Montana's logging industry has changed significantly over the past two decades. Increased operating costs and subsequent diminishing returns, combined with a shifting paradigm in regards to active forest management have had significant impacts on theeconomic and demographic make-up of the industry. One way to address these changes and mitigate the associated challenges of continued viability is through analysis of the factors and constraints impacting routine operational costs. To provide a resourcefor comparison between commonly-utilized logging equipment, the hourly owning and operating costs of select mechanical, ground-based machines were calculated using the machine rate method from data supplied by western Montana equipment dealers. The results were compared to historical cost data, and reasons for increased logging expense were studied and discussed. Inflation-adjusted operating costs for ground-based equipment appear to be 32-86 higher than 20 years ago. Reasons include increases in equipment purchase price, fuel, labor wages and benefits, and repair/maintenance expenses as well as a decrease in the number of operational days per year.
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