What's the Forest Industry Worth to BC? - Old Growth Strategic Review: What It Means for Contractors - Interior Logging ...

 
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What's the Forest Industry Worth to BC? - Old Growth Strategic Review: What It Means for Contractors - Interior Logging ...
[ INSIDE   How Will BC Grow Its Value-Added Without the Wood? ]
                www.tla.ca

                                                                                     Winter 2021

                     What's the Forest
                     Industry Worth to BC?
                     Old Growth Strategic Review:
                     What It Means for Contractors
PM # 40010419
What's the Forest Industry Worth to BC? - Old Growth Strategic Review: What It Means for Contractors - Interior Logging ...
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What's the Forest Industry Worth to BC? - Old Growth Strategic Review: What It Means for Contractors - Interior Logging ...
WINTER 2021 Volume 43 Number 4 www.tla.ca
                                                                                  CONTENTS

                                                   46                                                        25
Columns & Departments
7         TLA President's Message                            20 Market Report
          Measured Decisions That Will Work for All               US Market Outlook and Supply Dynamics
          Bill Nelson                                             Russ Taylor
8         TLA Executive Director's Message
          So, Exactly What is Our Message?
          Bob Brash                                          Cover
10 Southern Interior Perspective
          Now the Work Begins                                46 What's the Forest Industry Worth
          Todd Chamberlain                                      to BC?
                                                                  TLA Editorial
13 North West Perspective
          Ready for Opportunities in 2021
          Rick Brouwer                                       Features
14 Northern Interior Perspective                             22 Forestry Community: Williams Lake
          Old-Growth Management in the Interior                   Robin Brunet
          Paul Schuetz
                                                             24 Letter to the Truck Loggers Association
16 Business Matters                                               Premier John Horgan
          Working with First Nations
          Chris Duncan and Mindy Wight                       25 How Will BC Grow Its Value-Added
18 Safety Report                                                Without the Wood?
                                                                  Ian MacNeill
          Use Three Points of Contact Every Time to Reduce   30 BC's Old Growth Strategic Review:
          the Risk of Injury
          Mark Ordeman                                          What It Means for Contractors
                                                                  Jim Girvan
                                                             35 Suppliers' Supplement
Cover Photo: Courtesy of Bill Nelson
                                                                                        Winter 2021 Truck LoggerBC 3
What's the Forest Industry Worth to BC? - Old Growth Strategic Review: What It Means for Contractors - Interior Logging ...
The Truck Loggers Association                      Interior Logging Association
                                                                                  2020 Executive & Directors                          2021 Board of Directors

                                                                                            PresidentBill Nelson                     Chairman Ron Volansky
                                                                                       Vice PresidentAaron Service        First Vice Chairman Tim Menning
                                                                                      Past President Jacqui Beban              Past Chairman Randy Spence
                                                                                   Executive DirectorBob Brash                        Directors Guido Claudepierre
                                                                                 Industrial DirectorsSig Kemmler                                Dennis Cook
                                                                                                     Bob Marquis                                John Drayton
                                                                                                     Dave McNaught                              Creole Dufour
                                                                                                     Jen Norie                                  Randy Durante
                                                                                                     Mark Ponting                               Frank Etchart
                                                                                                     Aaron Service                              Erin Fitchett
                                                                                                     Barry Simpson                              Sue Hagarty
                                                                                                     Dorian Uzzell                              Reid Hedlund
                                                                                                     Matt Wealick                               Scott Horovatin
                                                                                                                                                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
                                                                                                     Trevor Jobb                   3204 - 39th Avenue
                                                                                                     Sig Kemmler                   Vernon, BC V1T 3C8

        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                               Jennifer Kramer
                                                                                                     Brian Mulvihill
                                                                                                                                   Tel: 250.503.2199 Fax: 250.503.2250
                                                                                                                                   E-mail: info@interiorlogging.org

         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                       Bill Nelson                   Website: www.interiorlogging.org
                                                                                                     Paul Schuetz

            ALM    WOOD
            CONTRACTING
                                                     Newcastle
                                                       Timber Ltd.

                                                                                     WINTER 2021 / VOLUME 43 / NUMBER 4
                                                                                                              Editor Jennifer Kramer
                                                                                                  Contributing Writers Bob Brash              Ian MacNeill
                                                                                                                       Rick Brouwer           Bill Nelson
                                                                                                                       Robin Brunet           Mark Ordeman
                                                                                                                       Todd Chamberlain       Paul Schuetz
                                                                                                                       Chris Duncan           Russ Taylor
                                                                                                                       Jim Girvan             Mindy Wight
                                                                                                                       John Horgan

                                                                                  For editorial information, please contact the Truck Loggers Association:

   TUG & BARGE
                                                                                  Tel: 604.684.4291
                                                                                  Email: contact@tla.ca
                                                                                  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:

                                                                                  Advertising In Print
                                                                                  716 – 938 Howe Street, Vancouver, BC V6Z 1N9
                                                                                  Tel: 604.681.1811 Fax: 604.681.0456

                                                                     ice.
           Goo                            o o d Se rv
                   Company. Good People. G
                                                                                  Publication Mailing Agreement No. 40010419.
               d                                                                  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            Tel: 604.684.4291
                                                                                  Suite 725-815 West Hastings Street       E-mail: contact@tla.ca
                               www.westcoasttug.ca                                Vancouver, BC V6C 1B4                    Website: www.tla.ca

4 Truck LoggerBC Winter 2021
What's the Forest Industry Worth to BC? - Old Growth Strategic Review: What It Means for Contractors - Interior Logging ...
from the Editorial Board DESK...
  W        elcome to the Winter issue of Truck LoggerBC maga-
           zine. On behalf of the TLA’s board of directors, I hope
that you and your loved ones had a safe and joyful holiday season.
                                                                     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 reg-
   In this issue, Business Matters provides information              istration information are listed on pages 26 and 35.
about developing powerful partnerships with First Nations;              Also, without a live and silent auction this year, the TLA
the Safety Report reminds everyone to always use three               is providing members with an online auction in support
points of contact when getting in and out of your truck; and         of the TLA’s Forestry Education Fund; donors and auction
the Market Report provides a US market outlook and takes             items are listed on page 43.
a look at supply dynamics.                                              As you pick up this issue, you’ll once again notice that it
   On the heels of October 2020’s provincial election, Premier       is a few pages less and a few articles shorter than what we’ve
Horgan provided a letter to the TLA, which includes his com-         come to enjoy over the past few years, which remains a result
mitment to moving forward with the policy and regulation             of COVID-19 and the challenging times in the forest indus-
changes resulting from the Contractor Sustainability Review.         try. We understand and respect that our regular advertisers
   Following government’s release of its Old Growth Stra-            need to make difficult decisions these days about where to
tegic Review in September 2020, we provide an analysis of            spend their advertising budgets and would like to express
how it impacts contractors and reinforce the importance of           our appreciation to those who have continued to support
the logging sector’s engagement in future discussions.               Truck LoggerBC magazine and the TLA.
   One of the greatest challenges facing the forest industry            As we continue to experience the effects of the pandemic,
is ensuring the public understands—and appreciates—how               I hope that everyone continues to stay safe and healthy in the
much logging financially infiltrates every one of its commu-         coming year. As always, I trust you will
nities. The cover article, “What’s the Forest Industry Worth         find this issue insightful and informative.
to BC?” provides data to support forestry’s economic con-            If you have any feedback or comments,
tributions to communities and highlights the obvious and             please contact our Director of Commu-
less obvious benefits that BC’s forest industry provides.            nications Jennifer Kramer by email at
   Unique to this issue is the Suppliers’ Supplement. Without a      jennifer@tla.ca.
trade show this year, we wanted to ensure our valued suppliers                                    Sig Kemmler
still had an opportunity to share information with TLA members.                          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
What's the Forest Industry Worth to BC? - Old Growth Strategic Review: What It Means for Contractors - Interior Logging ...
TM

                                    TM

6 Truck LoggerBC Winter 2021
What's the Forest Industry Worth to BC? - Old Growth Strategic Review: What It Means for Contractors - Interior Logging ...
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-elec-
tion and Katrine Conroy on her appoint-
                                               members to help chart a path forward for
                                               businesses and communities.
                                                  Last year, in partnership with Timber-
                                                                                              members-only section on the TLA web-
                                                                                              site. We value our suppliers and want
                                                                                              to ensure they still have an opportunity
ment as BC’s new Minister of Forests,          Tracks, the TLA launched the Forestry          to reach out to our members, so in this
Lands, Natural Resource Operations, and        Equipment Hourly Rate Sheet to pro-            issue we’ve included a separate Suppli-
Rural Development. We look forward to          vide the basic information needed for          ers’ Supplement section and on January
working with government on the many            forestry equipment hourly rates, which         13, we are offering a one-day Suppliers’
challenges facing the forest industry in-      were developed independently by equip-         Spotlight webinar series. Also in Janu-
cluding the high priority of moving for-       ment manufacturers and contractors and         ary, we are hosting an online auction to
ward with the new rate dispute resolution      reflect actual work-on-the-ground situ-        raise funds for the Forestry Education
mechanism coming out of the Contractor         ations. A significant amount of research       Fund to ensure we continue funding
Sustainability Review.                         and work went into this initiative and         scholarships for many deserving for-
   We also look forward to the work            despite it not being perfect for all situa-    estry students.
that will need to be done on the socio-        tions it is a reasonable place to start when      Also a reflection of the times is a
economic review of old-growth logging,         developing a rate model or checking the        change in our annual sponsorship. I
which was an obvious miss in the recent        hourly structure in your businesses. I         would like to extend our appreciation
Old Growth Strategic Review. It is so          highly encourage TLA members to con-           to Finning for the past nine years as our
important to show how this is not just a       sider using these rates. See page 5 for        Premier Sponsor, previous five years as
simple subject of cut or preserve. BC’s ac-    more information about how TLA and             our convention’s Gold Sponsor and pri-
tive working forest is both old and new,       ILA members can obtain a copy.                 or decades of sponsoring TLA events;
and has multiple benefits generating far          For those who are not already aware, I’d    you will be missed. At the same time, I
more than just stumpage to the Province,       like to formally recognize the TLA’s new       would like to thank Inland for joining as
returns to contractors and profitabil-         partnership with Wilson M. Beck (WM            our new Premier Sponsor, building upon
ity to licensees. An active working for-       Beck) Insurance Services. Not much has         their previous support of the TLA.
est creates community stability, wages to      actually changed, as it is the result of ac-      We’ve also experienced a decline in
thousands of employees, and economic           count managers, Ben Fitzpatrick and            magazine advertising, so I’d also like to
returns to multiple supply chains across       Peter Pringle, transitioning from Marsh        extend our appreciation to all of the ad-
the province.                                  to WM Beck who will remain the TLA’s           vertisers listed on page 45 whose support
   Tenure reform is another important          main contacts. Wilson M. Beck is a sec-        has enabled this issue to be in the hands
topic for all stakeholders in the forest       ond-generation western Canadian com-           of our readers.
industry. For almost eight decades, the        pany with the ability to also provide ICBC        Changes to the TLA’s funding struc-
TLA has been calling for some type of          insurance, which TLA members will ap-          ture has caused the board to do some
tenure reform and with so many issues          preciate for a one-stop-shop option. Wel-      deep inward reflection, have hard dis-
around native land claims, old-growth          come, Wilson M. Beck.                          cussions and make difficult decisions
logging and protection, forestry commu-           On the COVID-19 front, the TLA              about the future. All discussions come
nity stability and the need for certainty      continues to deal with the pandemic,           back to how the TLA can continue to
on the land base to enhance investment,        as does the rest of the forest industry        provide maximum value to its members
it would be hard to not conclude that          and the world. We are all thankful that        and are a sign of a healthy association
there will be changes coming in our fu-        forestry is an essential service and are       that is willing to change. We always want
ture. For contractors, this could be both      proud to be a major contributor to BC’s        to honour our history and tradition, but
scary and an opportunity. The TLA will         economic recovery.                             the industry and our members’ needs
be urging government to make measured             Without a convention in 2021 due            change, and so too will the association
decisions that work for all stakehold-         to COVID-19, we have been forced to            to meet those needs. As always, our
ers. A one-size-fits-all approach will not     look at everything differently and make        strength is in our roots.
work across the province and contractors       changes to how we operate. We con-
need to be considered fairly in any deci-      tinue to provide industry information          Bill Nelson, President, TLA
sions that are made.                           and education through our new TLA              Tel: 250-287-0045
   Additionally, the TLA is working with       TALKS webinar initiative; past webi-           Email: bill.nelson@hdlogging.com
mayors and leaders of TLA Community            nars can be found online through the

                                                                                                         Winter 2021 Truck LoggerBC 7
What's the Forest Industry Worth to BC? - Old Growth Strategic Review: What It Means for Contractors - Interior Logging ...
Bob Brash      TLA Executive Director’s MESSAGE

                      So, Exactly What is Our Message?

  W        ell, another BC election is com-
           plete, and we now know (to no-
body’s real surprise) the government we
                                                 Why are those our messages? In short,
                                              we could say it is because we believe in
                                              BC, our communities and the forestry
                                                                                            is some ENGO’s reneging on previously
                                                                                            negotiated land use plans by ever-esca-
                                                                                            lating demands for outright protection of
will be working with over the next four       sector, but there really is an even simpler   areas and consequential withdrawal from
years as we tackle forestry sector issues.    answer. To be successful, any business has    working forests.
   Firstly, our appreciation to Premier       the basic fundamentals to uphold: rev-           Make no mistake; BC’s forest industry
Horgan for his letter to the TLA in this      enues, costs, margins, capital employed,      is and remains a prominent force in the
issue. Our association has always be-         and certainties/risks moving forward;         global market. We should collectively be
lieved in working together with the gov-      and therein lies the challenge for many       proud of our accomplishments and con-
ernments of the day to move our collec-       participants in BC’s forestry sector.         tributions to BC’s overall strength. Un-
tive agendas forward. Luckily, most of           Specific to harvesting contractors, re-    fortunately, in concert with what all the
the time, we share similar goals and wish     cent studies and surveys confirm most         independent forest investment analysts
lists for the changes we believe are nec-     remain challenged by the rates offered by     are saying, the concerns we’ve described
essary to improve the sector. The trick is    licensees (and that is putting it diplomat-   do not instill the needed confidence in
to actually convert our messages into real    ically). If rates are marginal or below the   BC’s forestry sector to attract the neces-
changes that benefit us all.                  effective costs of running an operation,      sary capital and investment to move it
   To help the sector achieve this objec-     that is clearly not sustainable, especially   forward in the manner we would all like
tive, we have a new minister. The TLA         as we need to attract more youth. And         to see.
welcomes Minister Conroy to what we           while I’m not defending the licensees,           Is there a roadmap to success? Sure,
consider (and perhaps a tad biased on our     BC’s overall high-cost structure is out       but the challenge remains in negotiating
part) to be the most important—and es-        of tune with our competitors globally,        through the myriad of different agendas
sential—ministry in BC. Our industry re-      hence pressures by all concerned to save      each group brings to our politicians. At
mains a prominent employment genera-          costs wherever possible. The net results      the end of the day, perhaps we should all
tor, the backbone of many communities         for many in our business are very slim        concentrate on the core issues: set up an
and a huge contributor to government          to non-existent margins, which sets up a      environment whereby all the factors of
revenues. Several articles in this issue      difficult environment to find capital and     costs, revenues, margins and certainty
clearly demonstrate the magnitude and         continually reinvest in our very capital-     are improved. This means even looking
scope of our industry. The new minister’s     intensive industry. Add in the uncer-         at our high stumpage level (sorry to our
mandate letter contains many ambitious        tainties many contractors face with the       government friends). If these core re-
goals; most of which we will do our best to   degree to which their capital is employed     alities are not addressed adequately, all
support. The challenge for all concerned      and the length of their operational sea-      of the other solutions will probably be
will be helping the minister navigate the     son, and the margins become further           moot. And let’s not be distracted by the
wide breadth of varying agendas between       strained. As a side note, the Contractor      current good lumber markets; I’ve “been
licensees, contractors, value-added man-      Sustainability Review process remains a       there, done that” in terms of seeing mar-
ufacturers, environmental groups, com-        critical component towards finding lon-       ket cycles. Our future depends on being
munities, and First Nations.                  ger-term solutions to rate concerns.          well situated for all market conditions.
   So, what is our message? Over the             Layered on top of these difficulties is       If nothing else, BC’s loggers have
years, we’ve been consistent with our         the remaining—and at times escalat-           shown an enormous capacity to adapt
core messages: we’ve had enough of the        ing—uncertainties of the working forest       to change over the decades. Set up the
constant erosion of the working forest;       from two perspectives. Firstly, BC’s regu-    environment for better success and we’ll
we need to dramatically improve BC’s          latory and permitting structures remain       know our message has been heard—and
investment climate; government needs          complex with the consequential impacts        we’ll take care of the rest.
to provide far more certainty on the land     of inconsistent harvesting approvals in
base and regulatory environment; make         many areas of the province. Secondly,         Bob Brash, RPF, MBA, Executive Director, TLA
the contractor community more sus-            environmental groups continue to ad-          Tel: 604-684-4291
tainable; and set up an environment to        vocate strongly for increased protection      Email: bob@tla.ca
reduce our excessive high-cost structure      of forest stands at both the global and
compared to our global competitors.           localized levels. Of even greater concern

8 Truck LoggerBC Winter 2021
What's the Forest Industry Worth to BC? - Old Growth Strategic Review: What It Means for Contractors - Interior Logging ...
Winter 2021 Truck LoggerBC 9
What's the Forest Industry Worth to BC? - Old Growth Strategic Review: What It Means for Contractors - Interior Logging ...
Todd Chamberlain        Southern Interior PERSPECTIVE

                                           Now the Work Begins

  T     he dust has settled on the provin-
        cial election and we now know
we have a majority NDP government. I
                                                  tunity to have their opinion heard and
                                                  respected. Contractors, like other stake-
                                                  holders, can provide workable solutions
                                                                                               to the chairperson role for the past four
                                                                                               years; Randy will now assume the role of
                                                                                               past chairman. I would also like to thank
would like to welcome Katrine Conroy to           based on their expertise and values. Our     Len Gudeit for his years of service to the
her new role as the Minister of Forests,          board of directors is as always up for the   ILA through his tenure on the board of
Lands, Natural Resources Operations,              challenge and will continue to assist gov-   directors, Len has stepped down to allow
and Rural Development; I look forward             ernment in making decisions that have        Erin Fitchett of A.F. Timber Co. Ltd. in
to working with you. I would be remiss            our members’ concerns considered as          Nelson to join our board. Our new chair-
if I did not thank all of those people, re-       part of that process.                        man, executive and board of directors are
gardless of party affiliation, for offering          2021 brings us a new year with new        looking forward to working with the new
up their names and making such a com-             beginnings on all fronts and we at the       forest minister and her staff to tackle the
mitment for the people of British Co-             ILA look forward to working with our         many issues that affect our industry.
lumbia. I would also like to thank Doug           new forest minister to ensure that the          We at the ILA hope that you and your
Donaldson for all of the energy and effort        working forests of British Columbia con-     family had the opportunity to enjoy the
that he put forward to assist our associa-        tinue to provide for the people of British   holiday season together and with your
tions during his tenure as minister. En-          Columbia. We will continue our strong        friends. It is also our wish that everyone
joy your retirement Doug!                         advocacy efforts on the issues that mat-     had some much needed downtime before
                                                                                               the big push to breakup time and that this
I believe it is important that all of these issues are not                                     new year brings safety and prosperity to
                                                                                               you all.
considered singularly when making decisions and that                                              I look forward to being able to travel
all of the stakeholders are given an equal voice prior to                                      across the Interior again to meet with our
                                                                                               members, old and new and to welcome
decisions being made.                                                                          everyone to our annual convention and
   It is the ILA’s hope that over the next four   ter the most to our members and look         trade show once again. COVID-19 has
years, a majority government will bring sta-      forward to the continued co-operation        restricted our ability to travel but it has
bility to our industry. There is much work        with the other associations to ensure        by no means restricted our continued
to be done moving forward; first and fore-        that all of our members are represented.     efforts to ensure that everyone’s voice is
most, will be the completion of the Con-          We will also continue to engage with the     heard in this industry. If you require the
tractor Sustainability Review. It was still       federal government on issues such as re-     ILA staff or Board of Directors to assist
the goal of all those involved to have this       tirement bridging, training dollars for      you with anything, please do not hesi-
finished well before Christmas so that all of     new workers and additional resources         tate to contact us either by phone or e-
our members can go into 2021 with some            for COVID-19 relief.                         mail, we look forward to talking to you.
certainty around their businesses.                   The pandemic has changed the way          Stay safe!!
   The Old Growth Strategic Review,               things are done across the province and
Interior Forest Sector Renewal initia-            across organizations, which caused the       Todd Chamberlain, RFT, General Manager, ILA
tive and Woodland Caribou Recovery                ILA to hold its annual general meet-         Tel: 250-503-2199
Strategy are just a few of the many is-           ing using video conferencing technol-        Email: todd@interiorlogging.org
sues that will require further efforts by         ogy and social distancing rules. It was
all parties involved to ensure that the           held later this year due to the cancella-
working forests of British Columbia are           tion of our annual convention and trade
maintained. I believe it is important that        show in May 2020. At this time, we are
all of these issues are not considered sin-       pleased to announce our new Chairman
gularly when making decisions and that            Ron Volansky of R&A Logging Ltd. in
all of the stakeholders are given an equal        Nakusp and our new First Vice Chair-
voice prior to decisions being made. De-          man Tim Menning of Hytest Timber
cisions on the land base affect us all and        Ltd. in Williams Lake. I would like to
everyone should be afforded the oppor-            thank Randy Spence for his dedication

10 Truck LoggerBC Winter 2021
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         of the forestry niche at the time and the       how to maximize profits. The second most
we know, like and trust. That’s why we         second he found out that I knew about           common question I get is “how do I pay
want you to get to know Chris, MNP’s           forestry, he pulled me into his team and        less tax?”
                                               I started to learn more about our work. It      What is the biggest concern you
National Leader, Forestry and Forest
                                               was a good fit then and has remained so.
Products Services, who’s passionate                                                            have for contractors in your area?
about helping forestry businesses              How would you characterize your                 My biggest concern is their exit planning
succeed. Learn how Chris approaches            professional self?                              and retirement. Many contractors think
his work, and how leading MNP’s                I am approachable. I’m going to show up         they have a succession plan in place,
forestry practice is a story of family         to your job site with work boots and blue       but what are they doing now to attract
work coming full circle.                       jeans, not a suit and tie. If you have an       the talent required to operate and build
                                               issue and you call me, I’ll work to explain     the next generation of contractors? A
Chris, did you always want to                  the solution in plain English. I work hard to   succession plan isn’t typically drafted in
become an accountant?                          ensure clients feel comfortable discussing      one night. Depending on where you are at
Getting into accounting was a progression      their business with me because that will        and how you plan to exit or transition the
from learning what I didn’t want to do. I      lead to the best results.                       business, it can take years to work through
started off in engineering in university and   What is your role with MNP?                     the process. That’s why it’s important to
realized I didn’t want to be an engineer                                                       start the conversation early.
after two years. I learned that accountants    My role is to be the quarterback for my
                                               clients and help them be more successful.       What do you like to do when you’re
deal with dollars and cents all day; it’s
                                               They’re expecting me to help them in the        not at work?
nice and simple compared to calculating
the load on a bolt on a bridge. I was also     day-to-day operation of their business.         I’m an outdoors guy. When you’re behind
a welder part time and knew that wasn’t        From filing their tax return to running their   a desk in an office as much as I am, you
how I wanted to spend my life. My mind is      business more efficiently, my role is to        want to get outside. I like to garden a bit
set up for the financial work.                 create solutions to their challenges. I’m a     and love fishing, hunting, canoeing, hiking,
                                               team member on the client’s team. If they       camping. It’s a blessing to get out and
What’s your forestry background?               have a business question, the first call they   breathe that fresh air.
I grew up in a forestry family. My dad was     make is to me.
                                                                                               Finish this sentence: If I bought a
a forestry contractor on Vancouver Island.     What is the biggest concern you                 new motorcycle, it would be…
There were times that I would take a day
                                               hear from contractors?                          Dual sport Kawasaki KLR 650. I’d hop on it
off in high school, work with him and see
how hard the work is.                          I hear questions on profitability all the       and drive it straight to South America.
                                               time. Am I making any money for all of
When I started articling as an accounting
                                               this effort? Contractors want to know
student, my first supervisor was the leader

                                                                                           Contact Chris Duncan CPA, CA
                            National Leader, Forestry and Forest Products Services | 250.856.2443 | chris.duncan@mnp.ca
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       12 Truck LoggerBC Winter 2021
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:
                                                  Tenure reform
                                                    We continue to inform people that
                                                  northwest BC is an organic example of
                                                                                                   both members and non-members, the
                                                                                                   truck wash helps with equipment main-
                                                                                                   tenance, improved safety and reducing
Jennifer Rice (North Coast), Ellis Ross           tenure reform; most of the tenures here          the spread of invasive plants.
(Skeena) and Nathan Cullen (Stikine), and         have transitioned to community or First
to everyone who ran for office. Congratula-       Nations ownership. We have good exam-            Log exports
tions also to Katrine Conroy, the new Min-        ples of tenure holders working together             We have continued to explain to deci-
ister of Forests, Lands, Natural Resources        and with government agencies.                    sion makers that exports are not bad, as
Operations, and Rural Development. We                                                              they allow for the continuation of domes-
look forward to a good working relation-          Contractor Sustainability Review                 tic operations and sawmills.
ship with all our elected representatives,           Together with the Truck Loggers Association
regardless of their political affiliations, and   and Interior Logging Association, we have        Advocacy and messaging
with the new provincial cabinet ministers.        continued to engage, monitor and advocate           We met with candidates in the provincial
   Since we’re looking to the future, it’s al-    for the implementation of the recommenda-        election, and in every instance we felt that
ways good to know what’s been done in             tions of the Contractor Sustainability Review.   our message was received—that forestry
the past, so let’s review what the North                                                           and logging are good for the region and
West Loggers’ Association has been work-          Old Growth Strategic Review                      provide for community stability. We also
ing on for its members and the communi-             We provided feedback to the Province's         meet with, and act as a resource for, local,
ties of the northwest over the past year.         old-growth panel and strongly reminded           elected representatives. The NWLA has a
                                                  them that old growth is not in short sup-        good relationship with local tenure holders
Cost drivers                                      ply in northwest BC, and that we encour-         as well, and encourage a broad, holistic ap-
   Around this time last year, government         age proper land use and forestry planning        proach to our forest economy; a sustainable
reached a new awareness that contractor sus-      so that we will always have old growth           harvest of the forest profile will result in a
tainability issues and operating costs for con-   and functioning ecosystems.                      sustainable contractor force, as well as pros-
tractors and forest tenure holders were reach-                                                     perous, resilient and stable communities.
ing a breaking point. Therefore, government       First Nations                                       Going forward in 2021, the NWLA
started a cost driver process, engaging with         We have seen increased First Nations          plans to continue to push forward on the
contractors and tenure holders to identify        membership and continue to encourage             issues that have not yet been fully resolved.
significant savings (on the order of $30/m3).     First Nations involvement with contrac-          In addition, we will cooperate with govern-
We provided many ideas for cost reductions        tors and economic development. For ex-           ments, tenure holders and communities on
through improved permitting and consulta-         ample, we were excited to see a fibre sup-       how to deal with the new normal that is
tion processes and timeframes, changes to         ply agreement signed between two local           resulting from the pandemic, and provide
policies, and encouragement and incentives        First Nation tenure holders and Skeena           input on how to stimulate, incent, and en-
for better utilization. The pandemic slowed       Sawmills in Terrace, which improved sta-         courage community and economic stabili-
this initiative down, but the issues have not     bility for several of our members.               ty and resiliency, regardless of how long the
gone away and we are continuing to encour-                                                         pandemic is with us. In particular, we will
age the reinvigoration of this process.           Economic stability through wood-                 be working on having the cost driver pro-
                                                  based renewable energy                           cess reinvigorated and expanded to include
Stumpage                                            We have met with multiple parties to ex-       considerations related to stumpage; the
  Stumpage could be considered part of            plain the benefits that will come from utiliz-   Contractor Sustainability Review recom-
the cost driver process, but deserves its         ing our fibre-quality wood such as reduced       mendations being fully implemented; and
own heading. We have not been advocat-            carbon release from open burning of woody        incenting and encouraging improved and
ing for a change to how stumpage is cal-          waste, creation of 500 jobs, reduced stress      increased use of northwest forest resources
culated; instead, we have been encourag-          on the social safety net, improved land use      through wood-based renewable energy.
ing a modification to the way stumpage            planning and a stable contractor base.              Our message for you in 2021: North West
rates are tracked and collected, allowing                                                          Loggers, like our forests, are strong and
low (negative) stumpage rates to offset           Terrace truck wash                               growing, and we’re ready for opportunities!
higher (positive) rates. This will encour-          We worked with multiple community-
age improved planning, incent better use          minded companies to upgrade the truck            Rick Brouwer, RPF, NWLA
of the resource, and reduce pressure on           wash in Terrace. Thanks to everyone that         Tel: 250-638-0337
the forests that are closer to sawmills.          donated time and materials! Available to         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 commis-
sioned report, “A New Future for Old
                                                those containing giant cedar and hem-
                                                lock trees as found in the Ancient
                                                Forest Recreational site east of Prince
                                                                                                  the existing timber harvesting land base,
                                                                                                  then that area must be replaced so as
                                                                                                  not to undermine a licensee’s ability to
Forests” that provided an in-depth re-          George; to decadent sub-alpine fir                achieve its apportionment.
view of old-growth management in BC.            stands that would have likely burned                 The report goes on to discuss other
Authored by two professional foresters,         by now if it wasn’t for BC’s effective            strategies for protecting old growth.
Al Gorley and Garry Merkel, the report          wildfire suppression. The two sites               They mention mimicking natural dis-
does a good job in defining what old-           differ greatly in ecological significance         turbance types in certain zones, meet-
growth forests are—despite the plethora         and only the cedar/hemlock stand                  ing seral stage distribution targets, and
of definitions being used—and their im-         might warrant preservation.                       applying alternative silviculture systems
portance to environment and industry,              Currently, the system of Old Growth            to help maintain the integrity of ancient
while also focusing on the problems with        Management Areas (OGMAs) in BC was                sites. These strategies require a great
current old-growth management practices.        formulated to “maintain intact old for-           deal more planning, and on-the-ground
The report offered what seemed like reason-     ests,” but Gorley and Merkel are quick to         verification; however, Gorley and Merkel
able, science-based recommendations to          acknowledge that OGMAs “are applied               go on to acknowledge that the Province
help move the discussion toward an agree-       inconsistently and sometimes ineffec-             will need to “ensure that the stump-
able solution to the issue of old-growth sus-   tively.” Rules regarding OGMAs in BC              age system provides appropriate offsets
tainability in BC, without ever mentioning      are also unclear, as many of these areas          to cover extra costs.” At the end of the
the economics of what they were proposing.      contain old trees, while others do not.           day, logging contractors in the Interior
                                                                                                  could support old-growth retention as
The assumption that old trees only grow on sensitive,                                             long as the report is not the catalyst to
ecologically valuable sites is widely misunderstood,                                              widespread erosion of the timber harvest
                                                                                                  land base without appropriate balancing
and a province-wide blanket approach of protecting                                                of economic and social interest and the
old-growth stands based solely on their age is a strat-                                           economic viability of the industry that
                                                                                                  supports their families.
egy that ignores all of the other site characteristics.                                              Upon release of the review, numerous
                                                                                                  media outlets in the BC Interior and the
   Gorley and Merkel’s report identifies        Environmental groups have complained              rest of Canada went on to acknowledge
the issues in assuming that old-growth          that licensees are logging OGMAs, while           that the document was a good first step.
management should only revolve around           in other cases OGMAs are maintained               However, most could not help but include
the preservation of old trees. “Not all old     as “no-harvest” zones even if they have           pictures of harvested trees, clear cuts and
forest is the same, and old does not nec-       been devastated by insect, disease or             damning, unsubstantiated comments in
essarily mean big trees” they explain and       fire. In their report, Merkel and Gorley          order to create an air of controversy for
reference a site’s ecological importance as     observe that the confusion in OGMA                the purpose of making their article more
being one of the most significant factors       management stems from unclear prac-               popular with their readers and to pro-
in old-growth preservation. The assump-         tices and strategies because “no review of        mote preservation of virtually all forests
tion that old trees only grow on sensitive,     the OGMA system has taken place since             over 140 years old. Merkel and Gorley
ecologically valuable sites is widely mis-      it was implemented more than 20 years             state that, “the confidence and trust of
understood, and a province-wide blanket         ago.” In other words, does an OGMA                the general public is the biggest determi-
approach of protecting old-growth stands        lose its site characteristics and value if fire   nant in how much freedom government
based solely on their age is a strategy that    or disease kills off the trees? Should the        and industry have to manage our forests,”
ignores all of the other site characteris-      OGMA boundaries be static or dynamic,             and when media prints biased articles
tics. Old-growth protection should be           only containing sites with old trees, or          containing anti-forestry sentiments con-
based on the ecotype, flora and fauna it        sites that could contain old trees? Gor-          taining little to no scientific backing or
sustains, the cultural importance of the        ley and Merkel raise similar questions in         economic analysis, then they become a
sites, and a multitude of other values that     their report and acknowledge that clear           bigger part of the problem.
are described in detail in the report; and      operating procedures should be defined.
it should be site specific.                     They also recognize the need to identify          Paul Schuetz, consultant to TLA
   In the BC Interior, stands with 140+         and maintain the “working forest” so that         Tel: 250-564-4115
year-old trees may differ greatly from          if an OGMA is relocated to an area within         Email: pschuetz@industrialforestry.ca
14 Truck LoggerBC Winter 2021
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 govern-
           ments and its businesses can result
in a powerful partnership with positive re-
                                                 to work with. Be prepared for a different
                                                 form of business than you may be used to.
                                                                                                     ally run as for-profit entities and have a social
                                                                                                     purpose component such as employing mem-
                                                                                                     bers of the First Nation community, so un-
sults for all involved. However, the partners’   First Nation perspective                            derstanding that their key objectives are met
goals and objectives are often very different       First Nation communities are significant         within the business arrangements will build
from one another. As such, it’s important        holders of land and resources. They have            a better foundation for future shared success.
that all partners keep this in mind when         rights to their lands and are important par-
they structure their arrangement and con-        ties to consult with on projects that take place    Who to talk to?
duct their mutual business arrangement.          within their traditional territory. In fact, the    Business perspective
                                                 rights of Indigenous peoples are recognized           For a First Nation approaching a business
How to work together?                            and affirmed by section 35 of the Constitu-         regarding a business deal, they will want
Business perspective                             tion Act. Additionally, BC is the first province    to meet with key management and/or the
   For business owners, the focus should be      to put the United Nations’ Declaration on the       business owner. Effective two-way commu-
on building strong relationships with First      Rights of Indigenous Peoples into legislation,      nication and mutual respect are key.
Nations. The stronger the relationship, the      meaning free, prior and informed consent is
stronger the business arrangement will be.       required. Working together with First Nations       First Nation perspective
Businesses will want to open lines of com-       communities builds stronger, more successful           Building a mutually beneficial business
munication early on in a project to ensure       business ventures and creates more opportu-         relationship with the First Nation organiza-
success and that they understand the culture     nities for all when meaningful consultation         tion and leadership is important to ensuring
and goals of the Nation they are proposing       has taken place. Their businesses are gener-        the success of the partnership. First Nation

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        D
   BULL                                                                                             With over 30 years of forestry law
                                                                                                    experience, Brian Mulholland and
                                                                                                    our team at EKB can take care of
                                                                                                    all your legal needs.
     LOGGING ROADS
     SAND & GRAVEL                                                                                  / Timber Harvesting Contracts &
                                                                                                    Subcontracts
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     LAND CLEARING                                                                                  / Disputes - Mediation,
     MARINE CONSTRUCTION                                                                            Arbitration, Litigation
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   P.O. Box 64
   Campbell River, BC V9W 4Z9
   Fax: 250-287-8262 • Email: awoodbul@telus.net

16 Truck LoggerBC Winter 2021
communities often have different organiza-         Nation community. For many, these past          use a corporation alone, as the corpo-
tional structures from each other; therefore,      arrangements have created economic ben-         ration is often taxable. Therefore, care-
if you’ve worked with one organization in          efits and increased opportunities that are      ful planning by both parties up front is
the past, be mindful that the next First Na-       only available with such partnerships while     recommended to identify the preferred
tion community may follow different gover-         increasing awareness of local culture. Build-   structure for the business, as making
nance practices and processes in managing          ing on past relationships lays a strong foun-   changes later can be costly.
and conducting its business. It will depend        dation of trust for future ventures as well.
on the First Nation community’s internal                                                           Values and objectives of partnering
processes and its governance and corporate         First Nation perspective                        together:
structure whether you speak directly to the           First Nation governments created un-         Business perspective
chief and council or approach the manager          der the Indian Act have a unique tax sta-         For businesses looking to partner with
of the lands department or the CEO and             tus and tax exemptions available under          First Nations, a whole new set of doors
board of directors of its economic develop-        both the Income Tax Act and Indian Act.         are opened that provide access to ventures
ment group.                                        Their economic development groups               that may never have been possible with-
                                                   and businesses are often structured as          out their involvement. This means an in-
The how and why of partnership                     limited partnerships to benefit from tax        crease in return on your investment, and
structuring:                                       exemption, as well as for liability protec-     opportunities to grow your business and
Business perspective                               tion. Joint ventures are also often used        create new jobs. It also allows businesses
  Businesses may enter agreements to en-           for shorter-term projects. Many First           (Continued to page 21)
joy a better relationship with a local First       Nation communities will prefer not to

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                                                                                                             Winter 2021 Truck LoggerBC 17
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 inju-
                                                  It’s also important to avoid facing out-
                                                wards when exiting the cab, or while only
                                                loosely gripping one handhold. I recall a
                                                                                             from the lower step creates an impact
                                                                                             force of only one to one and a half times
                                                                                             the driver’s body weight; greatly reducing
ries are caused through routine, seeming-       worker who was only holding on using         the risk of injury.
ly harmless actions. Getting in and out of      one hand when getting out of his truck,        Getting out of your truck when carry-
your truck correctly and with awareness         when he started to slip he grabbed a han-    ing items such as paperwork or a coffee
of your surroundings is a perfect example       dle to stop the fall and thought he was      cup can also result in injuries. Workers
of something workers don’t always think         okay, but after a couple days, the pain in   should always leave all items on the floor
about—and should.                               his shoulder was unbearable; eventually      of the truck or trailer and only pick them
   Jumping from the cab floor or the top        he ended up in surgery.                      up when they’re safely on the ground.
step of parked trucks and flat decks is
a common cause of injuries—as jump-             It’s critical to maintain three-point con-   The entire workplace is affected when
ing from heights can create an impact           tact until you are firmly on the ground:     someone is injured:
force of five to seven times a driver’s            Mitigating the risk is simple. Employ-      Healing from a fall is time consum-
body weight. That means if a driver             ers must instruct new drivers—and re-        ing and costly for both employers and
weighs 91 kg (200 lbs) the impact force         mind experienced drivers—to use three        workers. Aside from the obvious lost
of jumping from the floor of the cab            points of contact every time. This means     wages, the longer someone is off work
is 680 kg (1500 lbs). Jumping from              keeping two hands and one foot—or two        the more disengaged they become. Be-
heights can seriously impact joints and         feet and one hand—on the equipment at        ing off work for a long period of time
increases the risk of a lower back or           all times. Using the correct three points    slows physical healing and also has
lower limb injury.                              of contact, and carefully stepping down      negative consequences for the worker’s

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18 Truck LoggerBC Winter 2021
mental health. For employers, the costs                                                                                     checked the ground, but workers must

                                                                                             Photo courtesy of WorkSafeBC
associated with workplace injuries show                                                                                     make the extra effort as barriers to safety are
up as increased premiums, time spent                                                                                        often psychological. Drivers are in a hurry,
replacing and re-training staff, and                                                                                        they’ve always done it that way, or they don’t
overall lower morale.                                                                                                       want to appear to be overly cautious. They
   In 2019, WorkSafeBC had 21 time-loss                                                                                     think, “I’ve been getting out of my truck for
claims for forestry truck drivers where                                                                                     years this way, nothing has ever happened.”
injuries occurred when entering or exit-                                                                                    Well, let me tell you, I’ve seen it enough times
ing their vehicles. Almost 62 per cent of                                                                                   to know your luck is going to run out.
these injuries happened when falling or
jumping from the vehicle. The major-                                                                                        Mark Ordeman, Consultation and Education
ity (57 per cent) resulted in sprains and                                                                                   Services Manager
strains, while fractures and concussions                                                                                    WorkSafeBC
accounted for another 24 per cent and 10                                                                                    worksafebc.com/transportation
per cent respectively.
   More than half of the injuries occurred                                                                                       • Always use two hands and
during the winter due to cold, wet, and                                                                                            one foot—or two feet and one
snow covered surfaces, increasing the                                                                                              hand—when getting in and out
risk. The effectiveness of your shoes and                                                                                          of your truck.
work boots also changes in winter; in                                                                                            • Don’t carry anything like coffee
summer heat, rubber soles are great, but                                                                                           cups or papers.
in winter rubber hardens, increasing the                                                                                         • Employers: You’re responsible
chances of falling.                                                                                                                for reminding both new and ex-
                                                                                                                                   perienced drivers to use three
Safety is always worth it:                                                                                                         points of contact every time
  It takes some time and effort to employ                                                                                          they enter or exit their vehicle.
three points of contact and ensure you’ve

                                                                   C I B C WO O D G U N DY

   S P EC I A L I Z I N G I N
   CO N S E RVAT I V E I N V E S T M E N T S                                                                                         Season’s Greetings

              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:
                                              a 13-year high in 2020 of 1.35 million
                                              units. Demand for single-family hous-
                                              ing continues to be fuelled by 40-year
                                                                                                 ditions to sawmills (a total of about 5 bil-
                                                                                                 lion bf), including 15 green- or brown-
                                                                                                 field sawmills that have been built or are
 Russia and Canada. Collectively, they        low mortgage rates and a desire for more           planned for construction. However, this
 account for 80 per cent of total global      indoor and outdoor living space. Conse-            may not be enough new supply; my on-
 timber and lumber consumption and            quently, with a severe under building of           going analysis suggests that there will
 production. And, they dominate imports       new homes over the last 10+ years, this            probably not be enough domestic timber
 and exports too.                             pent-up demand is finally kicking in: a            supply and sawmilling capacity in North
    Global log exports continue to be         continued growth in new US housing                 America to meet increasing demand, and
 driven by China, where softwood log          starts is forecast to at least 2023.               high prices (like we have seen in 2018 and
 imports in 2020 should be about 7 mil-          In repair and remodelling (R&R), Home           2020) will be required to attract enough
 lion m3 higher than 2017’s 38 million m3.    Depot improved its business by a whopping          incremental supplies.
 In contrast, BC’s log exports to China       $15 billion in the first three quarters of 2020.      The trend toward increased softwood
 should see a total reduction of up to 2      Its same store sales were up 25 per cent in        lumber imports from Europe is expected
 million m3 in 2020 from 2017’s 3.2 mil-      2020 Q2 and Q3 over one year earlier. And          to continue, especially with the massive
 lion m3 as competitively priced spruce       Lowe’s increased its same store sales by over      salvage program of the spruce bark beetle-
 log imports from Central Europe flood        30 per cent as compared to its four-year           killed timber expected to last for much of
 the market.                                  quarterly sales average of 5 per cent growth.      this decade. Europe’s share of US lumber
    Global lumber demand has been             Do-it-yourself customers took steps to ad-         imports will be around 9 per cent in 2020,
 slowing since a strong gain of 4 per cent    just their homes to serve three primary pur-       with other countries adding another 4 per
 was achieved back in 2017. Since then,       poses: a home school, a home office, and           cent. And one thing is certain: Canada will
 the consumption growth trend has             their primary location for recreation and          not be the solution for increasing lumber
 been slowing in consecutive years to 1       entertainment. This mindset bodes well for         supplies to the US—it will have to come
 per cent in 2018, no growth in 2019,         continued R&R sales in 2021.                       from domestic US supply and imports!
 and an estimated -1 per cent for 2020.
 The good news is that there has been a       North America supply-side dynamics                 Outlook
 strong demand rebound in the second             Canadian lumber production contin-                 While global softwood lumber demand
 half of 2020 following the second quar-      ues to decline, mainly from BC’s reduced           will decline slightly in 2020 as compared
 ter global collapse due to shutdowns         output as 40 spruce-pine-fir (SPF) saw-            to 2019, it has been very strong since
 from COVID-19, and the outlook for           mills have closed since 2005 due to the            the start of the pandemic in 2020-Q2
 2021 is very promising.                      mountain pine beetle. While Canada’s all-          and this trend should continue through-
                                              time production high was 35 billion bf in          out much of the next year, resulting in
 USA demand-side dynamics                     2004, its most recent high was almost 28           a net increase in global consumption of
   After sluggish or no growth in US          billion bf in 2017 and output in 2020 is           perhaps 4-5 per cent in 2021. However,
 wood products consumption since 2017,        expected to be close to 2019’s 24 billion bf.      Canada will remain supply constrained
 this year’s pandemic resulted in a surge        On the other hand, US output has been           and other exporters (especially Central
 in new residential construction and espe-    steadily increasing since 2009’s 24 billion        Europe) should see opportunities to re-
 cially in repair and remodelling.            bf, mainly from gains in the US South. As          place this volume in the US and in some
   The long-term or normal level of new       compared to its peak in 2005 of over 40            export markets. The US market looks
 residential housing starts in the US is      billion bf, production is expected to in-          to be a bright spot for 2021 and beyond
 about 1.6 million starts. However, starts    crease in 2020 for the eleventh consecu-           as pent-up demand for new homes and
 have been below 1.6 million since 2007       tive year to 36 billion bf.                        R&R continues. Nevertheless, there are
 and the last 20 years have averaged only        Since 2018, in the US South, there have         still uncertain times ahead with many
 1.25 million and are expected to be at       been at least 35 announced capacity ad-            uncontrollable factors and wild cards at
 This Market Report is brought to you by:

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LOGGING LTD.                                LOGGING LTD.
                                                                          Campbell River
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 20 Truck LoggerBC Winter 2021
facebook.com/wahkash       instagram.com/wahkash         wahkashcontracting.com
play that could disrupt an otherwise bull-
ish 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 commu-

                                                 PROUD ISLAND LOGGERS
nities and help those communities estab-
lish new resources and employment for
their members.

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 In-
digenous-owned organization, the busi-
ness may qualify for grants, funding and
loans, as well as procurement opportuni-
ties from government and other organi-
zations. 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 prov-
ing 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
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