Understanding the Spruce Beetle Outbreak ]
Contractor Sustainability: A Third Party Perspective on a National Issue
In it for the Long Run: The TLAâ€™s 74th Convention & Trade Show
PM # 40010419
Broadening Our Understanding: First Nations Cultural Values
Winter 2017 Truck LoggerBC 1
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WINTER 2017 Volume 39 Number 4 www.tla.ca
Columns & Departments
48 Contractor Sustainability: A Third Party Perspective on a National Issue
Listening and Learning:The Keys to Advocacy and Membership Jacqui Beban
Executive Director’s Message Changing the Big Picture for Contractors David Elstone
10 Interior Logging Association’s Message
Education and Advocacy: Getting Things Done in BC’s Interior Wayne Lintott
13 North West Loggers Association’s Message The Northern Perspective: Contractor Sustainability and Market Diversification Ken Houlden
15 Market Report
How Can BC Be A More Attractive Investment? Reid Carter
16 Safety Report
Steep Slope and Safety: What is Happening Around the World? Dzhamal Amishev
18 Business Matters
Cracking the Rate Model Part Three: Labour Costs and Profit Chris Duncan
38 Contractor Perspective
Making the Case for the Win-Win: Investing in Healthy Businesses Jonathan Lok
40 Contractor Perspective
Different Contracts, Different Experiences: Leveling the Playing Field through Changing Contracts Tom Olsen
Cover photo: Hans Peter Meyer
Features 20 Join Us For The TLA Convention & Trade Show 23 BC Forestry: In it for the Long Run Premier Christy Clark
24 74th Annual Convention: In It For The Long Run Minister Steve Thomson
36 Forestry Event Calendar 2017 42 Broadening our Understanding: First Nations Cultural Values Ian MacNeill
45 TLA Membership is Growing Community by Community Sandra Bishop
53 Round Two: Bugs 1, Forest 0 Robin Brunet
59 Calling All Forestry Workers: Be an Ambassador for Forestry in Your Community Pieta Woolley
64 Urban vs Rural: Addressing the Emergency Transportation Gap Ian MacNeill
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The Truck Loggers Association 2016 Executive & Directors
Interior Logging Association 2015-2016 Board of Directors
Chairman Jacqui Beban Mike Richardson First Vice Chairman Second Vice Chairman Don Banasky Past Chairman David Elstone Directors Ted Beutler Howie McKamey Dave McNaught Clint Parcher Mark Ponting Barry Simpson Doug Sladey Matt Wealick Adam Wunderlich Associate Directors George Lambert Tim Lloyd Brian Mulvihill Carl Sweet Adam Pruss General Manager Editorial Board Don Banasky Administration Jacqui Beban
President Vice President Past President Executive Director Industrial Directors
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T: 604-740-0603 F: 604-689-0977 E: firstname.lastname@example.org
T: 250-287-0143 E: email@example.com
James Byrne Graham Lasure Wayne Lintott Brian Mulvihill Bill Sauer
Reid Hedlund Randy Spence Len Gudeit Ed Smith Lee Callow Guido Claudepierre Dennis Cook John Drayton Randy Durante Matt Edmondson Frank Etchart Shane Garner Scott Horovatin Jeff Kineshanko Hedley Larsen Bill McDonald Tim Menning Ron Volansky Wayne Lintott Nancy Hesketh
Interior Logging Association 3204 - 39th Avenue Vernon, BC V1T 3C8 Tel: 250.503.2199 Fax: 250.503.2250 E-mail: firstname.lastname@example.org Website: www.interiorlogging.org
WINTER 2017 / VOLUME 39 / NUMBER 4 Editor Brenda Martin Contributing Writers Dzhamal Amishev
Jacqui Beban Sandra Bishop Robin Brunet Reid Carter Christy Clark Chris Duncan David Elstone
Jim Girvan Ken Houlden Wayne Lintott Jonathan Lok Ian MacNeill Tom Olsen Steve Thomson Pieta Woolley
For editorial information, please contact the Truck Loggers Association: Tel: 604.684.4291 Email: email@example.com For advertising, please contact Advertising In Print: Tel: 604.681.1811 Email: firstname.lastname@example.org
Sustainable growth through healthy forests and healthy British Columbians. Truck Loggers Association members know that a healthy forest means jobs and economic growth. Pacific Blue Cross is a proud partner of the TLA in supporting workforce health and productivity.
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 BCâ€™s forest industry. All rights reserved.
Advertising Sales & Design Layout office:
Advertising In Print 200 - 896 Cambie Street, Vancouver, BC V6B 2P6 Tel: 604.681.1811. Fax: 604.681.0456 Publication Mailing Agreement No. 40010419. For subscriptions, contact email@example.com or 604.684.4291. Send change of address notices and covers of undeliverable copies to:
4 Truck LoggerBC Winter 2017
The Truck Loggers Association Suite 725-815 West Hastings Street Vancouver, BC V6C 1B4 E-mail: firstname.lastname@example.org
Tel: 604.684.4291 Fax: 604.684.7134 Website: www.tla.ca
from the Editorial Board DESK...
elcome to the Winter 2017 issue of Truck LoggerBC! The TLA’s 74th Annual Convention & Trade Show is coming up quickly. We hope to see you all at the Westin Bayshore in Vancouver January 18 to 20, 2017. The agenda and speakers for this three-day event look exciting and informative. The Gold Passports sold out quickly again this year. However, there are still tickets available; please go to our website to register: www.tla.ca/convention. This issue of Truck LoggerBC addresses a variety of issues. The third part of our four-part series on “Understanding the Rate Model” focuses on the labour and profit portions of the model. We hope this series of articles is helping our membership with their business structure and rate negotiations. Two different contractors offer their perspectives on different issues. Jonathan Lok talks about the importance of contractors investing in themselves and Tom Olsen looks to the construction industry for a way to manage scope of work changes during a logging job. On the topic of safety, we have an article on steep slopes and the innovative work being done around the world. We also have a great piece on attracting investment in BC’s forest industry. Why is BC not an attractive place to do business for the forest industry and what can we do to change that? Turning toward our feature articles, we look at is-
sues around the province. We breakdown the 2016 Canadian Forest Industries Contractor Survey and look at what it means for BC’s contractors. We also take a hard look at the spruce beetle outbreak near Mackenzie and how it will impact forestry in the area. And we talk about the importance of being an ambassador for forestry in our communities. We’re the ones on-the-ground; we need to make sure we’re connecting with communities near where we operate. Finally, taking a different angle of the same topic, five leaders of coastal communities who recently joined the TLA explain why they became members. So, as you can see, we have an exciting and interesting lineup of issues to debate and articles to raise awareness in Truck LoggerBC. As always, we hope you enjoy our magazine and find it informative. I also wish you all a happy and successful 2017! If you have any feedback or comments, please contact Brenda Martin, Director of Communications, at 604.684.4291 ext. 2 or brenda@ tla.ca. Ts’ayweyi:lesteleq (Matt Wealick, MA, RPF) Probyn Log Ltd., Editorial Board Chair
Winter 2017 Truck LoggerBC 5
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TLA President’s MESSAGE
Listening and Learning: The Keys to Advocacy and Membership
s I said in my first President’s Report, I believe communicating, building trust and aligning our goals will be key for the success of the TLA. And I saw these three things in action last fall when we conducted our semi-annual TLA membership survey. These surveys let us communicate with members and find out what they’re thinking. They help us build trust because our members see us asking their opinion and then responding to their needs. And they help the TLA staff and Board ensure our strategic goals are aligned with the needs of our members. Two key questions we asked were why members joined the TLA and if they thought their membership provided a good return on investment. Contractors’ top reason for becoming a TLA member was “advocacy for contractors” and suppliers’ top reason was “support industry.” As advocacy is the reason the TLA exists, it’s good to hear that it’s the top focus of our members as well. Looking to the second question, I am proud to report that 97 per cent of surveyed members believe their TLA membership provides a positive ROI! That level of membership satisfaction means we’re providing value to our members and representing them well. We also asked members to tell us what important issues the TLA should champion on their behalf. Unsurprisingly, contractor sustainability continues to be the number one concern for contractors. Making sure they are earning enough money to pay their employees, pay their bills, invest in their business and—at the end of the day—have a return on the large investment they make to be a logging contractor is critical. The TLA has been working diligently on this front to advocate for our members and I’m proud to report we are making headway. With this in mind, I’m pleased to acknowledge the provincial government’s commitment to move forward with a contractor competitiveness review.
Minister Thomson talks about the review in this issue (page 24) and I look forward to hearing more about this work during the Minister of Forests, Lands and Natural Resource Operations Breakfast at our convention. This review comes at a critical time. Our industry is faced with many challenges including external ones such as the softwood lumber dispute. Without a solid foundation of viable logging contractors, our industry’s efforts in addressing issues such as competitiveness against other timber producing regions would be difficult. I am hopeful our industry is on the cusp of change for our contracting community, bringing about fairness in the use of our provincial forest resource.
it surprises me how many people will chime in when I say I work in forestry. They’ll say, “Oh my husband is a truck driver” or “My sister is an engineer.” When we speak with pride about what we do, we encourage others to do the same. We all need to be advocates for a prosperous industry—our employees and their families, our communities and our entire province depend on this! There’s a great article in this issue on this very topic. I encourage you to read, “Calling All Forestry Workers: Be an Ambassador for Forestry in Your Community” on page 59. This is the time of year when the TLA is the busiest—gearing up for our annual convention. It’s the biggest annual forestry convention in BC and a
97% of surveyed members believe their TLA membership provides a positive ROI. Returning to the survey results, there were some additional key areas our members want the TLA to keep working on. These include First Nations engagement, protecting the working forest, access to logs, worker training and the pressure licensees apply to contractors around safety programs. This feedback will help us in our planning over the next two years and ensure we’re supporting our members in ways that help them be successful. Our industry is constantly evolving and we need to be strategic in our thinking so that we truly are “In it for the Long Run!” In recent years, it has surprised me how much prouder I am of our industry. I’m getting better at telling forestry’s good news story. We’re a green industry and a sustainable one. We create jobs in our rural coastal communities so people can live where they work. Eight years ago, if somebody asked me what I did, I would try to avoid telling them I worked in the forest industry and I know I was not alone in this. Today, I am extremely proud to be a logger and
great opportunity to find out what is happening in our industry and to connect with other industry stakeholders. This year’s theme is “In it for the Long Run.” We’ll examine the current state of the industry and what needs to change in order to strengthen and ensure sustainability for contractors and their suppliers. We anticipate another engaging convention with dynamic speakers. As always Suppliers’ Night is shaping up to be an exciting event with both a live auction and silent auction. All proceeds from these auctions go directly to the TLA Forestry Education Fund. It is a great way to support the ongoing education and awareness of our industry. We hope to see you all there, January 18-20, 2017 at The Westin Bayshore in Vancouver. Jacqui Beban, President, TLA Tel: 250.951.1410 Email: email@example.com
Winter 2017 Truck LoggerBC 7
TLA Executive Director’s MESSAGE
CHANGING THE BIG PICTURE FOR CONTRACTORS
Two surveys recently confirmed the TLA’s main advocacy message. The 2016 Canadian Forest Industries Contractor Survey which provided a national perspective on contractor sustainability and the TLA’s own membership survey.
he value of the 2016 Canadian Forest Industries Contractor Survey (details on page 48 of this issue) was its third-party confirmation of the challenges faced by BC’s contractors. As for the TLA membership survey, every two years we ask our members what their top issues are and what they want the TLA to focus on. The survey results shows the TLA is doing what its members want, fighting for contractor sustainability. With this in mind, as I look back over the past year, the number of contractors who closed down or significantly reduced the size of their operations—both on the coast and in the Interior—weighs heavily on me. The reduction in the contractor base continues to surpass additions. With well over 90 per cent of harvesting conducted by contractors in BC, our rural communities are asking why contractor attrition continues. I have spoken with many contractors over the last couple of years and can answer the question with some authority. Many contractors’ relationships with their major tenure holder customers have failed due to steady erosion of three key components: knowledge, fairness and trust. As I address each component, it is important to note that I hold the mirror up to contractors as well.
To make proper business decisions today, contractors need productivity and financial performance data for their businesses. Then, during rate negotiations, they can demonstrate their costs rather than just saying, “I need more.” Likewise, contract managers should not claim (or deny) what the work costs based solely on comparisons to the industry rate. Frankly, just because the industry rate is $X per cubic metres in one place, doesn’t mean that rate applies to where you are logging.
Fairness really comes into play around contract compensation for agreed upon
8 Truck LoggerBC Winter 2017
work. If parameters change, then compensation should change. For example, it’s unfair to be asked to bring all the logs to roadside and then only be compensated for the non-pulp grades. In the last issue of Truck LoggerBC, we presented the concept of market logging as one way to address fairness. In this issue, we offer construction industry contracts as a way to address changing goal posts. There are practical and readily available solutions to address fairness.
Is trust synonymous with respect? In this instance, yes. Having the data to demonstrate costs is critical to eliminating emotional arguments. However, if there is no trust between you and your counterparty, it will be difficult to engage, even with data. Trust comes with both sides demonstrating they will deliver. Contractors need to provide more than the logs; they need to be on spec and on time and the work needs to follow regulations for protecting the environment as well as the workers. And likewise, contractors need their risks and costs of training, investing, protecting and delivering to be rewarded accordingly.
Contractor Sustainability Advocacy Achievement
All this makes me even more excited to report that the TLA’s advocacy quest around contractor sustainability has met with success. As you can read in Minister Thomson’s report on page 24 of this issue, he has added action to his commitment to address the contractor sustainability concerns collectively conveyed by the logging associations in the province. As part of Premier Clark’s Competitiveness Agenda, the Minister will be taking a structured approach to help our industry examine the relationships between contractors and their major employers and, in doing so, arrive at solutions. I applaud Premier Clark and Minister Thomson on moving forward to address contractor sustainability. The TLA will be very active
in supporting this initiative that’s so vital to the future of contractors and to BC’s forest industry as a whole.
Other TLA Advocacy Efforts
While we’ve been beating the contractor sustainability drum loudly to help level the playing field for contractors, the TLA is carrying the voice of contractors on a number of fronts. As we start a new year, I want to take a moment to outline just some of the issues we plan to tackle: • Protection of the working forest on Vancouver Island and throughout the province • Raising awareness that log exports benefit our communities by creating jobs • Asking for PST exemptions on heavy equipment as was recommended in the recent Commission on Tax Competitiveness • Addressing our looming labour recruitment and training problem (a tax credit may work here) • Growing the Forestry Service Provider Compensation Fund to $25 million • Enhancing the level of emergency response in remote areas of the province • Addressing why we are not exempt from the carbon tax given that we are the greenest industry While these advocacy issues affect contractors on the coast, they also affect contractors across this province. So indeed the TLA has lots of work ahead. I hope we will see you at the 74th TLA Convention & Trade Show later this month to hear your thoughts on the above and the issues that concern you. And finally, contact me if you have any questions regarding the Minister’s contractor review. David Elstone, RPF, Executive Director, TLA Tel: 604.684.4291 ext. 1 Email: firstname.lastname@example.org
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Interior Logging Association’s MESSAGE
Education and Advocacy: Getting Things Done in BC’s Interior
’m proud to report that the ILA has good news to share around our work to build the forestry workforce in BC’s Interior. First, the ILA’s Board of Directors would like to congratulate the following winners of our 2015-2016 scholarship awards: • Daniel Lussier, Williams Lake $1,000 Trades Scholarship, Sponsor: Hytest Timber Ltd. • Jennifer Meints, Houston $1,000 Membership Scholarship, Sponsor: Andy Meints Contracting • Jared Sexsmith, Lumby $2,000 Forestry Scholarship, Sponsor: Kineshanko Logging Ltd. • Madisen Brown, Vernon $1,000 Associate Scholarship, Sponsor: ILA These four students worked hard and are committed to the forest industry. They’re the next generation and we’re proud of our small part in their success. Scholarship applications for 2016-2017 close July 31, 2017. For more information on our scholarship applications visit our website www.interiorlogging.org. I would also like to highlight the recent funding the ILA received to train four log truck drivers and 16 heavy equipment forestry operators. This funding has been provided by the Government of Canada and Province of British Columbia through the Canada-British Columbia Job Fund. All 20 opportunities have been filled with qualified students and we have a waiting list of future students wishing to register when future courses are available. To date the majority of our graduating students have been able to find employment in the forest harvesting industry. The ILA thanks both governments for their support of our programs and we will continue to apply for future funding as it becomes available.
10 Truck LoggerBC Winter 2017
The ILA board members are pleased to acknowledge an important advocacy milestone. The provincial government’s commitment to move forward with a contractor competitiveness review. As I mentioned earlier and as the Premier states in her message (page 23), the provincial government has supported the ILA’s training program again. However,
Electoral Districts covered by the Interior Logging Association: Boundary-Similkameen; CaribooChicotin; Cariboo North; Columbia River-Revelstoke; Fraser-Nicola; Kamloops-North Thompson; KamloopsSouth Thompson; Kelowna-Lake Country; Kelowna-Mission; Kootenay East; Kootenay West; Nechako Lakes; Nelson-
The ILA received funding to train four log truck drivers and 16 heavy equipment forestry operators. training programs benefit no one if there isn’t a prosperous industry for those trainees to work in once they’ve completed their programs. Contractor sustainability is the key to the success of the industry as a whole. The ILA commends Minister Thomson for taking this action and we look forward to hearing more about this work at the 74th TLA Convention & Trade Show later this month in Vancouver. Looking toward another important lobbying effort, the ILA continues to hold meetings with Steve Haywood, Director of the Commercial Vehicle Safety and Enforcement (CVSE) Branch about further exemptions of ABS brakes on logging trucks. A final report by FPInnovations has been completed and submitted to CVSE. Also under discussion with CVSE are logging truck configurations and front axle weights. Are you a member of the Interior Logging Association? Benefits offered by the ILA are important to your company and employees. If you reside or work in the British Columbia Electoral Districts listed here please give us a call at 250.503.2199 or review our website: www.interiorlogging.org. Contact Wayne Lintott if you have any questions, concerns or wish further information.
Creston; Peace River North; Peace River South; Penticton; Prince George-Mackenzie; Prince George-Valemount; Shuswap; Westside-Kelowna. Finally, we are starting to organize for our 2017 Annual Conference and Trade Show in Vernon, BC. The dates are May 4-6, 2017. This is our 59th year and our theme is “Women Working in the Forest Harvesting Industry.” Please mark your calendar and plan on attending this year’s event. In closing, I wish everyone a successful and prosperous 2017, and I hope to see you at the TLA’s conference and trade show later this month and at the ILA’s 59th Annual Conference and Trade Show in Vernon in May.
Winter 2017 Truck LoggerBC 11
'ƌĂďǇŽƵƌƌĞĂĚĞƌ͛ƐĂƚƚĞŶƚŝŽŶǁŝƚŚĂŐƌĞĂƚƋƵŽƚĞĨƌŽŵƚŚĞĚŽĐƵŵĞŶƚŽƌƵƐĞƚŚŝƐƐƉĂĐĞƚŽĞŵƉŚĂƐŝǌĞĂ 'ƌĂďǇŽƵƌƌĞĂĚĞƌ͛ƐĂƚƚĞŶƚŝŽŶǁŝƚŚĂŐƌĞĂƚƋƵŽƚĞĨƌŽŵƚŚĞĚŽĐƵŵĞŶƚŽƌƵƐĞƚŚŝƐƐƉĂĐĞƚŽĞŵƉŚĂƐŝǌĞĂ ŬĞǇƉŽŝŶƚ͘dŽƉůĂĐĞƚŚŝƐƚĞǆƚďŽǆĂŶǇǁŚĞƌĞŽŶƚŚĞƉĂŐĞ͕ũƵƐƚĚƌĂŐŝƚ͘ 'ƌĂďǇŽƵƌƌĞĂĚĞƌ͛ƐĂƚƚĞŶƚŝŽŶǁŝƚŚĂŐƌĞĂƚƋƵŽƚĞĨƌŽŵƚŚĞĚŽĐƵŵĞŶƚŽƌƵƐĞƚŚŝƐƐƉĂĐĞƚŽĞŵƉŚĂƐŝǌĞĂ ŬĞǇƉŽŝŶƚ͘dŽƉůĂĐĞƚŚŝƐƚĞǆƚďŽǆĂŶǇǁŚĞƌĞŽŶƚŚĞƉĂŐĞ͕ũƵƐƚĚƌĂŐŝƚ͘ ŬĞǇƉŽŝŶƚ͘dŽƉůĂĐĞƚŚŝƐƚĞǆƚďŽǆĂŶǇǁŚĞƌĞŽŶƚŚĞƉĂŐĞ͕ũƵƐƚĚƌĂŐŝƚ͘ 'ƌĂďǇŽƵƌƌĞĂĚĞƌ͛ƐĂƚƚĞŶƚŝŽŶǁŝƚŚĂŐƌĞĂƚƋƵŽƚĞĨƌŽŵƚŚĞĚŽĐƵŵĞŶƚŽƌƵƐĞƚŚŝƐƐƉĂĐĞƚŽĞŵƉŚĂƐŝǌĞĂ ŬĞǇƉŽŝŶƚ͘dŽƉůĂĐĞƚŚŝƐƚĞǆƚďŽǆĂŶǇǁŚĞƌĞŽŶƚŚĞƉĂŐĞ͕ũƵƐƚĚƌĂŐŝƚ͘ 'ƌĞĂƚtĞƐƚƋƵŝƉŵĞŶƚ>ƚĚ͘ŝƐĂB.C. andoperated operated company Great West Equipment Ltd. is a B.C.owned owned and company
'ƌĞĂƚtĞƐƚƋƵŝƉŵĞŶƚ>ƚĚ͘ŝƐĂB.C. and established in 1987. We serve 11 locations owned throughout B.C.operated and Yukon.company ĞƐƚĂďůŝƐŚĞĚŝŶϭϵϴϳ͘tĞƐĞƌǀĞϭϭůŽĐĂƚŝŽŶƐƚŚƌŽƵŐŚŽƵƚ͘͘ĂŶĚ 'ƌĞĂƚtĞƐƚƋƵŝƉŵĞŶƚ>ƚĚ͘ŝƐĂB.C. owned and operated company ĞƐƚĂďůŝƐŚĞĚŝŶϭϵϴϳ͘tĞƐĞƌǀĞϭϭůŽĐĂƚŝŽŶƐƚŚƌŽƵŐŚŽƵƚ͘͘ĂŶĚ Great West Equipment is the total solution provider, specializing in sales, zƵŬŽŶ͘'ƌĞĂƚtĞƐƚƋƵŝƉŵĞŶƚŝƐƚŚĞƚŽƚĂůƐŽůƵƚŝŽŶƉƌŽǀŝĚĞƌ͕ ĞƐƚĂďůŝƐŚĞĚŝŶϭϵϴϳ͘tĞƐĞƌǀĞϭϭůŽĐĂƚŝŽŶƐƚŚƌŽƵŐŚŽƵƚ͘͘ĂŶĚ rentals, service, parts and consignment of heavy equipment. zƵŬŽŶ͘'ƌĞĂƚtĞƐƚƋƵŝƉŵĞŶƚŝƐƚŚĞƚŽƚĂůƐŽůƵƚŝŽŶƉƌŽǀŝĚĞƌ͕ 'ƌĞĂƚtĞƐƚƋƵŝƉŵĞŶƚ>ƚĚ͘ŝƐĂB.C. owned company ƐƉĞĐŝĂůŝǌŝŶŐŝŶsales, rentals, service, partsand andoperated consignment of zƵŬŽŶ͘'ƌĞĂƚtĞƐƚƋƵŝƉŵĞŶƚŝƐƚŚĞƚŽƚĂůƐŽůƵƚŝŽŶƉƌŽǀŝĚĞƌ͕ ƐƉĞĐŝĂůŝǌŝŶŐŝŶsales, rentals, service, parts and consignment of ĞƐƚĂďůŝƐŚĞĚŝŶϭϵϴϳ͘tĞƐĞƌǀĞϭϭůŽĐĂƚŝŽŶƐƚŚƌŽƵŐŚŽƵƚ͘͘ĂŶĚ heavy equipment͘ For Great West Equipment “SERVICE FIRST” means CUSTOMER ƐƉĞĐŝĂůŝǌŝŶŐŝŶsales, rentals, service, parts and consignment of zƵŬŽŶ͘'ƌĞĂƚtĞƐƚƋƵŝƉŵĞŶƚŝƐƚŚĞƚŽƚĂůƐŽůƵƚŝŽŶƉƌŽǀŝĚĞƌ͕ heavy equipment͘ UPTIME. heavy equipment͘ ForƐƉĞĐŝĂůŝǌŝŶŐŝŶsales, Great West Equipment ͞^Zs/&/Z^d͟ means UPTIME. rentals, service, parts andCUSTOMER consignment of
For Great West Equipment heavy ͞^Zs/&/Z^d͟ equipment͘ means CUSTOMER UPTIME. means CUSTOMER UPTIME. For Great West Equipment ͞^Zs/&/Z^d͟
For Great West Equipment ͞^Zs/&/Z^d͟ means CUSTOMER UPTIME. SERVICE:tĞŽĨĨĞƌϭϭ>ŽĐĂƚŝŽŶƐĂĐƌŽƐƐΘzdANDŽǀĞƌϱϱ^ĞƌǀŝĐĞ SERVICE: We offer 11 Locations across BC & YT AND over 55 Service SERVICE:tĞŽĨĨĞƌϭϭ>ŽĐĂƚŝŽŶƐĂĐƌŽƐƐΘzdANDŽǀĞƌϱϱ^ĞƌǀŝĐĞ dƌƵĐŬƐƚŽƌĞĚƵĐĞĚŽǁŶƚŝŵĞŝŶƚŚĞŵŝĚĚůĞŽĨĂŶǇũŽď͘ Trucks to reduce downtime in the middle of any job. SERVICE:tĞŽĨĨĞƌϭϭ>ŽĐĂƚŝŽŶƐĂĐƌŽƐƐΘzdANDŽǀĞƌϱϱ^ĞƌǀŝĐĞ dƌƵĐŬƐƚŽƌĞĚƵĐĞĚŽǁŶƚŝŵĞŝŶƚŚĞŵŝĚĚůĞŽĨĂŶǇũŽď͘ PARTS:tĞŽĨĨĞƌĂůĂƌŐĞƐĞůĞĐƚŝŽŶŽĨparts, accessories and attachments dƌƵĐŬƐƚŽƌĞĚƵĐĞĚŽǁŶƚŝŵĞŝŶƚŚĞŵŝĚĚůĞŽĨĂŶǇũŽď͘ SERVICE:tĞŽĨĨĞƌϭϭ>ŽĐĂƚŝŽŶƐĂĐƌŽƐƐΘzdANDŽǀĞƌϱϱ^ĞƌǀŝĐĞ PARTS:tĞŽĨĨĞƌĂůĂƌŐĞƐĞůĞĐƚŝŽŶŽĨparts, accessories and attachments PARTS: We offer a large selection of parts, accessories and attachments ĨŽƌĂůůǇŽƵƌŶĞĞĚƐ͘KƵƌƐŽůƵƚŝŽŶŵŝŶĚĞĚƉĞŽƉůĞĐĂŶĂƐƐŝƐƚǇŽƵǁŝƚŚ dƌƵĐŬƐƚŽƌĞĚƵĐĞĚŽǁŶƚŝŵĞŝŶƚŚĞŵŝĚĚůĞŽĨĂŶǇũŽď͘ for all your needs. Our solution minded people can assist you with PARTS:tĞŽĨĨĞƌĂůĂƌŐĞƐĞůĞĐƚŝŽŶŽĨparts, accessories and attachments ĨŽƌĂůůǇŽƵƌŶĞĞĚƐ͘KƵƌƐŽůƵƚŝŽŶŵŝŶĚĞĚƉĞŽƉůĞĐĂŶĂƐƐŝƐƚǇŽƵǁŝƚŚ ĐƵƐƚŽŵŝǌŝŶŐĂŶǇŽĨǇŽƵƌĞƋƵŝƉŵĞŶƚƌĞƋƵŝƌĞŵĞŶƚƐǁŝƚŚƚŚĞŚŝŐŚĞƐƚ customizing any of your equipment requirements with the highest quality ĨŽƌĂůůǇŽƵƌŶĞĞĚƐ͘KƵƌƐŽůƵƚŝŽŶŵŝŶĚĞĚƉĞŽƉůĞĐĂŶĂƐƐŝƐƚǇŽƵǁŝƚŚ PARTS:tĞŽĨĨĞƌĂůĂƌŐĞƐĞůĞĐƚŝŽŶŽĨparts, accessories and attachments ĐƵƐƚŽŵŝǌŝŶŐĂŶǇŽĨǇŽƵƌĞƋƵŝƉŵĞŶƚƌĞƋƵŝƌĞŵĞŶƚƐǁŝƚŚƚŚĞŚŝŐŚĞƐƚ ƋƵĂůŝƚǇƉĂƌƚƐĚĞƐŝŐŶĞĚΘĞǆĞĐƵƚĞĚƚŽKDƉĂƌƚƐƐƚĂŶĚĂƌĚƐ͘ parts designed & executed to OEM parts standards. ĐƵƐƚŽŵŝǌŝŶŐĂŶǇŽĨǇŽƵƌĞƋƵŝƉŵĞŶƚƌĞƋƵŝƌĞŵĞŶƚƐǁŝƚŚƚŚĞŚŝŐŚĞƐƚ ĨŽƌĂůůǇŽƵƌŶĞĞĚƐ͘KƵƌƐŽůƵƚŝŽŶŵŝŶĚĞĚƉĞŽƉůĞĐĂŶĂƐƐŝƐƚǇŽƵǁŝƚŚ ƋƵĂůŝƚǇƉĂƌƚƐĚĞƐŝŐŶĞĚΘĞǆĞĐƵƚĞĚƚŽKDƉĂƌƚƐƐƚĂŶĚĂƌĚƐ͘ These full service solutions result in increased uptime and a positive ƋƵĂůŝƚǇƉĂƌƚƐĚĞƐŝŐŶĞĚΘĞǆĞĐƵƚĞĚƚŽKDƉĂƌƚƐƐƚĂŶĚĂƌĚƐ͘ ĐƵƐƚŽŵŝǌŝŶŐĂŶǇŽĨǇŽƵƌĞƋƵŝƉŵĞŶƚƌĞƋƵŝƌĞŵĞŶƚƐǁŝƚŚƚŚĞŚŝŐŚĞƐƚ These service solutions uptime and and aapositive These full service solutionsresult resultininincreased increased uptime return onfull your investment. ƋƵĂůŝƚǇƉĂƌƚƐĚĞƐŝŐŶĞĚΘĞǆĞĐƵƚĞĚƚŽKDƉĂƌƚƐƐƚĂŶĚĂƌĚƐ͘ positive return on your investment. These full service result in increased uptime and a positive return solutions on your investment. fullinvestment. service solutions result in increased uptime and a positive return These on your return on your investment.
12 Truck LoggerBC Winter 2017
North West Loggers Association’s MESSAGE
The Northern Perspective: Contractor Sustainability and Market Diversification
will start out my winter report by drawing your attention to the Truck Loggers Association’s 74th Annual Convention and Trade Show running from January 18 to 20 in Vancouver. The TLA always puts on a top notch show with plenty of informative talks and seminars as well as displaying the latest in equipment and technology. By attending these sorts of events you support the effort the logging associations put into improving the forest sector and highlighting the joint interests of the organizations. See you there. An issue that pertains to us all is contractor sustainability. The TLA, the ILA and the NWLA are actively trying to find new methods to stabilize the sector and are looking for new approaches to the issue that will have a positive effect on contractor/licensee/log purchaser relationships. With this in mind, I’m pleased to acknowledge the provincial government’s commitment to move forward with a contractor competitiveness review as described by Minister Thomson in his message (page 24). Forestry contractors and sub-contractors are based in our communities so their financial health is important to our communities. I look forward to hearing more about this four-phase contractor competitiveness review during the Minister of Forests Breakfast at the TLA convention. In the Fall 2016 issue of the magazine I included a section regarding Skeena Sawmills receiving a cash injection for mill improvements. One of the technologies being investigated for the mill is a CT scanner developed to view the inside of a log. The scanner can detect defect, knots and rot. The image produced is analyzed to maximize the value from the log. Much of the fibre in the area is low quality but has some high value portions. If you have the ability to see the defect in a log you can saw
to maximize the value extracted from it. It’s exciting to see new technology making forestry more efficient. In this issue, pay particular attention to the article titled “Calling All Forestry Workers: Be An Ambassador for Forestry in Your Community.” It was with some concern that I learned of the UBCM resolution that “old-growth forest on provincial Crown land on Vancouver Island be protected from logging.” My concern is with the resolution itself. Who was consulted, how much knowledge was the resolution based on, and what is the UBCM’s understanding
a sawmiller, has made a substantial investment in new equipment and is now purchasing the highest quality logs to produce high quality lumber. The lumber produced is used to manufacture items such as pianos, guitars and aircraft. Larger milling operations can’t produce these types of products due to the rigid quality control needed to satisfy the customers. The logs the mill uses would normally go to the export market or to a domestic sawmill for dimension lumber. This small mill is truly adding value to a log. It is important for all levels of government to take note of these
The Northwest may be a model for solving the fibre supply problems for smaller operators. of what old growth is? If this type of resolution were enacted in the northwest it would be devastating. Harvesting timber in the Northwest never reached any kind of volume until the late 1950s and early 60s. Consequently, the second growth volumes available for harvest are quite small. I have walked several stands of timber on the north coast and Haida Gwaii. The only way I could tell if they were previously harvested was faint evidence of old roads and trails. The stands themselves were of mixed age and species, indistinguishable from stands not previously harvested. Our small sawmilling sector continues to produce product. As reported in the last issue, cedar round log markets are extremely high. The result has been less local appetite for cedar products due to the increase in finished product pricing and customers are electing instead to purchase less expensive alternatives. The flexibility of these operations allows them to switch products rapidly. Some are now sawing bridge material, beams and timbers, and a variety of other products. One NWLA member,
kinds of enterprises and do what it can to ensure fibre is available and that regulations and policies do not unduly inhibit the growth of innovations like this example but help promote their success. These small operations’ ability to access fibre in the northwest is likely a result of the licensees in the area being predominantly small and local with small annual cuts. They are willing to sort smaller volumes for the local log market and value added market. In contrast, the rest of the provincial licensee community is made up of very large corporations holding the majority of timber rights. These companies are unwilling to interrupt the flow of timber to support the smaller local operations. BC’s northwest may be a model to look at to solve some of the fibre supply problems for smaller operators in other areas of the province. It is important that the forest industry be as diverse as possible and the smaller licensees and manufacturers play an important role in accomplishing that goal.
Winter 2017 Truck LoggerBC 13
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14 Truck LoggerBC Winter 2017
How Can BC Be A More Attractive Investment?
hile speaking on the direction of the forestry industry at the Association of British Columbia Forest Professionals annual conference in February 2016, I made a number of statements regarding the relative attractiveness of British Columbia for forest investment, the resource’s ability to provide sufficient rent for “everyone to do everything” and how the industry’s success is ultimately determined by its continued ability to attract capital. After the conference, the TLA asked if I might elaborate in Truck LoggerBC. Specifically, I will try to share my views on why several major BC licensees are actively investing in the US southeast rather than in BC and what might be done to make investment in the BC industry more attractive. In addressing the first question it is important to note that operational growth within BC is increasingly difficult for the major tenure holders as timber is fully allocated and these major players are constrained by post pine beetle harvest level reductions in the Interior and, to some degree, competition issues. Despite competition challenges in regard to further consolidation of the BC forest industry—as evidenced by the requirement of some of the larger consolidators to sell specific acquired mills—I believe further consolidation within BC is possible subject to limited regional constraints. The major industry players’ interests outside of BC are largely a reflection of these companies’ successes. With BC now being home to the two largest lumber producers in the world (West Fraser (1) and Canfor (2)) and four of the top nine North American lumber The Market Report is brought to you by:
Stafford Lake LOGGING LTD.
producers (Interfor (6) and Tolko(9)), their further growth almost certainly requires that opportunities be explored increasingly globally while thoughtful risk management supports a strategy of geographical diversification of assets, products and markets within those areas where their business can excel.
in Figure 1, this has led to a prolonged period where lumber margins in the US south are meaningfully more attractive than the US Pacific Northwest. In addition, US sawmills also benefit from improved market access while being less exposed to foreign exchange. As a result, several of our native BC compa-
Data Sources: Timber-Mart South, Random Lengths, FEA, Oregon DOF Chart & Analysis: WillSonn Advisory
nies: investment West Fraser, in Canfor, and, Today, much of BC’smight coastal In-to make Addressing what beand done the BCInterfor forest industry mor to a lesser degree, Conifex have actively terior timber supply is shrinking owing question. Along with the rest of Canada, BC is somewhat unique in the dominance to post-beetle fall down and economic made investments in the US south—a the overall supply as and the largely extensively managed timber resour operability challenges, evidenced by natural trend and I expect to see continue. the globally fact thattypical the coastal AAC Addressing what mightfeaturing be done shorter to private land(allowor long-term area-based tenures rot able annual cut) has not been harvested make investment in the BC forest inmanaged plantation forests. Forest management activities in most developed cou since 1992 despite at least three very dustry more attractive is a big quesregulated whether publically privately However, public own positive market cycles. the At land the is same tion.orAlong with owned. the rest of Canada, BC time, since 2010/2011 many regions inobjectives is somewhat uniqueproduction in the dominance increased emphasis on multiple with timber and availability the increasing US south have offered an environof Crown timber in the overall supply business risks and associated required returns. ment with very significant surpluses and the largely natural and extensively of saw timber, positive lumber pricmanaged timber resource versus the Initiatives aimed at providing improved certainty around issues such as confirmin ing and continued strong demand and more globally typical private land or timber mechanisms, ensuring(Continued that the regulatory pricing for pricing residuals. As demonstrated to page 70) and taxation environmen
competitive, etc. help to ensure businesses can make operating and capital spend confidently. Fundamentally, the ability to add value to the province’s timber reso significant capital spending across the value chain which in turn requires industry BenWest Logging Road and financial health to access& capital as wellContractors as the confidence to invest. LOGGING LTD. Campbell River I believe the coastal forest industry has reduced sawmilling capacity to match har Tel: 250-287-7932 Email: firstname.lastname@example.org possible and the capture of potential synergies is now at a mature stage. Howeve Winter Truck LoggerBC and 15 Japan/A domestic timber prices are meaningfully below US 2017 Pacific Northwest
Steep Slope and Safety: What is happening around the world?
here is a shift in British Columbia and internationally toward more harvesting on increasingly steeper sites. There are several international research agencies focusing on the mechanization of steep slope operations with visions similar to that adopted by the New Zealand Forest Owners Association’s Steep Land Harvesting Program: “No worker on the slope, no hand on the chainsaw.” The mechanization of felling, bunching, shoveling, processing, skidding, etc. provides a protected and safer environment for forestry workers. Exposure to hazards is greatly reduced compared to manual methods. Steep terrain winch-assist machinery for forestry has been commercially available in Europe since the 1990s and in New Zealand it was pioneered by con-
16 Truck LoggerBC Winter 2017
tractor Ross Wood in 2006. Subsequent developments have led to rapid growth of the technology from a concept to a true harvesting system. There are 11 winch-assist systems currently available to the forest industry in British Columbia. The technology is being rapidly implemented in an effort to improve safety and productivity with the numbers of operating machines increasing exponentially. Currently 49 machines have been purchased or planned in Western Canada (Figure 1). Most users of winch-assist systems claim safety is their leading priority when implementing this technology. In New Zealand, approximately 10 million m3 have been harvested with winch-assist equal to potentially two lives saved based on manual falling safety statistics.
There had been no serious injuries or fatalities using these systems until June 2016 in New Zealand when a singlecable bulldozer anchor machine was pulled down the hill pinning the operator of the felling machine under the dozer. The suspected cause for the incident was mechanical winch failure. There have also been several New Zealand cases of cable failures (both single and double-cable systems), shackle or other connection failures, anchor failures, and machine rollovers without any serious injuries. These close calls have been great opportunities to learn. FPInnovations’ Steep Slope Initiative aims to facilitate international information sharing to ensure that any new safety measures and learnings are identified and communicated to BC stakeholders.
numbers of operating machines increasing exponentially. Currently 49 machines have been purchased or planned in Western Canada (Figure 1).
Figure 1 Most users of winch-assist systems claim safety is their leading priority when implementing this
Timely relevant are compiled have developed bestequal practechnology. In New updates Zealand, approximately 10 million m3 havepanies been harvested with winch-assist through regular international confer-falling safety statistics. tice guidelines, operator to potentially two lives saved based on manual There had been no serioustraininjuries or fatalities using these systems untilexJune 2016 in New Zealand when a single-cable ence calls and collaboration with ing competencies andbulldozer training anchor machine pulled down the hill pinning the operatorschedules of the felling machine under the dozer. perts from Newwas Zealand, USA, Austria, The suspected cause forand the incident failure. New Zealand Forest Industry Germany, Australia, Chile. was mechanical winchc. The There have been several international Contractors Association is develdevelopments in safety measures for oping industry-wide best practice winch-assist technology based on reguidelines for operation, maintenance and inspection of winchcent learnings. assist equipment 1. Rules, approved codes of practice, d. FPInnovations is developing best practice guidelines: Best Management Practices for a. New Zealand has winch-assist BC conditions and supporting “regulation” within the national BC Forest Safety Council’s opgovernmental level Approved erator competencies and trainCode of Practice ing initiative b. Several forest management com-
e. Oregon requires a special “research variance” for operating winch-assist equipment and will likely require winch-assist for any ground-based operation on slopes steeper than 50 per cent 2. Equipment manufacturers’ manuals and guidelines—all winch-assist equipment manufacturers provide their customers with manuals, guides, and training with varying levels of comprehensiveness. Topics may include: a. Winch and cable tension monitoring and control b. Traction and stability i. Charts and traction coefficient identification guides ii. European winch manufacturers recommend no operation on slopes where traction cannot be maintained without the winch assistance c. Cable(s) and end connectors inspection and maintenance (Continued to page 70)
Real truckers watch their speed. In it for the long haul.
Find safety resources at worksafebc.com/health-safety/industries/forestry. Winter 2017 Truck LoggerBC 17
Cracking the Rate Model
Part Three: Labour Costs and Profit
n part three of this four-part series I will talk about your labour costs and profit—two critical parts to the rate model. Labour costs are variable and dependent on both internal and external factors. Some of the internal factors can be adjusted to run a more profitable model, others are externally driven by the market and leave little room to adjust.
The location of your work can be a factor in the cost of labour. Employers with camps will generally have to pay a premium to bring quality workers in. If you are home at the end of the day and have time to spend with your family, you will generally accept a lesser paying job for these benefits. Even if your operations are closer to town, what does that town have to offer your employees? Does it have the amenities a prospective employee wants? Can they find a school for their kids? Small isn’t always bad. You can promote a lifestyle that will draw the skilled workers you need—getting out of the hustle and bustle of the big cities and enjoying the fresh air.
Supply and Demand for Your Employees
How much demand is there for employees with the same skill set? If there is an excess of people you have more flexibility to set the rate. In times of skills shortages, the employee has more leverage to set their wage. An example of this was the oil and gas industry in Alberta five years ago. Again, looking to our Alberta experience, is there another industry competing for your employees? As we know, this can cause higher than expected wages in good times and a glut of skilled workers in slow times. There are other factors to consider as well. Is the labour rate likely to change over the term of the work due to union
18 Truck LoggerBC Winter 2017
agreements or labour contract renegotiations? What skill level is required for the position? The more skill required, the higher the cost. Does the terrain you will be working require extra crew to be safe or can you adopt a technology that will save wage costs by reducing the number of people required to operate?
Labour Efficiency / Downtime
How much time do your employees spend not doing what they’re paid to do? For example: dealing with mechanical breakdowns, attending meetings or addressing co-worker dynamics. What can you change to optimize your employees’ time so their wages are paying for the work you need done? Supervision is another consideration. What kind of supervisor are you going to have? A two-hat supervisor who is responsible for crew management and filling an active role on the production line. Or a one-hat supervisor who is just responsible for crew management. Supervisors responsibilities are ever-increasing and their time may need to be accounted for as overhead if your crews are so large supervising and safety is a full-time job. Another potential non-labour cost to consider is the amount of time your inhouse mechanics will spend working on the equipment. This can vary by equipment type as some need more mechanical work than others depending on the nature of the task they perform.
Profit is a controversial part of the model. Once you figure out all of your costs to operate you then need to consider what amount of profit you’re willing to go to work for.
What is fair profit? Fair profit is when all parties involved share a chunk of the profit based on their risks of doing busi-
ness. This will mean something different for each stakeholder involved. You need to have enough profit after taxes so you can re-invest in your business. This is particularly critical for logging given the wear and tear on expensive machinery.
Maximization vs. Optimization
One thing to note when considering profit is that you can try to maximize it or optimize it. When maximizing profit, you choose to run as lean of an operation as possible to maintain the same volume of production. This eventually leads to loss because of the unsustainability of the measures taken to create a lean operation. Optimizing your profit on the other hand is focusing on removing unnecessary costs and creating efficiencies to better your business without hurting its future investment and growth potential. When considering your rate model you should always have profit optimization in mind and not maximization. Make sure the measures you take to earn more profit won’t hurt your business when the effects hit your labour force. A dissatisfied employee can be one of the hardest hitting blows on a business. Stay tuned for Part Four: Putting it All Together in the Spring 2017 issue of Truck LoggerBC. Chris Duncan, CPA, CA, is a Business Advisor with MNP’s Private Enterprise group who specializes in real estate, construction and forestry businesses. Working out of the Duncan office and serving clients across Vancouver Island, Chris draws on his unique background to deliver industry-specific advice to help business owners stay in compliance, make informed decisions and achieve their goals. Chris can be reached at 250.748.3761 or email@example.com.
Winter 2017 Truck LoggerBC 19
Industry Insight, Technical Knowledge and Business Networking: Join Us For The TLA Convention & Trade Show By Brenda Martin
t the TLA Convention & Trade Show this year the theme is “In it for the Long Run.” We’re examining the current state of the industry and what needs to change in order to strengthen and ensure sustainability for contractors and their suppliers. The owners of these companies—many TLA members—live in BC’s rural communities, build their businesses in and around them, support local community groups and are vital to the success of the entire province. They are the economic backbone of BC’s rural communities. During the first two sessions on Wednesday we address steep slopes again. First, we look at what has taken place over the last year in BC around steep slope harvesting technology and what it means for contractors. Panelists include a contractor, a researcher and an equipment manufacturer so we’re getting input from across the supply chain. In our second steep slope session, we look at the cost of steep slope logging and if it’s a reasonable risk for contractors. Synergy will be needed between technology and stakeholders if we’re to be successful in an ever changing market. The Keynote Lunch on Wednesday is titled, “How to Build a Kick!$% Crew.” At a time where the forest industry is facing record retirements over the next 10 years, strengthening “The People Side of Timber Harvesting” is more important than ever. Wendy Farrand provides contractors and their supervisors the tools to be more effective leaders. This is important because every single thing that crew supervisors say and do contributes to making or breaking a company. After the Keynote Lunch, we jump right into a session about the realities of operating a contracting business. This session focuses particularly on drug and alcohol policy, labour rela-
20 Truck LoggerBC Winter 2017
tions and changing trends at WorkSafeBC. Safety plays a serious role within the forest industry and it’s important to understand how to best manage safety requirements so employees are safe and businesses are successful.
an academic and an investor. The last few issues of Truck LoggerBC magazine have also included new ideas for business models that could allow the forest industry to thrive. And Reid Carter of Brookfield Asset Management also
We’re examining the current state of the industry and what needs to change in order to strengthen and ensure sustainability for contractors and their suppliers. In the final session on Wednesday, we take a look at First Nations involvement in the forest industry. First Nations control of the forest resource in the new normal. What does that look like and what will it mean for contractors? First, we’ll look at some successful business relationships being formed between First Nations and non-First Nations. Then, Hegus Clint Williams will talk about the Tla’amin Nation’s recently signed treaty—the most modern treaty agreement to-date. One of the TLA’s strategic goals is to build mutually beneficial First Nations partnerships by acknowledging rights and title and engaging First Nations leadership and their communities. This session will help us achieve that goal. Thursday kicks off with the TLA’s annual general meeting and the Loggers Breakfast! Are you curious about how the TLA is run and who makes up our Board of Directors? If you’re a TLA member, join us for a complimentary breakfast and see the business of the TLA in action. There’s also a prize draw! The first session on Thursday asks a big question. What are some business models that would make for a successful forest industry in the long run? We’ll take a look at this from three different perspectives—a contractor,
has an article in this issue (see page 15) discussing what needs to change to make BC’s forest industry attractive to international investment. We expect this information will filter into the discussion during the session. The final two sessions on Thursday address two other issues critical to the forest industry: markets and access to the public resource. Markets impact every aspect of the forest industry and in this session we will look at trends in logs, lumber and pulp. We’ll also take a look at the big unknown—the softwood lumber dispute. Later in the afternoon, we tackle varying perspectives on BC’s public resource. Each stakeholder has their own particular stance. We need to work together to ensure we all get the value we need from our forests. In this session, we’ll hear from community representatives and professional foresters as well as tourism and labour representatives. Forestry has a rich history of partnerships and relationship building; however, forestry is not the only user of the resource. Can we all get along? On Friday, our two final sessions zero in on what the forest industry needs to be successful. Esteemed journalist, Vaughn Palmer moderates the first session with a political edge. Government plays a vital role in shaping an
environment that supports business. As we move toward an election in May, business advocates in this session will identify what the forest industry needs from the next BC government from a regulatory, taxation and business stimulation perspective. The final session of the whole convention includes some big hitters—Don Demens from Western Forest Products, Jeff Zweig from TimberWest, Mike Hamilton of Mike Hamilton Logging, Don Banasky from Western Canadian Timber Products and Kevin Mason of ERA Forest Products Research. These industry leaders will exchange view on the great potential of our forest resource could best be realized. We’re excited to hear what these industry experts and veterans think. As always, we welcome our two honoured guests—Premier Christy Clark and Minister Steve Thomson. Premier Clark always shares her inspiring leadership and faith in our industry at the Leader’s Luncheon. And Minister Thomson gives us an update on the work his Ministry has achieved and his perspective on how the forest industry is unfolding in light of this work at his breakfast. He also takes a moment to congratulate the TLA scholarship winners—many of whom will be in the audience. Even with all this business, we manage to jam in lots of fun and networking too. At the end of Wednesday, join TLA President Jacqui Beban, for the President’s Welcome Reception. This is a great opportunity to get into the swing of convention, find out who’s attending this year and get your networking started! New this year is the Loggers Dinner and Comedy Club on Thursday night. Treat your clients, employees and friends to a hilarious night out at this new event! Our comic, Tim Nutt can’t
Treat your clients, employees and friends to a hilarious night out at our new event—Loggers Dinner and Comedy Club—on Thursday, January 19! Enjoy a delicious dinner and laugh the night away with comedian Tim Nutt. Afterwards, there will still be time for a drink out on the town. be judged by his cover. Long-haired, bearded and “rough around the edges”, audiences expect Nutt’s material to match. But he surprises with razoreddown punch lines and well conjured-up premises that place him as one of the top comics working today. Enjoy a delicious dinner and laugh the night away. Afterwards, there will still be time for a drink out on the town. And on Friday the entertainment peaks with Ladies’ Luncheon, Suppliers’ Night Dinner and the It’s a Wrap! After Party! This year, our Ladies’ Luncheon speaker is Lotte Davis, CEO and co-founder of AG Hair, the only manufacturer of hair care products in Canada. Since 2008, she’s been building schools for girls in Africa with funding from AG Hair promotions and AG’s salon partners and in 2016 she received the YWCA Women of
Distinction award for Entrepreneurship and Innovation. On Friday evening, the Suppliers’ Night Dinner will include two amazing auctions! We’ve got new and exciting donations for both the live and silent actions. All funds raised go toward the TLA Forestry Education Fund that support the TLA’s various post-secondary institutions as well as local forestry education in the towns where our members live and work. It’s also the best chance to network and see the trade show operating at full tilt. We regularly have 1000+ people in attendance! And after the trade show closes, join us upstairs to dance the night away at the It’s a Wrap! After Party! There’s something for everyone at the TLA’s 74th Convention & Trade Show! Come join us at the Westin Bayshore in Vancouver, January 18-20, 2017.
Winter 2017 Truck LoggerBC 21
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BC Forestry: In it for the Long Run By Premier Christy Clark
BC is leading the country like never before. We’re first in economic growth, first in creating jobs, and have the lowest taxes for middle class families. Our forestry sector is a big part of that. It’s a key economic driver, a fundamental part of the economic and social fabric of over 140 communities throughout the province, creating over 65,500 jobs and supporting many more. But more than that—it’s who we are.
or thousands of years, the people who called this magnificent place home understood they could live off the many resources the land provided, so long as they protected them. And so BC has a long history of protecting our land, air, and water while making a living from it. That proud history culminated last year, when we passed legislation to protect the Great Bear Rainforest, covering 6.4 million hectares along our north and central coast—the world’s largest intact temperate rainforest. The result of decades of work from First Nations, environmental groups and BC’s forest sector, this agreement protects 85 per cent of the area’s forests, still leaving some 550,000 hectares available to forestry. It means stability, economic opportunity and certainty for local communities, First Nations and forest companies, along with their employees, investors and customers. The agreement has earned international accolades, including recognition by the Queen’s Commonwealth Canopy Initiative. The Great Bear Rainforest was one of 20 forest conservation projects from Commonwealth countries to be recognized—and also the largest. Leading the way with responsible, sustainable economic development is how we do things in BC. That’s why
innovation has always been a vital part of our forestry industry. Just look at the 18-storey wood-framed student residence at UBC, or the Wood Innovation Design Centre in Prince George. Timber bridges are getting longer, and we’re finding more ways to build with wood; consider polymers, bioplastics, and greener adhesives. And as the forest industry develops new products, we’re helping you find new buyers by opening new markets overseas. It’s a proven strategy. In 2003, we established a lumber trade office in China. Thirteen years later, lumber exports to China have increased by 2,000 per cent. We’re also investing $5 million to open doors for BC wood products in India, which has one of the world’s fastest-growing workforces—and fastestgrowing demand for new homes. We’re working hard to make sure they build those homes with wood. Growing markets in China, Japan and eventually India keeps mills running, people working—and reduces our reliance on the US market. This is particularly important given the expiry of the 2006 softwood lumber agreement. Over 50% of Canada’s softwood lumber exports come from BC, and we need to make sure our interests are protected. We pushed this to the top of the federal government’s agenda. Whenever anyone representing the provincial government meets with a federal official, we talk about softwood. We’ve been persistent, insistent—and urgent. To their credit, the Prime Minister and Minister Freeland have listened, and have been working overtime with US officials. Together we will continue to fight for Canada and
BC as he continues to negotiate in good faith with the new administration. The baseless accusations of American producers have not shaken our belief that producers and consumers on both sides of the border will be best served by fair managed trade. We are ready and prepared to vigorously defend BC’s interests. A fair deal on softwood is particularly important in BC’s rural communities, many of which rely on a single industry for a significant proportion of jobs and economic activity. An expired trade agreement, or low commodity prices, can be devastating. That’s why in October I promoted Donna Barnett to Minister of State for Rural Economic Development. She’s delivering the $75-million Rural Dividend, and is providing insight on ways the provincial government can help foster more economic growth, be it through investment or simply getting out of the way. It’s one thing to plan for growth, and another to plan to benefit from it. That’s why we’re ensuring British Columbians have the skills they need. Because right now, more people are retiring from the workforce than there are younger people entering it. As a result of retirements and economic growth, we are expecting almost one million job openings in BC by 2025. Through the Canada BC Jobs Fund, we will continue to support training opportunities for young people interested in forestry-related careers. Some of the recently funded programs include heavy equipment operator training delivered in partnership with the Interior Logging Association. With the country’s leading economy and record job growth, there has never been a better time to be a British Columbian. Forestry will continue to play a vital role in ensuring we continue to lead.
Winter 2017 Truck LoggerBC 23
74th Annual Convention: In It For The Long Run By Minister Steve Thomson, Forest, Lands and Natural Resource Operations
he TLA convention is on the horizon and with it always comes the beginning of a new year, and an opportunity to reflect on the past year and to focus on our strategies to meet upcoming challenges in the months and years ahead. This year’s convention is aptly named: In it for the Long Run. The British Columbia forest sector has been an economic driver in rural communities and larger cities alike since the founding of the province. We are working hard to ensure it remains a staple of the BC economy as embodied by the August 2016 launch of Strong Past, Bright Future: A Competitiveness Agenda for British Columbia’s Forest Sector. The agenda contains 49 strategic actions to address the three inter-related goals of: healthy, resilient forests; a diverse, globally competitive industry; and stable communities and First Nations. The agenda is supported by other recent government programs, including the three-year $75-million Rural Dividend, and $85 million for the newly created Forest Enhancement Society of BC, which will help with community safety in the face of increasing wildfires due to climate change and to rehabilitate forests damaged by the mountain pine beetle. The second intake for the Rural Dividend has been completed and decisions for project applications
24 Truck LoggerBC Winter 2017
will be announced before the end of this fiscal year. BC Timber Sales continued to do its part—selling 13 million cubic metres of timber in 2015/16 substantially achieving its goal of selling its full apportionment. BCTS supports the market-based pricing system, rural economies, jobs and families. During 2015/16 BCTS also earned $134 million in revenue, supporting vital government services like health care and education. At the same time, BCTS supported sustainable forest management by growing 42.7 million seedlings and planting 37.7 million trees. We place a high priority on sustainable forest management, so for that reason, I, along with the Chief Forester have provided direction to licensees as they renew their forest stewardship plans. In short, they must be written so they are easier to understand, and results and strategies are easier to enforce. In addition to sustainably managed forests, we need a sustainably managed sector. The TLA Executive and Executive
tractors and licensees. Once the economic assessment is completed, the details around governance, leadership and reporting out for the facilitated process will be finalized. We are continuing to move on action items within the competitiveness agenda, including our continued focus on safety. We have decided to apply SAFE certification consistently as eligibility criteria for Ministry of Forests, Lands and Natural Resource Operations contracts, beginning April 1, 2017. Contractors interested in this work should begin preparing themselves to meet the standard and contact the BC Forest Safety Council. For wildfire, and other emergency response contractors, this will be treated as a preferred requirement given the nature of their work. Internationally, we continue work to expand and develop our markets overseas and to diversify our trading partners. At the time of writing, I’m about to embark on my fifth forestry Asia trade mission. Strengthening key Asian markets is an action item within the competitiveness
The TLA Executive and Executive Director have done a good job of raising the issue of contractor sustainability. Director have done a good job of raising the issue of contractor sustainability. This is an issue that the ministry will be working on with the logging contract associations and major licensees. The ministry will begin a four-phase contractor competitiveness review to identify common areas of action that, if adopted, have the potential to improve the competitiveness of both contractors and licensees. This is one of the actions under our competitiveness agenda that I mentioned earlier, and a key priority for my ministry. The first phase will be an economic assessment and review of the contracting sector to develop baseline and economic drivers within the sector. It will be followed up by a facilitated process to define issues and potential actions that all parties can support to improve competitiveness of both con-
agenda that will help keep more than 65,500 people working in direct forestry jobs throughout the province. The importance of expanding offshore markets is more important than ever in light of the continued uncertainty over softwood lumber trade with the US. However, if the US lumber industry decides to launch litigation, we are ready. We have successfully defended our market-based forest policies in the past, and will do so in the future. The truth is that US housing starts continue to grow, and US consumers need BC lumber. Because of our efforts to remain flexible and competitive, I see a bright future for the BC forest sector, and the contractors that are a key part of its value chain. All the best for a successful convention!
In it for the LONG RUN
74 th annual truck loggers association
JANUARY 18 â€“ 20, 2017 W E S T I N B AY S H O R E , VA N C O U V E R , B C
a n n u a l sponsors Premier Sponsor
Winter 2017 Truck LoggerBC 25
IN IT FOR THE LONG RUN The forest industry is the economic backbone of BC’s rural communities. TLA members live in these towns, build their businesses in and around them, support local community groups and are vital to the success of the entire province. This year’s convention will examine the current state of the industry and what needs to change in order to strengthen and ensure sustainability for contractors and their suppliers. Our strength is in our roots and we want contractors to be in it for the long run! OFFICIAL ACCOMMODATION
When making your reservations, be sure to mention that you are a delegate of the TLA’s 2017 convention.
Cancellation policy: For cancellations prior to or on January 8, 2017 a 10% administration fee applies. Cancellations received after January 8, 2017 are non-refundable. Please allow 30 days for refunds. If you wish to transfer your registration to another individual please give us at least 24 hours advance notice.
26 Truck LoggerBC Winter 2017
WEDNESDAY, JANUARY 18, 2017
Continental Breakfast Included SD01 Steep Slopes - Where Are We Now? We check in to examine what has taken place over the last year in steep slope technology and update you on the latest news. Moderator: Tyson Lambert – T- MAR Industries Panelists: Jesse Drover – JBM Falling Ltd Dzhamal Amishev – FP Innovations Richard Lawler – John Deere Forestry
Networking Coffee Break
Steep Slopes – Can We Afford Them? How we succeed in harvesting steep slopes will demand synergy between technology and stakeholders in a changing market. What’s the risk in stranded capital and can we afford to meet the challenge? Moderator: Brian Mulvihill – Finning Canada Panelists: Diane Nicolls – ADM, BC Chief Forester, Ministry of Forests, Land and Natural Resources and Operations Ron Forster – Royal Bank of Canada Aaron Sinclair – PNL Consulting
Keynote Lunch How to Build a Kick@$% Crew – Wendy Farrand Wendy is spreading the word about the value of strengthening “The People Side of Timber Harvesting” and the impact it has on safety production, and overall professionalism in the logging industry. Introduction: Rob Moonen – BC Forest Safety Council
Realities of Operating a Contracting Business To drive a successful business it is important to consider the changes that will keep you current, compliant and sustainable. This is need to know information regarding drug & alcohol policy, labour relations and changing trends at WorkSafeBC. Moderator: Bjarne Nielsen – Bear Safety Services Ltd Panelists: Paul Foster – Denning Health Doug Mosher – FIR Shelley-Mae Mitchell - Borden Ladner Gervais
Networking Coffee Break
First Nations Panel – In It for the Long, Long Run First Nations control of the forest resource is the new normal. We look at business relationships being formed and hear from the Tla’amin Nation about the forestry opportunities that this Nation sees, having recently signed one of the most modern treaty agreements in BC to-date. Moderator: Matt Wealick – Probyn Log Ltd Panelists: Rob Miller – Miller Titerle + Company LLP Hegus Clint Williams – Tla’amin Nation
Book before January 5, 2017 for the TLA Group Rate!
TRADE SHOW HOURS Thursday, January 19, 2017 1:30pm – 5:30pm Friday, January 20, 2017 9:00am – 5:00pm 6:00pm – 10:00pm
The Westin Bayshore
Hotel reservations: 604.682.3377
President’s Welcome Reception
Entertainment & Networking
THURSDAY, JANUARY 19, 2017
Loggers Breakfast (Included for TLA members)
AGM for TLA Members only
WEDNESDAY, JANUARY 18, 2017 SD01 - Steep Slopes - Where Are We Now? (Breakfast Included) $45.00 $50.00 $55.00
Networking Coffee Break (for those not attending the AGM)
Long Run Models For Success New models for a successful forest industry from a contractor position, and an academic and an investor point of view. Moderator – Tim Sheldan, Deputy Minister of Forests, Lands and Natural Resource Operations Panelists: Doug Mosher – Action Management Services Reid Carter – Brookfield Asset Management Harry Nelson – University of BC, Forestry
Leaders’ Luncheon In this past year Premier Christy Clark has been a strong voice for Canada in the softwood lumber deal, standing strong for the forest industry. Introduction: Scott Thomson – Finning Canada
Trade Show opens
Exhibitor Demo - Registered Massage Therapists Assoc. of BC
Networking Coffee Break
Market Update: Greed, Fear or Folly? Know what’s happening in the market and be aware of uncertainties that could impact your business. Presentations will cover the softwood lumber dispute and trends in logs, lumber and pulp. Moderator: David Elstone, The Truck Loggers Association Panelists: Jason Fisher - Associate Deputy Minister, Ministry of Forest, Lands and Natural Resource Operations - Forest Sector Russ Taylor – International Wood Markets Murray Hall – Murray Hall Consulting
Not in My Backyard BC public forests belong to all of us. Stakeholders from varying perspectives will discuss the relationship between their positions and resource use. Can we all get along? Moderator: Jacqui Beban, President, The Truck Loggers Association/ Nootka Sound Timber Panelists: Scott Benton – Wilderness Tourism BC Bob Matters – United Steel Workers Brian Frenkel - Union of BC Municipalities Christine Gelowitz – Association of BC Forest Professionals
Loggers’ Dinner and Comedy Club Theatre Dinner & Comedy Club Theatre featuring comedian Tim Nutt, who can’t be judged by his cover. Long-haired, bearded and “rough around the edges”, audiences expect Nutt’s material to match. But he surprises with razored down punch lines and well conjured up premises that place him as one of the top comedians working today. At one of his appearances at the Just for Laughs Gala, he was so impressive that he was named one of the “Best of the Fest” and reviewers asked “where have they been hiding this guy?” The answer – in comedy clubs across North America where Tim has established himself as a top-draw for the past 18 years.
EVENT PRICING OCT. 12 - DEC. 9 MEMBERS ONLY
OCT. 12. - DEC. 9 NON-MEMBERS ONLY
DEC. 9 - JAN. 20
SD02 -Steep Slopes - Can We Afford Them? $30.00 $40.00
KN01 - Keynote Lunch - How to Build a Kick@$% Crew $90.00 $100.00 $110.00 SD03 - Realities of Operating a Contracting Business $30.00 $40.00 $45.00 IF01 - First Nations Panel $30.00 $40.00
EN01 - President’s Welcome Reception $45.00 $50.00
THURSDAY, JANUARY 19, 2017 IF02 -Long Run Models for Success $70.00 $90.00
KN02 - Leaders’ Luncheon $100.00 $110.00
SD04 - Market Update: Greed, Fear or Folly? $70.00 $90.00
IF03 - Not in My Backyard $70.00 $90.00
EN02 - Loggers’ Dinner & Comedy Club Theatre $90.00 $100.00 $110.00
FRIDAY, JANUARY 20, 2017 KN03 - Minister of Forests, Lands and Natural Resource Operations Breakfast $90.00 $110.00 $115.00 IF04 - Political Compass with Vaughn Palmer $70.00 $90.00
EN03 - Lunch on the Trade Show Floor $40.00 $45.00
EN04 - Ladies’ Luncheon $80.00 $100.00
IF05 - Maximizing the Potential of the BC Forest Industry $70.00 $90.00 $95.00 EN05 - Suppliers’ Night Dinner $90.00 $100.00
EN06 - It’s a Wrap! After Party! $20.00 $25.00
GOLD PASSPORT PRICING
U SOLD O
(does not include Ladies Event, Logger’s Dinner & Comedy Club) $575.00 $680.00 $690.00
Winter 2017 Truck LoggerBC 27
Entertainment & Networking
FRIDAY, JANUARY 20, 2017
10:00am Minister of Forests, Lands and Natural Resource Operations Breakfast Making our way towards another election, what can Minister Steve Thomson tell us about the changes he has made in his tenure and the expectations for the future? Moderator: Tracey Russell – Inland Group KN03
10:00am Networking Coffee Break on the Trade Show Floor 10:30am
12:00 Political Compass with Vaughn Palmer noon Hear what business advocates are saying what is needed from the next BC government from a regulatory, taxation and business stimulation perspective. Panelists: Greg D’Avignon – Business Council of BC Rick Jeffery – Coast Forest Products Association Grand Chief Stewart Phillip - Union of BC Indian Chiefs David Elstone – The Truck Loggers Association IF04
ENO4 Ladies’ Luncheon Lotte Davis, the CEO and Co-Founder of AG Hair, the only manufacturer of professional hair care products in Canada, with distribution in over 15,000 salons and beauty stores across North America, Taiwan and Australia. In addition to building her company into a well-renowned and respected beauty brand, Davis has worked tirelessly to demonstrate that AG Hair cares. In 2008, she began building schools for girls in some of the poorest regions in Africa with funding from AG Hair promotions and AG’s salon partners. Lotte is the 2016 winner of the YWCA Women of Distinction award for Entrepreneurship and Innovation.
Maximizing the Potential of the BC Forest Industry This panel will exchange views on how the great potential of our forest resource could be realized by covering the current critical issues of the industry. Moderator: Jim Girvan, M.D.T. Ltd Panelists: Kevin Mason – ERA Forest Products Research Jeff Zweig – TimberWest Forest Corporation Don Demens – Western Forest Products Mike Hamilton – Mike Hamilton Logging Ltd Don Banasky – Western Canadian Timber Products
Networking Coffee Break on the Trade Show Floor
Exhibitor Demo - Registered Massage Therapists Assoc. of BC
Trade Show Closed
Lunch on the Trade Show Floor
SUPPLIERS’ NIGHT DINNER
IT’S A WRAP! AFTER PARTY!
Benwest Logging Ponting Contractors Ltd Forestech Equipment Ltd Resource Economics Group Mike Hamilton Logging Ltd Tla’amin Lake Contracting Orica Canada Inc Westerra Equipment Pilldolla Creek Contracting Westland Insurance Group Ltd CONTRIBUTORS
Advertising in Print Woodland Equipment Inc
28 Truck LoggerBC Winter 2017
LADIES’ LUNCHEON RAFFLE DONORS Bon Macaron, Vancouver & Victoria $25 Bon Macaron gift certificate JLT Canada Inc. Two $100 MasterCard gift cards Johnstone’s Benefits Wine gift basket Kajohl Management Ltd. Two bottles of wine PI Financial Corp. Global gourmet basket from Urban Fare Probyn Log Ltd. Native Bracelet
Royquip Pandora Bracelet T-Mar Industries Ltd. Unique Custom Art Piece Unforgettable Gift Baskets Gourmet Gift Basket Vancouver Island Helicopters Ltd. Five $25 Starbucks Gift Cards Waypoint Insurance Services Inc. $300 Holt Renfrew Gift Card
W & E Services Ltd. One $100 Hudson Bay/Home Outfitters gift card and one $100 The Keg Steakhouse gift card Hyde Creek Logging Ltd. Gift Basket from Gourmet Essentials Gift Bag Contributors Unforgettable Gift Baskets Shayla’s Sweet Treats AG Hair
LIVE AND SILENT AUCTION DONORS SILENT AUCTION ITEMS Bailey Western Star Ltd. & Freightliner Trucks Wine Rack with assortment of wines Bob Marquis Contracting Ltd. Two engraved Bowie hunting knives Powell River Logger Sports Four golf shirts and World Canadian Logger Sports Championship Collectors shirts Canadian Tire Aquasana 4pc Water Filtration System Carihi Secondary School Carihi Forestry suspenders & t-shirt Carmana Plaza, Vancouver One night stay on the executive floor in a one-bedroom suite (valid for 1 year) Columbia Fuels Apple iPad Mini 2 (36GB) Western Canadian Timber Products Ltd. Six hour sturgeon fishing trip for four out of Mission or Chilliwack (valid April 1 –Nov 30, 2017) Harbour Air Seaplanes Round trip airfare for one passenger on any scheduled flight to/from Vancouver Harbour (Downtown) Inland Group 2000 watt gas inverter generator Jaymack Consulting Ltd Exciting gift basket Macandale’s Metal sculpture of wildlife Metropolitan Hotel Vancouver One night stay for two people in a luxury king guestroom North Island Communications Kenwood TK 7360 Mobile 128ch 50-watt two-way radio including programming & setup Northern Ropes & Industrial Supply Ltd. Six 3/8ths x 200ft strawline extensions Port Metro Vancouver Gift basket
Sladey Timber Ltd. Apple iPad Mini 4 (64GB) Strathcona Hotel & Sticky Wicket Pub Two nights’ accommodation and $50 Sticky Wicket gift certificate (Valid until Dec 29, 2017) Vancouver Island Air Ltd. Two-hour flightseeing trip for two W.D. Moore Logging Co. Ltd. & Topknot Timber Co. Ltd. Vertical wine package from Le Vieux Pin, with four passes for a cellar chaperone tour and barrel tasting, and 1.5L Magnum of “Fortissimo” from La Stella. BC Forest Safety Council Hi-Vis safety jacket Canada Culvert Carry-on luggage and golf accessories Cannon Bar Works Ltd. 32” Cannon chainsaw guide bar (0.063 gauge, 3/8” pitch with bar adaptors) Crown Isle Resort & Golf Community, Courtenay One night stay in a king bedroom jacuzzi suite and one round of golf for two with a shared power cart National Energy Equipment Inc. 45L 3-way power portable on-grid off-grid cooler Quadco Equipment Inc. One box of Quadco cutting teeth to fit a high speed saw head TimberWest Forest Corp. Four hats and two golf shirts Wajax Equipment Two ladies’ rain jackets and one men’s hoodie Roc-Star Enterprises Ltd. $1000 gift card for the Wickaninnish Inn, Tofino, BC Westin Bayshore Two night stays, including daily breakfast for two Abbottsford Centre Suite for 10 guests for Dean Brody concert for June 1, 2017
Empress Hotel One night stay for two in a Fairmont Luxury room Jacqui Beban Tigercat 870 Feller Buncher 1/32 scale Tigercat 635 Skidder 1/32 scale Lordco Auto Parts Bradley digital 4 rack smoker Old House Hotel and Spa Two night stays in a one bedroom suite with fireplace, kitchen, and outdoor pool access E&B Helicopters Ltd. 1 hour helicopter tour for three passengers in a Bell 206 Jet Ranger Hans Peter Meyer Team photo shoot with up to 20 11x14 prints DLA Piper (Canada) LLP Two tickets to Vancouver Canucks vs. Calgary Flames on Saturday Feb 18th, includes free parking pass North Arm Transportation Ltd. Two tickets to Vancouver Canucks vs. Boston Bruins on Monday Mar.13th Royquip Serving bowl by Mussels and More Pottery Woodland Equipment Inc. Rustic wooden patio cooler Western Oil Services Ltd. Mens XXXL Carhartt vest Luxury Corporate Cruises $100 Gift Certificate towards select sailing on Crystal Cruise Line Tirecraft $100 Earls gift card Coast Hotels Two night stay for two people in a comfort room at the Canadian Coast Hotel of your choice
Winter 2017 Truck LoggerBC 29
You are invited to join the fun at the TLA fundraising auctions at this year’s convention. Ritchie Bros. Auctioneers will entertain you while conducting the live auction at Suppliers’ Night Dinner. Proceeds from the Silent and Live Auctions will go to fund the TLA Forestry Education Fund.
LIVE AUCTION ITEMS Four Toyo M-55 commercial pick-up tires Donated by Associated Tire and Auto & Toyo Tires International Carvers ‘Hall of Chain’ Western Red Cedar Carving, specially designed for the TLA Convention Donated by Cokely Wire Rope Ltd. Four Nitro HD grappler size 265/70 R17 10 ply LT tires Donated by Kal Tire $3000 Leemar Gift Certificate towards parts or in-house service (no cash value) Donated by Leemar Excavator Components Inc. One #487 Opsal Haulback Block and one #925 Tommy Moore Block Donated by Opsal Steel Ltd. KTM Mountain Bike Southstar Equipment Ltd. Osoyoos Wine Country Tour for four (3 days) Donated by Tsibass Construction Ltd. & West Coast Tug and Barge 1,200 ft of 7/8 Western Swaged Donated by Western Equipment Ltd. Waratah eight hour training day, on-site at your company location or within a class room setting (Winners Choice) Donated by Waratah Forestry Canada 36 bottle wine fridge filled with assorted quality wines Donated by Seaspray Log Scaling Ltd. & The TLA Board of Directors One set of custom ear plugs, and 30 free hearing tests delivered to you and your company (anywhere on Vancouver Island) Donated by NexGen Hearing Industrial One hour helicopter tour for three passengers in a Bell 206 Jet Ranger Donated by E&B Helicopters Ltd. Four day, three nights fully guided fishing adventure at Moutcha Bay Resort with Government certified fish processing. (3-4 person) Donated by Nootka Marine Adventures Private Sturgeon Fishing Trip and BBQ with the Minister (16 person) Donated by the TLA & Brutus Truck Bodies By Nor-Mar Industries Ltd FD750 Felling Head Donated by Southstar & Quadco Equipment Ltd.
TLA FORESTRY EDUCATION FUND: What Your Money Achieves The TLA Forestry Education Fund only exists because each year TLA members and supporters graciously donate items to the live and silent actions and then bring their cheque books with them to the TLA Convention for auction night. In the hurlyburly of the auction, it's easy to forget what we're supporting. So here's a reminder! Thank you for your generous support.
Founded in 1967 by Bill Moore, the Festival of Forestry take 1520 teachers on a three-day tour and shows them the whole forestry cycle—from seedling to final wood product. The 2016 tour was themed “Forestry in Your Own Backyard” and teachers toured sites in Surrey, Maple Ridge and Squamish. Annual spend: $5,000
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The BC Forest Discovery Centre in Duncan collects and preserves artifacts relevant to coastal forestry, and educates the public about life, work and the environment in the forest communities of coastal British Columbia. Annual spend: $10,000
TLA FORESTRY EDUCATION
This was our final year supporting the construction of the new dining hall at Loon Lake Research and Education Centre which is part of the UBC Malcolm Knapp Research Forest. This dining hall will be used by forestry students and Camp Goodtimes campersâ€”children living with cancer. Total spend: $45,000
Scholarships are given annually to exemplary students planning to join the forest industry. Last year, 19 were awarded to students at UBC, UVIC and BCIT. Our newest scholarship, co-funded with Chevron, supports two heavy equipment operator students planning to work in the forest industry. Approx annual spend: $30,000
The TLA budgets for five TLA Trades Scholarships each year at $1,000 each. This year we had three applicants and all were successful. Zach Iwasyk (pictured above) is one of the hard working heavy duty mechanic apprentices to receive a scholarship this year. Annual spend: $5,000 max.
Evans Lake Camp is operated by the Evans Lake Forest Education Society, a not-for-profit charity with the mandate to provide outdoor & forest education opportunities for children and youth. Next summer, campers will enjoy new bathroom facilities near the lake. Total spend: $10,000
Winter 2017 Truck LoggerBC 31
EXHIBITORS LISTING ARMTEC LTD.
1848 Schoolhouse Road Nanaimo, BC V9X 1T4 (250) 754 - 1238 armtec.com
BAILEY WESTERN STAR LTD. & FREIGHTLINER TRUCKS 1440 Redwood Street Campbell River, BC V9W 5L2 (250) 286 - 1151 baileywesternstar.com
BC FOREST SAFETY COUNCIL 420 Albert Street Nanaimo, BC V9R 2V7 (250) 741 - 1060 bcforestsafe.org
BC TIMBER SALES
46360 Airport Road Chilliwack, BC V2P 1A5 (604) 702 - 5700 for.gov.bc.ca/bcts
BLUE WATER GROUP LTD. 3162 Thunderbird Crescent Burnaby, BC V5A 3G4 (604) 420 - 4331 bluewatergroup.ca
BRANDT TRACTOR LTD. 1830 Schoolhouse Road Nanaimo, BC V9X 1T4 (250) 754 - 7735 brandt.ca
BRUTUS TRUCK BODIES BY NOR-MAR INDUSTRIES LTD. 682 Okanagan Avenue E. Penticton, BC V2A 3K7 (250) 492 - 7866 brutusbodies.com
CANADA CULVERT 5741 Production Way Langley, BC V3A 4N5 (604) 530 - 1151 canadaculvert.com
CANNON BAR WORKS LTD. 200 - 5487 267 Street Langley, BC V4W 3S8 (604) 856 - 6682 cannonbar.com
CATALYST LUBRICANTS 7483 Progress Way Delta, BC V4G 1E7 (604) 946 - 4226
CHEVRON CANADA LTD.
1200 - 1050 West Pender Street Vancouver, BC V6E 3T4 (604) 668 - 5300 chevron.ca
CLEANFIX NORTH AMERICA 250 Wright Blvd Stratford, ON N4Z 1H3 (519) 275 - 2808 cleanfix.org
COAST LUBRICANTS 612 Chestnut St. Nanaimo, BC V9S 2L2 (250) 739 - 0960 coastlubricants.com
COASTAL MOUNTAIN FUELS 1720 Maple Street Campbell River, BC V9W 3G2 (250) 287 - 4214 cmfuels.ca
DLA PIPER (CANADA) LLP
Suite 2800 Park Place, 666 Burrard Street, Vancouver, BC V6C 2Z7 (604) 643 - 2977 dlapiper.com
3324 Kingsway Ave Port Alberni, BC V9Y 3G4 (250) 731 - 3639 enexfuels.ca
EXPRESS CUSTOM MFG. & RIVAL TRUCK DIV. PO Box 576 Stn Main Parksville, BC V9P 2B9 (250) 240 - 2818 expresscustom.ca
FINNING (CANADA) 19100 - 94th Avenue Surrey, BC V4N 5C3 1 - 888 - FINNING finning.ca
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IN IT FOR THE LONG RUN FOUNTAIN TIRE / GOODYEAR CANADA INC. 301 - 1006 103A Street SW Edmonton, AB T6W 2P6 (780) 464 - 3700 fountaintire.com
GREAT WEST EQUIPMENT 2115 South Wellington Road Nanaimo, BC V9X 1R5 (250) 716 - 8804 gwequipment.com
2482 Douglas Road Burnaby, BC V5C 6C9 (604) 291 - 6021 inland-group.com
14404 â€“ 128 Avenue Edmonton, AB (780) 566 - 8001 integratire.com
IRIS THE VISUAL GROUP 315 - 9440 202nd Street Langley, BC V1M 4A6 (604) 881 - 0353 iris.ca
350 - 4396 West Saanich Road Victoria, BC V8Z 3E9 (250) 388 - 4416 jltcanada.com
1475 Maple Street Campbell River, BC V9W 5M4 (250) 287 - 8489 kaltire.com
LEEMAR EXCAVATOR COMPONENTS INC. 1390 Springhill Road Parksville, BC V9P 2T2 (250) 248 - 2611 www.leemar.ca
LOG MAX FORESTRY SERVICE INC. 954D Laval Crescent Kamloops, BC V2C 5P5 (250) 372 - 9986 logmax.com
LOGGING & SAWMILLING JOURNAL PO Box 86670 North Vancouver, BC V7L 4L2 (604) 990 - 9970 forestnet.com
74TH ANNUAL TRUCK LOGGERS ASSOCIATION CONVENTION AND TRADE SHOW 2017
654 Durango Drive Kamloops, BC V2C 6Y5 (250) 585 - 5312 lubrilabbc.com
MINISTRY OF FINANCE PO Box 9990 Stn. Victoria, BC V8T 4K6 (250) 387- 1116 fin.gov.bc.ca
96 Wallace Street Nanaimo, BC V9R 0E2 (250) 753 - 8251 mnp.ca
NATIONAL ENERGY EQUIPMENT INC. 1940 Schoolhouse Road Nanaimo, BC V9X 1T4 (250) 753 - 4188 nee.ca
NEXGEN HEARING INDUSTRIAL 325B 11TH St. Courtenay, BC V9N 1P4 (250) 287 - 2410 nexgenhearing.com
NORTH ARM TRANSPORTATION 2582 Kent Avenue South East Vancouver, BC V5S 2H8 (604) 321- 9171 northarm.bc.ca
NORTH VANCOUVER ISLAND ABORIGINAL TRAINING SOCIETY 1211 Cypress St. Campbell River, BC V9W 2Z3 (250) 286 - 3455 NVIATS.com
PACIFIC BLUE CROSS PO Box 7000 Vancouver, BC V6B 4E1 (604) 419 - 2000 pac.bluecross.ca
PACIFIC COASTAL AIRLINES
Vancouver International Airport South Terminal - 4440 Cowley Crescent Unit 204 Richmond, BC V7B 1B8 1 - 800 - 663 - 2872
PIERCE PACIFIC MANUFACTURING PO Box 30509 Portland, OR 97294 (503) 808 - 9110 piercepacific.com
RITCHIE BROS. AUCTIONEERS 9500 Glenlyon Parkway Burnaby, BC V5J 0C6 (778) 331 - 5500 rbauction.com
300 - 3920 Norland Avenue Burnaby, BC V5G 4K7 (604) 683 - 1117 safer.ca
19520 Telegraph Trail Surrey, BC V4N 4H1 (604) 888- 9700 smsequip.com
SOUTHSTAR & QUADCO EQUIPMENT LTD. 728 Tagish Street Kamloops, BC V2H 1B7 (250) 828 - 7820
SURESPAN CONSTRUCTION LTD. 301 - 38 Fell Avenue North Vancouver, BC V7P 3S2 (604) 998 - 1133 surespan.com
T-MAR INDUSTRIES LTD. 5791 Duncan Bay Road Campbell River, BC V9H 1N6 (250) 286 - 9500 tmarequipment.com
14404 â€“ 128 Avenue Edmonton, AB T5L 3H6 (780) 566 - 8001 tirecraft.com
TRAXXON ROCK DRILLS LTD.
2093B South Wellington Road Nanaimo, BC V9X 1R5 (250) 755 - 2005 wajaxequipment.ca
WARATAH FORESTRY CANADA 930 Laval Crescent Kamloops, BC V2C 5P5 (250) 377 - 4333 waratah.net
WEST COAST TUG & BARGE LTD. PO Box 40 - Stn. A 1324 Marwalk Crescent Campbell River, BC V9W 4Z9 (250) 286 - 1234 westcoasttug.ca
WESTERN EQUIPMENT LTD. 114 - 5219 192 Street Surrey, BC V3S 4P6 (604) 574 - 3311
WESTERN OIL SERVICES LTD. 19840 57A Avenue Langley, BC V3A 6G6 (250) 382 - 5541
WESTERRA EQUIPMENT 31260 South Fraser Highway Surrey, BC V3V 2V7 (604) 850 - 7313 westerraequipment.com
WOODLAND EQUIPMENT 2015 West Trans Canada Hwy Kamloops, BC V1S 1A7 (877) 372 - 2855 woodlandequip.com
6951 Westminster Hwy Richmond, BC V7C 1C6 (604) 231 - 8888 worksafebc.com
2780 Norland Avenue Burnaby, BC V5B 3A6 (604) 437 - 7625 traxxon.com
Winter 2017 Truck LoggerBC 33
Donation to the TLA Forestry Education Fund RESERVED BID ITEM VALUED AT CAD $98,000.00 FELLING HEAD
The FD750 Felling Head is designed for the toughest falling
environments, for the largest sized stems with an optimum operating size of 24 - 40” in diameter. This heavy duty directional felling head is packed full of design features that set it apart from the competition.
DIMENSIONS & WEIGHT Weight including rotator top and link
Height in harvest position including rotator top and link
Maximum width with arms open
GRAPPLE SECTION Maximum grapple opening Minimum grapple closing diameter
BUTT SAW Southstar 3/4
Maximum cutting diameter
Dasa5 standard with detailed production reports
Optional additions: - Saw limiting allowing controlled backcut
Butt saw chain grease system
Continuous 360˚ rotation
Chain auto tension CONTROL SYSTEM
CARRIER REQUIREMENTS Size
20,000kg - 30,000kg
20 - 30 t
280 - 300 l/min @ 15 Mpa
74 - 79 Gl/min @ 2,175 Psi
Maximum pressure Optimum ﬂow @ pressure
Reserved Bid Item
MOST PRODUCTIVE TREE SIZE
TLA 2017 CONVENTION & TRADESHOW WESTIN BAYSHORE, VANCOUVER, BC • JANUARY 18 - 20, 2017
FRIDAY, JANUARY 20, 2017 • SUPPLIERS’ NIGHT DINNER & AUCTION LIVE AUCTION BEGINS AT 8:00 PM • FOYER - GRAND BALLROOM All proceeds after the reserve bid amount has been met will go to the TLA Forestry Education Fund
This item will be on display at the Southstar/Quadco booth 34 Truck LoggerBC Winter 2017
Interior Logging Association 59th Annual Conference & Trade Show “Women Working in the Forest Harvesting Industry”
May 4th, 5th & 6th, 2017 Vernon, BC
Vernon Lodge Hotel 3914 - 32nd Street Vernon, BC, V1T 1P1 Tel: 250-545-3385 E-mail: firstname.lastname@example.org
EVENTS: May 4th : Thursday Evening, Meet & Greet May 5th & 6th : Inside & Outside Displays, Kal Tire Place May 5th: Friday Luncheon, Dinner & Dance May 5th & 6th : Seminars (to be posted on website, interiorlogging.org)
For registration and further information, contact the ILA ofﬁce. Tel: 1-250-503-2199 E-mail: email@example.com
Winter 2017 Truck LoggerBC 35
FORESTRY EVENT Vancouver, BC Prince George, BC Victoria, BC Vancouver, BC Prince George, BC Eugene, OR Kwakiutl Territory, Port Hardy, BC Vancouver, BC St. Maries, ID Campbell River, BC Victoria, BC Vernon, BC Vancouver, BC Vancouver, BC Prince George, BC Port McNeill, BC TBD
Truck Loggers Association Convention and Trade Show Premier’s BC Natural Resources Forum Western Silvicultural Contractors’ Association Conference and Trade Show First Nations Summit Association of BC Forest Professionals Conference and Trade Show Oregon Logging Conference and Trade Show Aboriginal Business Match (TLA members receive 10% off the primary delegate registration fee) Council of Forest Industries Convention and Trade Show Intermountain Logging Conference and Equipment Show Association of Vancouver Island and Coastal Communities Convention Olympic Logging Conference Interior Logging Association Conference and Trade Show PwC Global Forest, Paper & Packaging Industry Conference Global Softwood Log & Lumber Conference Canada North Resources Expo Port McNeill Logger Sports Private Forest Landowners Conference
January 31 – Feb 2
36 Truck LoggerBC Winter 2017
Winter 2017 Truck LoggerBC 37
Vancouver, BC Tumbler Ridge, BC Powell River, BC Sandspit, Haida Gwaii, BC Napa, CA Squamish, BC Campbell River, BC Nanaimo, BC Port Alberni, BC Nationwide Vancouver, BC TBD Nanaimo, BC Vancouver, BC Nanaimo, BC Scottsdale, AZ
First Nations Summit BC Community Forest Association Conference Powell River Logger Sports Sandspit Logger Sports Pacific Logging Congress - Summer Board Meeting Squamish Days Loggers Sports Festival Campbell River Logger Sports, Campbell River Salmon Festival Nanaimo Logger Sports, Vancouver Island Exhibition Alberni Logger Sports, Alberni District Fall Fair National Forest Week Union of BC Municipalities Convention and Trade Show Federation of BC Woodlot Associations Conference Vancouver Island Safety Conference First Nations Summit Vancouver Island Economic Summit Pacific Logging Congress Convention
October, dates TBD
July 28 â€“ Aug 1
Making the Case for the Win-Win: Investing in Healthy Businesses
ast summer, David Elstone, RPF, TLA Executive Director, visited Port McNeill and the north Island to engage with TLA members. He invited me for breakfast and we talked about the challenges facing forestry today. As a new pickup drove by, we overhead guys at the table beside us remark, “Must be nice to be a rich contractor, being able to buy a new work truck like that.” David and I chuckled. Here was a challenge we knew well. This ingrained resentment of business reinvestment and success. Don’t get me wrong. I’m as competitive as the next person and I respect how this competitiveness drives our industry. It’s the very spirit that fueled forestry’s pioneers and ignites our renowned “can do” attitude. But I believe we undermine our collective future when we define our wins by others’ losses. We are all part of an interconnected supply chain that is far more complex and fragile than we realize. As such, I believe forest industry wins are better defined by successful people working for sustainable businesses in healthy communities. Unfortunately, there is disagreement, and even resentment within the forest industry, about what this success, sustainability and health look like. In January 2016, at the TLA conference in Vancouver, Mike Ward, General Manager for Western Forest Products, participated in a panel discussion about contractor sustainability. He described six key characteristics that Western Forest Products sought when selecting contractors and they resonated with me: 1.Vibrant safety culture 2. Strong management team 3. Healthy balance sheet 4. Client diversity 5. Viable succession plan 6. Organizational resiliency These sustainable business characteristics are not easy to achieve. They are the direct result of business owners who
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manage their risk with intention and purposefully reinvest their profits back into their businesses.
When my partner and I started Strategic Natural Resource Consultants 15 years ago, we were among the first round of licensee layoffs due to restructuring. Jobless and still new to our careers, we decided that we wanted to build the company we’d want to work for. We wanted to create a work environment where our crews were proud to work with Strategic every day, and our communities would embrace us for our contributions. To achieve this, we invest heavily in our people and the tools they need to be world-class: a strong culture of teamwork and performance, continuous training and development, professional office spaces, leading-edge technology, career diversity, safe and reliable equipment, competitive compensation and benefits, and a strong community connection. As a result, we have smart, driven people doing great work for our clients who, in turn, treat us like partners in their success. While there are many people who appreciate what our company does, Strategic has been criticized for having “too much overhead, too many iPads, too nice trucks and too nice offices”. Allegedly, we also “blow too much money on training our people” and my volunteer roles with ABCFP, CIF and CFBC are “wasteful”. I realize it’s a matter of perspective, but I disagree. These decisions do impact our bottom line. Fortunately for us, our shareholders—my business partner and I—support these decisions because we are in it for the long haul. The impact on the bottom line is negative in the short-term… but positive in the longer term. We believe that by playing the long game, it will ensure: • employees have long-term and rewarding careers,
• our clients have continuous improvement in timing, quality, cost and risk mitigation, and • our communities have businesses growing and supporting each other. But we know we can’t do it alone. Our business is predicated on growing a win-win relationship with our clients at all times.
Building Win-Win Relationships
In a win-win strategy both companies agree that compromise and cooperation must be more important than competition. As a result, significant energy is invested in developing creative, integrative solutions to complex issues. Culturally, this philosophy is most often seen in countries such as Sweden, Japan and Canada. It is also known as “shared value.” Conversely, a win-lose strategy focuses on achieving immediate goals with little regard for building future relationships. Little energy is needed for resolving these types of conflicts because creative solutions are rarely considered. Culturally, this philosophy is common in business practices in countries such as China, Russia and Middle Eastern countries. In a global economy, it’s normal to see other cultural business practices influence how we manage our own businesses. Although Canada is listed as an adopter of the win-win strategy, I believe our industry tends to get caught up in the win-lose mindset as evidenced by the new truck comment David and I overheard. But things are evolving in forestry. BC Timber Sales, through industry consultation with its contract advisory committee (BCAC), is piloting a procurement process with reforestation contractors that recognizes the value of experienced, successful, sustainable companies and allows this to be priced into bid submissions. Some business areas also use procurement methods (Continued to page 51)
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WALCO RADIO 707 SARCEE STREET EAST KAMLOOPS, BC 250.372.0054
COAST MOUNTAIN WIRELESS 3650 RIVER DRIVE TERRACE, BC 250.638.0577
TOM HARRIS (BANKS CENTRE) 2447 HIGHWAY 97 NORTH KELOWNA, BC 250.861.8848
PETRON COMMUNICATIONS 11315 ALASKA ROAD FORT ST JOHN, BC 250.785.3333
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Winter 2017 Truck LoggerBC 39
Different Contracts, Different Experiences: Leveling the Playing Field through Changing Contracts
ontracts between licensees and timber harvesting contractors tend to include difficult to understand legal language and are hard to amend as the work unfolds and project parameters change. This is impacting contractor sustainability across the province. One way to address this issue is to look at the type of contract contractors work under, who writes it and how it impacts work on the ground. The forest profile isn’t uniform and the rate structure within contracts should consider all the different conditions. Factors include whether its old-growth or second-growth, volume per hectare, topography, yarding distance, hauling distance, the measure of mechanization, and remoteness. All criteria need to be considered and then used to populate
40 Truck LoggerBC Winter 2017
a matrix to formulate a rate. Once the rate is negotiated, it forms the basis of the contract. It’s a question of who writes the contract and whose interests it protects. It’s been my experience that the contract is typically prepared by the forest land owner who has a much more sophisticated business. Also, their interest is a fixed cubic metre price for logs delivered. The contractor’s business model, however, works on the amount of capital employed in their assets and the utilization they derive from them. This contributes to their margin. Labour and supplies are a variable cost, though the capital costs are fixed. The capital unit costs are based on the hours of use over a lifecycle and what use can be reasonably expected over a year.
In a contract, there are a series of conditions discussed and agreed upon to arrive at the rate. But what happens if the conditions change? Changes in the conditions of the work can create an impact on the margin. It’s my experience that typical forestry contracts can contain a phrase such as “The licensee reserves the right to change the log utilization specifications for market conditions”, or a force majeure clause. For example, if log utilization moves from 6” top diameter on hemlock, balsam and spruce to 10” or 12” diameter, it can significantly change the volume per hectare removed from a block, which in turn impacts on productivity of falling, yarding and processing. Also, a decrease in overall volume harvested can further impact mobilizing and de-mobilizing
costs that may have been embedded into the rate structure. In today’s contracting world, contractors typically have little opportunity/ ability to address a change in contract conditions nor can they afford to stop work in the examination of the change. Moving a crew out of a remote camp can cost $20,000, shutting down a camp can cost substantively more. Equipment idling creates a further financial impact. The forest owner is not impacted by these changes as their contract is fixed to a delivered log price. This single reality is having a significant impact on contractor sustainability province-wide. Could a new contract environment mitigate these issues and could it lead to balancing the interests of both the timber owner and the contractor? The construction industry uses the stipulated price contract or CCDC2 which is a standard prime contract between owners and prime contractors that establishes a single, pre-determined fixed price (or lump sum), regardless of the contractor’s actual costs. The CCDC2 is much more comprehensive than logging contracts today and
it has mechanisms built in to adapt to changes in conditions. There is a Notice of Change mechanism, which gives both parties the ability to review condition changes and determine the impact on costs. If significant, this leads to a Change Order which is the process to modify the contract rate. These events have time limitations which if not met, can lead to a Stop Work Order. A work stoppage is defined in the contract terms and allows for the idle costs of equipment and crew to be charged back to the project. In the case of forestry, the project would be the defined work in the contract and could have an impact on the delivered cost of logs. The CCDC2 is a sophisticated—but well established—contract arrangement that stresses clarity and simplicity of language. They are drafted in a style intended to be easily understood by all parties and use terms and expressions familiar to the industry.1 It certainly balances the interest between the parties much more than the current forms of forestry contracts and may be worth considering as one way to build contractor sustainability which is key to maintaining a healthy forest industry in BC.
The forest worker is the back bone of BC’s resource-based communities and they are dependent on the stability of their employer—the small independent contractors who deliver 90 per cent of all coastal logs. Over the past two decades, the forest industry has retooled and refocused in reaction to the changing market conditions. But in the face of these changes, many contractors are unable to run sustainable businesses as measured by the rate of return they realize on the capital they invested. Changing the type of contracts contractors work under, who writes it and how it impacts work on-theground could play a major role in building contactor sustainability and leveling the playing field. Tom Olsen is a Past President of the TLA and owner of Triumph Timber which operates on the mid and north coast of BC. 1 A guide to the use of the CCDC2 1994 stipulated price contract: http://www.schuettlaw.com/
Productive & Safe Felling on Steep Slopes WITH ROB! THE TWIN ROPE WINCH-ASSIST SYSTEM UTILIZING THE MOST STABLE ANCHORING MACHINE AVAILABLE – A BULLDOZER Low center of gravity & dozer blade fairleads that allow a wide 45° felling pattern and more wood on the ground Dynamic tension & rope control with multiple safety redundancies Minimal footprint & soil disturbance for year-round logging in the wettest conditions
Kaelyn Sanders 250-246-1414
www.remotebulldozer.com Winter 2017 Truck LoggerBC 41
Broadening our Understanding: First Nations Cultural Values
By Ian MacNeill
We often hear the expression “cultural values” when attached to the way First Nations view and practise forestry, but what does it mean? To find the answer we spoke to members of First Nations’ communities in British Columbia. Here’s what we learned. Photo courtesy of Paul Joseph/UBC Communications & Marketing
ting the books, studying ethnobotany and biochemistry, fisheries and geology. Fortunately, the opportunity is there for young people from First Nations to do all that. “The range of programs they offer in the faculty of forestry here at UBC encompass everything we talk about in terms of cultural respect for the forest,” he says, adding that with the pressures of development in traditional territories now is the time for young people to pick up the educational torch and carry it forward. “With the dams and pipelines and importance of water it’s vital that we all get involved,” he says.
Larry Grant, Musqueam First Nation, Vancouver
42 Truck LoggerBC Winter 2017
Mic Werstiuk, Westbank First Nation, Westbank
Mic Werstuik has spent his entire working life attached to the forest, whether it was as a young man doing silviculture contracting or later on managing the Westbank First Nation’s economic development company. He says there is obviously a business side to forestry, but you can’t lose sight of the eternal forest for the trees you want today. “We need to be successful, but success is also about incorporating your cultural values in the process.” That can mean many things, from identifying traditional-use areas to engaging in longterm planning that benefits the entire community. “As we go about our work we are always asking ourselves the question: what other values are here and how can they be incorporated into the process. “In some cases it might mean an area is off limits entirely because of its
Photo courtesy of Connie Davis
To Larry Grant, a member of the Musqueam Nation and Elder-in-Residence at UBC’s First Nations House of Learning, the forest is a sacred trust; something we have the right to use and enjoy, but which we also have a duty to pass along to future generations for their use and enjoyment. “For me, cultural values means respecting the forest as a natural resource in its own state as well as for the many things that it gives us—wood for building our homes, clothing, utensils, medicine, food.” It’s also a sanctuary; an abode of peace and spiritual regeneration. “It’s a place of amazement where you can rejuvenate your spirit and sense of amazement,” he says. In the modern world, preserving it for future generations means acquiring a better understanding of it, and that means hit-
cultural and historical significance, but that’s how you preserve your culture,” he explains, adding that he can only shake his head in disbelief when people say that forestry is a dying industry. “There are so many opportunities in so many areas, including biology, hydrology, engineering, planning management. Logging is the easy part,” he says chuckling. “People in our community used to have to go away for extended periods of time to find work, but the trees we grow here are just as good as they are anywhere else, maybe even better.”
Yvette John, Chawathil First Nation, Hope
Yvette John spends a lot of time in the forest. During the week she’s an archaeologist, inspecting forestry blocks in
areas slated for harvest in search of culturally modified trees or remnants of pit houses, ensuring that all signs of previous habitation are duly noted. “We find quite a bit,” says the member of Chawathil First Nation who is also known for storytelling, Salish weaving, spiritual cleansing, and the sweat lodge ceremony. When she’s not “watching what’s coming out of the ground” she’s just as likely to be in the forest as well, poking underneath the canopy for traditional food, herbs, and most especially, medicines—coltsfoot for colds, Solomon’s seal for bones, devil’s club for diabetes. When she finds them she often trades for other medicines with First Nations tribes throughout North America, most recently Hopi and Navajo in Arizona. When she does this she’s better known as White-PlumeWoman, meaning “close to the heart.” It’s a skill she treasures, in part because of its value to herself and her people, in part because she learned it the old fashioned way, from her mother, who learned it from her mother. “The forest is a provider,” she says. “On a spiritual level the forest allows you to become one with the land.” She likes to see young people take an interest in it on any level, knowing that to do so helps ensure the very survival of her people, their way of life. She’s encouraged that young First Nations are deeply interested in the knowledge she carries, which she’s happy to pass along in summer workshops. “Children are always looking for something,” she says. “The search sometimes gets distorted into addictions, but the answer to what they are looking for is in themselves, and the forest is where they can find it.”
Stu Michel, Upper Nicola Band, Quilchena
For Stu Michel, forestry supervisor for the Upper Nicola Band, cultural values are about establishing a balance. “There are a lot of things to consider nowadays in forestry,” he says. “Obviously you have to make money, but you also have to consider the impact of what you are doing.” When deciding where to cut and how, he starts by trying to determine how what he is doing will affect the animals that live in the forest and the waterways that pass through it; it makes no sense to destroy rivers you rely upon for food, that the salmon that spawn in them rely upon for survival. “It’s important to understand what it’s going to look like after the logging part,” he says. “It’s about respect for the land. We’re constantly trying to straddle the cultural and forestry part; it’s a fine line.” Michel recently acquired his provincial survey accreditation and says he’s spending more time considering what comes next. “A lot has been logged off already so there needs to be more capacity to do siliviculture,” he says because after all, the children born today and their children after them will need to find sustenance from the forest as well.
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National Show Manager
firstname.lastname@example.org Toll-Free: 1.888.454.7469
The TLA is focused on building mutually beneficial First Nations partnerships. We’re doing this by acknowledging rights and title and engaging First Nations leadership and their communities. However, another important aspect of relationship building is broadening our own understanding of First Nations culture. This is by no means the final word of First Nations cultural values but a place to start the conversation.
Winter 2017 Truck LoggerBC 43
44 Truck LoggerBC Winter 2017
TLA Membership is Growing Community by Community By Sandra Bishop Knock, knock. Who’s there? Powell River, Campbell River, Port Alberni, Port McNeill and Port Hardy.
ast year, BC’s coastal forestry communities came knocking on the TLA’s door, but it was no joke. In a show of persuasive solidarity they asked to join the TLA. Why? Because they wanted to be a part of the TLA, the way its independent harvesting contractors and related businesses are an intrinsic part of their communities. So the TLA made some changes to its bylaws and has now welcomed all five communities into its fold. It would take a coin toss to settle who came first, but one thing’s for certain: all
the mayors of these communities claim their own community is the crown jewel of forestry. “For over a hundred years now forestry has been important to our community,” emphasises Mayor Dave Formosa of Powell River. “We have a lot of forestry jobs here. TFL 39 is a major component of Western Forest Product’s basket and we think it’s a jewel in the crown.” “The north Island is the second largest forested area in the province next to Prince George,” boasts Mayor Shirley
Ackland of Port McNeill. “I really do believe that this is the bastion of the best forests in BC.” Mayor Andy Adams of Campbell River tells us the central coast, “now has the protection of the most pristine and environmentally sensitive areas possible, but it also has certainty for the sustainability of the forest industry. I think the Great Bear Rainforest is an example of where you can create a balance between two conflicting perspectives so everybody wins.”
Winter 2017 Truck LoggerBC 45
All these mayors unanimously agree on one thing: It’s critically important for local governments to fully understand and appreciate the impact of the forest sector on their communities and on the province of BC, and that’s why they joined the TLA. Mayor Adams spearheaded the movement for other communities to join. “We had the support of the Truck Loggers Association for a number of years and really felt that it was important for us as local government to be members, as we have as much of a vested interest in the industry as the contractors and forest companies. We’re elected to represent members of our community and the forest sector is certainly an integral part of our community, so we felt it was important for us to be there and stand up and speak on their behalf.” The TLA continues to create stronger links between coastal communities and the provincial government that, hopefully, will lead to improved understanding between all stakeholders in BC’s coastal forest industry. Mayor Ruttan illustrates, “The TLA has a really good relationship with our pro-
vincial government. It has a lot of influence. And the TLA helps get the ongoing message to the provincial government about how critically important forestry is to the whole provincial economy.”
live and work. In many ways, their problems are our problems—our victories, their triumphs.” According to Campbell River’s mayor, aquaculture and forestry are the two
79 per cent of the population of Port McNeill still derive their income from the forest industry. Mayor Ackland said it was a no-brainer for Port McNeill. “I think the Truck Loggers Association recognizes and is at the forefront of a lot of the issues facing the industry. They positively promote the local industry and they’ve also supported a lot of innovation here.” Contractor sustainability is at the forefront of the TLA’s efforts to create and maintain a healthy and sustainable industry that supports coastal communities. This one issue threatens the whole industry, but also the stability of communities from an employment and economic perspective. TLA Executive Director David Elstone likes to say, “The TLA shares a unique bond with local governments in the communities where our members
main resource sector job creators for his community “and the entire north Island. There’s no question Campbell River is the centre for the coastal forest industry, and it has been a key economic driver for our community for decades. We are still the centre for head offices for the majority of the major forest companies on the coast and also for the independent contractors.” In Port Alberni, the forest industry is “our largest employer and generator of income for our businesses in this area and, in fact, because of that—property taxes for the City of Port Alberni. The economic benefits that flow to the city from the truck loggers and all things forestry is huge, so we need to make sure that as a city we fully participate in all
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46 Truck LoggerBC Winter 2017 LAYOUT-1.indd 1
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activities related to forestry,” says Mayor Mike Ruttan. “Locally, 2,500 jobs, directly and indirectly, flow as a result of the forest industry.” “Port McNeill relies on the forest industry for our economic well-being,” points out Mayor Ackland. “In our last economic development plan which was done in 2014, the consultants identified 79 per cent of the population of Port McNeill still derived their income from the forest industry.” Mayor Formosa expounds, “Hundreds of people in Powell River work in the forest industry and they’re high paying jobs, solid jobs—they have pensions, they have benefits. You can own the house, the car, the boat and live the dream with a good forestry job, and we still have them here. With the baby boomers aging out, there’s lots of opportunity for the younger folk to step into the industry.” Mayor Ruttan wholeheartedly agrees. “There are lots of incredibly bright, skilled, well trained people in this Valley and in this industry that have the knowhow. We can take wood fibre and turn it into bodies for cars and planes. We can
refine wood fibre and use it for jet fuel. We’re only limited by the extent that we want to push those R&D boundaries.” The mayor is excited about Cantimber Biotech, a new start-up company that makes activated carbon from woody material left over from harvesting in the Alberni Valley. “Initially, Cantimber was thinking that 100 per cent of their product would be sold to Asia and they found that 100 per cent of that product is actually needed in North America. It has huge potential.” These community leaders believe in the future of forestry, but acknowledge the need for more training and education to fill the projected skilled labour shortage of 25,000 jobs over the next decade. Local governments view this as an opportunity for communities. Mayors are quick to recognize the TLA’s support of education and training programs that ultimately enables “young people who want to move to their communities or stay and raise their families to be skilled and equipped with well-paying jobs.” Communities are ready to welcome them. “This is a place where many young people want to move to because
it’s a place where you have tremendous opportunities for families at a relatively reasonable price,” notes Mayor Ruttan. “We have incredible location and liveability, great climate, great opportunity and a city that can easily handle more people.” Mayor Ackland is proud of the industry’s contribution to her community. “In Port McNeill our eco-tourism industry and forest industry understand that we rely on each other for both to remain bright and sustainable going into the future. The best environmentalists are the loggers themselves. They understand the cycle of a tree, the growth, the area, the soil in which it grows, the climate that affects the trees and the need for tree planting to sustain this beauty.” “It’s good to know communities recognize that forestry is a part of their heritage as well as their future, and are standing up and joining with us. Welcome to the TLA,” says Elstone.
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Winter 2017 Truck LoggerBC 47
Contractor Sustainability: A Third Party Perspective on a National Issue
By Jim Girvan
For the rest, rates were either stagnant (28%) or had declined somewhat (23%). Just over eig were either too new to have a trend or preferred not to say.
On the cost side of the equation, the cost of gear (equipment) is way up and climbing. The cu the rising cost of equipment is almost as clearâ€”the strength of the US dollar.
We would like to thank Scott Jamieson of Canadian Forestwere Industries and WoodBusiness.ca for their In the 2016 survey, loggers asked how much their main cost centers changed in 2015. A support in allowing us to share the highlights of their recent 2016 Canadian Forest Industries Con-with almost two results show below, the cost of machinery and parts/service have increased, tractor Survey. For full results of the survey, reporting see http://www.woodbusiness.ca/harvesting/loggingrespondents that these costs have increased significantly. Labour was a distant thir profiles/a-breakdown-in-relations-3656. a quarter reporting a significant increase in this area.
hen we talk about contractor sustainability, what do we really mean? Sustainability by definition concerns the specification of a set of actions to be taken by present persons that will not diminish the prospects of future persons. Letâ€™s think about that. A set of actions taken by present persons (and in this case, it is the contactor community and the licensees they work for) that wonâ€™t diminish prospects for future persons (in this case that is the same two groups). It is fair to say that when it comes to contractor sustainability, the contractors themselves are trying to ensure that they remain viable and that in the future they can continue to operate their businesses, replace equipment, hire and train workers and deliver logs to licensees. From the licensee perspective, one would think that they too would have the
48 Truck LoggerBC Winter 2017
objective of the ensuring thatalso their contracbusinesses, replace equipment, hire andof compan Loggers on BC coast pay the highest operator rates in Canada. Regardless tors remain sustainable and that in the train workers tocontractors them? above $30/hour are a western phenomenon, with 76 perand centdeliver of BC logs coast paying future So why is it that contractor sustainabilrates. they can continue to operate their
ity has become such an issue in BC and what actions are being taken by the parties who are contributing so significantly to the lack of contractor sustainability? The recent 2016 Canadian Forest Industries Contractor Survey found on www.WoodBusiness.ca sheds some light on the issue. Based on the 2016 survey, logging contractors across Canada continue to Demographics of the coastal workforce are also challenging. Given the company size and equipment struggle with stagnant logging rates, investment, it is not surprising that contractors on the BC coast also skew older than the Canadian climbing machine costs and staffing challenges. these issues is having average. Two thirds (67%) of Coastal loggers are 46 years or older. That compares to 56 per Each cent of across a negative impact as contractors struggle Demographics the coastal workforce areinalso Given the11 company and equipment Canada, signs of a of national workforce in general badchallenging. need of renewal. Only per cent size of coastal to remain sustainable. In fact, those on contractors are it under 35.surprising that contractors on the BC coast also skew older than the Canadian investment, is not the coast feel they have seen their maraverage. Two thirds (67%) of Coastal loggers are 46 years or older. That compares to 56 per cent across gins and mill relationships increasingly Canada, signs of a national workforce in general in bad need of renewal. Only 11 per cent of coastal strained in recent years, perspectives contractors are under 35. that have them questioning logging as a career for themselves and their families. Across Canada, only 41 per cent of As for profits, it is no surprise that BC coastal loggers fare poorly compared to thecontractors rest of Canada given saw a rate increase in the these factors. More than one in five (21%) claim to have made no profit last year.past That said, the While BC not great, that’s three years. coast sits in the middle of the pack for trends in logger profitability across Canada, where 44 per centthan of the BC coast, still marginally better loggers say profits were lower last year than three years ago. where just 39 per cent of contractors say they’ve seen a rate increase in the past three That compares When asked to define a fair profit margin range for established logging contractors, theyears. results were not harshly to the BC Interior, where surprising. Profit margin was defined as the per cent of EBITDA (earnings before income tax, debt and 63 per cent of loggers have seen a rate increase in the amortization) versus total revenue. past three years. For the rest, rates were either stagnant Country-wide, 44 cent of contractors felt that in 2016 a fair profit range lay between 15 declined per cent.somewhat (23%). (28%)11ortohad This sentiment varied slightly with company size. 54 per cent of the largest contractors, overwere either too Just overthose eight with per cent $5 million in revenue, felt this range was fair whereas a quarter (23 per cent) of all contractors feltorapreferred not to say. new to have a trend profit between 16the to 20 perapparent cent was when fair. the retirement and succession planningOn the cost loggers side of the equation, the That urgency is all more of coastal cost of gear (equipment) are considered. A whopping 50 per cent say it is very unlikely they will still be working as loggers in five is way up and climbing. The aculprit behind the rising Whentime, mill woodlands staff were looking asked the question, majority (55their per cent) felt that margin years’ and they are actively at same alternatives. (Nothe surprise given level of profitability cost of equipment is almost as clear— above 11 perrecruitment cent was fair, however, another 33regions, per centthe feeling only sixthat to 10 per cent was a fair profit and growing challenges.) In both BC sentiment logging is not a fit career the strength of the US dollar. margin an established for their for children is at leastcontractor. twice as prevalent as it is in other regions in Canada. the 2016 survey, loggers were That urgency is all the more apparent when the retirement and succession In planning of coastal loggers asked how much their main cost centres A whopping cent say it is very unlikely they will issue stillchanged be working asAsloggers in five Ifare we considered. use profitability as a proxy 50 for per contractor sustainability, then the overall becomes clear when in 2015. the results show far looking BC coastal contractors. As reported byalternatives. Aaron Sinclair(No of PNL Consulting intheir Prince George in years’at time, and they are actively looking at surprise given level profitability left, the cost ofofmachinery and parts/ the Summer 2016 issue of Truck LoggerBC in article, “Contractor Understanding service have increased, almost twoand growing recruitment challenges.) Inhis both BC regions, the Sustainability: sentiment that logging is notthe a with fit career thirds of respondents reporting that Numbers,” coastal contractor 4 to 6 per areregions the norm, levels which are well for their children is at leastprofits twice in asthe prevalent ascent it is range in other in Canada. these costs have increased significantly. below expectations in the CFI survey and well below the level Aaron suggests are need to remain Labour was a distant third, with only a sustainable operating on the BC coast. quarter reporting a significant increase in this area. The life/work balance may be better on the coast than their counterparts in the Interior or Alberta (at Loggers on the BC coast also pay the least while they run), but it is still nothing to brag about when trying to attract the next generation of in Canada. Rehighest operator rates loggers. Seventy-seven per cent of contractors on the coast are working over 46 hours for the gardlessper ofweek company size, rates above better part of the year. $30/hour are a western phenomenon, with 76 per cent of BC coast contractors paying those rates. As for profits, it is no surprise that BC coastal loggers fare poorly compared to the rest of Canada given these factors. More than one in five (21%) claim to have made no profit last year. That
Winter 2017 Truck LoggerBC 49
said, the BC coast sits in the middle of the pack for trends in logger profitability across Canada, where 44 per cent of loggers say profits were lower last year than three years ago. When asked to define a fair profit margin range for established logging contractors, the results were not surprising. Profit margin was defined as the per cent of EBITDA (earnings before income tax, debt and amortization) versus total revenue. Country-wide, 44 per cent of contractors felt that in 2016 a fair profit range lay between 11 to 15 per cent. This senti-
ment varied slightly with company size. 54 per cent of the largest contractors, those with over $5 million in revenue, felt this range was fair whereas a quarter (23 per cent) of all contractors felt a profit between 16 to 20 per cent was fair. When mill woodlands staff were asked the same question, the majority (55 per cent) felt that a margin above 11 per cent was fair, however, another 33 per cent feeling only six to 10 per cent was a fair profit margin for an established contractor. If we use profitability as a proxy for contractor sustainability, then the over-
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50 Truck LoggerBC Winter 2017
all issue becomes clear when looking at BC coastal contractors. As reported by Aaron Sinclair of PNL Consulting in Prince George in the Summer 2016 issue of Truck LoggerBC in his article, “Contractor Sustainability: Understanding the Numbers,” coastal contractor profits in the 4 to 6 per cent range are the norm, levels which are well below expectations in the CFI survey and well below the level Aaron suggests are needed to remain sustainable operating on the BC coast. The life/work balance may be better on the coast than their counterparts in the Interior or Alberta (at least while they run), but it is still nothing to brag about when trying to attract the next generation of loggers. Seventy-seven per cent of contractors on the coast are working over 46 hours per week for the better part of the year. Demographics of the coastal workforce are also challenging. Given the company size and equipment investment, it is not surprising that contractors on the BC coast also skew older than the Canadian average. Two thirds (67%) of coastal loggers are 46 years or older. That compares to 56 per cent across Canada, signs of a national workforce in general in bad need of renewal. Only 11 per cent of coastal contractors are under 35. That urgency is all the more apparent when the retirement and succession planning of coastal loggers are considered. A whopping 50 per cent say it is very unlikely they will still be working as loggers in five years’ time, and they are actively looking at alternatives. (No surprise given their level of profitability and growing recruitment challenges.) In both BC regions, the sentiment that logging is not a fit career for their children is at least twice as prevalent as it is in other regions in Canada. From Jamieson’s perspective and based on the results of their survey, contractors in all regions feel things are getting worse in the industry. But for BC coastal contractors, that feeling is much stronger for a few key reasons. Despite BC sawmill profitability having recovered somewhat from the depths of the 2009 recession and to a greater degree than many other regions of Canada, the same cannot be said for BC’s contractors. These contractors are large with a very specialized skill set needed to address the unique logging
experience on the BC coast. The size of these contractors is only comparable to that seen in Ontario. As a result, for those looking to exit, free capital is hard to find and for those who have it, investing in logging, given the pitiful profit expectations, is virtually impossible. This hamstrings coastal contractor succession and puts the entire industry at risk. The unique skill sets needed to work on the coast are also preventing any meaningful recruitment from other areas of Canada. As a result, even worker succession is a problem. The bottom line is that “being a logging contractor anywhere in Canada is not a good business model today,” laments Jamieson. “That said, sawmilling is not particularly great either, but in BC (like many places in Canada), contractors are on the short end of the stick because they have no leverage against large forest managers. And with no motivation to improve efficiency for fear of counterbalancing rate reductions, there has been “a slow death of innovation” in the sector across Canada. This sentiment was echoed often in the comments section of the survey, where contractors across the BC coast echoed these thoughts on mill/logger relations. “The adversarial relationship between contractors and licensees is a major distraction for both parties. It is preventing both from collectively working on improving efficiencies in the supply chain. Failure to change this will continue the trend of the coastal forest industry becoming increasingly uncompetitive in the global market.” (Continued from page 38) such as requests for proposal that allow for the consideration of variables that ultimately drive sustainable success and win-win opportunities. In these examples, there is acknowledgement that cheapest is not necessarily the best value nor the best path to achieving long-term success. Yes, cost matters…but value matters more. When contractors are derided or punished for having invested in their people, equipment and facilities rather than objectively evaluated for their strengths in important areas like Mike Ward described, we do our entire industry a disservice and set it on a selfdestructive path.
In my experience, it’s those contractors (and licensees) who live in our rural communities, invest in their people and businesses, and create positive relationships far more robust than just rate schedules and contracts, who have shown they are in it for the long term. They are the ones who will work with licensees, government and First Nations to create an industry that is more about transformation than transaction. We shouldn’t resent companies who invest in their people, their equipment, their businesses and their communities—we should champion them. Like
many of you, I believe that the future of BC forestry is worth investing in and I’m in it for the long run. Jonathan Lok, RFT is a Managing Partner with Strategic Natural Resource Consultants, one of Western Canada’s largest professional forestry planning firms. Jon is a past president of the Association of BC Forest Professionals, the Canadian Institute of Forestry and the Consulting Foresters of BC and lives in Port McNeill, on northern Vancouver Island.
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52 Truck LoggerBC Winter 2017
Round Two: Bugs 1, Forests 0 By Robin Brunet
Observing the trucks too was Heather Wiebe, Omineca Spruce Beetle Project Manager for the provincial government, working out of Mackenzie. “The mid-term timber supply we rely on is being threatened
he last thing anyone in the Interior wanted to see in late October was the sight of trucks laden with beetle-infested spruce trees bound directly for mills. Forestry-dependent communities that had weathered the devastation caused by the mountain pine beetle now face another assault, this time from the spruce beetle, an insect that’s targeting the green timber left untouched by its voracious relative.
fire,” says Wiebe. “If we don’t act now and decisively, it could become a major problem, and this we can’t afford considering the damage already inflicted on our forests by the mountain pine beetle epidemic.” Indeed, data from Victoria
The mid-term timber supply we rely on is being threatened by another potentially major beetle infestation. by another potentially major beetle infestation,” she says. However, as unsettling as trucks carrying infested wood may have been to observers, it was the beginning of a concentrated effort to nip the problem in the bud. “At present, what we’re doing is the equivalent of putting out a small
shows a 35 percent increase in damaged forest in 2016 over the year before. Concern over the troublesome spruce beetle populations kicked into high gear earlier this year, when a provincial survey of spruce stands in the Omineca region north of Prince George showed its population to have swelled Photo courtesy of Minister of Forests, Lands and Natural Resource Operations
Winter 2017 Truck LoggerBC 53
Photo courtesy of Minister of Forests, Lands and Natural Resource Operations
The spruce beetle is somewhat stouter so they can’t move over large geographical areas by being picked up by air streams like the mountain pine beetle. from 76 square kilometres of timber in 2013 to 1,560 square kilometres. In total, 210,000 hectares have been damaged by the bug in the Omineca region (up from 156,000 in 2015), and over 137,000 hectares have been damaged in JB BenProg Ad Nov2012-OUTLINED.pdf Prince George.
Prince George, Vanderhoof, Mackenzie, and Fort St. James have been identified as the most affected communities. There are 15 sawmills, two pulp mills, and three pellet plants operating within this broad geographical region—Canfor, 12-11-08 2:48 PM Conifex, Sinclair Group Forest Prod-
ucts, and BC Timber Sales are the biggest players. While the spruce beetle has certain characteristics that make it easier to eradicate compared to the mountain pine beetle, its destructive potential is no less severe: an infestation ending in the late 1990s in Alaska had spread to 900,000 hectares, and in Colorado over 150,000 hectares are currently infested. “The situation in BC is that we’re right at the brink of the spruce beetle population rocketing,” says Wiebe. Tim Ebata, the provincial forest health officer for the BC Ministry of Forests, Lands and Natural Resource Operations (MFLNRO), says the beetle’s potential for devastation is exacerbated by “the timber supply shortage, especially in Prince George,” where the allowable annual cut—the largest in the province—is expected to drop from the current 12.5 million cubic metres to 6.2 million cubic metres in 2020. Biologists blame the onslaught of the spruce beetle in 2016 on what they call an “acute stress event”, i.e.: warm winters that enable the beetles to complete their development over a one year period in-
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stead of two, combined with drier summers that weaken the spruce trees and make them more vulnerable to attack. And the infestations are insidious. “The beetles are hard to detect because they gather on the underside of downed timber,” says Wiebe. “When they jump into the standing trees, the trees’ needles don’t turn a telltale brown until a year or even 18 months later—by which time we can be multiple generations into the outbreak.” With time being of the essence, MFLNRO allotted $1 million in new funding for an aggressive control program earlier this year; detection efforts were increased, a government task team was assembled, localized working groups with government and licensees were mobilized, and a public advisory committee was struck. Although Sara Cotter, Canfor’s Prince George-based planning coordinator, declined to be interviewed about the control program by Truck LoggerBC (deferring instead to MFLNRO representatives), in October she told local media, “We’re in much more complicated areas: there are a lot of other non-
timber values in areas where we’re seeing the spruce beetle. Patch cuts, strip cuts, clear cuts, we’ve been considering ways to practice alternative silviculture strategies so that we can deal with [the infestation] in some areas.”
laden trucks were attracting attention as they made their way out of Mackenzie, Wiebe took time out to assess the control program’s progress. “Helicopter surveys determined where the beetles have been, and now we have people in
Unlike the mountain pine beetle, which doesn’t exist in downed timber, the spruce beetle loves to reside in blowdowns. Wiebe agrees that extracting the affected wood “is a real balancing act in which wildlife conservation, old growth management, riparian retention, and fishery sensitive watersheds all have to be considered.” Discussions have even taken place about the viability in some areas of cable logging, a system that hasn’t been used in decades. “The trouble with that is there are very few cable operators left in the Interior,” says Ebata. “However, nobody has rejected the prospect of cable logging yet. If industry can make it profitable and the right people are found, it might happen.” In late October, when the spruce
the forest looking for the trees with living beetles within them,” she says. “So far we’re finding a lot of these ‘green attacked’ trees, which is troubling because the Prince George/Mackenzie TSA and the Lakes district are areas of mid-term timber supply.” At this early stage of the battle, it’s tempting for biologists and licensees to regard the infestation as a series of pros and cons. On the con side, and very much instilling a sense of urgency among licensees, is that the shelf life of spruce beetle killed trees is suspected to be only three to five years compared to the 15 year shelf life of a mountain pine beetle killed tree. “Licensees want
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to reach those stands as soon as possible and get them directly to the mills,” says Ebata. Another factor potentially on the con side is weather: at 16° Celsius, the beetles can take flight—which means everything from hauling to milling has to be conducted with a close eye on the temperature. “It’s a narrow window,” says Ebata. On the pro side, the spruce beetle is somewhat stouter than the pine beetle, the latter of which moves over large geographical areas by being picked up by air streams. “That doesn’t happen with the spruce beetle, thank goodness,” says Wiebe. Another plus is something that, if done properly, could turn the battle decisively in the licensees’ favour. “Unlike the mountain pine beetle, which doesn’t exist in downed timber, the spruce beetle loves to reside in blowdowns, so in April licensees will be cutting down large diameter, 80-160 year old spruce trees and putting them in the shade, where they’ll literally draw in beetles from an 800 metre radius,” says Wiebe. At the end of next summer and the
When spruce beetles jump into standing trees, the trees’ needles don’t turn a telltale brown until a year or even 18 months later.
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onset of cold weather, these ‘trap’ trees will be stripped of the infested bark and milled. “Surveys have determined where the ‘trap’ areas should be, and the process of falling the trees will be done during the course of a normal forestry program,” says Ebata. While Ebata is careful not to suggest that success is a fait accompli, he can’t
summer, so we’re crossing our fingers,” says Wiebe. And even if the weather behaves, logistical challenges remain. “It won’t be easy for mills that have been set up for small diameter pine to accommodate large diameter spruce,” says Wiebe. The larger spruce logs could also affect the equipment needs of contractors.
We need to remember the beetles are always there. They may not always kill trees but we need to act as if they’re going to very soon. help but compare BC’s efforts to that of the Americans. “The Alaskan infestation is huge, and one of the reasons it’s become such a problem is the infestations have occurred in national forests, where getting a cutting permit can easily take several years; here, we can obtain a cutting permit within a season— which has helped us enormously in this particular situation.” Still, the MFLNRO’s carefully laid plans could easily go awry. “Wildfires of the magnitude we’ve seen in recent years could completely derail us next
Ebata agrees that challenges abound. “Yes, a lot of reconfiguration will be required; but one thing I’m confident about is that the BC forest industry is very adaptable, and all of the companies affected by the spruce beetle are determining the best ways to adapt head rigs and re-tool operations.” For her part, Wiebe is cautiously optimistic about the outcome. “If all goes well, we’ll have mitigated the infestation, and the beetle population will be reduced to the point where it can be held in check by climatic conditions,
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predation, and a lack of susceptible host trees,” she says. As for the long term, Staffan Lindgren, a retired University of Northern BC professor, recently told delegates to a beetle summit in Prince George that different approaches to forest management must ultimately be taken to end bug outbreaks sooner. “We need to remember the beetles are always there,” he said. “They may not always kill trees, but we need to act as if they’re going to very soon.” Lindgren believes the government and licensees need to focus on what the beetle requires to survive: “If you create a monoculture, [the bugs] have a better situation and can do better; stand structure can be incredibly important.” Surely we have learned from the years of trying to manage and ultimately failing to ward off the devastation of mountain pine beetle. Hopefully, this time around we can succeed, simply because we must.
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Calling All Forestry Workers: Be an Ambassador for Forestry in Your Community By Pieta Woolley
ou work in the woods, so you already know that BC’s forest industry is sustainable and renewable. You see it every day. But ironically, out of the woods and in the small cities where most forest workers live, that good-news story often doesn’t get told at all. You care about your work. You also care about your neighbours. This article will give you some tools to talk about the forest so people who don’t know much about the industry will start to understand it—and your pride in your work—better. Here on the coast, older stands of timber (aka old growth) are is still an important component of BC’s working forest. The forest we’re allowed to harvest has shrunk significantly over the last 40 years. (The allowable annual cut has declined from 23.6 million m3/year to 16.5 m3/year between 1975 and 2015.) Reducing the working forest more negatively affects our rural towns and cities and BC’s economy as a whole. And, as you know, BC’s forest industry is a
world-class example of sustainable forest management. The Truck Loggers Association is working hard with communities and government to tell forestry’s good news stories. As people who work in the forest industry, though, you are on-theground in the places that matter most: small towns and cities that depend on a vibrant, sustainable forest sector. We know many of you are more comfortable out in the woods with the trees rather than talking about forestry at your local arena or pub. But we’re hoping you’ll chime in, with the help of this article, and let your friends and neighbours know why you’re proud of forestry and the work you do. And now, here are five ways to help your neighbours understand why, on old growth, the word of the hour is “balance.”
1. We balance the harvest and the conservation of all ecosystems including old growth.
Facts: On Vancouver Island, more than 500,000 hectares of old growth is fully protected, forever. That’s the equivalent of 27 Saltspring Islands. How Andrew Ashford talks about it: There are two very different ways to talk about old growth with people outside the industry, says Andrew Ashford, the Ministry of Forests District Manager for the North Island. First, technical. On Vancouver Island, 13.3 percent of public forests are fully protected from logging forever, in parks and protected areas—exceeding United Nations targets. And, when forestry professionals plan a cut block, provincial laws dictate that they must leave some trees as old growth management areas (OGMAs), meaning old growth is managed for throughout the Island—not just in pretty spots aimed at tourists, but remaining for other values as well. Second—and probably more convincingly, Ashford believes the root of the public concern is emotional, rather than technical.
Winter 2017 Truck LoggerBC 59
“I get it, I love old growth,” he said, mentioning that he sometimes looks at the landscape near Port McNeill where he’s based, and imagines the primeval forest as it once was. “Forests are very personal for people. Depending on where you’ve grown up and how much time you’ve spent in them determines what forests mean to you spiritually. Standing in a place with very large trees feels like being in a cathedral. It’s an amazing sight. [Harvesting old growth] is about a balance of values, determined by what the public expects. And I think we’re doing an excellent job.”
2. We need a working forest to have a forest industry. Facts: One in 25 Vancouver Island jobs is directly in forestry (http://www. cofi.org/wp-content/uploads/2015/01/ bc_industry_impact_01-2015.pdf )— supporting a huge proportion of the region. And, about one sixth of the timber available for harvesting on Vancouver Island is old growth. How Dallas Smith talks about it: Given his background, you wouldn’t expect Dallas Smith to support old growth logging at all. The 42-year-old grew up in Surrey—an urbanite. In his early career, he helped negotiate the celebrated Great Bear Rainforest Agreement. And, he’s Kwakwaka’wakw, a former director of the Nanwakolas Council. But he does support the working forest because jobs are so important to the North Island; he takes flack for it on Twitter, and elsewhere. “People think that if you’re First Nations, you have to protect every tree,” said Smith, who is now the provincial Liberal candidate for North Island-
60 Truck LoggerBC Winter 2017
Campbell River. “Protecting some trees is important, but there’s an economic side that my community needs.” Smith’s story gives him a unique insight into where the old growth conflict comes from. In cities, he said, many people are out of touch with the real economy of the province. In 2015, the provincial government collected over $800 million directly from the forest sector—an amount that does not include income tax paid by workers, or secondary industries. That’s enough money to fund the entire Legislative Assembly, Office of the Premier, and several entire government ministries together. That disconnect was laid plain, he said, at both the UBCM and the BC Chamber of Commerce, where urbanites voted on old growth, not thinking through the real costs to workers, their families and communities like his. “There’s a balance between ecology, economics and quality of life that needs to be there,” Smith said. “It’s like a threelegged stool. If it’s not balanced, it can get pretty wobbly.”
3. Communities need to find their own balance. Facts: There are no official statistics showing how much revenue big-tree tourism generates compared to logging some old growth—but local communities are proactively assessing it for themselves. How Hank Bood talks about it: At last September’s UBCM meeting, Port Hardy Mayor Hank Bood wasn’t impressed by the resolution to end all old growth logging on Vancouver Island. The gathering of municipal officials “isn’t a think tank,” he noted. And the resolution,
one of 178 considered at the three-day meeting, was decided in five minutes, he remembers—sandwiched between decisions about managing migratory geese, and preventing the spread of invasive mussels. For his community of 5,000 on the northern tip of the island, rooted in forestry with a fast-emerging tourism sector as the gateway to the Great Bear Rainforest, the question of how to value old growth isn’t something to grandstand about. Rather, it’s a serious question best answered locally. Claiming that “we don’t get in each other’s way,” Bood said his community is a great example of co-existing tourism, a wild fishery, aquaculture, and forestry. “I’m an optimist,” Bood said. “There’s room to preserve things that need to be preserved, and also to protect the dayto-day stuff, like livings for families and communities.”
4. First Nations stewardship must be acknowledged and respected. Facts: Forestry companies are increasingly owned by First Nations in BC. About 12 percent of the provincial cut is now managed by First Nations. (https://openparliament.ca/committees/natural-resources/41-2/48/keithatkinson-1/only/). How Robert J. Dennis Sr. talks about it: “None of them come to visit us to find out what we’re doing.” That’s Huu-AyAht Chief Councillor Robert Dennis’ main beef with anti-old growth activists on Vancouver Island. “I sit here in my office with no one knocking on my door. It’s people outside our territories trying to tell us how to run our affairs. It gets the hair on the back of my neck up.” The biggest business belonging to the Huu-ay-aht First Nation is forestry. A shake and shingle operation and a small log sort complement their harvesting operations, which are partly under the Maa-Nulth First Nations Treaty, and partly under provincial tenures. Old growth is part of their territory in Pacific Rim Park and several islands off the West Coast, plus TFL 44 and elsewhere. They’re managed under an assortment of provincial and treaty laws and plans, plus the Huu-ay-aht’s
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own five principals, representing community standards. “Please talk to us before making statements about how our land should be managed,” said Dennis.
5. Forestry is well planned and heavily regulated. Facts: This is not the Wild West. The VILUP is a multi-stakeholder agreement that governs old growth harvesting and protection. All forestry activities on Crown Land happen under the provincial Forestry Act. Problems are resolved through the BC Forest Practices Board. How Andrew Ashford talks about it: If there is public appetite for a different kind of approach to old growth, the way to address that is through revising the VILUP. However, he said, the agreement is worth respecting, as it is. In the post-Clayoquot era, Ashford explained that environmentalists, public advisory groups, tourism, business and First Nations came together to write the agreement. Any changes to it “should be discussed in public, and informed.” Not, in other words, quickly at the UBCM or
the BC Chamber of Commerce. Ashford is a registered professional forester. It’s a professional designation that requires a university degree, successfully completing a professional exam and two years of articling. These are the people who do the onthe-ground planning for cut blocks. Wildlife tree patches, visual quality, OGMAs, riparian zones and other conservation-related instruments are required when planning. “Forestry in this province is not perfect, and we’re not going to make everyone happy,” Ashford acknowledged. “But I’d say I’m really happy with the sector…. The reality is, we are going to have a vast amount of old growth distributed across Vancouver Island forever.” Hopefully, a few of these talking points resonated with you, and you’ll want to share them with your friends and neighbours. We at the Truck Loggers Association can’t emphasize enough how important these on-the-ground conversations can be, in maintaining a long-term, sustainable industry. So please share your story far and wide in your community!
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Urban vs Rural: Addressing the Emergency Transportation Gap
By Ian MacNeill
ccording to the Canada Health Act—the law of the land when it comes to health care delivery in Canada—all Canadians are supposed to have reasonable access to the same level of health care. If you live in a large urban area served by high-level trauma centres and a sophisticated transportation network and suffer a traumatic injury you can afford to take these rights for granted; state-of-the-art care is typically just a phone call and a few minutes away. However, as past studies have shown, and a new ombudsman’s report by the BC Forest Safety Council is reiterating, British Columbians who live and work in remote areas of the province are playing a kind of lottery when it comes to getting the health care they need and deserve when they are struck down with a heart attack or get their leg crushed by a falling log. Looking at a map it’s easy to see the
64 Truck LoggerBC Winter 2017
problem. British Columbia is an enormous and rugged landscape subject to extreme weather conditions. Population centres are small and spread out and it’s hardly reasonable to expect every one of them to have a Level III trauma centre staffed by specialized medical personnel.
is having a serious impact on the health outcomes of British Columbians injured or needing high-level care in remote locations. According to a 2014 study by Roberta Squire who produced a report on the subject while studying at the University of Northern BC, nearly three-
British Columbia is an enormous and rugged landscape subject to extreme weather conditions. But here’s the thing, no one has ever suggested that they should have one. What has been suggested on more than one occasion and is being called for in the ombudsman’s new report is an integrated helicopter emergency medical services network (HEMS) that could whisk trauma victims to appropriate medical care facilities in time to provide the kind of care the Canada Health Act says they are entitled to. Not having one
quarters of people who die of traumarelated injuries in northern BC do so before they reach a hospital; 82 per cent in northwestern BC compared with just 12 per cent in Metro Vancouver. These are the kinds of statistics that discourage people from wanting to live, work, and raise their families in rural BC says BC Forest Safety Council ombudsman Roger Harris. The tragedy, Harris adds, is that it
doesn’t have to be this way. Establishing the kind of HEMS network BC needs to extend appropriate health care to all residents of the province is doable with as few as eight heli-stations spread out around the province and transporting
accident site to care can take multiples of hours; Harris likes to tell the story of the woman who suffered a stroke in Ft. Liard. The BC Ambulance Service (BCAS) dispatched a ground ambulance from Ft. St. John, which took four
Alaska, which has a topography similar to BC’s...has 31 helicopters dedicated to emergency transportation. patients to medical facilities within the so-called “golden hour”, the amount of time research indicates leads to the best health outcomes. British Columbia is well behind the curve when it comes to establishing HEMS. “Minimizing the time from injury to optimal trauma care through the utilization of HEMS has been adopted as an essential component of emergency care infrastructures globally,” says Squire. Alaska, which has topography similar to BC’s but a population of 700,000 as compared with three million in BC, has 31 helicopters dedicated to emergency transportation. Washington State’s network guarantees that 100 per cent of the population is within one hour of a trauma centre. In British Columbia, the time it takes to get from
hours to get to her. “Halfway back they stopped for gas and coffee,” laments Harris. Total elapsed time was in the 10-hour range. “A helicopter could have done it in an hour.” So why doesn’t BC have a HEMS network serving remote communities and work sites in the province? “My perspective is that it’s all tied to budgets,” says Harris. “They’ve made cost decisions, and that’s not the right reason to make the decision.” Often getting caught in the middle of a frugal government and a faller with the crushed leg is the BC Ambulance Service. It is the provincial organization charged with getting patients to care when they need it. Harris says he has conducted numerous interviews with BCAS staff as well as interviews
with BC Emergency Health Services, and he’s come away discouraged. “In those interviews, every time, somebody in the organization would articulate the opinion that if you decide you are going to live outside large urban centres you can’t expect that you’re going to get good service, despite the fact that it is in their mandate to do just that,” says Harris. The result is a two-tiered system where emergency-response assets are concentrated in large urban areas where victims benefit from “tremendous” service and injury victims in rural BC where, more often than not, following injury they are left to rumble along secondary roads in ground-based ambulances on their way to care centres on journeys that take hours instead of minutes. Cost is obviously a significant component of any public undertaking and needs to be taken into account when considering the establishment of a HEMS network. However, studies indicate that while there are significant start-up costs in terms of infrastructure and personnel, the operational costs for helicopter emergency extraction and transportation are often significantly lower than they would be for ground transportation. Transporting Photo: iStock
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Who ya’ gonna call? Ed Wilcox of E&B Helicopters, a TLA member, has a soft spot for the forest industry. It explains why he always tries to keep at least one helicopter in Campbell River fueled and ready to go in the case of an emergency. “We do have situations where all 14 of our helicopters are working, but we don’t have any customers that wouldn’t get off on the beach to allow one to go to an emergency,” he says. Currently E&B is the go-to emergency air-transportation provider for more than 30 contractors on the coast and Vancouver Island. Here’s how it works. Contractors register with the company and then provide ongoing information related to where and when they are going to be working and what radio frequencies they will be using. Contractors pay E&B nothing for this service. Then, because E&B have coordinates and radio frequencies on file, when a call comes in Ed can dispatch the nearest helicopter and get the injured to care as quickly as possible. This year alone he has responded to nearly 30 emergencies including broken legs, saw cuts, heart attacks and two fatalities. He’s not running a charity, he can’t afford to. When a helicopter is called the meter starts running with costs ranging from $1,200 to more than $3,000 an hour depending on the situation and the machine. Despite the cost, contractors are grateful. “We’re lucky to have E&B,” says Adam Wunderlich, a managing partner at Fall River Logging in Courtenay. “Ed’s been a good corporate citizen to the forest industry.” At the same time, he wonders if the government and the industry as a whole can’t do more to support and enhance services like what E&B provides for his company. “I don’t have the answers, but the BC Ambulance Service does not have the capabilities to effectively respond to many forestry related emergencies,” he says. “I think with some effort and creativity we can make improvements to emergency response planning and transport systems that would help set up more contractors for success.” It’s clear the forest industry will be reading BC Forest Safety Council ombudsman’s report when it’s published with interest and with hope for the future.
trauma victims to what Squire refers to as “definitive care” appropriate to their needs using ground transportation often requires multiple ambulances routed through several hospitals and the use of numerous personnel. Helicopters take significantly less time and need far
ris. “A small but significant one in terms of what overall costs will be; that’s what’s missing from the current debate.” There’s also a humanitarian argument to make says long-time paramedic and freshman city councillor Rob Southcott of Powell River. “The BC Ambulance
An air transport network is the great equalizer for people in remote communities ensuring that they get equal and adequate access to health care. fewer personnel. After crunching the numbers Squire says some studies indicate that the annual cost of operating a ground-based ambulatory care is nearly 2.3 times that of helicopter emergency medical services. Add to that the better patient outcomes that result from earlier wound attendance by qualified personnel and reduced recovery time leading to fewer lost work hours because injured workers are able to return to their jobs sooner and HEMS starts to look like something of a bargain. “Transportation at the front end is only one component of cost,” says Har-
Service is willing to send helicopters to remote accidents that involve recreational users of all-terrain vehicles but the forest industry is expected to comply with regulations requiring it to deliver trauma patients with serious injuries to the nearest rendezvous point with BCAS. I do not think that is conscionable, particularly in an industry that is arguably the most dangerous in the western world.” It’s easy to point a finger at the BCAS, but the true responsibility for the current situation lies with the provincial government, which is charged with
complying with the Canada Health Act. The BCAS is responding to provincial legislation and operates with a mandate and a budget from Victoria. If any of this is going to change it is going to take political will and a review of the current legislation. “An air transport network is the great equalizer for people in remote communities ensuring that they get equal and adequate access to health care,” says ombudsman Harris. What that network would look like is yet to be determined, but Harris says it is likely to include a combination of publicly funded “dedicated” resources backed up by privatesector partnerships that can be used to fill in the gaps. “All injury victims in BC deserve to be treated as equals,” says Harris. “A functioning HEMS network would go a long way toward establishing that equality.”
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TM LASK ENTERPRISES LTD.
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Wishes for a prosperous 2017!
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Advertiser Index: Page #
Page # A&A Trading Ltd. A. Wood Bulldozing Ltd. BC Forest Safety Council Benwest Logging Brandt Tractor Ltd. Brutus Truck Bodies Canada North Resources Expo Cannon Bar Works Ltd. Catalys Lubricants Catherwood Towing CIBC Wood Gundy DLA Piper Edwards, Kenny & Bray LLP Enex Fuels Finning Gibraltar Law Group Globalstar Canada Great West Equipment ILA Convention Inland Group - Link-Belt Inland Group - Tigercat
4 47 16 15 9 & 68 57 43 56 46 66 57 61 55 19 6 & 68 69 39 & 68 12 35 2 71
Island Pacific Equipment Ltd. - ROB-Remote Operated Bulldozer Island Spring Ltd. Jardine Lloyd Thompson Johnstone’s Benefits Langley Excavator Parts Exchange Mike Hamilton Logging MNP LLP Nootka Sound Timber Co. Ltd. North Arm Transportation North Island Communications Oregon Logging Conference Pacific Blue Cross Petro-Canada / Coastal Mountain Fuels Pierce Pacific Manufacturing Probyn Log Ltd. Royquip Sibola Mountain Falling Ltd. Sladey Timber Ltd. TM Lask Enterprises Ltd. V.I. Equipment Ltd.
41 60 14 & 68 54 68 69 50 70 67 55 62 4 58 51 54 69 68 68 69 68
Waratah Distribution West Coast Tug & Barge Wesgroup Equipment - Doosan Wesgroup Equipment - Vermeer Western Oil Services Ltd. Westland Resources Ltd. Woodland Equipment Ltd. - Ecoforst/T-Winch Woodland Equipment Ltd. - Hyundai Woodland Equipment Ltd. - Hyundai Woodland Equipment Ltd. - Peterson WorkSafeBC
Page # 72 46 11 & 37 40 62 66 44 52 63 22 17
Winter 2017 Truck LoggerBC 69
(Continued from page 15) long-term area-based tenures featuring shorter rotation, more intensively managed plantation forests. Forest management activities in most developed countries are well-regulated whether the land is publically or privately owned. However, public ownership can result in increased emphasis on multiple objectives with timber production and availability becoming less certain increasing business risks and associated required returns. Initiatives aimed at providing improved certainty around issues such as confirming access to timber, timber pricing mechanisms, ensuring that the regulatory and taxation environment remains stable and competitive, etc. help to ensure businesses can make operating and capital spending decisions confidently. Fundamentally, the ability to add value to the province’s timber resource requires significant capital spending across the value chain which in turn requires industry players have the scale and financial health to access capital as well as the confidence to invest. I believe the coastal forest industry has reduced sawmilling capacity to match harvest levels as much as possible and the capture of potential synergies is now at a mature stage. However, despite the fact that domestic timber prices are meaningfully below US Pacific Northwest and Japan/Asia market prices, the industry has not been able to attract significant capital in the form of new converting capacity with the exception of a few materially advantaged rotary mills. In fact, effectively all sig-
nificant converters are now effectively running for cash as they further depreciate their asset base. This situation has persisted for over 25 years and reflects the historic surplus of uncompetitive legacy assets, complexities of the coastal species and grade mix, market access challenges, and a focus on maximizing long run sustained yield by continuing to target high cost, declining quality natural stands prior to moving more substantially to second growth. While there is a popular view that redistribution of tenure rights to a larger number of players would result in increased innovation and investment as put forward by Harry Nelson and Ngaio Hotte in their article, “Market Report: Competition and Investment in the BC Coastal Forest Industry” in the Summer 2016 issue of Truck LoggerBC, there is very little evidence that this would be the result. The key to seeing more capital investment will be finding ways for the government and industry to continue to work together to improve profitability and certainty. I expect this will be challenging over the next five years owing to additional costs in accessing the US market and declining markets for residuals. All levels of government and business should be cautious of introducing any additional costs to the business. Reid Carter is a Managing Partner at Brookfield Asset Management.
(Continued from page 17) d. Movement sensor(s) and other safety alarms 3. Equipment manufacturers’ designs: a. Emergency back-up systems (second cable, blade or other attachment, warning devices) b. Software solutions to spikes in tension through better synchronization between tracks and winch c. Tension monitoring and recording d. Lower tension in one of the two lines in twin-line systems to ensure engineering safety redundancy in case of main cable failure e. Rated components of the whole system (2:1, 3:1, or 5:1 safety factors vary by manufacturer) f. Controlled release vs sudden brake in case of failure 4. Research: a. Terrain and soil conditions and impacts on traction and stability b. Use of trees to change machine direction (siwashing) c. Anchor types and use of blocks d. Cable tension behaviour in relation to machine activity e. Extreme temperatures and the effects of snow and ice While it may be difficult to set universal rules for winch-assist technology due to the varying nature of forestry operations—constantly changing terrain, weather, surface and stand conditions; operator experience and aptitude; economic feasibility and accessibility; social acceptance and licence, varying environmental standards—it is certain that winch-assist technology will save lives in British Columbia. Dzhamal Amishev, PhD, is a harvesting operations researcher at FPInnovations. His main research focus is improving safety, increasing efficiency and reducing costs of steep slope forest operations.
JACQUI BEBAN VP Logging C 250.951.1410
#204 – 321 Wallace Street Nanaimo, BC V9R 5B6
70 Truck LoggerBC Winter 2017
STEEP SLOPE HARVESTING. THE PERFECT COMBINATION. Don’t settle for anything less than the perfect combination for steep slopes. The robust Tigercat 5195 directional felling saw is a perfect match for the quick, agile and powerful LS855D shovel logger. This versatile carrier-head combo is much more than a shovel logger. It can fell and pre-bunch oversize timber in steep terrain and can shovel log the most challenging parts of the cut block – forwarding wood to easier ground at the lowest cost per tonne. Call your local Inland store to find out how the LS855D directional feller, shovel logger or processor can help your bottom line.
CAMPBELL RIVER, BC
WILLIAMS LAKE, BC
PRINCE GEORGE, BC
FORT ST. JOHN, BC
Winter 2017 Truck LoggerBC 71
72 Truck LoggerBC Winter 2017
Published on Jan 5, 2017
The voice of British Columbia's forest industry - forest policy, new technology and challenges facing the industry.