Question
I have noticed a problem with my spruce tree. There are small holes on the trunk of the tree that look like the following       ....
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Some of the lower limbs have lost all their needles and others are brown. What do you think is the problem and can anything be done...thanks

Answer
If these holes are in a line around the trunk they are caused by a wood pecker called a sap sucker. These birds make the holes and the tree puts out sap --insets come to feed on the sap and the birds return to eat the insects. They rarely cause death of the tree. If the tree is dying form other causes the birds will peck the bark looking for insects. Trees most commonly attacked by sapsuckers include apple, crabapple, sugar maple, mountain ash, birch oak and pine.
If it is sap suckers I would spray the tree trunk with an insecticide maybe Sevin or Malathion this will kill any insects in the holes and the birds will not return since there will be no insects for them to eat

The lower limbs do shed needles naturally but if it is on the upper needles it is some thing else. If the rest of the needles are green and healthy looking I would not be too concerned about loosing a few needles. Conifers do drop needles (conifer for the most part have two sets of needles and they shed the older set in the spring) and as long as the ones on the ends of the branches are green your tree sounds ok.