Spring Green, WI, June 1--In today’s world, where specialization is accepted as the key to market success, it is unusual to come across a businessman who succeeds by doing the opposite, according to Timberline.
Jim Birkemeier’s Timbergreen Forestry business sells and installs wood flooring. However, Timbergreen Forestry does everything from planting the trees and harvesting them — and making and installing the flooring.
Affordable modern technology has made his approach to forest products and forestry both possible and profitable, according to Jim. But mostly, he seems to enjoy doing it all himself — and not having to share the profits with middlemen.
"Every time I touch a board, I double its value," explained Jim. "Half of that jump in value is the machinery and labor and the cost of producing it, and the other half is just the middleman profit."
Jim keeps the profit and spends the rest on energy, equipment and distribution. The money adds up because he does not pay a middleman. He handles each phase of the lumber manufacturing process, from logging to installation of the finished flooring. "It just makes forestry so much more fun," said Jim.
Jim bought 200 acres of forestland about 35 years ago while he was still working as a consulting forester after graduating from the University of Wisconsin-Madison. It was while he was consulting for landowners, helping them to market their timber, that he realized the wood could be marketed in a much different way — benefiting the landowner and the forest. He calls his approach "Full Vigor Forestry," which is also the name of the book he published to teach others how to use the same methods.
In addition to sharing this information through his book and an informative Web site, www.timbergreenforestry.com, Jim also invites landowners who want to start a similar business to visit him for a few days. He also does 'house calls' and enjoys visiting others around the country in order to help co-operatives get started.
"By controlling the whole process, from forest to finished flooring, and eliminating all the brokers and middlemen, we can earn $10 per board foot from even our lowest grades of salvaged timber," said Jim. At the same time, the forest is managed to produce high value timber; he removes the worst trees first and allows the best ones to continue growing.
Jim installs tongue and groove flooring and millwork direct to homeowners and businesses. He does the installation work himself. He takes jobs throughout the U.S. and has traveled as far as Texas and Florida.
Attention to every detail is very important to Jim, who gets nearly all his business through word-of-mouth and referrals. His specialty is wood floor of mixed species; customers choose which kinds of wood they want for their floor.
This approach has two benefits. One advantage is the unique natural beauty of the mixed species. "It turns out to be so much more beautiful and more interesting than a standard floor," Jim said. "Eight of 10 customers love this blended floor." The floor in his house includes every species of wood from his own property plus others from different parts of Wisconsin.
The second benefit involves economy. "It’s reduced my need for a huge warehouse of inventory," said Jim. "It lets me sell what I have." He can mix in the odd species and get full value for every kind of wood. For example, hickory and elm are nearly worthless in the commercial market, but they are a gold mine for Jim’s business. "I love those little odds and ends now. And I don’t have any scrap piles any more," he said.
Before he started making his own flooring, Jim took his lumber to a flooring mill. However, the waste factor was about 35%. Now, manufacturing the flooring himself, he has reduced his waste factor to 10%. "What industry wouldn’t kill for a 25 percent savings in their waste?" he asked.
