Toward Top Quartile: Southern Pine Labor Data Insights

Recently, Beck Group Consulting added new labor-related statistics to its Sawmill TQ benchmarking service for Southern pine sawmills. This new data includes average hourly wages, fringe benefit details, hourly and salaried turnover statistics, and safety performance information.

Key Takeaways

One key finding was that average hourly wages at Southern Yellow Pine (SYP) mills have grown over 4% per year since 2012, easily exceeding the 2.6% inflation rate for that period. Another is that health and life insurance represent the largest components of fringe benefits; to some surprise, however, they do not account for a greater proportion of total compensation than they did a decade ago. 

Interestingly, some mills with the highest hourly wage rates also had the lowest total manufacturing costs, while mills with lower wage rates often faced higher manufacturing costs. The Beck Group interprets this as a sign that highly automated mills tend to achieve greater productivity per labor hour and rely on a skilled workforce—such as millwrights, electricians, and saw filers—whose expertise commands higher wages.

The saying "you get what you pay for" may also apply to the workforce. The Beck Group has observed that, although sawmill wage rates in the US South have been lower than those in other regions of North America, productivity rates (per labor hour) are also lower. In other words, the lower hourly pay is offset by a reduced output of lumber per worker.

Enhancing Benchmarking Services for Sawmillers

The Beck Group continually works to improve its benchmarking services to be the most complete, accurate, and timely information available to sawmillers. Combining the Beck Group's sawmill benchmarking experience and knowledge with ResourceWise's SilvaStat360 business intelligence platform, Sawmill TQ (Top Quartile) delivers historical and current sawmill benchmark data representing a large portion of the southern sawmilling industry. Complementary benchmarking services for log, lumber, pellet, and wood fiber values can also be found.

For more information, the Beck Group conducts regular timber industry workshops, including its upcoming Keys to Successful Sawmill Management (December 3-4, 2024), Business of Forest Products (January 23, 2025), Sawmilling 101, Human Resources for the timber world, and more.