Arizona Forest
Restoration Products Inc.
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Arizona Forest Restoration Products Inc. |
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Indirect Jobs
Several different types of indirect jobs will be supported by Arizona Forest Restoration Products Inc.
Forestry Jobs
Based on Northern Arizona experience, spanning across the entire Mogollon Rim from the San Francisco Peaks to the White Mountains, it is typical for a mechanized logging "side" (a crew working a logging site) to produce about 10 "loads" (26 ton truck loads) per day, while thinning approximately 10 acres.
Therefore, the production of the 827,000 tons of wood required annually by AZFRP will typically require the operation of 14 "sides" (827,000 tons / 26 tons per load = 31,807 loads / 10 loads per day = 3,180 side days / 233 working days per side = 14 sides).
A mechanized "side" typically operates with 4 machines: 1 "feller-buncher", 1 "skidder", 1 "delimber", 1 "loader", each operated by one operator. In addition, based on the distance to the factory - hence the number of round trips that can be achieved daily, each "side" uses 2 or 3 trucks, each operated by one driver.
By contracting the operation of 14 "sides", Arizona Forest Restoration Products Inc. will therefore indirectly cause the creation of approximately 100 forestry jobs (14 "sides" x 7 operators = 98).
It is expected that these jobs will be divided between 6 to 9 logging companies in Northern Arizona (typically 2 or 3 "sides" per company) with each company employing 2 or 3 support positions. This will create 20 additional jobs, bringing the total number of jobs indirectly created in forestry to approximately 120.
Biomass Jobs
Based on the experience accumulated by the biomass industry in the production of electricity from woody slash, it is expected that the 24 megawatt electricity generation plant to be located in Winslow near the OSB plant will employ approximately 20 people.
Additionally, since the biomass produced during the thinning of the 32,000 acres annually can generate around 20 to 30 megawatt of electricity, it is expected that approximately at least a third of this biomass will be burned in another generation plant in Northern Arizona, such as the one currently being built by NZ Legacy in Snowflake. This will cause the creation/support of at least 10 other jobs, bringing to total number of jobs indirectly created in biomass electricity generation to approximately 30.
Multiplier Process
All jobs created in specific industries such as OSB, forestry, biomass electricity generation, etc. benefit the community and create additional jobs through the economic process know as the "multiplier process". OSB workers, loggers, truckers, etc. typically raise families who, in turn, require services and create job opportunities in the local retail, food, entertainment, etc. industries.
Per studies conducted by Dr. Lay Gibson (University of Arizona) for the economic assessment of the impact of the White Mountain Stewardship Contract, the multiplier adapted to the wood industry in Northern Arizona typically is around 0.4.
The ~140 direct OSB jobs of Arizona Forest Restoration Products Inc., plus the ~120 forestry jobs that it will indirectly create, plus the ~30 biomass jobs that it will indirectly create, will result in the creation of approximately 120 additional indirect jobs through the economic multiplier process ( [140 + 120 + 30] x 0.4 = 116).
This will bring the total number of indirect jobs supported by Arizona Forest Restoration Products Inc. to approximately 270.
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