Assessment of the Lumber

Drying Industry and Current

Potential for Value-Added

Processing in Alaska

David L. Nicholls and Kenneth A. Kilborn

United States 

Department of

Agriculture

Forest Service

Pacific Northwest

Research Station

General Technical 

Report

PNW-GTR-522

September 2001
David L. Nicholls and Kenneth A. Kilborn are forest products technologists, Wood

Utilization Center, Pacific Northwest Research Station, 204 Siginaka Way, Sitka, AK

99835-7316.

Authors
Nicholls, David L.; Kilborn, Kenneth A. 2001. Assessment of the lumber drying 

industry and current potential for value-added processing in Alaska. Gen. Tech.

Rep. PNW-GTR-522. Portland, OR: U.S. Department of Agriculture, Forest

Service, Pacific Northwest Research Station. 13 p.

An assessment was done of the lumber drying industry in Alaska. Part 1 of the

assessment included an evaluation of kiln capacity, kiln type, and species dried, by

geographic region of the state. Part 2 of the assessment considered the valueadded potential associated with lumber drying. Various costs related to lumber drying were evaluated in an Excel spreadsheet. About 2.2 million board feet of lumber

per year is currently being dried in Alaska, over 90 percent of which is softwoods.

Total installed kiln capacity is about 94 thousand board feet. On a board-foot basis,

lumber drying premiums and profitability were most influenced by species dried

(whether softwoods or hardwoods) and not as strongly influenced by geographic

location or type of kiln used.

Keywords: Economics, wood products, lumber, dry kiln, Alaska.

Abstract
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Introduction Although the commercial sawmill industry in Alaska currently includes several wellestablished mills, the lumber drying industry has just begun to become established

within the past few years. The development of a viable lumber drying industry in

Alaska has been faced with many of the same obstacles and constraints as the

state’s sawmilling industry including long transportation distances, relatively high

wages, lack of lumber grading services, and concerns over availability of raw

materials.

Before the 1960s, lumber drying in Alaska was limited primarily to air drying in outdoor storage areas. Kiln drying in Alaska has occurred since the 1960s when a

facility was installed in Anchorage to dry local birch lumber. The first conventional

steam-heated dry kiln was installed in Anchorage in the 1970s to dry spruce lumber

for sale in local markets. During the energy crisis in the 1970s, a few small-scale

vacuum and solar kilns were established in Alaska. In the early 1990s a steamheated facility was started on the Kenai Peninsula of Alaska to dry softwood lumber

produced at a local sawmill. Also in the 1990s, a second kiln was established on a

different part of the Kenai Peninsula to dry softwood dimension lumber. This second

kiln facility was considerably larger than any other kilns in Alaska. None of the four

largest sawmills in Alaska (which collectively account for about 50 percent of lumber

production in Alaska) currently operates a dry kiln facility.

Most of Alaska dry kiln facilities previously mentioned operated for a relatively short

time before closing (typically 5 years or less). Many factors have contributed to the

lack of sustainability of a lumber drying industry including mill shutdowns, and in at

least one case, a fire. One relatively large hardwood drying facility was replaced by

smaller kilns, which allow greater control over drying conditions and lumber moisture content.

A recent trend has been the establishment of relatively small dry kiln facilities in

Alaska, with each installation typically having less than 25 thousand board feet (MBF)

capacity. Within the past 5 years, nearly 10 such facilities have come on-line and

are distributed throughout southeast, south-central, and interior Alaska. They dry a

mixture of hardwood and softwood lumber for interior woodworking as well as construction-dimension lumber applications. Several softwood and hardwood lumber

producers are currently drying lumber to the quality standards needed to market

their products through local retail markets. In addition, several producers are beginning to engage in some form of secondary processing including lumber surfacing

and profiling and pattern work.

Many of the smaller sawmills in Alaska have identified kiln drying lumber as a valueadded process that will enable them to sell into local retail markets and to diversify

the types of products they can market. One of the important elements of successful

marketing is being able to grade and stamp lumber according to standardized 

criteria and rules. Grade stamps provide lumber buyers with useful information

about lumber quality and recommended uses. Regional grading agencies, including the Western Wood Products Association (WWPA), which serves Alaska and

other Western states, can be retained to provide lumber inspection and grading

services.

1
Review of Past

Literature Relevant to

the Alaska Dry Kiln

Industry

Several recent studies have evaluated the potential for lumber drying as a contributor to value-added wood products manufacturing in Alaska (Eastin and Braden

2000, Hill 1999, McDowell Group 1998). An analysis of a 1998 survey of sawmills

throughout Alaska estimated the practical capacity of mills to produce over 200 

million board feet (MMBF) of lumber per year, whereas the design capacity was

estimated to be more than 241 MMBF (Hill 1999). For most respondents to the 

survey, the practical capacity for lumber production was typically about 10 percent

lower than the design capacity. Most of the facilities, however, indicated a yearly

production of less than 1 MMBF, with fewer than six relatively large facilities

accounting for about two-thirds of the state-wide lumber production. Although the

most common plan for business expansion among sawmill owners was the installation of a lumber dry kiln, high purchase costs often were indicated as significant

barriers.

A separate study indicated that total sawmill capacity in Alaska has declined from

370 MMBF in 1990 to only 220 MMBF in 1997, during which time only 52 percent

of installed capacity was used (Eastin and Braden 2000). Dry kilns will be needed

for Alaska producers to enter and become competitive in value-added markets.

Given these findings, and the abundance of smaller mills in Alaska, it is not surprising that most lumber producers in Alaska who are currently proposing dry kilns

are focusing on either dehumidification or hot water kilns, both of which require

considerably less capital investment than low-pressure steam systems.

The parallels between sawmills and dry kiln facilities in Alaska have been recognized, and the presence of several different production classes has been identified

(Kilborn 1999). The current composition of the lumber dry kiln industry also is structured into different size classes, based on installed drying capacity. Several medium-sized facilities have about 10 to 25 MBF kiln capacity: the remaining smaller

facilities have drying capacities of less than 5 MBF of lumber.

The current domestic market for Alaska solid wood products, including lumber and

timbers, has been estimated to be between 90 and 100 MMBF per year, of which 80

to 90 MMBF is currently imported (primarily from the Pacific Northwest and Canada)

(McDowell Group 1998). The same study estimated the Alaska market for kiln-dried,

graded dimensional lumber to be 65 to 70 MMBF per year (McDowell Group 1998).

Given the current population of Alaska, about 600,000, this would result in a per capita

lumber consumption of about 158 board feet per year. By comparison, the national

end-use consumption of softwood lumber was 50.8 billion board feet in 1997 (WWPA

1998). Based on a 1997 national population of about 267 million people, the U.S. per

capita consumption of softwood lumber for 1997 would be about 190 board feet (U.S.

Department of Commerce, Census Bureau 2001). These numbers indicate that the

Alaska per capita consumption of softwood lumber is somewhat less than the national average. If other softwood products such as log homes and firewood were considered, it is possible that Alaska consumption would compare more favorably to the

national average.

2
3

Several studies have evaluated lumber drying technologies that are well suited 

to the smaller scale producers found in Alaska. Dehumidification kilns are one of 

the leading practical technologies for drying lumber in many regions of the state,

although electrical costs can be an important consideration. Although dehumidification kilns can be well suited to drying small amounts of lumber, their ability to dry

wood to uniform moisture contents within kiln charges is a potential concern. For

example, after evaluating the variation in final moisture content for yellow poplar

(Liriodendron tulipifera L.) lumber dried in a dehumidification kiln (Armstrong et al.

1995), a brief equalization period was recommended after kiln drying in order to

minimize moisture content variations between pieces of lumber. Other studies have

focused on the economics of dehumidification drying for hardwood lumber (Wengert

et al. 1988). Under normal conditions for drying 4/4 red oak lumber in a 50 MBF

dehumidification kiln, a drying premium of about $200 per MBF was needed to

achieve an internal rate of return of more than 12 percent. Airdrying lumber is a 

fairly common practice in some locations of interior Alaska during summer. In one

study, 2-inch thick green softwood lumber that began airdrying in May reached a

moisture content of less than 19 percent within 1 month (Sampson and Ruppert

1985).

Current state-wide dry kiln capacity was evaluated based on site visits to dry kiln

facilities, phone conversations with kiln owners, and past industry surveys. Most

facilities are part of a sawmill operation, drying lumber for local retail markets and

for their own needs. Some facilities have specialized in drying for local niche markets

such as random width-random length hardwood lumber to be sold through retail outlets. Many operators are limited by seasonal factors such as rainfall and cold temperatures, which can prevent year-round production.

The sawmill industry in Alaska currently consists of about four relatively large 

producers manufacturing 10 MMBF or more of lumber per year, with 100 or more

smaller producers operating either on a part-time basis or with limited production

schedules. Ten dry kilns (including two under construction) are associated with

sawmills throughout the state; however, none of the large producers mentioned 

previously operates a dry kiln. Adding new kiln facilities in Alaska would result in 

significantly greater lumber drying capacity, although the potential capacity and

statewide impacts of the facilities are difficult to estimate. Idle kilns that could be

reestablished, also have been considered. Five idle kilns, totaling about 400 MBF 

of kiln capacity, have been identified, and some of these could be brought on-line

for continued use in Alaska. One recently installed kiln, having about 4 MBF capacity,

is an experimental unit owned by a municipality in southeast Alaska. This is a

portable facility planned for workshops, training sessions, and lumber drying

research.

The average kiln size for active kilns in Alaska is about 8 MBF. Most of the facilities

are either dehumidification or hot water kilns. Currently, no known low-pressure

steam kilns are operating in Alaska; however, two of the idle kilns are steam kilns.

About four of the kilns are heated with wood waste to fuel a hot water heating system, a fuel source that would lend itself well to other facilities having an abundance

of wood waste. The remaining currently operating kilns are either dehumidification

kilns (four), or a vacuum kiln (one) heated with electricity. Drying technologies 

commonly used in Alaska are described later in this paper.

Part 1—An Evaluation

of State-Wide Dry Kiln

Capacity
Wood-producing regions in Alaska can be divided into three general areas: (1) southeast Alaska, which is primarily either Tongass National Forest land or Alaska Native

Corporation land; (2) the Kenai Peninsula, near Anchorage (Alaska’s largest city),

and (3) the interior region, serving the Fairbanks area and many other communities

(fig. 1). Although softwoods predominate throughout all three regions, most of the

softwood volume is in southeast Alaska (primarily western hemlock (Tsuga heterophylla (Raf.) Sarg.) and Sitka spruce (Picea sitchensis Bong. Carr.) and the Kenai

region (primarily Sitka spruce, white spruce (Picea glauca (Moench) Voss), and 

Lutz spruce (Picea xlutzii Little). Lutz spruce is a hybrid species of Sitka spruce and

white spruce. The interior region is comprised of mixed areas of hardwoods (primarily

paper birch (Betula papyrifera Marsh), balsam poplar (Populus balsamifera L.), and

aspen (Populus tremuloides Michx.) as well as softwoods (primarily white spruce).

State-wide kiln capacity includes about 81 MBF to dry softwood lumber and 13 MBF

4

Figure 1—Primary wood products regions within Alaska, including (1) interior, (2) south-central/Kenai, and (3) southeast regions. 

Regional Variations 

in the Dry Kiln

Industry in Alaska
to dry hardwood lumber. The interior region is the only area where airdrying is 

practiced regularly. Here, white spruce lumber up to 2 inches thick can be air dried 

during summer.

The number of dry kilns that have recently been constructed or are currently proposed is indicative of the high level of interest among Alaska lumber producers in

value-added processing. Abundant supplies of manufacturing residues at many

facilities could create additional incentives and opportunities for waste utilization,

one of which would be energy to heat dry kilns.

Several of the proposed dry kilns in Alaska are associated with the larger sawmill

facilities and could greatly add to the total state-wide capacity for lumber drying if

they become completed. Efforts currently underway to help establish lumber grades

for Alaska species also could assist in marketing dimension lumber to retail and

construction or architectural markets, an issue of great interest to the larger

sawmilling facilities.

The ability to assure consistent moisture contents in lumber drying is important in

gaining entry into domestic markets. Lumber grading rules are used by grading

agencies, such as the WWPA, to assess the influence of characteristics such as

wane, knots, grain, wood texture, or manufacturing defects on the end-use characteristics of kiln-dried lumber. For dimension lumber, the structural properties are of

primary interest, whereas for appearance grades, aesthetic values are of interest.

For lumber products to be sold with consistent quality into retail markets, manufacturers must assure lumber products are graded according to standardized grading

rules, by a certified grading agency. In Alaska, lumber grading is particularly important if local manufacturers are to compete with grade-stamped lumber imported

from the Pacific Northwest or from Canada. Without lumber grading, it would be difficult for Alaska consumers to make valid comparisons between domestic softwood

lumber and imported lumber. From a practical standpoint, government agencies and

lending institutions may require that buildings be constructed to local building codes

with graded lumber. Kiln-drying lumber to consistent and uniform moisture contents

would be an important part of this process.

Several trends within the dry kiln industry in Alaska have been observed. Although

installation costs are an important concern for most operators, so is the need for

accurate technical information about dry kiln practices; particularly during construction and startup. Several people who have attended recent dry kiln workshops or

training sessions are either planning to install a dry kiln or have already done so.

Technology transfer efforts such as these seem to have strong potential for nearterm results.

Quality assurance practices related to final moisture content control, proper stickering techniques, and the need for conditioning and equalizing treatments (among

other practices) can be maintained and improved through close interaction between

kiln operators and wood technology professionals within the state. Marketing and

distribution efforts to reach local retail outlets can be enhanced for small hardwood

producers who can develop niche markets for home hobbyists and craftsmen.

5

Potential for

Increased KilnDrying of Lumber 

in Alaska
Current Drying

Technologies 

6

Larger producers of softwood lumber can develop local retail markets for more 

traditional products such as dimension lumber for housing construction. The most

successful facilities seem to be those that take an integrated approach toward the

management of all phases of their operations, including sawmilling, wood waste 

utilization, and lumber drying.

Dehumidification and hot water kilns are two dry kiln technologies that seem to 

be the most viable for current wood products producers in Alaska (table 1). Each

type has advantages and disadvantages depending on factors such as kiln size,

geographic location, local electrical rates, and size and species of lumber dried.

Although both types of kilns are well suited to relatively small kiln capacities, dehumidification kiln operation is more sensitive to the cost of electricity, which is used 

to power the drying units. Dehumidification kiln systems, however, are available at

relatively low prices compared to other types of systems. Hot water dry kilns can be

heated by various sources, including fossil fuels as well as wood wastes from manufacturing residues. For dehumidification kilns, an auxiliary heat source is recommended to warm the kiln chamber to a temperature at which the drying units can begin

functioning. Although hot water kilns are less dependent than dehumidification kilns

on electrical costs, a certain amount of electricity will be needed for fans and motors

regardless of what kiln type is used. 

Table 1—Current status of Alaska dry kiln facilities, including total installed kiln capacity 

and number of facilities, November 2000

Installed kilnsa Proposed kilnsa Idle kilnsa

Total No. Total No. Total No. 

capacity of capacity of capacity of

Kiln type (MBF) kilns (MBF) kilns (MBF) kilns

Direct-fired — — — — 270 1

Dehumidification 29 4 — — 50 2

Hot water 59 6 18 2 — —

Miscellaneous 2 1 — — — —

Steam — — 275 3 95 2

Experimental/research 4 1

Total 94 12 293 5 415 5

a Includes 2 kilns currently under construction.
Part 2—An Evaluation

of Drying Costs of

Lumber Produced in

Alaska

7

Most dry kiln facilities in Alaska (for both dehumidification and hot water systems)

have a maximum drying temperature of about 160 °F. This relatively low maximum

temperature can be an important consideration in some regions of Alaska, where

winter temperatures are well below zero and long startup times are needed just to

preheat frozen lumber before drying can occur.

Small kiln construction is typically done with an outside vendor supplying the necessary control equipment and the kiln operator-owner constructing the kiln facility

primarily from locally available parts and lumber. In a few cases, producers have

purchased complete kiln packages from commercial vendors in the continental

United States. Most of the currently operating kilns lack sophisticated control systems. Nonetheless, lumber drying quality seems to depend greatly on operator 

interest and commitment to the lumber drying process, and several cases have

been observed where surprisingly good quality lumber has been dried even where

new kiln systems and equipment were not available.

A third means of heating dry kilns is with low-pressure steam, typically produced by

the combustion of wood wastes or fossil fuels. Steam systems represent a relatively

large capital investment and are best suited for producers drying large volumes of

lumber. Most of the current lumber drying facilities in Alaska cannot justify steamheated kilns; however, this technology may play a significant role in the future 

development of the industry.

The total volume of lumber dried and drying costs were evaluated for all known dry

kiln facilities in Alaska. An Excel spreadsheet was developed to evaluate key operating costs associated with kiln drying lumber, and the overall results were categorized by region within the state, kiln type, and species dried. It was not within the

scope of the project to evaluate costs that were not directly associated with lumber

drying. Log handling costs, sawmilling costs, equipment depreciation, rent, and

taxes were not considered, although they could represent significant expenses for

many sawmill and dry kiln operators.

The following list shows several variable costs associated with drying lumber that

were evaluated:

• Species dried

• Lumber type (hardwood vs. softwood)

• Lumber thickness

• Average initial (green) moisture content

• Average final (dry) moisture content

• Electrical costs ($ per kilowatt hour)

• Cost of labor (loading and unloading kilns)

• Lumber value undried ($ per MBF)

• Lumber value dried ($ per MBF)

• Annual volume of lumber dried (MBF)

• Anticipated lumber degrade (percentage of total lumber volume)

• Reduction in value for degrade lumber (percentage of original value)
8

The spreadsheet was designed to be used as a guide for proposed kiln facilities

(based on expected operating conditions) or for estimating profitability of existing

facilities (based on actual operating conditions). The spreadsheet is intended to 

provide preliminary information about key operating costs for kiln drying lumber but

would not be suited for a complete investment analysis for capital spending projects.

The gross premium for drying lumber was defined as the lumber value after drying

minus the value before drying ($/MBF). The net premium was then determined by

subtracting key operating costs and estimated degrade from the gross premium.

The net premium results are intended to provide comparative measures of profitability between kiln facilities, recognizing that several key lumber manufacturing costs

have not been considered. The primary results of interest were the state-wide net

premium values, based on region, kiln type, and lumber species. Because these

values represent estimated lumber values before vs. after drying, they could be

interpreted as a measure of value-added potential for lumber drying in Alaska.

The electrical costs of running fans for air circulation were considered for all kiln

types. For hot water kilns, this was usually the only electrical cost evaluated. For

dehumidification-type kilns, electrical costs also included the cost of running a compressor and blower unit. Here, cost information was either provided by kiln owners

based on monthly electric bills or was estimated based on published estimates from

a dehumidification dry kiln manufacturer. The estimates from the dry kiln manufacturer assumed that the fans accounted for 40 percent of the total electric charges,

whereas the remaining 60 percent were accounted for by dehumidification equipment. The demands on the dehumidification equipment likely could be reduced if an

auxiliary heat source were used. However, because this would represent an added

expense, its benefit in reducing electrical costs would need to be weighed against

its purchase and operating costs. 

Kiln maintenance costs were in most cases estimated to be 4 to 5 percent of the

original installed kiln cost, although precise estimates were difficult to determine.

Because most kilns were installed within the past few years, long-term estimates of

kiln maintenance costs were not yet available. One factor favoring the relatively low

maintenance costs used is that lumber is loaded manually into kilns at many of the

smaller facilities surveyed. Here, one could reasonably expect less wear and tear

than for kilns that are loaded by forklift.

Lumber degrade information was obtained from telephone conversations with kiln

owners and was based on two estimates: (1) the proportion of pieces experiencing

some loss in value (degrade) during drying and (2) the estimated loss in value of

these degraded pieces. The two factors were then multiplied together to give an

estimate of the loss in value owing to degrade, for an entire kiln charge. For example,

if 5 percent of the lumber was estimated to experience degrade, and the estimated

loss in value was 50 percent, then the overall reduction in value for the kiln charge

was (5 percent) × 0.50 = 2.5 percent. Lumber degrade estimates were determined

as a percentage of kiln-dried lumber value. 

Labor costs to load and unload dry kilns were obtained either directly from kiln

owners or were estimated based on the size of the kiln and the types of lumber

dried. Labor estimates varied from 16 to 32 person hours per kiln cycle, depending

Lumber Drying

Costs
9

on kiln size. These estimates included the time needed to load and to unload kilns

(i.e., total labor requirements per kiln cycle). Miscellaneous labor requirements for

monitoring dry kilns, checking moisture content samples, and performing routine

maintenance were not considered in this evaluation, although they most likely would

require at least 1 hour per day during drying cycles.

Current lumber drying premiums based on values for green vs. kiln-dried lumber 

are summarized in tables 2 through 4. Separate summaries are provided for type of

species (hardwood vs. softwood lumber), region within the state, and kiln technology

Table 3—Summary of lumber drying premiums in Alaska, by geographic region

Total Annual Average Average Total

No. installed volume gross drying net drying net drying

Region of kilns capacity lumber dried premium premiuma b premiuma

Dollars 

--------Thousand board feet-------- Dollars per thousand board feet per year

South-central/Kenai 6 42.0 716 783 556.80 246,693

Interior 4 29.2 1,184 1,000 631.90 339,526

Southeast 2 23.0 340 Estimates Estimates 81,600

only only

a Net drying premium = gross drying premium - (electrical costs + labor + lumber degrade + maintenance).

b Unweighted average values.

Table 2—Summary of lumber drying premiums in Alaska, by kiln type

Total Annual Average Average Total net 

No. installed volume gross drying net drying drying

Kiln type of kilns capacity lumber dried premium premiuma b premiuma

Dollars 

--------Thousand board feet-------- Dollars per thousand board feet per year

Dehumidification 4 29.0 456.0 725 473.20 124,615

Dehumidification/

hot water and 

miscellaneous 3 7.0 141.6 1,633 1,088.00 157,834 

Hot water 5 58.2 1,642.5 300 238.20 385,370 

a Net drying premium = gross drying premium - (electrical costs + labor + lumber degrade + maintenance).

b Unweighted average values.

Results
used. Group averages are provided about the number of kiln facilities, total installed

capacity (MBF), annual volume dried (MBF), and gross and net drying premiums

($/MBF). All average values were reported as unweighted averages.

The total net drying premium for all kiln-dried lumber in Alaska was estimated to 

be more than $667,000. An estimated 88 MBF of state-wide kiln capacity currently

dries about 2,240 MBF per year. The average lumber value green (i.e., before kiln

drying) was estimated to be $679 per MBF, and the lumber value after drying was

estimated to be over $1,600 per MBF. This resulted in a state-wide average of $775

10

Table 4—Summary of lumber drying premiums in Alaska, by species category

Total Annual Average Average Total

Species No. installed volume gross drying net drying net drying

category of kilns capacity lumber dried premium premiuma b premiuma

Dollars 

-------------------------------Thousand board feet-------------------------- per year

Hardwoods 5 13.0 177.6 1,400 924 180,541

Softwoods 7 81.2 2,063.0 329 247 487,278

a Net drying premium = gross drying premium - (electrical costs + labor + lumber degrade + maintenance).

b Unweighted average values.

Table 5—Current state-wide lumber drying capacity in Alaska, by geographic region, kiln type, 

and lumber typea

Lumber/ Combined

Number species kiln

Region Kiln type of kilns type capacity

Thousand 

board feet

Southeast Hot water 2 Softwood 17

South-central/Kenai Dehumidification 2 Softwood 23

Hot water 1 Softwood 10

Dehumidification 3 Hardwood 15

Interior Hot water 2 Softwood 25

Dehumidification/hot water 1 Hardwood 2

Vacuum 1 Hardwood 2

Total 12 94

a Only active kilns considered.
per MBF gross drying premium and a net drying premium of $529 per MBF. These

results reflect the fact that the drying premiums for hardwood lumber were considerably greater than those for softwood lumber (table 4). In addition, neither the lumber

yield nor the distribution of lumber grades was considered in this evaluation, which

could reasonably influence the drying premiums achieved. For example, a purchase

of 1,000 board feet of paper birch logs might yield only a fraction of that amount in

high-grade cuttings suitable for retail sale. This is recognized as a shortcoming of

the current model and could become a topic for future work.

Softwood lumber currently accounts for most of the lumber drying volume as well

as the value-added potential in Alaska (table 5). This is evident although the total

number of operating kilns is almost evenly divided between hardwood facilities (five

kilns) and softwood facilities (seven kilns). About 92 percent of the total drying volume of the state is in softwood lumber, and about 86 percent of the total installed

kiln capacity is for facilities drying softwoods. 

Many of the hardwood facilities dry predominantly paper birch lumber in relatively

small kilns, with drying cycles typically lasting several weeks. Softwood drying

schedules (primarily for white spruce, Sitka spruce, and western hemlock lumber)

are generally shorter, typically lasting 2 weeks or less. All the surveyed dry kilns

would be expected to dry lumber at temperatures of 160 °F or less.

Although the lumber drying volume for softwoods heavily outweighs that of hardwoods, the net drying premiums were somewhat less uneven between the two

species groups. The net drying premiums for hardwood lumber and softwood lumber

were estimated to be $180,541 per year and $487,278 per year, respectively, even

though hardwood lumber accounted for only 8 percent of the total lumber drying

volume. The drying premiums for hardwood lumber on an MBF basis were considerably greater than for softwood lumber (table 4). 

Hot water dry kilns currently account for the greatest amount of lumber drying volume (MBF) and net drying premiums, compared to other kiln types (table 5). Over

half of the total net drying premium from all lumber dried is from hot water kilns.

Dehumidification kilns had considerably less production than hot water kilns, and 

the average gross lumber drying premium was much greater for dehumidification

kilns than for hot water kilns.

About 50 percent of the value-added processing resulting from kiln drying occurs 

in the interior region of Alaska (table 3), although the south-central/Kenai region

has more active kilns and a greater installed kiln capacity. This is due largely to 

the presence of fewer dry kilns in the interior region processing larger volumes of

lumber. The southeast region currently has the fewest active dry kilns (two) and 

the lowest total net drying premium of any region.

11
Currently, 12 kiln facilities are known to be active in Alaska, including 2 that are in

the final stages of construction. The total installed capacity for these sites is about

94 MBF. Currently, about 50 percent of the operating kilns are heated by hot water

systems (five kilns), the other 50 percent by dehumidification systems (five kilns).

There is one known vacuum kiln operating in Alaska. On a board-foot basis, 

lumber drying premiums and profitability were most influenced by species dried

(whether softwoods or hardwoods) and not as strongly influenced by geographic

location or type of kiln used.

There is strong potential for further development of the dry kiln industry in Alaska

to meet the state-wide demand for kiln-dried lumber. There is currently a wide range

of kiln types and species dried within the state; however, most of the kilns are relatively small (25 MBF or smaller). Because none of the larger sawmills within the

state have dry kilns, the addition of kiln facilities at one or more of these sites could

greatly increase the state-wide capacity of Alaska.

Additional lumber drying facilities in Alaska could lead to further opportunities for

value-added processing of lumber products. Lumber planing and grading will be

key steps in marketing locally manufactured lumber for retail sale of dimension and

construction lumber. Further manufacturing of dried and planed lumber could result

in higher value products for interior applications or fine woodworking. Included in

this group of products would be flooring, kitchen cabinets, paneling, and siding.

Armstrong, J.P.; Patterson, D.W. 1995. Variation of final moisture content of 4/4 

yellow-poplar lumber dried in a small dehumidification kiln. Forest Products

Journal. 45(5): 51-52.

Eastin, I.; Braden, R. 2000. Survey of international opportunities for Alaska softwood producers. Seattle, WA: Center for International Trade in Forest Products,

University of Washington; final report. Prepared for the Alaska Department of

Community and Economic Development. 105 p.

Forest Products Laboratory. 1999. The wood handbook—wood as an engineering

material. Gen. Tech. Rep. FPL-GTR-113. Madison, WI: U.S. Department of

Agriculture, Forest Service, Forest Products Laboratory. 463 p. 

Haynes, R.W.; Adams, D.M.; Kincaid, J. [and others]. 1990. Projected timber 

demand/supply relationships. In: An analysis of the timber situation in the United

States, 1989-2040. RM-GTR-199. Fort Collins, CO: U.S. Department of

Agriculture, Forest Service, Rocky Mountain Forest and Range Experiment

Station: 131-157. Chapter 7

Hill, A. 1999. The Alaska wood products industry 1998 sawmill survey. In: 

Laufenberg, T.; Brady, B., eds. Proceedings: linking healthy forests and communities through value-added Alaska forest products. Gen. Tech. Rep. PNW-GTR500. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific

Northwest Research Station: 203-218.

12

Conclusions

Literature Cited
Kilborn, K.A. 1999. Sawmilling technology application in commodity products. In: 

Laufenberg, T.; Brady, B., eds. Proceedings: linking healthy forests and communities through value-added Alaska forest products. Gen. Tech. Rep. PNW-GTR500. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific

Northwest Research Station: 59-63.

McDowell Group. 1998. The Alaska market for value-added lumber products. 

Juneau, AK: McDowell Group; final report. Prepared for the Forest Products

Manufacturing Project. 70 p.

Reeb, J.E.; Massey, J.G. 1996. Using customer-driven information to add value to 

lumber. Forest Products Journal. 46(10): 41-44. 

Sampson, G.R.; Ruppert, F.A. 1985. Air drying of softwood lumber, Fairbanks, 

Alaska. Res. Pap. PNW-RP-340. Portland, OR: U.S. Department of Agriculture,

Forest Service, Pacific Northwest Forest and Range Experiment Station. 6 p.

U.S. Department of Agriculture, Forest Service. 2000. Linking healthy forests and

communities through value-added Alaska forest products: a workshop on technology and utilization opportunities: Proceedings of a conference. Portland, OR:

Pacific Northwest Research Station. 341 p.

U.S. Department of Agriculture, Forest Service. 1991. Dry kiln operator’s 

manual. Agric. Handb. 188. Washington, DC. 274 p.

U.S. Department of Commerce, Census Bureau. 2000. National estimates: 

total monthly population estimates, 1980 to 2000. http://www.census.gov/population/estimates/nation/intfile1-1.txt. (August 2000).

Wengert, E. [and others]. 1988. Opportunities for dehumidification drying of hardwood lumber in Virginia: a guide for making decisions in dehumidification lumber

drying. Sandston, VA: Department of Forest Products, Virginia Tech University;

Virginia Department of Forestry. 36 p.

Western Wood Products Association (WWPA). 1998. British Columbia 

Council of Forest Industries, Fact Book ’98. http://www.cofi.org/oldsite/factbook98/index.html. (August 2000).

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The Forest Service of the U.S. Department of Agriculture is dedicated to the principle

of multiple use management of the Nation’s forest resources for sustained yields of

wood, water, forage, wildlife, and recreation. Through forestry research, cooperation

with the States and private forest owners, and management of the National Forests

and National Grasslands, it strives—as directed by Congress—to provide increasingly

greater service to a growing Nation.

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and activities on the basis of race, color, national origin, gender, religion, age, disability,

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apply to all programs.) Persons with disabilities who require alternative means for

communication of program information (Braille, large print, audiotape, etc.) should

contact USDA's TARGET Center at (202) 720-2600 (voice and TDD).

To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room

326-W, Whitten Building, 14th and Independence Avenue, SW, Washington, DC

20250-9410 or call (202) 720-5964 (voice and TDD). USDA is an equal opportunity

provider and employer.

Pacific Northwest Research Station

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U.S. Department of Agriculture

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