him and asking him everything about his mill and business. Sawmillers are usually a friendly bunch and you will probably find yourself sharing a beer with your new mate at the end of the day. Previously, information came from a catalogue and a couple of pictures in a magazine. Today we are surrounded with it – the internet, forums and editorials have left you no excuses not to make a wise and informed decision.

We also find that portable sawmills appeal so much to this DIY generation that often we are selling equipment to clients who have never operated this type of machinery before. Eager first-timers do not realise the potential of their new toy – both for business success, but also personal injury. T he onus is now on manufacturers to be supplying better quality products, improved safety features, and hands on training. Many times we are building the foundation of a business, so being able to assist clients in marketing themselves, advising which product will best suit their needs and educating them on how to add value to their lumber are crucial to their success.

Hourly Returns
All analysis can be brought back to how much per hour man and machine can return. The cost of capital and ability to service borrowings is a significant advantage of small or micro sawmilling systems. The following table shows a range of typical capital outlay and the cost per hour based on a table mortgage at 10% over 60 months. The sawmill is assumed to run 130 hours per month in a portable operation and 160 hours per month in a fixed site.

For a high capital cost sawmill (NZ$11 million) to match the cost for the last option above they would have to cut 132m 3 per hour!

Long term analysis of sawmilling operations indicates that electric sawmills have the cheapest operating costs. Petrol and diesel are similar in the long run although diesel is cheaper daily. Blades, repairs and maintenance and fuel/oil averages around NZ$10/hr for portable machines – about NZ$7.50 for fixed mills.

Wages will vary with each situation. It would be normal to expect an experienced operator to be paid NZ$15-20 per hour.

When combined, the costs and profit can arrive at a charge out rate as in the following table:

A normal charge out would be NZ$65 per hour for long-term work. Short-term rates with travel time and relocation costs can increase this to NZ$100 per hour.

Custom Milling
There are three general approaches for custom milling. These are:

Rate per cubic metre: The rate is charged on timber output and may vary from as little as NZ$50/m 3 for flitching through to NZ$250/m 3 for hardwood sawing. A normal average price for casual work would be NZ$150/m 3.

Hourly rate: As discussed above, rates might vary from NZ$65-$100/hr with additional charges for travel, foreign bodies (nails/dirty logs) etc.

Timber trade: Trading timber for service happens less often. It can often result in problems where the ‘fairness’ of arrangements is difficult to determine.

Timber Trading
Simply, buying logs and selling timber. Specialty cutting techniques can turn previously unmerchantable log types into valuable timber. ‘Minor’ species niche markets area a significant opportunity for small sawmillers. The key is establishing relationship with architects and builders to ensure it is known you can access this kind of material. Dry stock held in barns or sheds can very cheaply add significant value.

In conclusion, the fundamentals are all the same. You must earn more than you spend and preferable sufficient to provide a superior return on investment. Small scale sawmilling can provide significant returns on investment, but careful study of the options and being flexible are crucial to long term survival and profitability.


Stephanie Bergman, Mahoe Sawmills
As well as obvious issues like what can you afford, other factors anyone considering buying a mill should consider include:

• Your physical capability: How easy is the mill to operate – who does the work, you or the machine? Do you have to do a lot of lifting or is there an effective timber return? If you’re a young man or you’re not going to be using the machine very often, the smaller machines are great, but if you’re maybe a little bit older and you’ve got the money, why not make life easy with a bigger machine?
• Is it safe to operate? In terms of safety, more people hurt their backs than get hit by flying objects.
• How often do you want to be cutting? If you’re only going to be using it every now and then there’s no need for a big mill.
• What are you planning on cutting? Match the machine to the resource. Timber knowledge is very important.
• Look for features suck as cut-to-taper capability that will let you cut longer lengths and increase value recovery – and profit.