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.

BC legislatureforestry

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Surrey pushing the poor out of Whalley, public hearing speakers say

‘There is a war on the poor here in Surrey,’ resident Dave Diewert tells city council

Liquor permission considered for White Rock’s Memorial Park

Council mulls business-boosting measures, including picnic benches

Surrey seniors call Seniors’ Centre Without Walls, a new-to-B.C. program

‘Crazy coincidence’ saw program connect soon after COVID-19 pandemic hit

IHIT investigating death of Surrey woman

Injured woman was taken to SMH early Tuesday morning

Charges laid in 2019 single-vehicle crash in Surrey that killed young soccer star

Dilpreet Sandhu, 19, faces eight charges in early morning crash that killed Brandon Bassi

If Trudeau won’t stand up to Trump, how will regular people: Singh

Trudeau did not directly answer a question about Trump’s actions amid protests

Facing changes together: Your community, your journalists

We’re asking you to lock arms with us, as we look to better days ahead

VIDEO: Internal investigation into aggressive arrest by Kelowna Mountie

A video allegedly shows a Kelowna Mountie striking a man several times

COVID claims 23rd Langley Lodge patient, making it the deadliest outbreak in B.C.

Coronavirus kills another senior at Langley care home, bringing B.C. total to 166

Family of dead B.C. football star urge changes to mental health policies in hospitals

Uko family disappointed in actions of Regina hospital, hosting public funeral service this weekend

22 new COVID-19 test-positives, one death following days of low case counts in B.C.

Health officials urged British Columbians to ‘stand together while staying apart’

John Horgan says COVID-19 restrictions won’t be eased regionally

B.C. Liberals urge ‘tailored’ response based on infections

Feds get failing grade for lack of action plan on anniversary of MMIWG report

‘Instead of a National Action Plan, we have been left with a Lack-of-Action Plan’

Maple Ridge woman fights WorkSafe BC over police widow’s pension

Dalila Vroom says husband, Const. Rob Vroom, died as a result of PTSD from time with Abbotsford PD

Most Read