Firewood is an essential resource for many households, be it as a source of warmth and comfort or just as an essential source of well-being. However, you may have noticed that the cost of firewood has been steadily increasing, particularly in California. In this blog post, I would like to shed some light on the reasons behind the rising prices of firewood production in the state.
We are happy to conclude that the relative cost of firewood as a share of household spending has been stable in Southern California over the last 20 years. We are working hard to keep it that way!
What factors contribute to the increasing cost of firewood production?
1. Cost of labor:
Producing firewood requires a significant amount of manual labor, from cutting and splitting the wood to handling and delivering it. As labor costs continue to rise faster than inflation, firewood suppliers need to adjust their prices accordingly. An additional challenge faced by the firewood industry is finding a reliable workforce. The physical nature of the job and the demand for labor in other industries make it difficult to attract and retain workers. This scarcity of labor drives up wages, especially in places like Southern California where the cost of living (housing) is so high.
2. Cost of fuel:
Firewood is a very heavy, bulky product. Any time we are processing or touching the product we do it with the help of chainsaws, machines or trucks. They all run on gas or diesel which seem to be reaching new levels every year.
Transporting firewood from production sites to our pick-up locations or directly to customers can be a costly endeavor. Many people do not realize how much the SoCal gridlock adds to the cost of doing business!
3. Cost of insurance:
Firewood production involves inherent risks, such as accidents and injuries. This being California and to protect us and our workers in this state, we need to invest heavily in insurance coverage. At Rancho La Casa the safety of our workers is of greatest importance. We conduct state-of-the-art safety training and classes for how to operate our machines.
Conclusion
At Rancho La Casa Firewood we are very conscious of the ever-increasing cost of our product. We are investing heavily into machines and new ways of distribution that will ultimately decrease or at least stabilize the cost of firewood.
Overall, the cost of 1/2 cord of quality firewood as a percentage of household spending has not increased over the last 20 years. We are working hard to keep it that way!