Forestry companies offer forest management services beyond logging, including conservation, silviculture, timber investment management, and urban forestry. Some focus on maximizing raw material availability, while others prioritize sustainability and community service.
Forestry companies provide services related to forest management. This does not necessarily mean that all logging companies are in the business of cutting and supplying timber, as a logging or lumber business would be. On the contrary, most forest companies are engaged in the practice of improving, maintaining and conserving forests as a natural resource. Some of the services foresters provide may include water and soil remediation, watershed management, erosion control, pest and disease control, reforestation, and ensuring that localized ecosystems account for biodiversity. However, many forest companies specialize in services beyond conservation.
For example, an increasing number of forestry companies specialize in a specific forestry discipline called silviculture, which is the science of optimizing tree density by applying certain agricultural measures to initiate regeneration of forest growth. These measures include enrichment planting, single or group tree selection, alternating thinning, and proactive management of environmental conditions with the potential to negatively impact growth volume and concentration. While these measures may seem to indicate that the science of forestry is aimed at reforestation, that’s only part of the story. In fact, the typical goal of forest companies that engage in these practices is to maximize the availability of raw material that can be harvested for human benefit.
Some logging companies specialize in providing lumber investment opportunities. Indeed, they act as real estate brokers to negotiate and manage the sale of forest land, both private and industrial. These assets can then be sold to lumber companies that produce various products ranging from paper and pulp to construction lumber. Alternatively, these companies may be active in the timber investment market from a different strategic approach, such as raising funds to purchase timber. These types of logging companies are often referred to as Timber Investment Management Organizations (TIMO).
In addition to investing in timber, some forest companies specialize in sourcing timber. Their goal is to search for potential woodland parcels and take an inventory of the volume and diversity of species on the property, a practice known in the industry as timber cruising. The company then assesses the monetary value of the standing timber and makes a purchase offer to the landowner. If the proposal is accepted and the sale closes, the company typically subcontracts to a logging company to harvest the lumber.
Growing concern about environmental issues such as deforestation and global warming has led to the emergence of forest companies that manage urban forestry. While these foresters still practice practices that promote sustainable forestry, they are less interested in profiting from harvesting timber. In fact, they are typically focused on serving local communities by providing services that promote the beautification and conservation of urban woodlands. This not only improves local property values and overall economic stability, but also provides an opportunity to provide education and promote environmental stewardship.
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