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

Avalanche Canada issues special public warning

Very weak layer buried under recent snow a cause for concern

Nelson-area man wants trapping laws changed after dog killed

Louis Seguin’s 10-month-old Australian shepherd died in a body-gripping trap last month

West Kootenay highways a mess as heavy snowfall continues

‘Roads are very icy, people have to be patient and have to slow down’

REPLAY: B.C’s best video this week

In case you missed it, here’s a look at the replay-worth highlights from this week across the province

Microscopic parasite found in Prince Rupert water affecting thousands

More than 12,000 residents affected by the boil water advisory issued Dec. 14

Trudeau lashes out at Conservatives over migration “misinformation”

Warning against the “dangers of populism,” Trudeau says using immigration as a wedge political issue puts Canada’s future at risk.

B.C. hockey coach creates ‘gear library’ to remove cost barrier of sport

Todd Hickling gathered donations and used gear to remove the cost barrier for kids to play hockey.

Canada’s ambassador meets with second detainee in China

Global Affairs says John McCallum, Canada’s ambassador to China, met with Spavor Sunday

‘They’re coming:’ Flying cars may appear in urban skies by 2023

Air taxis will number 15,000 and become a global market worth $32 billion by 2035

B.C. VIEWS: Andrew Wilkinson on taxes, ICBC and union changes

Opposition leader sees unpredictable year ahead in 2019

5 tips for self-care, mental wellness this holiday season

Ministry of Mental Health and Addictions urging British Columbians to prioritize self care through festive season

Rescued B.C. cat with misshapen legs in need of forever home – with carpet

Mirielle was born with misshapen back legs and after a tough life on the streets, is looking for a forever home.

Most Read