How does industry rebuild? Some ideas

Last week, we reviewed factors that limit harvest sector capacity as the forest industry’s recovery strengthens. This week, we outline steps to help breathe new life into an ailing sector.

Expanding logging and trucking capacity to meet rising demand will take commitment from all levels to adopt new ideas and processes. There is no time for lengthy studies. The work has to start now, focusing on firming up the log-hauling and contractor bases before more leave for better-paying opportunities in other industries.
Here are some ideas to help stabilize the harvest sector and lead to rebuilding of capacity:

Loss of skilled workers -- Pay rates are a factor, but so is the industry’s stop-start nature. In a decade or so, we’ve gone from 170-plus operating days a year down to 110, and it isn’t all climate change. Log stockpiling followed by months of down time might save mills money, but it’s a prime cause of workers seeking steadier work elsewhere. A bit more mill yard staffing and some roadwork might be a good investment in keeping truckers and loggers in this industry.

Attitude -- Some forest companies see contractors and truckers as a liability – a cost factor. Others see them as assets and invest in them. Which attitude attracts and keeps contractors, especially now, with rising demand for logs and lumber?

Working together -- There could be much more cross-feeding of ideas and information on such activities as harvesting plans and block road layout. Loggers and truckers know the terrain well, and can often suggest ways to reduce costs for mill, contractor and trucker. It might cost more to build road in one area, but that cost may be offset by reduced machine and tire wear.

Rates, Rates, Rates -- Negotiations will flow more smoothly if rate and amount-of-work discussions for seasonal logging are scheduled well in advance of the planned start, with full block data provided, as required by Bill 13. Contractors and truckers should also be proactive, know their cost structure and be ready to discuss options. Rates are a bigger pressure point for contractors and truckers than they are for mills, which will continue to see gains in lumber prices.

Training – We need to develop specific training initiatives to grow more qualified truckers and machine operators. On the trucking side – the most pressing problem -- a log-hauling endorsement on top of a Class 1 driver’s licence would help develop a stronger trucking force more quickly. If we don’t accelerate training skilled workers immediately, our shortages will grow much worse.

Rules and red tape – The industry sectors and government need to review legislation and regulations that either add costs or limit opportunities. Government has done this exercise before with good results, and now, as this industry struggles to rebuild, would be a good time to revisit those concerns.

Next week: The industry recovery – it’s happening first and fastest in the Central Interior