How Will BC Grow Its Value-Added Without the Wood? ]
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Winter 2021
What's the Forest Industry Worth to BC? Old Growth Strategic Review:
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What It Means for Contractors
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CONTENTS
WINTER 2021 Volume 43 Number 4 www.tla.ca
46
25
Columns & Departments 7
TLA President's Message
Measured Decisions That Will Work for All Bill Nelson
8
20 Market Report
US Market Outlook and Supply Dynamics Russ Taylor
TLA Executive Director's Message
So, Exactly What is Our Message? Bob Brash
10 Southern Interior Perspective
Now the Work Begins Todd Chamberlain
13 North West Perspective
Ready for Opportunities in 2021 Rick Brouwer
14 Northern Interior Perspective
Old-Growth Management in the Interior Paul Schuetz
16 Business Matters
Working with First Nations Chris Duncan and Mindy Wight
18 Safety Report
Use Three Points of Contact Every Time to Reduce the Risk of Injury Mark Ordeman
Cover 46 What's the Forest Industry Worth to BC? TLA Editorial
Features 22 Forestry Community: Williams Lake Robin Brunet
24 Letter to the Truck Loggers Association Premier John Horgan
25 How Will BC Grow Its Value-Added Without the Wood? Ian MacNeill
30 BC's Old Growth Strategic Review: What It Means for Contractors Jim Girvan
35 Suppliers' Supplement Cover Photo: Courtesy of Bill Nelson
Winter 2021 Truck LoggerBC 3
The Truck Loggers Association 2020 Executive & Directors
Interior Logging Association 2021 Board of Directors
Chairman Ron Volansky Bill Nelson First Vice Chairman Tim Menning Aaron Service Past Chairman Randy Spence Jacqui Beban Directors Guido Claudepierre Bob Brash Dennis Cook Sig Kemmler John Drayton Bob Marquis Creole Dufour Dave McNaught Randy Durante Jen Norie Frank Etchart Mark Ponting Erin Fitchett Aaron Service Sue Hagarty Barry Simpson Reid Hedlund Dorian Uzzell Scott Horovatin Matt Wealick Lennard Joe Associate Directors Tyson Lambert Hedley Larsen Tim Lloyd Don Mathews Brian Mulvihill Shawn McIver Carl Sweet Shari Smaha Lawrence Van De Leur Editorial Board Jacqui Beban General Manager Todd Chamberlain John Betts Administration Nancy Hesketh Bob Brash Rick Brouwer Chris Duncan Interior Logging Association 3204 - 39th Avenue Trevor Jobb Vernon, BC V1T 3C8 Sig Kemmler Tel: 250.503.2199 Fax: 250.503.2250 Jennifer Kramer E-mail: info@interiorlogging.org Brian Mulvihill Website: www.interiorlogging.org Bill Nelson Paul Schuetz
President Vice President Past President Executive Director Industrial Directors
T H A N K YO U TO T H E T LA A N D I TS M EM B ERS FO R YO U R C O N T I N U ED S U P PO RT O F T H E LO G G I N G C O M M U N I T Y ALM WOOD CONTRACTING
Newcastle Timber Ltd.
WINTER 2021 / VOLUME 43 / NUMBER 4 Editor Jennifer Kramer Contributing Writers Bob Brash
Rick Brouwer Robin Brunet Todd Chamberlain Chris Duncan Jim Girvan John Horgan
Ian MacNeill Bill Nelson Mark Ordeman Paul Schuetz Russ Taylor Mindy Wight
For editorial information, please contact the Truck Loggers Association: Tel: 604.684.4291 Email: contact@tla.ca
TUG & BARGE
For advertising, please contact Advertising In Print: Tel: 604.681.1811 Email: info@advertisinginprint.com Truck LoggerBC magazine is published four times a year by the Truck Loggers Association, with content and support from the Interior Logging Association and the North West Loggers Association. Its editorial content seeks to reflect issues facing the industry and to provide readers with current information on BC’s forest industry. All rights reserved.
Advertising Sales & Design Layout office:
Goo d
ood Serv Company. Good People. G www.westcoasttug.ca
4 Truck LoggerBC Winter 2021
ice.
Advertising In Print 716 – 938 Howe Street, Vancouver, BC V6Z 1N9 Tel: 604.681.1811 Fax: 604.681.0456 Publication Mailing Agreement No. 40010419. For subscriptions, contact office@tla.ca or 604.684.4291. Send change of address notices and covers of undeliverable copies to: The Truck Loggers Association Suite 725-815 West Hastings Street Vancouver, BC V6C 1B4
Tel: 604.684.4291 E-mail: contact@tla.ca Website: www.tla.ca
from the Editorial Board DESK...
W
elcome to the Winter issue of Truck LoggerBC magazine. On behalf of the TLA’s board of directors, I hope that you and your loved ones had a safe and joyful holiday season. In this issue, Business Matters provides information about developing powerful partnerships with First Nations; the Safety Report reminds everyone to always use three points of contact when getting in and out of your truck; and the Market Report provides a US market outlook and takes a look at supply dynamics. On the heels of October 2020’s provincial election, Premier Horgan provided a letter to the TLA, which includes his commitment to moving forward with the policy and regulation changes resulting from the Contractor Sustainability Review. Following government’s release of its Old Growth Strategic Review in September 2020, we provide an analysis of how it impacts contractors and reinforce the importance of the logging sector’s engagement in future discussions. One of the greatest challenges facing the forest industry is ensuring the public understands—and appreciates—how much logging financially infiltrates every one of its communities. The cover article, “What’s the Forest Industry Worth to BC?” provides data to support forestry’s economic contributions to communities and highlights the obvious and less obvious benefits that BC’s forest industry provides. Unique to this issue is the Suppliers’ Supplement. Without a trade show this year, we wanted to ensure our valued suppliers still had an opportunity to share information with TLA members.
Additionally, on January 13, the Suppliers’ Spotlight webinars feature TLA suppliers who will highlight their products and services, followed by a Q&A period; suppliers, times and registration information are listed on pages 26 and 35. Also, without a live and silent auction this year, the TLA is providing members with an online auction in support of the TLA’s Forestry Education Fund; donors and auction items are listed on page 43. As you pick up this issue, you’ll once again notice that it is a few pages less and a few articles shorter than what we’ve come to enjoy over the past few years, which remains a result of COVID-19 and the challenging times in the forest industry. We understand and respect that our regular advertisers need to make difficult decisions these days about where to spend their advertising budgets and would like to express our appreciation to those who have continued to support Truck LoggerBC magazine and the TLA. As we continue to experience the effects of the pandemic, I hope that everyone continues to stay safe and healthy in the coming year. As always, I trust you will find this issue insightful and informative. If you have any feedback or comments, please contact our Director of Communications Jennifer Kramer by email at jennifer@tla.ca. Sig Kemmler Editorial Board Chair
Forestry Equipment Hourly Rates | 2020 Available only to TLA and ILA members
Why Use the Rates? • Independently built using forest industry data from equipment manufacturers and contractors that reflect actual operating circumstances. • Comprehensive forest equipment coverage. • Fuel price is adjusted monthly based on individual machine fuel consumption as opposed to generic fuel price changes. • Dynamic to changes when they occur that affect operating costs. • Used by BC Wildfire Service when hiring contractors. To obtain a copy: TLA members download from Members Login section on tla.ca; ILA members call the ILA office at 250.503.2199
| | | @truckloggerBC | www.tla.ca Winter 2021 Truck LoggerBC 5
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Bill Nelson
TLA President’s MESSAGE
Measured Decisions that Will Work for All
I
would like to congratulate Premier Horgan on his party’s recent re-election and Katrine Conroy on her appointment as BC’s new Minister of Forests, Lands, Natural Resource Operations, and Rural Development. We look forward to working with government on the many challenges facing the forest industry including the high priority of moving forward with the new rate dispute resolution mechanism coming out of the Contractor Sustainability Review. We also look forward to the work that will need to be done on the socioeconomic review of old-growth logging, which was an obvious miss in the recent Old Growth Strategic Review. It is so important to show how this is not just a simple subject of cut or preserve. BC’s active working forest is both old and new, and has multiple benefits generating far more than just stumpage to the Province, returns to contractors and profitability to licensees. An active working forest creates community stability, wages to thousands of employees, and economic returns to multiple supply chains across the province. Tenure reform is another important topic for all stakeholders in the forest industry. For almost eight decades, the TLA has been calling for some type of tenure reform and with so many issues around native land claims, old-growth logging and protection, forestry community stability and the need for certainty on the land base to enhance investment, it would be hard to not conclude that there will be changes coming in our future. For contractors, this could be both scary and an opportunity. The TLA will be urging government to make measured decisions that work for all stakeholders. A one-size-fits-all approach will not work across the province and contractors need to be considered fairly in any decisions that are made. Additionally, the TLA is working with mayors and leaders of TLA Community
members to help chart a path forward for businesses and communities. Last year, in partnership with TimberTracks, the TLA launched the Forestry Equipment Hourly Rate Sheet to provide the basic information needed for forestry equipment hourly rates, which were developed independently by equipment manufacturers and contractors and reflect actual work-on-the-ground situations. A significant amount of research and work went into this initiative and despite it not being perfect for all situations it is a reasonable place to start when developing a rate model or checking the hourly structure in your businesses. I highly encourage TLA members to consider using these rates. See page 5 for more information about how TLA and ILA members can obtain a copy. For those who are not already aware, I’d like to formally recognize the TLA’s new partnership with Wilson M. Beck (WM Beck) Insurance Services. Not much has actually changed, as it is the result of account managers, Ben Fitzpatrick and Peter Pringle, transitioning from Marsh to WM Beck who will remain the TLA’s main contacts. Wilson M. Beck is a second-generation western Canadian company with the ability to also provide ICBC insurance, which TLA members will appreciate for a one-stop-shop option. Welcome, Wilson M. Beck. On the COVID-19 front, the TLA continues to deal with the pandemic, as does the rest of the forest industry and the world. We are all thankful that forestry is an essential service and are proud to be a major contributor to BC’s economic recovery. Without a convention in 2021 due to COVID-19, we have been forced to look at everything differently and make changes to how we operate. We continue to provide industry information and education through our new TLA TALKS webinar initiative; past webinars can be found online through the
members-only section on the TLA website. We value our suppliers and want to ensure they still have an opportunity to reach out to our members, so in this issue we’ve included a separate Suppliers’ Supplement section and on January 13, we are offering a one-day Suppliers’ Spotlight webinar series. Also in January, we are hosting an online auction to raise funds for the Forestry Education Fund to ensure we continue funding scholarships for many deserving forestry students. Also a reflection of the times is a change in our annual sponsorship. I would like to extend our appreciation to Finning for the past nine years as our Premier Sponsor, previous five years as our convention’s Gold Sponsor and prior decades of sponsoring TLA events; you will be missed. At the same time, I would like to thank Inland for joining as our new Premier Sponsor, building upon their previous support of the TLA. We’ve also experienced a decline in magazine advertising, so I’d also like to extend our appreciation to all of the advertisers listed on page 45 whose support has enabled this issue to be in the hands of our readers. Changes to the TLA’s funding structure has caused the board to do some deep inward reflection, have hard discussions and make difficult decisions about the future. All discussions come back to how the TLA can continue to provide maximum value to its members and are a sign of a healthy association that is willing to change. We always want to honour our history and tradition, but the industry and our members’ needs change, and so too will the association to meet those needs. As always, our strength is in our roots. Bill Nelson, President, TLA Tel: 250-287-0045 Email: bill.nelson@hdlogging.com
Winter 2021 Truck LoggerBC 7
Bob Brash
TLA Executive Director’s MESSAGE
So, Exactly What is Our Message?
W
ell, another BC election is complete, and we now know (to nobody’s real surprise) the government we will be working with over the next four years as we tackle forestry sector issues. Firstly, our appreciation to Premier Horgan for his letter to the TLA in this issue. Our association has always believed in working together with the governments of the day to move our collective agendas forward. Luckily, most of the time, we share similar goals and wish lists for the changes we believe are necessary to improve the sector. The trick is to actually convert our messages into real changes that benefit us all. To help the sector achieve this objective, we have a new minister. The TLA welcomes Minister Conroy to what we consider (and perhaps a tad biased on our part) to be the most important—and essential—ministry in BC. Our industry remains a prominent employment generator, the backbone of many communities and a huge contributor to government revenues. Several articles in this issue clearly demonstrate the magnitude and scope of our industry. The new minister’s mandate letter contains many ambitious goals; most of which we will do our best to support. The challenge for all concerned will be helping the minister navigate the wide breadth of varying agendas between licensees, contractors, value-added manufacturers, environmental groups, communities, and First Nations. So, what is our message? Over the years, we’ve been consistent with our core messages: we’ve had enough of the constant erosion of the working forest; we need to dramatically improve BC’s investment climate; government needs to provide far more certainty on the land base and regulatory environment; make the contractor community more sustainable; and set up an environment to reduce our excessive high-cost structure compared to our global competitors.
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Why are those our messages? In short, we could say it is because we believe in BC, our communities and the forestry sector, but there really is an even simpler answer. To be successful, any business has the basic fundamentals to uphold: revenues, costs, margins, capital employed, and certainties/risks moving forward; and therein lies the challenge for many participants in BC’s forestry sector. Specific to harvesting contractors, recent studies and surveys confirm most remain challenged by the rates offered by licensees (and that is putting it diplomatically). If rates are marginal or below the effective costs of running an operation, that is clearly not sustainable, especially as we need to attract more youth. And while I’m not defending the licensees, BC’s overall high-cost structure is out of tune with our competitors globally, hence pressures by all concerned to save costs wherever possible. The net results for many in our business are very slim to non-existent margins, which sets up a difficult environment to find capital and continually reinvest in our very capitalintensive industry. Add in the uncertainties many contractors face with the degree to which their capital is employed and the length of their operational season, and the margins become further strained. As a side note, the Contractor Sustainability Review process remains a critical component towards finding longer-term solutions to rate concerns. Layered on top of these difficulties is the remaining—and at times escalating—uncertainties of the working forest from two perspectives. Firstly, BC’s regulatory and permitting structures remain complex with the consequential impacts of inconsistent harvesting approvals in many areas of the province. Secondly, environmental groups continue to advocate strongly for increased protection of forest stands at both the global and localized levels. Of even greater concern
is some ENGO’s reneging on previously negotiated land use plans by ever-escalating demands for outright protection of areas and consequential withdrawal from working forests. Make no mistake; BC’s forest industry is and remains a prominent force in the global market. We should collectively be proud of our accomplishments and contributions to BC’s overall strength. Unfortunately, in concert with what all the independent forest investment analysts are saying, the concerns we’ve described do not instill the needed confidence in BC’s forestry sector to attract the necessary capital and investment to move it forward in the manner we would all like to see. Is there a roadmap to success? Sure, but the challenge remains in negotiating through the myriad of different agendas each group brings to our politicians. At the end of the day, perhaps we should all concentrate on the core issues: set up an environment whereby all the factors of costs, revenues, margins and certainty are improved. This means even looking at our high stumpage level (sorry to our government friends). If these core realities are not addressed adequately, all of the other solutions will probably be moot. And let’s not be distracted by the current good lumber markets; I’ve “been there, done that” in terms of seeing market cycles. Our future depends on being well situated for all market conditions. If nothing else, BC’s loggers have shown an enormous capacity to adapt to change over the decades. Set up the environment for better success and we’ll know our message has been heard—and we’ll take care of the rest. Bob Brash, RPF, MBA, Executive Director, TLA Tel: 604-684-4291 Email: bob@tla.ca
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Todd Chamberlain
Southern Interior PERSPECTIVE
Now the Work Begins
T
he dust has settled on the provincial election and we now know we have a majority NDP government. I would like to welcome Katrine Conroy to her new role as the Minister of Forests, Lands, Natural Resources Operations, and Rural Development; I look forward to working with you. I would be remiss if I did not thank all of those people, regardless of party affiliation, for offering up their names and making such a commitment for the people of British Columbia. I would also like to thank Doug Donaldson for all of the energy and effort that he put forward to assist our associations during his tenure as minister. Enjoy your retirement Doug!
tunity to have their opinion heard and respected. Contractors, like other stakeholders, can provide workable solutions based on their expertise and values. Our board of directors is as always up for the challenge and will continue to assist government in making decisions that have our members’ concerns considered as part of that process. 2021 brings us a new year with new beginnings on all fronts and we at the ILA look forward to working with our new forest minister to ensure that the working forests of British Columbia continue to provide for the people of British Columbia. We will continue our strong advocacy efforts on the issues that mat-
I believe it is important that all of these issues are not considered singularly when making decisions and that all of the stakeholders are given an equal voice prior to decisions being made. It is the ILA’s hope that over the next four years, a majority government will bring stability to our industry. There is much work to be done moving forward; first and foremost, will be the completion of the Contractor Sustainability Review. It was still the goal of all those involved to have this finished well before Christmas so that all of our members can go into 2021 with some certainty around their businesses. The Old Growth Strategic Review, Interior Forest Sector Renewal initiative and Woodland Caribou Recovery Strategy are just a few of the many issues that will require further efforts by all parties involved to ensure that the working forests of British Columbia are maintained. I believe it is important that all of these issues are not considered singularly when making decisions and that all of the stakeholders are given an equal voice prior to decisions being made. Decisions on the land base affect us all and everyone should be afforded the oppor-
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ter the most to our members and look forward to the continued co-operation with the other associations to ensure that all of our members are represented. We will also continue to engage with the federal government on issues such as retirement bridging, training dollars for new workers and additional resources for COVID-19 relief. The pandemic has changed the way things are done across the province and across organizations, which caused the ILA to hold its annual general meeting using video conferencing technology and social distancing rules. It was held later this year due to the cancellation of our annual convention and trade show in May 2020. At this time, we are pleased to announce our new Chairman Ron Volansky of R&A Logging Ltd. in Nakusp and our new First Vice Chairman Tim Menning of Hytest Timber Ltd. in Williams Lake. I would like to thank Randy Spence for his dedication
to the chairperson role for the past four years; Randy will now assume the role of past chairman. I would also like to thank Len Gudeit for his years of service to the ILA through his tenure on the board of directors, Len has stepped down to allow Erin Fitchett of A.F. Timber Co. Ltd. in Nelson to join our board. Our new chairman, executive and board of directors are looking forward to working with the new forest minister and her staff to tackle the many issues that affect our industry. We at the ILA hope that you and your family had the opportunity to enjoy the holiday season together and with your friends. It is also our wish that everyone had some much needed downtime before the big push to breakup time and that this new year brings safety and prosperity to you all. I look forward to being able to travel across the Interior again to meet with our members, old and new and to welcome everyone to our annual convention and trade show once again. COVID-19 has restricted our ability to travel but it has by no means restricted our continued efforts to ensure that everyone’s voice is heard in this industry. If you require the ILA staff or Board of Directors to assist you with anything, please do not hesitate to contact us either by phone or email, we look forward to talking to you. Stay safe!! Todd Chamberlain, RFT, General Manager, ILA Tel: 250-503-2199 Email: todd@interiorlogging.org
MNP GETTING TO KNOW CHRIS DUNCAN I am approachable. I’m going to show up to your job site with work boots and blue jeans, not a suit and tie. ~ Chris Duncan, MNP
We all want to do business with people we know, like and trust. That’s why we want you to get to know Chris, MNP’s National Leader, Forestry and Forest Products Services, who’s passionate about helping forestry businesses succeed. Learn how Chris approaches his work, and how leading MNP’s forestry practice is a story of family work coming full circle. Chris, did you always want to become an accountant? Getting into accounting was a progression from learning what I didn’t want to do. I started off in engineering in university and realized I didn’t want to be an engineer after two years. I learned that accountants deal with dollars and cents all day; it’s nice and simple compared to calculating the load on a bolt on a bridge. I was also a welder part time and knew that wasn’t how I wanted to spend my life. My mind is set up for the financial work.
What’s your forestry background? I grew up in a forestry family. My dad was a forestry contractor on Vancouver Island. There were times that I would take a day off in high school, work with him and see how hard the work is. When I started articling as an accounting student, my first supervisor was the leader
of the forestry niche at the time and the second he found out that I knew about forestry, he pulled me into his team and I started to learn more about our work. It was a good fit then and has remained so.
How would you characterize your professional self? I am approachable. I’m going to show up to your job site with work boots and blue jeans, not a suit and tie. If you have an issue and you call me, I’ll work to explain the solution in plain English. I work hard to ensure clients feel comfortable discussing their business with me because that will lead to the best results.
What is your role with MNP? My role is to be the quarterback for my clients and help them be more successful. They’re expecting me to help them in the day-to-day operation of their business. From filing their tax return to running their business more efficiently, my role is to create solutions to their challenges. I’m a team member on the client’s team. If they have a business question, the first call they make is to me.
What is the biggest concern you hear from contractors? I hear questions on profitability all the time. Am I making any money for all of this effort? Contractors want to know
how to maximize profits. The second most common question I get is “how do I pay less tax?”
What is the biggest concern you have for contractors in your area? My biggest concern is their exit planning and retirement. Many contractors think they have a succession plan in place, but what are they doing now to attract the talent required to operate and build the next generation of contractors? A succession plan isn’t typically drafted in one night. Depending on where you are at and how you plan to exit or transition the business, it can take years to work through the process. That’s why it’s important to start the conversation early.
What do you like to do when you’re not at work? I’m an outdoors guy. When you’re behind a desk in an office as much as I am, you want to get outside. I like to garden a bit and love fishing, hunting, canoeing, hiking, camping. It’s a blessing to get out and breathe that fresh air.
Finish this sentence: If I bought a new motorcycle, it would be… Dual sport Kawasaki KLR 650. I’d hop on it and drive it straight to South America.
Contact Chris Duncan CPA, CA National Leader, Forestry and Forest Products Services | 250.856.2443 | chris.duncan@mnp.ca Advertising Feature
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Rick Brouwer
North West PERSPECTIVE
Ready for Opportunities in 2021
I
t’s a new year with a newly re-elected government. Congratulations to our elected representatives in northwest BC: Jennifer Rice (North Coast), Ellis Ross (Skeena) and Nathan Cullen (Stikine), and to everyone who ran for office. Congratulations also to Katrine Conroy, the new Minister of Forests, Lands, Natural Resources Operations, and Rural Development. We look forward to a good working relationship with all our elected representatives, regardless of their political affiliations, and with the new provincial cabinet ministers. Since we’re looking to the future, it’s always good to know what’s been done in the past, so let’s review what the North West Loggers’ Association has been working on for its members and the communities of the northwest over the past year. Cost drivers Around this time last year, government reached a new awareness that contractor sustainability issues and operating costs for contractors and forest tenure holders were reaching a breaking point. Therefore, government started a cost driver process, engaging with contractors and tenure holders to identify significant savings (on the order of $30/m3). We provided many ideas for cost reductions through improved permitting and consultation processes and timeframes, changes to policies, and encouragement and incentives for better utilization. The pandemic slowed this initiative down, but the issues have not gone away and we are continuing to encourage the reinvigoration of this process. Stumpage Stumpage could be considered part of the cost driver process, but deserves its own heading. We have not been advocating for a change to how stumpage is calculated; instead, we have been encouraging a modification to the way stumpage rates are tracked and collected, allowing low (negative) stumpage rates to offset higher (positive) rates. This will encourage improved planning, incent better use of the resource, and reduce pressure on the forests that are closer to sawmills.
Tenure reform We continue to inform people that northwest BC is an organic example of tenure reform; most of the tenures here have transitioned to community or First Nations ownership. We have good examples of tenure holders working together and with government agencies. Contractor Sustainability Review Together with the Truck Loggers Association and Interior Logging Association, we have continued to engage, monitor and advocate for the implementation of the recommendations of the Contractor Sustainability Review. Old Growth Strategic Review We provided feedback to the Province's old-growth panel and strongly reminded them that old growth is not in short supply in northwest BC, and that we encourage proper land use and forestry planning so that we will always have old growth and functioning ecosystems. First Nations We have seen increased First Nations membership and continue to encourage First Nations involvement with contractors and economic development. For example, we were excited to see a fibre supply agreement signed between two local First Nation tenure holders and Skeena Sawmills in Terrace, which improved stability for several of our members. Economic stability through woodbased renewable energy We have met with multiple parties to explain the benefits that will come from utilizing our fibre-quality wood such as reduced carbon release from open burning of woody waste, creation of 500 jobs, reduced stress on the social safety net, improved land use planning and a stable contractor base. Terrace truck wash We worked with multiple communityminded companies to upgrade the truck wash in Terrace. Thanks to everyone that donated time and materials! Available to
both members and non-members, the truck wash helps with equipment maintenance, improved safety and reducing the spread of invasive plants. Log exports We have continued to explain to decision makers that exports are not bad, as they allow for the continuation of domestic operations and sawmills. Advocacy and messaging We met with candidates in the provincial election, and in every instance we felt that our message was received—that forestry and logging are good for the region and provide for community stability. We also meet with, and act as a resource for, local, elected representatives. The NWLA has a good relationship with local tenure holders as well, and encourage a broad, holistic approach to our forest economy; a sustainable harvest of the forest profile will result in a sustainable contractor force, as well as prosperous, resilient and stable communities. Going forward in 2021, the NWLA plans to continue to push forward on the issues that have not yet been fully resolved. In addition, we will cooperate with governments, tenure holders and communities on how to deal with the new normal that is resulting from the pandemic, and provide input on how to stimulate, incent, and encourage community and economic stability and resiliency, regardless of how long the pandemic is with us. In particular, we will be working on having the cost driver process reinvigorated and expanded to include considerations related to stumpage; the Contractor Sustainability Review recommendations being fully implemented; and incenting and encouraging improved and increased use of northwest forest resources through wood-based renewable energy. Our message for you in 2021: North West Loggers, like our forests, are strong and growing, and we’re ready for opportunities! Rick Brouwer, RPF, NWLA Tel: 250-638-0337 Email: rbrouwer@westlandresources.ca
Winter 2021 Truck LoggerBC 13
Paul Schuetz
Northern Interior PERSPECTIVE
Old-Growth Management in the Interior
I
n September 2020, the provincial government released its commissioned report, “A New Future for Old Forests” that provided an in-depth review of old-growth management in BC. Authored by two professional foresters, Al Gorley and Garry Merkel, the report does a good job in defining what oldgrowth forests are—despite the plethora of definitions being used—and their importance to environment and industry, while also focusing on the problems with current old-growth management practices. The report offered what seemed like reasonable, science-based recommendations to help move the discussion toward an agreeable solution to the issue of old-growth sustainability in BC, without ever mentioning the economics of what they were proposing.
those containing giant cedar and hemlock trees as found in the Ancient Forest Recreational site east of Prince George; to decadent sub-alpine fir stands that would have likely burned by now if it wasn’t for BC’s effective wildfire suppression. The two sites differ greatly in ecological significance and only the cedar/hemlock stand might warrant preservation. Currently, the system of Old Growth Management Areas (OGMAs) in BC was formulated to “maintain intact old forests,” but Gorley and Merkel are quick to acknowledge that OGMAs “are applied inconsistently and sometimes ineffectively.” Rules regarding OGMAs in BC are also unclear, as many of these areas contain old trees, while others do not.
The assumption that old trees only grow on sensitive, ecologically valuable sites is widely misunderstood, and a province-wide blanket approach of protecting old-growth stands based solely on their age is a strategy that ignores all of the other site characteristics. Gorley and Merkel’s report identifies the issues in assuming that old-growth management should only revolve around the preservation of old trees. “Not all old forest is the same, and old does not necessarily mean big trees” they explain and reference a site’s ecological importance as being one of the most significant factors in old-growth preservation. The assumption that old trees only grow on sensitive, ecologically valuable sites is widely misunderstood, and a province-wide blanket approach of protecting old-growth stands based solely on their age is a strategy that ignores all of the other site characteristics. Old-growth protection should be based on the ecotype, flora and fauna it sustains, the cultural importance of the sites, and a multitude of other values that are described in detail in the report; and it should be site specific. In the BC Interior, stands with 140+ year-old trees may differ greatly from
14 Truck LoggerBC Winter 2021
Environmental groups have complained that licensees are logging OGMAs, while in other cases OGMAs are maintained as “no-harvest” zones even if they have been devastated by insect, disease or fire. In their report, Merkel and Gorley observe that the confusion in OGMA management stems from unclear practices and strategies because “no review of the OGMA system has taken place since it was implemented more than 20 years ago.” In other words, does an OGMA lose its site characteristics and value if fire or disease kills off the trees? Should the OGMA boundaries be static or dynamic, only containing sites with old trees, or sites that could contain old trees? Gorley and Merkel raise similar questions in their report and acknowledge that clear operating procedures should be defined. They also recognize the need to identify and maintain the “working forest” so that if an OGMA is relocated to an area within
the existing timber harvesting land base, then that area must be replaced so as not to undermine a licensee’s ability to achieve its apportionment. The report goes on to discuss other strategies for protecting old growth. They mention mimicking natural disturbance types in certain zones, meeting seral stage distribution targets, and applying alternative silviculture systems to help maintain the integrity of ancient sites. These strategies require a great deal more planning, and on-the-ground verification; however, Gorley and Merkel go on to acknowledge that the Province will need to “ensure that the stumpage system provides appropriate offsets to cover extra costs.” At the end of the day, logging contractors in the Interior could support old-growth retention as long as the report is not the catalyst to widespread erosion of the timber harvest land base without appropriate balancing of economic and social interest and the economic viability of the industry that supports their families. Upon release of the review, numerous media outlets in the BC Interior and the rest of Canada went on to acknowledge that the document was a good first step. However, most could not help but include pictures of harvested trees, clear cuts and damning, unsubstantiated comments in order to create an air of controversy for the purpose of making their article more popular with their readers and to promote preservation of virtually all forests over 140 years old. Merkel and Gorley state that, “the confidence and trust of the general public is the biggest determinant in how much freedom government and industry have to manage our forests,” and when media prints biased articles containing anti-forestry sentiments containing little to no scientific backing or economic analysis, then they become a bigger part of the problem. Paul Schuetz, consultant to TLA Tel: 250-564-4115 Email: pschuetz@industrialforestry.ca
New name, same great team of Forestry Specialists!
Winter 2021 Truck LoggerBC 15
Chris Duncan and Mindy Wight
Business MATTERS
Working with First Nations
W
orking with First Nation governments and its businesses can result in a powerful partnership with positive results for all involved. However, the partners’ goals and objectives are often very different from one another. As such, it’s important that all partners keep this in mind when they structure their arrangement and conduct their mutual business arrangement. How to work together? Business perspective For business owners, the focus should be on building strong relationships with First Nations. The stronger the relationship, the stronger the business arrangement will be. Businesses will want to open lines of communication early on in a project to ensure success and that they understand the culture and goals of the Nation they are proposing
to work with. Be prepared for a different form of business than you may be used to. First Nation perspective First Nation communities are significant holders of land and resources. They have rights to their lands and are important parties to consult with on projects that take place within their traditional territory. In fact, the rights of Indigenous peoples are recognized and affirmed by section 35 of the Constitution Act. Additionally, BC is the first province to put the United Nations’ Declaration on the Rights of Indigenous Peoples into legislation, meaning free, prior and informed consent is required. Working together with First Nations communities builds stronger, more successful business ventures and creates more opportunities for all when meaningful consultation has taken place. Their businesses are gener-
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ally run as for-profit entities and have a social purpose component such as employing members of the First Nation community, so understanding that their key objectives are met within the business arrangements will build a better foundation for future shared success. Who to talk to? Business perspective For a First Nation approaching a business regarding a business deal, they will want to meet with key management and/or the business owner. Effective two-way communication and mutual respect are key. First Nation perspective Building a mutually beneficial business relationship with the First Nation organization and leadership is important to ensuring the success of the partnership. First Nation
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16 Truck LoggerBC Winter 2021
Brian Mulholland 604.661.1095 bmulholland@ekb.com
communities often have different organizational structures from each other; therefore, if you’ve worked with one organization in the past, be mindful that the next First Nation community may follow different governance practices and processes in managing and conducting its business. It will depend on the First Nation community’s internal processes and its governance and corporate structure whether you speak directly to the chief and council or approach the manager of the lands department or the CEO and board of directors of its economic development group. The how and why of partnership structuring: Business perspective Businesses may enter agreements to enjoy a better relationship with a local First
Nation community. For many, these past arrangements have created economic benefits and increased opportunities that are only available with such partnerships while increasing awareness of local culture. Building on past relationships lays a strong foundation of trust for future ventures as well. First Nation perspective First Nation governments created under the Indian Act have a unique tax status and tax exemptions available under both the Income Tax Act and Indian Act. Their economic development groups and businesses are often structured as limited partnerships to benefit from tax exemption, as well as for liability protection. Joint ventures are also often used for shorter-term projects. Many First Nation communities will prefer not to
use a corporation alone, as the corporation is often taxable. Therefore, careful planning by both parties up front is recommended to identify the preferred structure for the business, as making changes later can be costly. Values and objectives of partnering together: Business perspective For businesses looking to partner with First Nations, a whole new set of doors are opened that provide access to ventures that may never have been possible without their involvement. This means an increase in return on your investment, and opportunities to grow your business and create new jobs. It also allows businesses (Continued to page 21)
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Mark Ordeman
Safety REPORT
Use three points of contact every time to reduce the risk of injury
S
mall actions can have big impacts for workers who drive on the job. You would be surprised how many injuries are caused through routine, seemingly harmless actions. Getting in and out of your truck correctly and with awareness of your surroundings is a perfect example of something workers don’t always think about—and should. Jumping from the cab floor or the top step of parked trucks and flat decks is a common cause of injuries—as jumping from heights can create an impact force of five to seven times a driver’s body weight. That means if a driver weighs 91 kg (200 lbs) the impact force of jumping from the floor of the cab is 680 kg (1500 lbs). Jumping from heights can seriously impact joints and increases the risk of a lower back or lower limb injury.
It’s also important to avoid facing outwards when exiting the cab, or while only loosely gripping one handhold. I recall a worker who was only holding on using one hand when getting out of his truck, when he started to slip he grabbed a handle to stop the fall and thought he was okay, but after a couple days, the pain in his shoulder was unbearable; eventually he ended up in surgery.
from the lower step creates an impact force of only one to one and a half times the driver’s body weight; greatly reducing the risk of injury. Getting out of your truck when carrying items such as paperwork or a coffee cup can also result in injuries. Workers should always leave all items on the floor of the truck or trailer and only pick them up when they’re safely on the ground.
It’s critical to maintain three-point contact until you are firmly on the ground: Mitigating the risk is simple. Employers must instruct new drivers—and remind experienced drivers—to use three points of contact every time. This means keeping two hands and one foot—or two feet and one hand—on the equipment at all times. Using the correct three points of contact, and carefully stepping down
The entire workplace is affected when someone is injured: Healing from a fall is time consuming and costly for both employers and workers. Aside from the obvious lost wages, the longer someone is off work the more disengaged they become. Being off work for a long period of time slows physical healing and also has negative consequences for the worker’s
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mental health. For employers, the costs associated with workplace injuries show up as increased premiums, time spent replacing and re-training staff, and overall lower morale. In 2019, WorkSafeBC had 21 time-loss claims for forestry truck drivers where injuries occurred when entering or exiting their vehicles. Almost 62 per cent of these injuries happened when falling or jumping from the vehicle. The majority (57 per cent) resulted in sprains and strains, while fractures and concussions accounted for another 24 per cent and 10 per cent respectively. More than half of the injuries occurred during the winter due to cold, wet, and snow covered surfaces, increasing the risk. The effectiveness of your shoes and work boots also changes in winter; in summer heat, rubber soles are great, but in winter rubber hardens, increasing the chances of falling.
checked the ground, but workers must make the extra effort as barriers to safety are often psychological. Drivers are in a hurry, they’ve always done it that way, or they don’t want to appear to be overly cautious. They think, “I’ve been getting out of my truck for years this way, nothing has ever happened.” Well, let me tell you, I’ve seen it enough times to know your luck is going to run out. Mark Ordeman, Consultation and Education Services Manager WorkSafeBC worksafebc.com/transportation
• Always use two hands and
one foot—or two feet and one hand—when getting in and out of your truck. • Don’t carry anything like coffee cups or papers. • Employers: You’re responsible for reminding both new and experienced drivers to use three points of contact every time they enter or exit their vehicle.
Safety is always worth it: It takes some time and effort to employ three points of contact and ensure you’ve C I B C WO O D G U N DY
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Mutual Funds | Bonds Blue Chip Stocks | Managed Money Dave Wheeldon, B.Sc.Ed, M.A.Ed Investment Advisor 250 703-5382 dave.wheeldon@cibc.ca
CIBC Private Wealth Management consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc. “CIBC Private Wealth Management” is a registered trademark of CIBC, used under license. “Wood Gundy” is a registered trademark of CIBC World Markets Inc. If you are currently a CIBC Wood Gundy client, please contact your Investment Advisor.
Winter 2021 Truck LoggerBC 19
Russ Taylor
Market REPORT
US Market Outlook and Supply Dynamics
T
he global market is driven by three big regions: USA, Europe (as a whole) and China plus two other regions: Russia and Canada. Collectively, they account for 80 per cent of total global timber and lumber consumption and production. And, they dominate imports and exports too. Global log exports continue to be driven by China, where softwood log imports in 2020 should be about 7 million m3 higher than 2017’s 38 million m3. In contrast, BC’s log exports to China should see a total reduction of up to 2 million m3 in 2020 from 2017’s 3.2 million m3 as competitively priced spruce log imports from Central Europe flood the market. Global lumber demand has been slowing since a strong gain of 4 per cent was achieved back in 2017. Since then, the consumption growth trend has been slowing in consecutive years to 1 per cent in 2018, no growth in 2019, and an estimated -1 per cent for 2020. The good news is that there has been a strong demand rebound in the second half of 2020 following the second quarter global collapse due to shutdowns from COVID-19, and the outlook for 2021 is very promising. USA demand-side dynamics After sluggish or no growth in US wood products consumption since 2017, this year’s pandemic resulted in a surge in new residential construction and especially in repair and remodelling. The long-term or normal level of new residential housing starts in the US is about 1.6 million starts. However, starts have been below 1.6 million since 2007 and the last 20 years have averaged only 1.25 million and are expected to be at
a 13-year high in 2020 of 1.35 million units. Demand for single-family housing continues to be fuelled by 40-year low mortgage rates and a desire for more indoor and outdoor living space. Consequently, with a severe under building of new homes over the last 10+ years, this pent-up demand is finally kicking in: a continued growth in new US housing starts is forecast to at least 2023. In repair and remodelling (R&R), Home Depot improved its business by a whopping $15 billion in the first three quarters of 2020. Its same store sales were up 25 per cent in 2020 Q2 and Q3 over one year earlier. And Lowe’s increased its same store sales by over 30 per cent as compared to its four-year quarterly sales average of 5 per cent growth. Do-it-yourself customers took steps to adjust their homes to serve three primary purposes: a home school, a home office, and their primary location for recreation and entertainment. This mindset bodes well for continued R&R sales in 2021.
ditions to sawmills (a total of about 5 billion bf), including 15 green- or brownfield sawmills that have been built or are planned for construction. However, this may not be enough new supply; my ongoing analysis suggests that there will probably not be enough domestic timber supply and sawmilling capacity in North America to meet increasing demand, and high prices (like we have seen in 2018 and 2020) will be required to attract enough incremental supplies. The trend toward increased softwood lumber imports from Europe is expected to continue, especially with the massive salvage program of the spruce bark beetlekilled timber expected to last for much of this decade. Europe’s share of US lumber imports will be around 9 per cent in 2020, with other countries adding another 4 per cent. And one thing is certain: Canada will not be the solution for increasing lumber supplies to the US—it will have to come from domestic US supply and imports!
North America supply-side dynamics Canadian lumber production continues to decline, mainly from BC’s reduced output as 40 spruce-pine-fir (SPF) sawmills have closed since 2005 due to the mountain pine beetle. While Canada’s alltime production high was 35 billion bf in 2004, its most recent high was almost 28 billion bf in 2017 and output in 2020 is expected to be close to 2019’s 24 billion bf. On the other hand, US output has been steadily increasing since 2009’s 24 billion bf, mainly from gains in the US South. As compared to its peak in 2005 of over 40 billion bf, production is expected to increase in 2020 for the eleventh consecutive year to 36 billion bf. Since 2018, in the US South, there have been at least 35 announced capacity ad-
Outlook While global softwood lumber demand will decline slightly in 2020 as compared to 2019, it has been very strong since the start of the pandemic in 2020-Q2 and this trend should continue throughout much of the next year, resulting in a net increase in global consumption of perhaps 4-5 per cent in 2021. However, Canada will remain supply constrained and other exporters (especially Central Europe) should see opportunities to replace this volume in the US and in some export markets. The US market looks to be a bright spot for 2021 and beyond as pent-up demand for new homes and R&R continues. Nevertheless, there are still uncertain times ahead with many uncontrollable factors and wild cards at
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play that could disrupt an otherwise bullish outlook for 2021 and beyond! Russ Taylor, President, Russ Taylor Global (former President of International WOOD MARKETS Group) Tel: 604-897-5666 Email: russtaylor@russtaylorglobal.com Website: russtaylorglobal.com
(Continued from page 17) to build relationships with new communities and help those communities establish new resources and employment for their members.
PROUD ISLAND LOGGERS
First Nation perspective As mentioned, tax, liability protection, and employment are often the key items that the First Nation community will look for in a new business venture. Another key factor to consider is whether the jointly owned entity may qualify as “Indigenous owned,” meaning over 50 per cent is held by the First Nation community. As an Indigenous-owned organization, the business may qualify for grants, funding and loans, as well as procurement opportunities from government and other organizations. This opens up additional paths of capital, debt and business opportunities that may not otherwise be achieved. Conclusion Overall, more and more businesses are entering into partnerships with local First Nations. These partnerships are proving the value and achievements possible when two parties work toward a common goal. First Nations are fast becoming a partner in many communities leading to increased prosperity for all involved. Chris Duncan, CPA, CA Partner and National Leader, Forestry & Forest Products Services MNP Private Enterprise Group Tel: 250-748-3761 Email: chris.duncan@mnp.ca Mindy Wight, CPA, CA Partner, MNP’s National Indigenous Tax Leader, Prince George Tel: 250-596-8316 Email: mindy.wight@mnp.ca
MARINE
Winter 2021 Truck LoggerBC 21
Forestry Community: Williams Lake
By Robin Brunet
T
he forestry sector always needs fighters from the political realm on their side, and Walt Cobb is exactly that. Just ask anyone who recalls him on television in the 1990s berating former BC Premier Mike Harcourt for signing off on the Commission on Resources and Environment without full knowledge of its tenets. Cobb did so during his 1990-96 tenure as mayor of Williams Lake, and today, in his sixth year of another term as mayor, he is more adamant than ever about protecting forestry jobs and creating opportunities in his neck of the woods—despite the changing demographic of residents who may not fully appreciate the economic importance of the resource. His determination is informed by a deep love for his city of 11,000 people (and 25,000 in the surrounding area). “My family moved here in 1954 when I was 10 and I always thought this was a great place in which to grow up and raise a family,” he says. “That sentiment is shared today by outdoor recreationists and others who have moved here and helped diversify the economy. But the fact remains our prosperity has always been and always will be driven by the resource sector.” Indeed, although Williams Lake today is “the destination spot for the true adventure seeker” (according to Tourism
22 Truck LoggerBC Winter 2021
Williams Lake’s website), forestry related businesses are intertwined within the community. Tolko Industries has two dimensional mills, two stud mills and a planer; West Fraser operates a planer and a plywood plant; and smaller operators such as long-time Williams Lake resident Sigurdson Forest Products employs 120 people directly on payroll. Additionally, a pellet plant is operated by Pinnacle Renewable Energy Inc., and a 66-megawatt biomass-fuelled co-gen plant is operated by Atlantic Power Corporation. Beth Veenkamp, economic development officer for Williams Lake, notes that, “Close to 30 percent of our taxes come from our sawmills alone. Industries such as tourism are incredibly valuable, but there’s no substituting the resource sector to keep our community thriving.” Williams Lake has also been recognized for First Nations involvement in the industry. Case in point: Tsi Del Del Enterprises Ltd., a joint venture between the Tŝideldel First Nation (formerly the Alexis Creek First Nation) and Tolko Industries, is a fully integrated forestry company involved in forestry consulting, harvesting, log sales, silviculture, and most recently, biomass harvesting in the bush—all within forest licences belonging to the Tŝideldel and other First Nations west of the city. The company employs about 100 staff and subcontractors, and
harvests between 340,000 and 400,000 cubic metres annually. On paper, Williams Lake’s access to timber seems impressive. Its timber supply area (TSA) lies in the central Cariboo Region, straddling the Fraser Basin and the Interior Plateau between the Coast Mountains on the west and Cariboo Mountains on the east. The TSA is bounded by the Quesnel TSA to the north and the 100 Mile House and Lillooet TSAs to the south. At about 4.93 million hectares with an allowable annual cut (AAC) of three million cubic metres, this is one of the largest TSAs in the province and includes Williams Lake plus the communities of Horsefly, Alexis Creek, Anahim Lake and Tatla Lake. But the numbers are deceptive. Cobb points out that many areas in his TSA have been rendered out of bounds due to mule deer winter range considerations, riparian zones and tourism interests. “Wildfires have also reduced a number of harvestable hectares, plus there will likely be a reduction in AAC in the next review,” he says. As such, Cobb is in the curious position of being inclined to welcome new blood and tourists into his community on one hand and resisting the push to share forests that are technically earmarked for logging on the other. “Back in the 1990s
Photo courtesy of City of Williams Lake
during the so-called ‘War in the Woods’ I was involved in the provincial land use planning process that examined and designated areas for agriculture, parks, and other uses—and I naively assumed that whatever was left over would be used for harvesting,” he recalls. “That was a big mistake. Now, in Williams Lake, we have areas of harvest being identified for backcountry tourism, mountain biking—you name it. “It’s an all-too-familiar problem: the Council of Forest Industries has calculated that only 22 million hectares of forestry in a 55 million hectare land base is available for logging, and only 1 percent of that figure is being cut annually. What we want in our community is for government to assign us a designated harvesting area that can’t be compromised by other interests.” Unsurprisingly, Cobb and Veenkamp are proud of their community forest, which was announced by the Province in March of 2014. It is administered by the City in partnership with Williams Lake First Nation and encompasses two areas (the Flatrock south block and the Potato Mountain north block) capable of supporting an annual harvest of 40,000 cubic metres. Veenkamp says, “We enjoy a great partnership with the Williams Lake First Nation, and together we’ve been
able to turn a profit over the past few years; the monies of which have been used for capital projects.” However, even in this realm the BC government is expecting Williams Lakebased loggers to compromise. “Victoria doesn’t want us putting logging roads across trails that are being used by mountain bikers,” says Cobb. “And they don’t want their views to be ruined. The former concern is valid in terms of maintaining safety, but again the point is we need well defined, designated logging areas.” Cobb concedes there is no magic formula for making this happen other than persistent lobbying. “But I’m optimistic about a good outcome, given that we have plenty of wood to go around,” he says. “We also enjoy good relationships with our tourism bureau and the backcountry operators. So as long as we keep stating our case and emphasize that we utilize everything coming out of the bush down to the very last chip, there’s a good chance for industry growth. We might even see licences for biomass production in coming years.” Veenkamp agrees that opportunities still exist. “We’re not out of wood in BC, we’re out of affordable wood, meaning we have to go further out,” she says. “Therefore, our job as a community is to make the right kind of investments in roads plus machinery for slope logging
and other conditions.” She adds that in order for that to happen, something has to give in Victoria: “Permits for cutting licences used to take several months, but now they can take up to three years— and the situation is no better in other resource industries.” As for the closures that continue to plague the logging sector, Veenkamp is committed to “retaining what we have by making sure companies affected by reductions have viable alternative options. For example, in March we partnered with the Ministry of Forests, Lands, Natural Resource Operations, and Rural Development to host an open house for loggers to help them pivot, by way of providing advice and information, in order to generate income from their equipment. This led to them obtaining highway improvement work and other jobs available through the Province.” One thing is certain: Cobb and Veenkamp derive considerable satisfaction moving their community forward while fighting to preserve its roots. “I think I speak for a lot of people when I say I can’t imagine a better place to live,” says Cobb. “We’re determined to keep it that way.”
Winter 2021 Truck LoggerBC 23
LETTER TO the TRUCK LOGGERs ASSOCIATION
By Premier John Horgan Photo courtesy of the NDP
to help make sure that contractors and businesses have stable incomes. In the fall, we announced a new, holistic approach to protecting oldgrowth forests. This approach will allow us to break from the divisive practices
B
ritish Columbia’s wood fuels our economy. It sustains forestry workers, families and communities. And it keeps our province moving forward. The forest industry has had some challenging times over the past 18 months, from the effects of climate change, to trade disputes, to the COVID-19 pandemic. But in recent months we have also seen some very positive signs, including increased demand for lumber and higher prices. We are starting to see a healthier industry and a better bottom line for companies. Our government will keep working with partners to strengthen and diversify the sector, so it can continue to sustain us for generations to come. In 2019, in response to mill closures, we responded quickly with two new programs that provide direct support to forestry workers and their families. Our regionally driven renewal of the Interior forest industry, and our Coast Forest Sector Revitalization Initiative, will help us develop competitive, sustainable futures for forest companies, workers and communities that depend on these industries. Through the Logging Contractor Sustainability Review, we have identified a common ground for productive conversations between contractors and licensees, where all sides can reach fair agreements. We are moving forward with the policy and regulation changes put forward by George Abbott and Dan Miller,
24 Truck LoggerBC Winter 2021
Operations and Rural Development. Katrine is in her fifth term and has a strong connection to the community and, as a rancher, to the land. She is no stranger to leading in challenging times, and recently served as Minister of Children and Family
Through the Logging Contractor Sustainability Review, we have identified a common ground for productive conversations between contractors and licensees, where all sides can reach fair agreements. We are moving forward with the policy and regulation changes put forward by George Abbott and Dan Miller, to help make sure that contractors and businesses have stable incomes. of the past and bring together Indigenous people, labour, industry and environmental groups to implement the recommendations of the Old Growth Strategic Review. We will work together to protect further old-growth stands— in addition to the 353,000 hectares we protected in September—and support the thousands of forestry workers that rely on good jobs in their communities. Our market-based stumpage system is designed to provide stability against volatility in the market. Our government consulted with industry on moving from quarterly to monthly stumpage pricing adjustments and found the consensus was to stick with the current system at this time. Over the coming months, we will continue to work with industry on finding new ways to improve the market pricing system. We know BC’s forest policies are trade compliant, and we’re very concerned about the continued effect US punitive tariffs have on our forestry sector. Our government will continue to work with the federal government to bring an end to unfair US duties on softwood lumber exports. We will continue to fight for, and defend, our forestry sector and the thousands of hardworking people who depend on it. In November, I appointed Kootenay West MLA Katrine Conroy as Minister of Forests, Lands, Natural Resource
Development. I have tasked Minister Conroy with focusing on rural communities as we advance our COVID-19 response and build a strong economic recovery. She will work to ensure we have a sustainable future for forest communities, while advancing recommendations of the old-growth panel and our CleanBC commitments. The future of forestry is bright in British Columbia. Our government will be focusing on mass timber and creating opportunities to transition the forestry sector to high-value over high-volume production. This shift will create sustainable forestry jobs and support thousands of families around the province. It is more important than ever that people have stable, goodpaying jobs they can rely on. As we move forward, we will continue to work with First Nations, labour and industry to get the most value out of every log, grow our manufacturing sector, promote innovative products in markets around the world, and create good jobs in local communities. We are proud to work with you to move the industry forward. Thank you.
Photo courtesy of Chris Stenberg
How will BC grow its value-added without the wood?
By Ian MacNeill
I
n the spring of 2019, the BC provincial government announced, “a renewal of the province’s Interior forest sector, aimed at creating a competitive, sustainable future for forest companies, workers and communities.” But despite discussions, round tables, consultations, and some legislative tweaks, we’re still not there. Interior remanufacturers are still facing the age-old problem of getting adequate access to fibre, and communities are still worrying about their futures.
Consider the case of John Boys, owner of Nicola LogWorks in Merritt, who has been struggling with fibre-access issues for years. In business since 1989, the company started out making custom log houses that were pre-built by hand prior to getting dismantled and shipped around the world. The economic crisis of 2008 savaged sales and he started branching out into building with cross-laminated timbers, the kind that make multi-story wood buildings
feasible. For him, accessing the kind of fibre he needs is almost like having another full-time job. “The system is not geared to helping small business,” he says, adding that he feels he has invested heavily in his community and deserves as much support as larger companies that seem prepared to abandon small towns in a heartbeat if staying in them no longer suits their business model. Making matters worse is that his needs are small, amounting
Winter 2021 Truck LoggerBC 25
Photo courtesy of Nicola LogWorks
to less than 5,000 cubic metres a year. “They don’t want to deal with the little guys,” he says. He is fortunate in having a local sawmill that will deal with him. He describes
Aspen Planers as “the last man standing” for him, even though “they don’t really have a good business model” for doing it. “I would like to at least access some wood so that I could trade them say, two
truckloads of wood for one truckload of what I need, and help them keep their operations going as well,” he says. He has been wheeling and dealing with local First Nations. He works directly with Stuwix Resources, a First Nations licensee, and sees opportunities emerging as more First Nations communities acquiring tenure take up forestry, or at least get to decide what to do with the resources on their own lands. The company is also getting creative on other fronts. He purchased a robot that can build log houses in what is known as the piece-en-piece method that was originally developed in France. Without the robot, he might have been drummed out of the log house building business altogether. In the early days, he typically used long logs to build his homes, but those started getting harder to find thanks to the short logs produced through mechanized harvesting. However, the robot can work with pretty much anything. “Fortunately, it does not care if it’s dealing with a lumpy, gnarly piece of crap,” he laughs. The program is
suppliers ’ showcase
webinars WEDNESDAY, JANUARY 13, 2021 The TLA is pleased to offer a special SUPPLIERS’ SHOWCASE WEBINAR series featuring valued TLA suppliers who will highlight their products and services. Each supplier will spend a few minutes sharing information followed by a Q&A period when TLA members can ask their questions directly. Mark your calendars for each supplier’s 20-minute webinar you wish to attend at the following times: 9:00 am
Denning Health Group 9:30 am Armtec 10:00 am Inland Group 10:30 am Brandt 11:00 am Wilson M. Beck 1:00 pm PetroCanada/ Coastal Mountain Fuels
1:30 pm 2:00 pm 2:30 pm 3:00 pm
This is a free event. Visit tla.ca/tla-events to register.
26 Truck LoggerBC Winter 2021
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a good example of ways in which local entrepreneurs are bringing high-tech to small towns. Everybody has an idea or two about what could be done to free up fibre supply, and Boys is no exception. He would like to see more small lots of wood made available through BC Timber Sales. Tenure reform would help as well; the town is still smarting after Tolko shut down its mill “but kept all the wood!” Although Pine Ideas, a furniture maker also based in Merritt, does not use logs, it is a value-added manufacturer that has difficulty accessing the lumber it needs under the current system. “I have a valueadded business that uses lumber and mill run-through,” says owner Curtis Sloan. “I am also a registered Category Two guy, but there are more and more restrictions making it difficult to participate.” His business is also important to the town. He employs as many as 30 workers and needs a steady supply of wood to keep them all working. His solution is simple; set aside 25 per cent of the wood harvested annually and make it available to value-added producers.
Just down the road in Princeton, Elizabeth Marion of Princeton Wood Preservers is battling the same four winds. “The chipping and hog-fuel guys are getting what they call residual, but that just happens to contain the kind of fibre we need,” she says. But she’s more of a solutions-oriented person than a complainer and says there
on the payroll, who she offers competitive wages and a profit-sharing program. Over the years she has hired countless unskilled workers, training them up and giving them the kind of work experience they need to get ahead in their lives. She points out that as a value-added player she employs more people per cubic metre of wood than most of the major licensees.
“It’s no longer a matter of creating jobs, but sustaining the ones we have.” are concrete measures the government could take that would open up fibre-access channels and help her business not only survive but thrive. In addition to reforming tenure, it could look to some of the policies already in place in Alberta, which include setting aside a volume of wood for value-added producers and tinkering with stumpage rates to more accurately reflect the value of wood based on its end use. Her company’s contribution to the local economy is not insignificant. Since 1993, when the family owned business is going full tilt, it has as many as 40 employees
Her son Bill Everitt is the general manager and is set to carry on the business after she retires. She also has an interesting argument for why government might want to take an interest in her fibre-access problems. She is constantly fielding calls from other government departments and crown corporations, including the Ministry of Transportation and Infrastructure, Ministry of Forests, Lands, Natural Resource Operations and Rural Development and BC Hydro, that are looking for posts. “I can’t
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supply them if I don’t get any wood,” she says persuasively. Valley Carriers based in Abbotsford is also feeling the pinch. The company “does grinding in the bush” producing biomass, bark mulch and sawdust for the horse-bedding market and the agricultural sector, says CEO Ben Klassen, whose grandparents Neil and Rita Klassen started the company in 1963. He says the new rules about getting the waste out and into the burners need some refinement. The situation is tolerable for now thanks to the assistance of the Forest Enhancement Society, but funding is set to expire, and that is making it harder to plan and invest. He would like to see a more holistic approach to current wood-waste policies. He argues that licensees should be required to produce a slash-management program prior to beginning logging operations. “You hear all this talk about zero burning. Okay, but how are you going to do it? If there was a slash-management program, then you’d know going in if you had to widen some switchback corners so the trucks can get in and out.”
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He is not against the goals of the new policies, but the business model must make sense. “I see the goal, but I do not see either the legislative backing or the funding to make it realistic,” he says.
crafted with an eye on the Softwood Lumber Agreement with the United States, and the remarkable speed with which US lawyers will pounce if there is even a hint of a subsidy. Making smaller sales available through BCTS needs at least some
“...maybe the solution is more diversity in the tenures we have out there, more of an increase in the diversity of the flow of logs and lumber.” To those in the industry who share similar frustrations when it comes to accessing fibre, and indeed those who are regular readers of Truck LoggerBC magazine, these kinds of stories are all going to sound awfully familiar. But instead of getting better, the situation is further deteriorating. “It’s no longer a matter of creating jobs, but sustaining the ones we have,” says Todd Chamberlain, general manager of the Interior Logging Association. “Too much wood that valueadded producers could use is going into slash piles.” Unfortunately, solutions are elusive. Any legislative action must be carefully
consideration. It is worth noting that doing precisely this was recommended in the government’s own Contractor Sustainability Review released in 2018. To quote from it, “BC Timber Sales should be encouraged, within its mix of blocks for auction, to offer a greater number of smaller blocks.” The recommendations in the report were obviously aimed at the contractor community in order to “make sure logging contractors’ paycheques accurately reflect the work they do and their cost of doing business, while also keeping licensees competitive,” as former Forest Minister Doug Donaldson put it at the
time, but it’s a solution that might also work for value-added producers facing fibre-supply issues. “There’s never a simple answer,” says TLA Executive Director Bob Brash, adding that wherever the discussion goes, it should not be framed as a fight against the big forest companies, which play an important role in BC in terms of both employment and tax revenues. “However,” he says, diplomatically, “maybe the solution is more diversity in the tenures we have out there, more of an increase in the diversity of the flow of logs and lumber.” Whatever the solutions, BC’s valueadded industry, which plays a vital role in the sustainability of many small and medium-sized communities in British Columbia, is not going to call it quits without a fight. “I keep telling them I’m not going anywhere so figure it out,” says Elizabeth Marion.
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Photo courtesy of Bob Brash
BC’s Old Growth Strategic Review: What it Means for Contractors By Jim Girvan
T
he management of old-growth forests in BC has been a contentious issue in this province for decades. Satisfying the public’s interest in deriving economic benefits and employment from our forests while also maintaining ecological and cultural values has been challenging.
30 Truck LoggerBC Winter 2021
Today, old-growth harvesting accounts for approximately 50 per cent of the allowable annual cut on Vancouver Island, down from 95 per cent in 1995, and will continue to fall as the industry manages the ongoing transition to second growth. As this has occurred, sawmilling and logging investments
have allowed the industry to retool in a measured way. In July 2019, BC government announced the Old Growth Strategic Review that involved an appointed independent, two-person panel to undertake public engagement on old growth and provide a report to the minister.
“Through this process, the government intends to provide more clarity about old-growth management and about balancing economic, conservation and cultural values.” Garry Merkel (professional forester, natural resource expert and member of the Tahltan Nation) and Al Gorley (professional forester and former chair of the Forest Practices Board) engaged the public to hear people’s perspectives on the ecological, economic and cultural importance of old-growth trees and forests. Merkel and Gorley reported back to government in spring 2020 with recommendations to inform a new approach to old-growth management in British Columbia. On September 11, 2020, government released the report and announced it was embarking on a new, holistic approach to protecting old-growth forests. As was noted in the Review, “Two different people from two completely different walks of life could value the same old-growth forest for two totally different reasons. In an organized society, this places tremendous responsibility on the government to ensure these values are fairly balanced.” A few specific comments from the “What we Heard” document are
as diverse as the province’s forests and supports this perspective: • “All remaining old-growth forest should be considered endangered habitat and should receive full protection from all forms of destruction.” • “Decisive action, in terms of halts on all old growth (logging), has to be a prelude to planning. Otherwise it is just the same old “talk and log” and the same old perspectives on landuse. We do not have time for that.” • “Crown forests are managed with myriad values in mind, including recreation, soils, sustainable timber supply, wildlife, water, fish, biodiversity, visual landscapes and cultural resources.” What is old growth? There is no commonly accepted definition of an old-growth forest. In British Columbia, scientists have developed a working definition that is based on the age of trees, biogeoclimatic zones and the frequency of natural disturbances. Most of BC’s coastal forests are considered old growth if they contain trees that are more than 250 years old. Some types of Interior forests are considered old growth if
they contain trees that are more than 140 years old. The timber harvesting land base (THLB) comprises 20.3 million hectares, or about 35 per cent of forested areas in BC. Old-growth forests, based on age alone, comprise about 3.6 million hectares or 18 per cent. Every year, just over 200,000 hectares of forested land is harvested. This represents about 1 per cent of the overall THLB. Of the annual harvest, about 73 per cent comes from non-old-growth stands and about 27 per cent comes from old growth. On BC’s Coast, old-growth forests that are older than 250 years comprise an important part of the forest economy and contribute about 50 per cent of the timber harvesting land base. Despite environmentalists’ rhetoric, on a province-wide basis, old-growth forests are not disappearing. There are more than 25 million hectares of old-growth forests in BC and about 4.5 million hectares are fully protected. Conserving old growth is also an important part of longterm resource management. By law, forests that reflect the working definition of old growth must be retained in ecological units to meet biodiversity needs.
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On the Coast, of the four million hectares of old-growth forests on Crown land, only 769,000 hectares are available for harvesting. Protected areas on Vancouver Island and the South Coast were identified through consensus land use planning processing that was conducted during the 1990s involving the public, First Nations, environmental groups and communities. In both areas, the percentage of protected areas exceeds the United Nation’s recommended target of 12 per cent.
to pressure companies to stop logging in this area altogether. These statistics, while valid as a framework for engaging the old-growth discussion, are seen to represent only the industry perspective and not one that is shared by the public. Further, defining, quantifying and managing old growth based fundamentally on age alone is not a practice that has garnered support from the public, who turned out in droves to provide perspectives on old growth, old forests and old trees.
Despite environmentalists’ rhetoric, on a provincewide basis, old-growth forests are not disappearing. There are more than 25 million hectares of oldgrowth forests in BC and about 4.5 million hectares are fully protected. The Great Bear Rainforest, for example, covers 6.4 million hectares; an area twice the size of Belgium, and fully protects 1.8 million hectares from resource development. Of the total area, only 9 per cent is available for logging. However, despite the agreement to protect these forests, environmental groups continue
Based on 18,523 responses, when respondents listed the top three reasons that old-growth forests are important, they said: support for biodiversity 76 per cent; habitat for wildlife and fish 53 per cent; and carbon storage to mitigate climate change 48 per cent. The economic benefits from timber harvesting as a top
three value were only shared by a mere 7 per cent of respondents. That said, the report did not include any assessment of the economic benefits or the potential trade-offs that would come with increased old-growth preservation. This was despite the 2017 PricewaterhouseCoopers study that demonstrated more than 140,000 jobs are created by the forest industry, or the 2020 COFI study where Susan Yurkovich, president and CEO, noted, “Many people tend to associate the forest industry with rural areas and smaller communities, but this study shows that people working in businesses in urban centres also depend on a strong and vibrant forest industry supply chain.” The report also demonstrated that 89 per cent of respondents felt that the top three greatest risks to old-growth forests were: logging 89 per cent; urban development 54 per cent and other industrial activity 49 per cent. Clearly, the input to the review and its outcomes were heavily stacked against the forest industry. This was further emphasized when most respondents (81 per cent) agreed that naturalist or conservation groups should be actively involved in
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decision-making about the future of old-growth forests in BC with only 27 per cent suggesting the forest industry should be involved at all. It’s no surprise then when the 14 recommendations for change were fundamentally geared towards the perceived weaknesses in BC’s forest management regime, the need for a paradigm shift in the way we approach managing forests and the need for more protection of old growth. This came with virtually no discussion or consideration for the potential economic impacts to workers and communities if more old growth is eliminated from the working forest. What do the recommendations suggest? Essentially, they create a roadmap for a change in how we manage forests, with less involvement of forest companies and more involvement of environmental groups, community and First Nations, a much greater focus on maintaining ecological biodiversity in BC’s forest and much less emphasis on timber supply and related jobs and economic activity. For years BC’s forests have been the backbone of BC’s economy, but the report suggests now that, “conservation and
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management of ecosystem health and biodiversity of British Columbia’s forests should be an overarching priority”. To achieve this, adoption of a threezone forest management system is suggested; a governance model that gives local communities and stakeholders a greater role in forest management decisions that affect them, and provision of timely and objective information about forest conditions and trends to the public. More immediate recommendations included deferral of development in old forests where ecosystems are at very high and near-term risk of irreversible biodiversity loss (which the government has already acted upon), and a process to bring management of old forests into compliance with existing provincial targets and guidelines. Other recommendations include: establish and fund a more robust monitoring and evaluation system; establish a standardized system and guidance that integrates provincial goals and priorities to local objectives and targets, update the targets for retention and management of old and ancient forests, improve the mapping and classification of old forests to recognize
multiple values and create a silviculture innovation program aimed at developing harvesting alternatives to clearcutting that maintain old-forest values. All of this was to be achieved within a three-year window with support for forest sector workers and communities as they adapt to changes resulting from a new forest management system. The final recommendation clearly eluded to the fact that with the implementation of these recommendations, workers and communities would be at risk and in need of government support. For his part, then Forest Minister Doug Donaldson gave a muted response to the recommendations noting that, “those who are calling for the status quo to remain are risking crucial biodiversity loss, while those who are calling for immediate moratoriums on logging are ignoring the needs of tens of thousands of workers. Our government believes in supporting workers, while addressing the needs of old-growth forests, and these values will guide our new approach.” The Sierra Club’s response was as expected, downplaying the initial steps
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taken by government to protect 352,739 hectares of old growth when they said, “the province inflated the numbers by including areas that were already protected or that were not at risk of logging.” Likewise, the response from the Endangered Ecosystems Alliance was, “if you look at the facts, it still essentially preserves the core of the old-growth logging industry,” said Ken Wu, executive director. “Left as it is, it will liquidate most of the remaining endangered old growth.” Bob Brash, executive director of the Truck Loggers Association noted, “government wants industry to innovate, invest, and create good paying jobs. Unfortunately, that won’t happen until we have certainty on the working forest that supports the industry. Government must also enforce such certainty because ENGOs constantly break agreements and trust as evidenced by ongoing and escalating demands for ever-more protection as we speak. Why would anyone want to invest in such a climate?” Todd Chamberlain, general manager of the ILA knows that old growth in the Interior is not like on the Coast, but he firmly believes that, “government needs to properly educate the public on the true definition of old growth and that it is not just a coastal issue, but a provincial issue.” From his perspective, forests have to be managed for all the values, and all stakeholders need to be involved in decision-making. “Oldgrowth management cannot dominate forest management decisions,” says Chamberlain, “government needs to learn from the successes of the past.” With a commitment from government to begin the work to address information gaps, update inventory and improve public access to information, all the while working to involve industry, environmental groups, community-based organizations and local governments in discussions regarding the report’s recommendations and the future of old-growth forests in BC, it will be crucial for the logging sector to stay engaged or fear the loss of the natural resource that supports their livelihood.
special advertising feature
SUPPLIERS’ SUPPLEMENT Like you, the TLA is highly disappointed at the cancellation of the 2021 ANNUAL CONVENTION + TRADE SHOW. We know it's not the same as WALKING THE TRADE SHOW FLOOR and talking to the MANY GREAT SUPPLIERS who fill the room, but we still want to provide TLA members, and the timber harvesting and forestry community with an opportunity to CONNECT with them. On the following pages, we bring you this special suppliers’ advertising feature.
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UNWAVERING COMMITMENT
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IT’S A HARD INSURANCE MARKET, NOW WHAT?
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SOLID SUPPORT FOR BC LOGGERS
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THE BENEFITS OF A GROUP BENEFITS PLAN
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DRUG AND ALCOHOL USE SOARS DURING COVID-19. HOW WILL YOU HANDLE THE THREAT? INTEGRAL EQUIPMENT’S ALPINE SHOVEL YARDER HITS THE SLOPES
SUPPLIERS’ SHOWCASE WEBINARS
WEDNESDAY, JANUARY 13, 2021 We are also pleased to bring you a special SUPPLIERS’ SHOWCASE WEBINAR series featuring valued TLA suppliers who will highlight their products and services. Each supplier will spend a few minutes sharing information followed by a Q&A PERIOD when TLA members can ask their questions directly. This is a free event. Visit tla.ca/tla-events to register.
Mark your calendars for each supplier’s 20-MINUTE WEBINAR you wish to attend at the following times: 9:00 am
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1:30 pm
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10:00 am
Inland Group
2:30 pm
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10:30 am
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11:00 am
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PetroCanada/ Coastal Mountain Fuels
inland
UNWAVERING COMMITMENT Inland is British Columbia’s premier truck and equipment dealer, selling Link-Belt excavators and forestry equipment, Tigercat forestry equipment, CASE construction equipment, and Kenworth trucks. With 17 locations covering BC and the Yukon, a full range of products as well as parts, service, and financing support, Inland is the ultimate business partner. As we enter Inland’s 72nd year in business and move forward from one of the most uniquely challenging years yet, now more than ever, we stand behind our commitment to support BC’s forest industry. In times of hardship, our duty as a dealer is to provide a stable support system by offering the highest quality. To demonstrate our commitment, Inland, with support from Link-Belt Forestry, has stepped up to be the TLA’s 2021 Premier Sponsor to continue supporting one of the most influential forestry advocacy groups in BC.
Link-Belt Forestry Link-Belt’s 40-Series range of products include harvesters, log loaders, processors and road builders. “We spend a lot of time with loggers and timber processors to learn first-hand what their equipment needs are, and to make sure that we design and build the right machines to fit their applications,” says Adam Woods, product manager, LBX Company. “We strive to make your job easier by building tough and dependable machines that are purpose-built.” Inland’s Link-Belt 40-Series purpose-built forestry carriers continue to be a strong performer in BC’s backcountry. They feature powerful, fuel-efficient Final Tier 4 engines which don’t require a diesel particulate filter, matched to a large fuel tank that keeps you working longer. Enjoy the luxury of a 7” high-definition colour monitor, rear view camera and spacious operator cab. All Link-Belt’s 40-Series forestry machines are equipped with a complimentary RemoteCARE® GPS telematics system which tracks service intervals, machine health, real-time location and remote security monitoring. Link-Belt is actively working on product improvements for what the next generation of Link-Belt Forestry will look like, so stay tuned for some big news to come.
Tigercat This has been an exciting year for new Tigercat products. Tigercat successfully launched the new purpose-built roadside processor. This package includes the 850 Carrier and 568 Processor Head. It is the only truly purpose-built roadside processor in its class. Industry leading fuel economy, cooling capacity and revolutionary serviceability sets the 850 apart from excavator conversions, while the 568 patented 4WD–2WD auto-shift drive system maximizes productivity. We are also excited to announce Tigercat’s introduction into the wood waste and biomass market with the Tigercat 6050 Carbonator, which uses a carbon sequestration process to reduce wood debris on site. The Tigercat 6900 Horizontal Grinder is another new material processor designed for maximum production and uptime. It comes in either 850, 1050 or 1200 horsepower options. Finally, we saw the Tigercat six-wheel skidder with swing boom—the Tigercat SB635H Skidder—make its debut in BC in December. This is the third ever swing boom off Tigercat’s production line.
36 Truck LoggerBC Winter 2021
CASE CASE Construction Equipment is shaking up the BC market with their full line of compact and full-sized construction machines, including compact and full-sized excavators, wheel loaders, backhoes, dozers, compact track loaders (CTLs), skid steers and more. The new B-Series CTLs and skid steers are compact but powerful, offering industry leading visibility, horsepower and torque, and extreme attachment versatility. Our mill yard customers love pairing the CASE wheel loader with a grapple attachment for a speedy and maneuverable log sorter.
Kenworth As Inland’s original brand, Kenworth has long been the truck BC loggers rely on during the harshest weather, road terrain, elevation grade or demanding workload. Kenworth’s craftmanship is vigorously tested to withstand BC’s toughest conditions. The flagship T880 features industry leading torque and horsepower and a rugged, high clearance body. The traditionally styled W990 is quickly gaining popularity as well. Find your perfect fit on our lot ready to go or work with a knowledgeable Inland consultant to custom build your own, one-of-a-kind unit matched to your specific needs.
Parts, Service and Financing Support One of our core beliefs is that we are not just an equipment supplier but a true business partner. With our economies of scale, we are able to pass on savings to our customers. We have over $75 million in parts on hand at any given moment, meaning we are more likely to have what you need readily available, resulting in less downtime. Our Online Parts Counter also allows you to easily order parts from the comfort of your own home or office. We understand that in your business, time is money. That’s why we have 24/7 emergency service support and a fleet of mobile service trucks ready at your disposable to maximize your uptime. Our highly trained service technicians are coupled with the latest technology and diagnostic tools. Once you’ve found your perfect machine, let our friendly financing experts present our in-house financing options. We can create custom finance/lease solutions with flexibility for every budget, such as the ability to skip payments or seasonal requirements. You can also combine multiple truck and equipment purchases into one contract and one payment, making payments simple and organized.
Thank you Calling BC home since 1949, Inland remains a family owned company supporting local businesses through full-service, partnership support. We are incredibly proud to have helped shape BC’s forest industry into the cornerstone it is today. Thank you to all those working in the forest industry for keeping our communities strong and running.
Proudly BC owned and operated for over 70 years. Come visit any of Inland’s 17 locations in BC and the Yukon. INLAND-GROUP.COM
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– Ben Fitzpatrick & Chris Haag
IT’S A HARD INSURANCE MARKET, NOW WHAT? Over the past year, business owners have likely seen their insurance rates rise, premiums and deductibles increase, coverage reduced and the overall process of renewing their insurance programs become more difficult and time consuming.
A local business owner may say “so what, I am claims free, I do not operate outside of Canada, why should I pay more?” Simple macroeconomics suggests that what goes down must eventually go up, and that is exactly what is happening.
The insurance industry is currently in the “hard market” phase of the insurance market cycle. Your broker has likely explained the cycle as insurers losing a lot of money over the past number of years and needing to charge more for the risks that they assume from the buying public. This is an overly simplistic explanation of a much broader issue for the industry.
To mitigate your costs, communicate with your broker early to identify and understand any potential issues with your renewal. If you have been claims free with the same insurer for more than 5 years, you should expect a renewal at a reasonable rate increase. There are always exceptions to this rule.
After the financial crisis in 2008, it was safe to assume that there should have been a correction in the industry as the world’s largest insurance company and several other firms would have gone bankrupt without a US government bailout; the exact opposite is what occurred. As interest rates declined to historic lows around the world, capital flooded into the market looking for a safe investment that would return at a reasonable rate. The industry became flush with capital, looking to be deployed into the marketplace. This caused historic competition for business amongst insurance companies. Rates went down; multiple insurers bid on risks under cutting each other; coverage broadened; and traditional underwriting of risk, ostensibly disappeared. On the surface, the end buyer seemed to benefit; buying insurance was cheap and easy. Competition meant that rates likely did not go up even with the rate of inflation. Traditionally, insurers made money from both their investments and underwriting. As safe investments returned at lower and lower rates, underwriting at a profit became more critical. Once underwriting profit left the industry, it had to correct the market cycle and start charging more for insurance. Typically, the cost of conducting business naturally goes up over time, which means that if a company wants to enjoy the same profit margin or an improvement year over year, the cost of services rendered, or capital deployed would also increase to the end user or purchaser. In the insurance industry the exact opposite occurred; profit became dependent, in part, on investment income rather than being driven purely by profit from underwriting or core business operations. Over this same period of time, the insurance industry has grappled with an increase in the frequency of catastrophic incidents such as hurricanes, typhoons, forest fires and other natural disasters. New and evolving risks such as cyber-attacks, pollution liability, director and officer’s liability, increasing litigation costs and other large losses have made things worse; and 2020 brought the unexpected challenge of COVID-19. The industry was not prepared for the fallout from a global pandemic, which increased claims and reduced premiums from businesses shutting down or operating at limited capacity. Increased losses combined with stagnating premiums and capital leaving the market could only lead to one place: a hard market.
The renewal process with your broker should begin 45-60 days ahead. In a hard market, underwriters require more detailed information and spend more time reviewing submissions. Be aware that in the absence of detailed information, underwriters will often assume the worst; therefore robust submissions will yield the most competitive terms. Complete and return any requested paperwork giving as much lead time as possible to allow your broker extra time to negotiate terms and navigate any challenges the market may present. If you have had claims over the past few years, understand why these losses happened and come up with a plan to prevent them from happening again. Fortunately for TLA Members who participate in the exclusive equipment and liability affinity programs, they were designed to weather changes in market conditions and thus far have performed well in these challenging times. Though there has been a rise in rates, increases have been well below the industry average. To successfully navigate a hard market, contractors need to be organized and communicate with their insurance broker. Understand how they work, what their process is and what they are going to do to help mitigate increases and reductions in coverage. The days of cheap and easy insurance are over for the near term, which makes the relationship with your broker and insurance company more important than ever.
Chris Haag is a partner at Wilson M. Beck Insurance Services Inc. specializing in risk management for general contractors, trade contractors and real estate development. With 25 years of experience in the insurance brokerage industry, Chris is well versed in all aspects of the insurance cycle, including the hard market. Ben Fitzpatrick is vice president at Wilson M. Beck Insurance Services (Victoria) Inc., specializing in forestry and construction. Ben is the TLA affinity program liaison and has been working in the insurance industry for over 20 years.
Direct: 778-747-0522 | Mobile: 250-888-8721 Office: 250-744-1140 | Email: BFitzpatrick@wmbeck.com WMBECK.COM
Winter 2021 Truck LoggerBC 37
brandt
SOLID SUPPORT FOR BC LOGGERS
It is a good thing that British Columbian loggers are a resilient group! The province’s forest industry has been rocked by unprecedented market swings in the past couple of years—extreme even by forestry standards. And, while prospects have been generally more positive in the past six months, some uncertainty remains. Thankfully, while demand continues to fluctuate, prices are holding at record-high levels, driven largely by increased demand in the US housing market—both renovations and new starts—and strong softwood demand in Asia. While some of the Asian demand is being met by increased exports from Germany (+54.2 per cent from January to Aug 2020, driven by bark beetle infestations in North Rhine-Westphalia), west coast loggers continue to get busier. And, even though the industry has passed peak demand for 2020 (prices reached over $800 per 1,000 board feet in August), framing lumber demand is expected to remain strong in 2021. “With ongoing labour issues resolving and major forestry companies returning to production, BC loggers are signing contracts and starting to produce once again,” says Chris Cheney, vice president operations BC for John Deere Construction & Forestry dealer Brandt Tractor Ltd. “As a result, the demand for equipment is also recovering as contractors rebuild their production teams and refresh their fleets.” Amidst the uncertainty of recent years, Brandt has remained a stable, constant presence in the industry, meeting the needs of loggers in BC and across Canada through the country’s only coast-to-coast-to-coast forestry equipment dealer support network—56 full-service branches in total, with 13 in BC.
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Brandt’s approach to supporting the forest industry is built on five pillars: 1 Absolute Support In the forest, there’s no time for downtime, so Brandt supports BC loggers with the best 24/7 after-sales support in the business. With more parts inventory, more field techs and more machine monitoring, nobody works harder to keep loggers up and running. 2 Productive Technologies With Canada’s short logging season, productivity is everything. Brandt helps loggers get more done with the latest technologies like TimberManager™, TimberMatic™ maps, JDLink™ and FleetWise™. These tools enable BC contractors to maximize loads on their forwarders; quickly transition between work shifts; track the status of their machines and much more giving them the productivity boost they need. 3 No-Risk Warranties BC loggers can protect their hard-earned profitability with the latest OEM warranty programs, fully supported by Brandt, to safeguard their operation from the unexpected. Brandt’s costprotection strategies are designed help them manage operating cost variability and secure their bottom line with warranties that are always there when they need them. 4 Custom Products The right tool makes any job easier and Brandt helps loggers to fine-tune their performance with the most dependable custom forestry attachments on the market. Brandt designs, builds, and
brandt continued
supports specialized grapples, couplers, thumbs, guarding and anything else they need to succeed. With the best support in the business and over 80 years of experience, BC loggers will always have a running head start with purpose-built attachments they can count on.
when tilting to the side. The leveling envelope boundaries are set automatically, and the patented system provides a smooth transition when approaching the leveling limits.
5 Flexible Financing With equipment finance, one size does not fit all, so Brandt tailors their financial solutions to meet the unique financing needs of logging contractors. Loggers benefit from a broad range of flexible in-house new and used asset financing options and Brandt’s mobile finance team will meet them on their turf to find the right solution so they can succeed with financing that works.
The 959ML Shovel Logger is equipped with a powerful 9.0-litre John Deere Final Tier 4 engine, boasting 330HP and lower diesel exhaust fluid consumption. A proven solution, the John Deere engine results in lower daily fluid costs. The cab on the 959ML machine was designed with the challenges of the steep slope environment in mind. The roomy operator cab includes a large, upward viewing skylight and downward viewing window for increased visibility and awareness in challenging terrain. The high leveling capability of the patented system increases overall operator comfort and productivity, especially in severe downslope, tethered conditions.
As the logging industry in BC continues to weather up-and-down market conditions, new equipment options are making it easier for them to make the most of every opportunity. Brandt has a decadeslong history with the complete lineup of forestry equipment from John Deere and delivers an unmatched inventory of equipment and replacement parts along with complete, full-service product support.
The 959ML machine offers increased durability and reliability. The industry-leading, best-in-class serviceability design features full opening enclosures and walkthrough access. Additionally, standard walkways allow access to all areas of the enclosure without climbing down. With these features, maintenance is easier and faster, and there is no need to take the machine off the hill for service.
A direct result of the continued growth in BC’s steep slope logging market, the new John Deere 959ML Shovel Logger is designed for felling and hoe chucking in difficult terrain. Available in one of two configurations from the factory—shovel logger or directional feller— the 959ML machine boosts productivity, even in the most challenging of applications.
The 959ML machine can be equipped with a variety of optional add-ons specifically designed for steep slope applications, including a weld-on, tether-ready hitch field kit, slope indicator, and four-point seat harness.
“We are continuing to see loggers moving into steeper terrain, and, understanding the demands and unpredictability of these conditions, we want to provide them with equipment that is specifically designed for this challenging application,” said Jim O’Halloran, product marketing manager, John Deere Tracked Harvesters and Feller Bunchers. “The new 959ML Shovel Logger leverages the top features from our M- and MH-Series models, including the best-inclass leveling control system, to produce a new machine specifically designed for steep slope operations. We are excited to bring a new solution to the market that helps our customers be more productive, regardless of where they work.” One of the key features of the 959ML machine is the boom geometry. Available in two configurations, the 11-metre (36-foot) live heel shovel logger boom and the 9.12-metre (30-foot) and 10.34-metre (34-foot) directional feller booms are specifically designed to ensure high performance in challenging steep slope applications. All boom options have excellent downhill reach capability, ensuring that each boom configuration can reach the downhill side of the ground, even at a full leveler tilt. Equipped with a strong, purpose-built live heel, the 11-metre shovel logger boom is designed to incorporate grapples up to 1.5 metres (60 inches) or mid-sized directional felling heads. There is also an option available to quickly switch between the two. The directional feller booms, available in either 9.12-metre or 10.34-metre reach, are specifically designed to support any large directional felling head applications. “Providing multiple solutions for steep slope felling and log handling is key to helping our customers become more efficient in these challenging applications,” says O’Halloran. The patented leveling control system uses sensor technology, maximizing the forward tilt angle (26 degrees forward), while electronically preventing any possible mechanical interference
With the industry continuing to move away from manual felling, Brandt is also excited to offer the FL100, a new large-class directional felling head from John Deere. The FL100 model provides customers with a larger, more durable directional felling head solution. “Our customers are continuing to tackle more challenging terrain, and we want to provide reliable, durable equipment that is designed to meet their unique needs. As they seek purpose-built equipment for their operations, the FL100 will allow them to efficiently and safely fell in both unique steep slopes and traditional felling applications,” said Jim O’Halloran, product marketing manager, John Deere Tracked Harvesters and Feller Bunchers. The robust, durable design of the new FL100 makes it ideal for steep slope, shoveling, and traditional felling applications. Featuring increased grip strength, grapple capacity and shoveling performance, the FL100’s grapple arm effectively handles both small and extralarge timber. The increased durability of the FL100 reduces potential downtime in tough conditions, while allowing excellent access to maintenance and service points. Factory installed on the new John Deere 959ML Shovel Logger/ Directional Feller, the FL100 offers the ideal solution for felling and maneuvering timber in steep slope applications. Brandt is pleased to deliver all these state-of-the-art forestry production solutions and more, together with their impressive support infrastructure—a constant in BC’s logging industry, no matter what the economy dishes out. 1-888-227-2638 | sales@brandt.ca P.O. Box 3856 Highway 1 East Regina, Saskatchewan S4P 3R8 BRANDT.CA
Winter 2021 Truck LoggerBC 39
johnstone ’ s benefits
– Marcus Acaster
THE BENEFITS OF A GROUP BENEFITS PLAN The partnership between Johnstone’s Benefits and the Truck Loggers Association offers comprehensive group benefit programs, designed specifically for TLA members. We provide hands-on service in developing a plan that fits the business’ and employees’ needs and values, as well as being affordable long term. As a third-party administrator, Johnstone’s Benefits bridges the gap between TLA members and the insurance company so employees will never need to wait on a 1-800 line for coverage questions or plan issues. Johnstone’s Benefits manages program administration, offering dedicated personalized service and benefit support to TLA members and their families, assisting with onboarding and difficult claims. The TLA benefits plan is accessible, effective, and sustainable. Offering a benefits program is fully tax-deductible for a company and is a tax-preferred method of compensation for employees. Since 1994, Johnstone’s Benefits has worked closely with the TLA and plan members to ensure members have access to a benefits program that offers a combination of top-tier benefits that keep costs in mind.
Who is Johnstone’s Benefits? Johnstone’s Benefits is a group insurance broker and third-party administrator, not an insurance company. Our staff is knowledgeable and approachable to help with administration, claims support, and ongoing plan management needs. The TLA group benefits program is insured through Pacific Blue Cross (PBC) , the largest not-for-profit insurer in British Columbia.
I have provincial health coverage, why do I need group benefits? The public provincial health plan is primarily focused on hospital services. As highlighted in the table below, many plan members and sponsors overestimate the extent of coverage provided through the public plan when compared to private group benefits plans. Public provincial health plans also do not cover many supplemental health services such as paramedical practitioners, dentists, and medical supplies. Public drug plans are not on par with private plans Estimates of the number of drugs covered by private and public plans versus actual averages
PRIVATE PLANS
PUBLIC PLANS
Plan Members
6,610
6,520
Plan Sponsors
7,456
7,183
Actual averages
11,000
5,000
What are some of the unique features of the TLA group benefits program? The TLA group benefits program is unique in that there are plan options to meet the needs of all members from the owner-operated
40 Truck LoggerBC Winter 2021
small business to large industry members with a diverse workforce. The TLA plan is comprised of a one- to nine-employee plan designed for small businesses, and a customizable 10+ employee plan. The TLA one- to nine-member plan offers coverage that would typically not be available to small businesses such as short- and long-term disability coverage. The TLA 10+ member plan offers full flexibility while providing rate stability and buying power through the TLA membership.
How many employees are required to start offering benefits? Because of the unique nature of the TLA’s group benefits plan, even an owner-operated company without additional employees can enrol in the plan. The coverage is more comprehensive than a personal health and dental plan you might come across with an insurer, and a medical exam is not required to obtain coverage.
Who is eligible to be part of a group benefits plan? All full-time and full-year employees can participate in the TLA group benefits plan. An employee is considered full time if they work more than 20 hours per week on average. In some instances, coverage is available for seasonal employees, but is subject to insurer approval. If an employee has coverage through a spouse, they can choose to opt-out of the health and/or dental portion of the plan.
Can retirees be covered for benefits? Johnstone’s Benefits and the TLA provide a health and dental program specifically for retired TLA group benefits plan members and their families. The retiree plan does not require any medical exams and provides multiple levels of coverage depending on the retiree’s needs.
What is a Health Spending Account and how does it help small businesses? A Health Spending Account (HSA) is a Canada Revenue Agency approved tax-free allowance given to employees for health and dental expenses. With an HSA, you have a predictable fixed cost and benefit from the preferred taxation of running health and dental expenses through a corporation. HSAs have grown in popularity as it gives employees the flexibility to prioritize benefits that are important to them and their families and adds a greater level of cost predictability than a traditional insured benefits plan. We do not suggest providing an HSA on its own, but instead use it as a tool to supplement areas of a benefits plan such as paramedical practitioners’ services or vision care.
How do we make sure we are competitive in our industry? Working with a benefits advisor or broker who understands your industry and market is a good way to ensure that your benefit plan is competitive. Johnstone’s Benefits has experience with similar clients, we monitor benefit trends actively, and we have access to industry data. Marcus Acaster, Client Account Manager
JOHNSTONE’S BENEFITS marcus.acaster@jbenefits.com | 604-982-1655 JOHNSTONESBENEFITS.COM
denning health group
– Tom Yearwood, LLB
DRUG AND ALCOHOL USE SOARS DURING COVID-19 HOW WILL YOU HANDLE THE THREAT? Every business across the country has been affected by COVID-19. Provincial Health Officers, heretofore largely unknown creatures, have become household names and in some cases media darlings. Sports figures and celebrities have been supplanted by people such as Dr. Bonnie Henry and Dr. Anthony Fauci. At the time of writing, no one knew what the likely industry outlook would be in January 2021; uncertainty prevailed and likely still does. One thing that seems certain to continue through 2021 and beyond though, is the well documented increases in drug and alcohol use and, more worryingly, the new patterns of use that have developed since the initial lockdown in March 2020.
challenges ahead to implement policies and regulations to reduce death, disease and injuries caused by the harmful use of alcohol.” (my emphasis)
Cannabis
Employer Takeaways
According to many experts, the new normal will include increased use of mood-altering substances, including cannabis. Much more alarming than the initial spike is the emerging pattern of use which, as is commonly accepted, will soon create many health and social problems. My belief is that this change will also lead to increased threats to safety. Dramatic increases in cannabis sales were reported in many jurisdictions at the start of the pandemic including a whopping 600 per cent increase in Ontario, and while this huge increase hasn’t been maintained many sources are reporting a 40 per cent increase year over year including in BC. A recent meme reflecting the situation goes as follows: “If you had told me 10 years ago that the government was going to pay me to stay home and smoke pot, I would have called you crazy”. According to statistics, this is the reality for tens of thousands of people across the country.
Alcohol As with cannabis, alcohol sales have also escalated and drinking patterns for many have changed to include day-drinking. This has become more commonplace as the line between what is and isn’t acceptable has been blurred as a result of weeks and months of not working, and “wine-o-clock” is getting earlier for many Canadians. On October 20, 2020, Statistics Canada released a report that confirms a dramatic increase in alcohol sales. The demographic most affected is men aged 24 to 55, which constitutes a large part of the forest industry’s labour supply. This will be of obvious concern to the reader. Additionally, a report from the Canadian Centre on Substance Abuse and Addiction summarized the impact of increased alcohol consumption as follows: “In Canada and globally, the immediate fear of going without alcohol seems to have taken priority over concerns about developing alcohol use, diseases and disorders or experiencing domestic violence. This designation is a stark reminder of the efforts needed and the
Illicit drugs Many agencies in the US and Canada report that illicit drug use has also increased with a major spike in overdose deaths in BC and elsewhere. The overdose rate is thought to have been affected by a change in drug supply routes and an increase in users outside of the normal cohort. There has also been an increase in the use of Fentanyl by drug dealers (mixing or cutting it into other illicit drugs) and by direct consumption, something almost unheard of a few years ago. One US agency cites a study which revealed a marked increase in opioid use as well as methamphetamines and to a lesser degree, cocaine, with Fentanyl continuing to lead as the cause of death. As an employer, you need to exercise a heightened awareness of the health and safety threats posed by the documented increases in substance use. This concern applies primarily to those employees who have been off work with little to do and a great deal of stress to manage; but don’t ignore those who have continued to work in that their home life may have been disrupted by COVID-19 as well. My recommendations include the following: 1 Communicate with all your employees, including those that have been laid off, highlighting the current trend as it relates to their health and safety. 2 If unionized, work with your local(s) to get the word out. 3 Dust off your employee and family assistance program and make sure that employees of all ranks are aware of what services are available. 4 Meet with returning employees and outline the help that is available, if needed, as well as your drug and alcohol policy and expectations set out therein. 5 If you don’t have a drug and alcohol policy, now is the time to get one. 6 Consider testing for pre-employment and returning workers if you are not already doing so. With so much uncertainty in the world and without a timeline for a return to normal, it is unsettling to know that many of the pandemic’s consequences will last long into the future, including changes in drug and alcohol consumption and patterns. Contact me directly if you would like assistance in addressing your needs and please join me for my webinar on Wednesday, January 13 at 9 a.m. Tom Yearwood, LLB
- President & CEO
DENNING HEALTH GROUP tyearwood@denninghealth.ca | 604-763-4558 DENNINGHEALTH.CA
Winter 2021 Truck LoggerBC 41
INTEGRAL EQUIPMENT
INTEGRAL EQUIPMENT’S ALPINE SHOVEL YARDER HITS THE SLOPES With a primary focus on customer service, Integral Equipment is proudly supporting the unparalleled and globally tested Alpine Shovel Yarder. The Alpine Shovel Yarder is the fastest and most powerful hydraulic yarder on the market today. Powered hydraulically, it also includes a hydraulic-mechanical interlock. In combination with the Alpine Grapple Carriage, this forms a complete guy-less swinging grapple yarder. Alpine’s latest model is a two drum running skyline hydraulicmechanical interlock system which mounts on an excavator, mated with the Alpine Grapple Carriage. Without needing guy lines, this swinging yarder system can yard 450 metres with a 3/4” super swage haul back and mainline. It fully meets all the safety regulations to yard both uphill and downhill. Alpine’s winches drive system is what sets it apart. Technology in the winches provides smooth lift, high speed and braking, all without producing excessive hydraulic heat or wear and tear. Salmon Arm based Integral Equipment supplies Alpine products to North America. For more than two decades Alpine Logging has been building shovel yarders, and has over 70 units worldwide, succeeding in regions as diverse as Chile, Malaysia, Europe, New Zealand, South Africa and Australia. Integral Equipment is focused on supporting contractors in this changing industry by bringing the best steep slope solutions to the North American market. Our goal is to provide contractors with globally proven innovative solutions. Our Alpine yarders have several key differences from other alternatives and include many extras. The overall high quality of our winch package is demonstrated by our large motors and the quantity of them for more pulling power. We have a technologically advanced interlock which can capture braking energy and redirect that energy into lift and drive to limit wear and tear. This is matched by the large gearset in our interlock. We mount our winches over the top of the engine which allows the carrier to remain at its original length and allows the Alpine Shovel Yarder to work on steep cuts without interfering in the cut of the bank. Winches are mounted with a hydraulic ram to tip them up for easy access to the carrier. Alpine’s tower package is also optimized for the contractors, with sheaves that swivel to follow the cable direction. This lengthens cable life and is helpful when swinging wood to the side of the carrier. An impressive light package lengthens the working hours, which is a benefit in our winter months.
Thanks to Groot Bros Contracting Ltd / West Point Rail & Timber Co. Ltd for the recent purchase of an Alpine Shovel Yarder.
mechanical carriage provides better durability and more jaw opening for less weight while the motorized carriage simplifies operator controls. Del Penner created Integral Equipment to fill a need he spotted in North American contractors while looking to expand his own harvesting operations—the need for an effective and versatile yarder. A yarder that is operator friendly and very mobile. Del found this in the Alpine product line. Developed by loggers for loggers and time tested in international markets, all Alpine lacked was support in North America. Integral Equipment is filling that gap with a primary focus on contractors’ needs. Coming from a logging background, Del is intimately aware of the importance of good customer service. His goal is to better our industry; make it more efficient, safe and environmentally friendly, while assisting in the longevity of the industry. Being personally involved in the forest industry for the last three decades, Del has a keen understanding of what is important for contractors, particularly when operating in steep slope situations. Del shifted his focus to manufacturing and teamed up with Alpine Logging, an innovative company from South Africa, to tap into their proven steep slope technology. Logging can be a challenging industry and Integral Equipment is providing solutions through the unparalleled Alpine product line and an impressive focus on contractors’ needs—solutions that improve efficiency and production, while putting more in the contractors’ pockets.
Our counterweight has been transformed into an extra fuel tank, to lower the overall weight and to ease low bedding, with the side benefit of keeping more fuel on site. Alpine’s other models include a hydraulic interlock package useful for smaller wood and a live skyline package for uphill only. Then there are the carriages, which are outfitted with cameras and radio controls. Currently we have the Alpine Grapple Carriage and are adding the Alpine Motorized Grapple Carriage. The
42 Truck LoggerBC Winter 2021
Visit our website or find us on for more information about how we can help you. INTEGRAL EQUIPMENT LTD. INTEGRALEQUIPMENT.CA | 250-306-0604
We are pleased to announce the first ever Truck Loggers Association online auction! We're confident that with your support, we can continue to raise significant funds for our TLA Forestry Education Fund, which provides scholarships for dozens of students in forestry programs each year.
MARK YOUR CALENDARS FROM MONDAY, JANUARY 11 TO THURSDAY, JANUARY 14, 2021 AND GET READY TO BID! Thank you to all of our very generous auction donors: A Cut Above Gift basket of hair products
Inland Group Milwaukee grease gun kit
Sladey Timber Ltd. STIHL chainsaw
Advertising In Print $1,000 gift certificate for printing services
Island Forest Company West Coast Thumpers fish gaff, thumper and hoodie
SMS Equipment Inc. Komatsu Komtrax telematic kit
Angus P. Allison Handmade wooden coat rack Associated Tire & Auto Four TOYO tires with installation BC Forest Discovery Centre Family day pass BC Forest Safety Council Grey wool Stanfield's shirt with BC Forest Safety logo
Johnstone's Benefits A ‘bevy’ of gift cards to quench your thirst Kal Tire Four 265/70R17 Nitto HD Grappler tires Local Girl Clothing & Design Forestry apparel and swag Mosaic Forest Management Sun mask by Kwakiutl carver Dave Jacobson
Strathcona Hotel, Victoria One-night stay for two people The Truck Loggers Association and Saw Valley Carvings Inc. Custom wood carving by world champion Ryan Cook The Westin Bayshore, Vancouver Two-night stay for two people, including breakfast
Bob Marquis Contracting Ltd. Two engraved Bowie hunting knives
National Energy Equipment Fill-Rite high speed fuel transfer pump
T-MAR Industries Ltd. T-Mar 66” Extreme Duty MK 3 hydraulic grapple
Brandt Tractor Ltd. John Deere gun safe
NexGen Hearing Industrial 24 onsite hearing tests, one 3M Lumberjack Kit
Top Down Enterprises Inc. Milwaukee grinder kit, branded apparel
Campbell River Forestry Education Association $250 gift card at Campbell River Golf & Country Club plus one-hour rental from Velocity Bay Rental Cannon Bar Works Ltd. Cannon 36” DuraLite SuperBar Carihi Secondary School Carihi Forestry branded apparel Coast Bastion Hotel, Nanaimo One-night stay for two people Coastal Bridge & Construction Ltd. Four folding cedar deck chairs by Jesse Toso Copcan Civil Ltd. One $500 Canadian Tire gift card and one $500 Home Depot gift card Crown Isle Resort & Golf Community Two Stay and Play packages for two people DLA Piper (Canada) LLP One wine gift basket and one golf gift basket Dyer Logging Co. Ltd. Islander MR3 mooching reel Great West Equipment Pair of work boots, two light bars
Old House Hotel & Spa, Courtenay One-night stay in a deluxe suite including $100 Ohspa gift card
VIH Helicopters Ltd. Two-night, three-day fishing adventure for two, including VIP floatplane transportation to and from Nootka Wilderness Lodge
Opsal Steel Ltd. One OSCO #487 Haulback block and one OSCO #925 Tommy Moore block
Western Equipment Ltd. 1200 ft. of 7/8 Western swaged wire rope
P & R Truck Centre Ltd. Custom painted “Lucky Lager” beer fridge filled with Lucky beer Pacific Blue Cross Bose SoundLink wireless headphones
Western Oil Services Ltd. Piusi 12-volt diesel pump in a box Wilson M. Beck Insurance Services (Victoria) Inc. Dyson V7 Motorhead Origin cordless vacuum
Parkland Fuel Corporation TaylorMade golf putter, putting track, case of golf balls Ponting Contracting Ltd. Two wood carvings by Glenn Greensides Roc-Star Enterprises Ltd. $1,000 gift card for Kingfisher Oceanside Resort & Spa, Royston RoyQuip Mussels & More bowl Seaspray Log Scaling Ltd. and E & B Helicopters Ltd. Master Chef 36-bottle wine fridge and $200 BC Liquor Stores gift card
It’s not too late to donate. To donate an item, or to register to bid, visit tla.ca/tla-events. A huge thank you to Ritchie Bros. for helping make this event possible.
Winter 2021 Truck LoggerBC 43
At Your Service
Hearing Testing/Hearing Protection
TM LASK ENTERPRISES LTD.
OEM DISTRIBUTOR FOR THE WRI & WCR LOG BUNDLING CRIMPERS
Laurier L’Abbe C: 778-878-7399 E: tmlask@telus.net
OFFICE PHONE & FAX: 604-592-9198 MAILING ADDRESS: P.O. Box 85021, Willoughby PO Langley, BC, V2Y 0W3
Contact Us: 250.287.2410
www.tmlask.ca
New/Used/Exchange Hydraulic Excavator Parts Over 400 Hitachi/John Deere Excavators parted out
Office: 604-530-5758 Fax: 604-530-3554 Toll Free: 888-530-5444 www.langleyexcavator.com
MIKE HAMILTON LOGGING LTD.
I N N O V AT I V E W O R K B O AT SOLUT I O N S
A Proud Member of Vancouver Island’s Forest Community!
Dozers Push Boats Sidewinders Vessel Componentry
Stump-to-Dump Logging Fast Delivery
Road Building
Rent, Lease or Purchase New Models In-Stock Now! T 1.877.806.9605
sales@dropmarine.com
www.dropmarine.com
Road Building Drilling & Blasting Bridge Installation Mechanical Brushing Quarry Development Gravel Hauling
We Hurt Dirt!
Dan Bettenson Cell:
250-202-6641
O f f i c e: 2 5 0 - 2 8 7 - 2 2 0 0 Campbell River, BC
w w w . f a r n o r t h c o n t r a c t i n g . c o m 44 Truck LoggerBC Winter 2021
Tel: 250-338-6932 • Fax: 250-338-9638 1085 Comox Road, Courtenay, BC V9N 3P7
At Your Service
SERVING THE BC COAST
CONTRACTING SERVICES
DYER LOGGING CO. LTD. Box 257, Campbell River, BC V9W 5B1 Office: 250-914-8891 • Fax: 250-914-8895
MAIN NUMBER
1-800-798-FUEL (3835) COASTAL MOUNTAIN FUELS LOCATIONS
Langley 9121 – 196 A Street Langley, BC V1M 3B5
Nanaimo Marine Fuel Dock #10 Wharf Street Nanaimo, BC V9R 2X3
Campbell River 1720 Maple St Campbell River, BC V9W 3G2
Chilliwack 45461 Yale Rd West Chilliwack, BC V2R 4H3
Duncan 2935 Jacob Rd Duncan, BC V9L 6W4
Nanaimo 1609 Stewart Ave Nanaimo, BC V9S 4E4
Nanaimo Cardlock 30 Maki Road Nanaimo, BC V9R 6Z9
Port Hardy Fuel Dock 6720 Bear Cove Hwy PO Box 112 Port Hardy, BC V0N 2P0
Courtenay 850 11th St Courtenay, BC V9N 1T4
Gold River Cardlock 501 Industrial Park Place Gold River, BC V0P 2G0
604-291-6021
Victoria 2231 Sooke Rd Colwood, BC V9C 1A1
PARTS. SERVICE. SALES.
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INLAND-GROUP.COM
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Photo TLA Staff
What’s the Forest Industry Worth to BC? TLA Editorial
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n 2017, PricewaterhouseCoopers, on behalf of the member companies of the Council of Forest Industries (COFI), presented the results of an economic study meant to articulate the value of BC’s forest industry. Using data collected from 2016, the report highlights the obvious benefits that the forest industry in BC provides; a contribution that TLA members are well aware of, but a large portion of BC’s population may not fully understand or appreciate. As the base for 59,900 direct jobs in logging, trucking, sawmilling, veneer and plywood production and pulp and paper (or about 6 per cent of all provincial jobs) and support for close to 140,000 total jobs (including direct, indirect and induced jobs) in the province (about 15 per cent of all provincial jobs) the BC forest industry remains a cornerstone of BC’s economy; especially in the 140 rural communities that directly depend on the industry. In 2016, the provincial harvest from Crown and private land was 63.2 million cubic metres. This indicates the generation of about one job for every 1,000 cubic metres harvested and over two jobs for every 1,000 cubic metres harvested when considering all indirect and induced jobs. For these workers, the total labour income was a staggering $8.6 billion. Logging alone accounted for
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approximately 28 per cent of BC’s forest industry’s contribution to its total economy, and 44 per cent of the aggregated Canadian forestry and logging sector. Beyond the obvious benefit to workers and their families, the BC forest industry generated $32.96 billion in output (the value of all products sold) and $12.94 billion in GDP to the province. This means for every 1,000 cubic metres harvested, $205 in GDP was generated. The payments of municipal, provincial and federal taxes resulting from the industry’s operating activities, as well as other payments to the provincial government, totaled $4.12 billion, representing about $65 per cubic metre of harvest. With a total contribution to the provincial government alone of $2.56 billion—including $1.12 billion in provincial taxes; $747 million in stumpage; $86 million in annual rent, logging tax, and fee in lieu of manufacture; and $607 million in payments to BC Hydro—it is clear that the province relies heavily on the industry to provide the money needed to support the high level of social amenities including teachers, fire protection, police and health services, that British Columbians have come to enjoy. Furthermore, the industry paid a total of $1.36 billion in federal taxes and $198 million in municipal taxes. Contrary to the popular belief that the forest industry is essentially a “rural”
industry, a subsequent study released by COFI in late 2020 shone more light on the value of the industry to all British Columbian’s. Commissioned in early 2020, the 2019 Regional Supply Chain Study assessed the supply chain spend and reach of 19 COFI member companies. In 2019, these member companies purchased an aggregated $7 billion worth of goods and services from nearly 9,900 BC-based companies and Indigenous suppliers located in every region of the province. “Many people tend to associate the forest industry with rural areas and smaller communities, but this study shows that people working in businesses in urban centres like Vancouver, Surrey, Burnaby, Nanaimo and Kamloops also depend on a strong and vibrant forest industry supply chain,” said Susan Yurkovich, president and CEO, COFI. “This study clearly demonstrates how our forest industry’s deep roots are supporting workers and families right across our province.” COFI members purchased $2 billion worth of goods and services from 2,100 businesses located across 19 municipalities in Metro Vancouver alone. On Vancouver Island, $1.2 billion worth of goods and services were purchased from 1,600 suppliers, with more than a quarter of them located in Nanaimo. In the north, Prince George was home to 970 forest
industry suppliers that provided $718 million in goods and services. And more than 550 businesses from Kelowna and Kamloops in the BC Interior provided a combined $220 million of the forestry supply chain spend. Importantly, the study also confirmed that forestry is a primary industry in many Indigenous communities. Business agreements and stewardship partnerships between the forest industry and First Nations provided about $250 million in economic benefits to these communities, with close to 120 First Nations or affiliated businesses participating in the industry in 2019. “This study is a reminder of the importance of our industry to the fabric of our province,” says Yurkovich. “As we look to recover from the devastating impact of this global pandemic, our sector can help lift more British Columbian’s up by keeping our operations running and continuing to buy goods and services from local businesses. To do this, we need to work together to address the challenges we face and to seize new opportunities, ensuring our deep roots continue to be the foundation for strong communities, sustainable growth and shared prosperity long into the future.” As was noted above, the harvest in 2016 was 63.2 million cubic metres. However, the allowable harvest including
the traditional volume derived from private lands was over 79 million cubic metres. This 15.8 cubic metre difference was clearly a lost opportunity for the industry and the people of BC. In 2016 alone, achievement of the full allowable harvest could have resulted in 25 per cent more jobs, 25 per cent more GDP revenue and 25 per cent more government revenue. In fact, in every year over the past decade, the harvest could have been greater than what was realized. In every year, we should have had additional jobs, more family incomes, greater provincial and municipal revenues and more social services then we actually saw. Looking ahead, a key goal for the government and new Minister of Forests Katrine Conroy should be to create forest policies that will optimize opportunity to harvest the full allowable annual cut in order to ensure we are realizing the forest’s full economic potential. Beyond the value of the industry to British Columbians detailed in these two studies, the intrinsic values we derive from our forests are immense. From recreation, wildlife habitat, water supply and carbon dioxide sequestration, forests play a large, important role in BC and their management is equally important. Again, government needs to strike the balance needed to preserve and enhance
these values while at the same time optimizing use of the forests to support our economy. Strategic preservation of old-growth forests has already been addressed in part, but what is also needed is a clear identification of the working forest that will sustainably support the industry, and policies that allow companies across the province to react to changing global markets who constantly demand what our forests have to offer. One of the industry’s collective, greatest challenge remains informing the public about the extent of the forest sector’s economic contribution to our province and communities. In the many debates regarding forest policy, specific groups tailor their messages to define contributions in terms of profits, stumpage, costs, or whatever best serves their purpose. The overwhelming reality is that the financial contribution of the forestry sector remains critical to the province's well-being when all aspects are considered. For example, the net profit of any particular operation only reflects a small portion of overall economic benefits when the total expenses and revenues to an individual, company, and the province are considered. Forests are a renewable and sustainable resource that have built and continue to sustain this province. Let’s work together to ensure we realize their full potential.
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