Inflation and soaring gas prices have forced a North Carolina logging company to shut down after 37 years in business

As of Monday, gasoline was $4,491 a gallon, according to the US Energy Information Administration.Johner Images/Getty Images
A logging company in North Carolina is shutting down due to accelerating inflation and rising gas prices.
"I haven't spoken to a lumberjack who actually makes money in years," his owner said.
Gasoline prices have increased by nearly 50% over the past year.
A family-run lumber company in North Carolina is closing after being unable to cope with accelerating inflation and soaring gas prices.
Bobby Goodson, who founded Goodson's All Terrain Logging 37 years ago, said he couldn't find a way to keep the business going.
"I haven't spoken to a lumberjack who actually makes money in years," Goodson said in a video posted to his YouTube channel on May 10, where he announced he was closing his business.
Goodson said he would start selling his equipment. "I can't park that stuff for six, eight months, or a year and wait for the economy to turn around," he said.
Fuel prices have skyrocketed in the US as a result of post-pandemic demand and conflict in Ukraine. As of Monday, regular gasoline averaged $4,491 a gallon, up $1,463 from the same time a year ago, an increase of nearly 50%, according to the US Energy Information Administration. Although crude oil prices have eased recently, oil refineries have become a bottleneck in the energy market and pushed up gas prices.
"If you have a fleet of trucks and you probably drive 700 to 800 miles a day, a truck is going to do five miles per gallon," Goodson told News Channel 12, an ABC-affiliated network. "This fuel increase is killing you. And that's why I didn't see a way out."
It's not just rising gas prices that are making business difficult for Goodson. He told News Channel 12 that there was a shortage of trucks and the cost of almost every input had gone up.
According to data from the US Bureau of Labor Statistics, between April 2021 and April 2022, vehicle prices increased by 13.2%, while used car and truck prices increased by 22.7%.
“In the US, deforestation is a $300 billion industry and we loggers are where it starts,” Goodson told News Channel 12. “That's the base; we are at the foot of the totem pole. There's a whole lot of people who are going to start feeling the pain."
As of the third quarter of 2021, there were just over 9,000 logging and forestry operations in the United States, according to the US Bureau of Labor Statistics. According to preliminary seasonally adjusted data from the BLS, around 45,300 people worked in the logging sector in April 2022.
"Unless something drastic happens, there will be a severe logging shortage," Goodson told News Channel 12.
Read the original article on Business Insider

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