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

VIDEO: G-Men seek revenge Saturday night in rematch at Langley Events Centre

Portland’s Winterhawks downed the Vancouver Giants 5-3 during a road trip down south.

UPDATE: Abbotsford murder victim was brother of slain gang leader

Mandeep Grewal gunned down Thursday, brother Gavin killed in North Van in 2017

LETTER: Retired firefighter defends union’s election involvement

In rebuttal to another letter writer’s stance on firefighter involvement in municipal politics.

Painful Truth: Homelessness is the only issue on Langley ballots

Reporter Matthew Claxton said reducing homelessness should be a focus for those elected.

Langley Advance What’s On: Oct. 18, 2018 edition

Submit Langley events: LangleyAdvance.com/add-event or news@langleyadvance.com (subject: What’s On).

Tommy Chong says cannabis legalization makes him proud to be a Canadian

Legendary marijuana advocate and comedian celebrates cultural milestone at Kelowna event

3 in serious condition after altercation on Granville strip: police

Patrol officers came upon the fight just after 3 a.m. on Granville Street near Helmcken Street

B.C. passenger caught smoking weed in a car issued $230 fine

Saanich police did a field sobriety test on the driver and deemed it safe for him to drive

Pedestrian rushed to Lower Mainland hospital after being hit by car

Friday night crash is latest in rash of collisions involving pedestrians in Surrey

Payette invites critics to ‘come and spend a few days’ with her

Governor General Julie Payette made her first official to B.C. back in March

More pot stores expected in B.C. in coming ‘weeks and months’: attorney general

Attorney General David Eby and Public Safety Minister Mike Farnworth visited the new BC Cannabis Store in the province’s Interior

Telus launches charitable foundation to help vulnerable youth

The Telus Friendly Future Foundation complements other social initiatives by the company, including Mobility for Good

Police say suspicious death of B.C. artist ruled a homicide

Patrick Zube Aylward’s body was found in a residence on a rural road outside of Seton Portage, west of Lillooet, B.C.

Temporary roads being built in areas affected by landslide in northern B.C.

Emergency Management BC news release says Disaster Financial Assistance is available to eligible residents of the Peace River Regional District who may have been affected by the landslides

Most Read