B.C.’s forest industry has shifted to logging contractors to supply mills and export markets. (Black Press files)

B.C. loggers struggle despite record lumber prices

Province gets recommendations to stabilize contractor business

Even with record-high lumber prices driving the forest industry, logging contractors continue to struggle to stay in business, says B.C.’s main harvester group.

Members of the Truck Loggers Association are hoping for quick action by the B.C. government on recommendations from the recently completed review of logging contractor sustainability, conducted by former cabinet minister George Abbott.

“This report and recommendations basically validates the reality of logging contractors today,” said Dave Elstone, executive director of the TLA. “There is declining profitability for contractors across the province.”

The recommendations include establishing a minimum standard rate model for logging contractors by 2020, including equipment required, set-up times, fuel costs, crew costs and distances to be travelled. The report also calls for a government and industry-funded training program by 2019, to address the skilled worker shortage caused by people retiring or leaving the industry.

Elstone said contractors are working at less than full capacity, even with high lumber demand and prices, because they don’t have enough skilled operators to keep their trucks and harvest equipment going. The contractor system puts a lot of risk on loggers and they don’t generate the profits to manage that risk, so some are closing down, he said.

RELATED: How will Winter Harbour survive?

RELATED: Industry lauds Canadian lumber trade action

The TLA says its members are the foundation of an industry that supports 140,000 jobs in B.C. and generates $14 billion in revenues internationally, with lumber sales to China, Japan, Korea and other countries in addition to the U.S.

Forests Minister Doug Donaldson has responded cautiously to the report, offering to hire a facilitator to bring together large companies and contractors, with a deadline of deciding which recommendations to move on by the end of July.

Randy Spence, chair of the Interior Logging Association, said the report confirms that conditions are similar in his region as the B.C. coast.

Susan Yurkovich, president of the B.C. Council of Forest Industries, cautioned that logging contractor costs for forest companies are already higher than competing jurisdictions, and the industry needs to maintain global competitiveness.

B.C.’s lumber producers are also dealing with tariffs imposed by the U.S. government since the expiration of the latest softwood lumber trade agreement last year.

Just Posted

A 64-year-old dies while mountain biking in Blind Bay

Shuswap Search and Rescue came assist first responders at the scene

City looks at extending public transit to evenings, Sundays

Salmon Arm council to consider expanding services, sharing costs with BC Transit

Plans rolling along for Silver Creek bike trail

CSRD expects construction of 3.65-kilometre path to begin in September 2019

Boil water notice lifted for residents on Sunnybrae system

Recent testing finds turbidity at acceptable levels

City seeks public approval to borrow $845,000 for airport runway project

Salmon Arm residents have until June 24 to voice opposition to borrowing bylaw

B.C.’s fight to regulate bitumen through pipelines to go to Canada’s top court

BC Appeal Court judges found B.C. cannot restrict bitumen flow along Trans Mountain pipeline

Friend of accused Kelowna murderer takes the stand

Elrich Dyck’s testimony continued Friday with details from the night Chris Ausman was killed

Osprey nest in downtown Salmon Arm will remain until new year

The powerlines around the nest have been de-energized so the birds can stay until spring

Housing provided for women and children fleeing violence in Penticton

Announcement on Friday is part of a provincewide initiative to construct additional housing.

People’s Party of Canada leader talks B.C. trade to Penticton supporters

Maxime Bernier, head of the new federal political party, spoke at Time Winery on Friday

Princeton RCMP recover stolen homework and save the grade

It’s a slightly better excuse than “the dog ate my homework.” Earlier… Continue reading

New Summerland distillery has received recognition

Alchemist Distiller won audience choice award at recent competition

Scheer says it would take Conservatives five years to balance budget

Scheeraccused the Liberal government of spending $79.5 billion of previously unbudgeted funds

Vancouver woman sexually assaulted after man follows her home; suspect at large

Police are looking for an Asian man in his 40s after the incident on Vancouver’s east side.

Most Read