These contracts are a big deal, a very big deal, as in more than one million acres of selective logging to be completed in 20 years across the Coconino, Kaibab, Sitgreaves and Tonto National Forests.
Now is the time to be preparing for forest industry business activity, with the long awaited logging contracts by the Forest Service, through the 4FRI (Four Forest Restoration Initiative), expected to be announced in June 2021. These contracts are a big deal, a very big deal, as in more than one million acres of selective logging to be completed in 20 years across the Coconino, Kaibab, Sitgreaves and Tonto National Forests. To put this in perspective, imagine 50,000 truckloads of logs, lumber and biomass being pulled out of the forest every year – this is 140 full truckloads, every day, for 20 years. This level of activity is necessary to mitigate the threat of catastrophic wildfire and devastating flooding that results, and preserve annual water catchment areas by protecting our forest ecosystem. This massive level of activity brings with it tremendous opportunity for Coconino County businesses and workers.
It is estimated that more than 1,000 jobs need to be created to support this work. Those jobs are solid paying careers, which range from saw machine operators to heavy equipment drivers, diesel mechanics to tractor trailer drivers. This skilled workforce is not available from local labor markets and large-scale training programs are underway. Coconino Community College is ramping up CDL Training Programs and Northern Arizona University’s Ecological Restoration Institute and School of Forestry, in partnership with Coconino County, are developing a Northern Arizona Forestry Operations Training Center. The opportunity is real and our major community institutions have been working together to create career pathways through local training opportunities for the hundreds of jobs needed.
Let’s look at the business opportunities in a few more ways and unpack how the revival of a once-strong forestry industry can bring business to the region as a whole, starting with Opportunity Zones. The majority of the forested, private land that is zoned for forestry (wood processing commercial activity) lies within a Designated Opportunity Zone. For those who don’t know what an Opportunity Zone is, it is a land area or census track that has been designated by state and federal bodies to have depressed economic activity and or economically disadvantage populations. In order to foster capital (business) investment into these distressed areas, a major tax relief system has been introduced, which essentially can eliminate capital gains taxes for those investing into Opportunity Zone Funds or Opportunity Zone Qualifying Businesses. The catch is that the OZ Qualifying Business or the OZ Funds must exist and operate in a Designated Opportunity Zone to be eligible for tax breaks. This is a good thing for the forestry industry in Coconino County, as much of the land is in Designated Opportunity Zones.
Knowing this can make a major impact in where major business activities can be located. The Coconino Forest Restoration Initiatives Director Jay Smith has partnered with the Economic Development and Geographic Information System (GIS) mapping teams to share visually and publicly this important interplay of eligible private land, proximity to major highways and Opportunity Zone boundaries. See the map online or download a high-resolution copy at coconino.az.gov/2083/Forest-Restoration. Click on the Forest Industry Parcel Analysis link.
Let’s take a minute to think about the business opportunities that emerge as a result of forestry activity protecting our landscapes, homes and watersheds, and diversifying our economy. One resource that will exist ongoing is woody biomass, the small diameter branches, the pine needles, barks and woodchips. This is known as biomass and has many uses, ranging from bio-diesel, insulation, bio-char, erosion protection, heating fuel and processed wood products for the building industry. Private industry has developed hundreds of business models to capitalize on this resource. A simple search on “using biomass as fuel” will yield hundreds of business opportunities that can help to generate your business plans. Coconino County businesses are well positioned to learn from, adapt and adopt technologies that make money from forestry wood products.
Let’s look at another dimension of opportunity that arises with hundreds more trucks and heavy equipment being used to restore our forests. The need for parts, service shops, mobile mechanics and contracted operators and drivers will increase dramatically. The operations of the forestry industry do not run in isolation, but are rather an extension of the existing business community which fuels, services and sells to it. As a final thought to bring this business opportunity closer to you in the coming months, what pivot does your business need to do in order to benefit and make money off the trees?
For those interested in the Coconino County Forestry Restoration Initiative, email Jay Smith at jsmith@coconino.az.gov.
To learn more about specific business opportunities, please feel free to connect with me by email or phone. FBN
By Chris Pasterz
Chris Pasterz is the economic development manager for Coconino County. Pasterz can be reached at cpasterz@coconino.az.gov or 928-679-7134.