It was in early 1950s when Bernhard Fink, originally a gold miner in Barkerville, B.C., moved to the Hazelton area and started cutting timbers for the underground tunnel supports for local area mines. Along with his daughter Frances and son-in-law Myron Smaha, Bernhard went on to establish a small sawmill and log harvesting business in Smithers, B.C.

“My parents were both teachers, and at night and week-ends, my dad helped his father-in-law in the operations,” says Shari Smaha, Myron and Frances’ daughter. “Both my grandparents passed away at an early age and in the mid-1960s my parents took over the company.”

Not only did Fink’s Sawmill Ltd. celebrate its 60th anniversary last November, but Myron and Frances are celebrating their 60th wedding anniversary this August.

A true family affair

The company recently celebrated 60 years since incorporation on Nov. 26, 1962. Today, the sawmill is gone but the name Fink’s Sawmill Ltd. lives on as a stump-to-dump logging company. Almost the whole family is now involved, and the 84-year-old Myron is still active in the company, while his 83-year-old wife, Frances, helps in the office and gathers her family around her dinner table every Sunday night.

“My dad is out building roads! He’s always engaged, and his mind is always thinking about the business,” says Shari, who joined the company in 1993 after completing a diploma in financial management. She is currently the office manager. She is currently the office manager. Her brother-in-law, Ryan Klaver, who joined in 2002, holds the bush foreman position. Shari’s son Rylan takes on the heavy-duty mechanic role, along with experience as an operator in bunching, skidding and roadbuilding phases.

“We’re a four-generation family business working together with the goal of carrying on Fink’s Sawmill Ltd.’s existence in this challenging environment,” Shari says.

Six decades of business and busy-ness

Fink’s Sawmill does some 15-20 km of roadbuilding per year. Myron has arranged an impressive mix of roadbuilding equipment comprising a Link-Belt 350X3 excavator with a 72” clean-up bucket, a Cat D6R and a Cat 324D excavator, a Komatsu PC200LC-6, a John Deere D5H track skidder with grapple and a John Deere D5H track skidder with swing boom. The company also has a Komatsu D85 dozer with U-Blade.

Fink’s harvests a diversity of species – pine, spruce and balsam – totalling around 140,000 cubic metres annually. The company does full tree to roadside logging averaging around 0.50 cubic metre per tree of long and short sawlogs, pulp shorts and dry shorts. 

The pulp chips are sent to Pinnacle Renewable Energy’s nearby Smithers pellet plant, while the dry shorts are sent to neighbouring Seaton Forest Products, which produces dry balsam logs into cants and shipping them to a reman facility in Langley.

Fink’s supplies around 113,000 cubic metres annually to Pacific Inland Resources, a division of West Fraser Timber. The average haul distance from Smithers to Pacific Inland Resources has a five-hour cycle, Shari says, and the average skidding and forwarding distance is dependent by block. 

The distance from Smithers and the Pacific Inland Resources mill necessitates a camp situation for the loggers, according to Shari. 

“Our crew stays in individual campshack with camp allowance,” she explains. The crew works a 54-hour work week: 12-hour shifts from Monday to Thursday, and eight hours on Friday. The company employs 14 bush staff and truck drivers. In addition, it hires subcontractors for the trucking and loading phase.

Fink’s has two feller bunchers: a Tigercat 870C and Tigercat X870D. The company’s skidding workhorses are two John Deere 848Hs, one with wide tires; a Tigercat 625C six-wheel skidder, a new Tigercat 635H six-wheel skidder, a John Deere D5H track skidder with grapple, and a John Deere D5H track skidder with swing boom.

“In early 2023, we purchased a 2022 Tigercat 635H 6×6 skidder through Ritchie Bros. to replace existing old skidders and for use in deep snow.  We just picked it up in April, so time should tell how it works out in our operation,” Shari tells CFI.

The decking line-up includes a Tigercat 880 and a Link-Belt 290 log loaders. The log processing line-up at roadside consists of a new Tigercat 850 with a Tigercat head, two Link-Belt 210s with Southstar QS500 heads, and a Cat 320D, also with a Southstar QS500 head.

“We were in the market for a machine that could handle larger piece size, and Parker Pacific brought the Tigercat 850 out as a demo, and the machine ended up staying,” says Shari.  

“Bigger head, bigger machine, less downtime. According to Blair Morgan, our long-term operator who has been a part of Fink’s crew for 28 years, says it has lots of power, handles big wood with no problem, good visibility and the best machine he has ever ran.  There’s also easy access for repairs as compartments opens up to make it easier to work on,” she explains.

Loading is subcontracted out to meet the loads per day requirements. Fink’s Sawmill operates three new Kenworth tridem tractor logging trucks with two Freflyt tridem trailers and one Arctic tridem trailer, as well as a Kenworth and a K-Line lowbed. Fink’s has a fleet of Ford crew cabs and a Ford F550 with Brutus service box for other support duties.

Challenges a plenty

It is no secret that the forest industry, particularly in B.C., is full of challenges lately.Shari says the current low lumber market prices that resulted in mill curtailments are reducing the need for harvesting and thus creating uncertainty.

In addition, the B.C. policies concerning the stumpage system, adjustment in the allocation within the allowable annual cut, and old-growth deferral are having an effect on forestry companies like Fink’s Sawmill.

“We see the major licensees invest outside of BC in areas of Alberta and southern US which is very concerning.  Logging and hauling rates are not keeping up with increased costs and inflation creating further added pressure and uncertainty on contractors such as ourselves,” Shari says. 

“So many factors which are out of our control affect our ability to work, such as our mill’s ability to move their lumber to market is affected due to interruption in logistics, such as services provided by CN Rail,” she explains.  

Another challenge is labour shortage, which is crucial to the company’s operations, according to Shari.

“Skilled operators are the No. 1 asset in our company.”

Family values

The family is proud of their excellent relationship with their staff, suppliers and area contractors, which Shari says is the secret to Fink’s Sawmill’s longevity and success. 

“Open communication, good working and long-term relationship with our mill, our suppliers,  and our logging and trucking contractors are critical,” she adds.  

“The message that I would love to share with CFI readers is the success, determination, work ethic that my parents have. They are providing employment to many families, they are hardworking, honest, fair people. Their 60 years in business in this industry is quite a gem of accomplishment,” Shari shares.

Indeed, Myron and Frances’ 60 years of running the family business, and 60 years of togetherness is a massive feat and cause for a celebration. 

“It’s the toughest time to be in the industry. I’ve been told, ‘you’re crazy for getting involved in logging – can’t you see what’s happening?’” Mazereeuw smiles as he recalls the company’s start over a cup of coffee. Mazereeuw sat down with Canadian Forest Industries in neighbouring Prince George, B.C., in April and spoke about the highs and lows of starting a logging company in today’s business climate.

From just an idea to reality

Mazereeuw is used to hard work, being raised on a ranch. His family has been involved in the logging and cattle industries since his grandfather moved to Canada from the Netherlands after World War II. His father, Matt Mazereeuw, 51, ventured into silviculture, introducing his son to logging at a young age.

“I started at 15, first with hand-slashing on power lines for Stephen Bros. Contracting, until I was old enough to get a driver’s license.”

That driver’s license allowed him to do an apprenticeship, which proved to be a game-changer, as he learned skills that then allowed him to spread his wings and work for other contractors. 

“It was a big learning curve. They run their own fleet of custom-built mowing machines, so I learned how to maintain those machines and be trained as a heavy-duty mechanic.”

He moved on to do repairs and maintenance work on a fleet of 30 pieces of logging equipment for Walter Neufeld Contracting (WNC). He then worked for Brandt Tractor, exposing him to more equipment used in other industries, while also learning about running a dealership business and acquiring people skills in the process.

A decade after, at the ripe age of 25 and supported by his wife Hannah Mazereeuw, he invested and bought logging and roadbuilding equipment from WNC to start Mazereeuw Timber in Nov. 2022.

Fleet and family

Mazereeuw’s fleet is impressive, consisting of a Tigercat 880 loader; a Tigercat 630E skidder; a Tigercat X870D buncher; a Hitachi 210 excavator with a WBM power clam, plus digging and cleanup buckets and rake;  a Hitachi 210 processor with a Waratah 622B head; a John Deere 1270G harvester; a John Deere 1910E forwarder; a Ponsse Scorpion harvester; a Ponsse Elephant King forwarder; a Caterpillar D7R XR2 crawler dozer; a 2019 Western Star 4900SB with a Peerless lowbed; and a 2018 Freightliner M2 rigged with Brutus service body.

“For operators, I have a guy for each machine. We do all our own low bedding and road building. My dad is the man behind all of that. Hauling distances are very dependent on the block – trucks make anywhere from one to three trips to the mill a day.”

Buying the equipment involved a massive investment, but where the huge savings come is in the upkeep of these expensive machines.

“Maintenance is a very big part of the cost of running a business, but I am very familiar with this fleet of equipment and the biggest advantage for me is that I can fix all of it myself.”

His wife Hannah is also very much involved in running the show, even in her current pregnancy phase. The 22-year-old is due to give birth to the couple’s first child in June, but is keeping herself busy supporting the logging business by handling paper works, safety matters, even manual labour sometimes and moral support at all times.

“My wife helps with running parts, piloting machines on the move, even helps me fix machines, and is a huge moral support.”

His army also includes his mother Barb, 45, who helps with banking and bookkeeping, among other duties. 

“She also details all the machines and pickups for me a couple times a year, and makes sure all our safety equipment is current and present in all the machinery and pickups.”

Lastly, he gets plenty of support, safeguarding and a lot of licks from Mae, his German shepherd, who he describes as the real boss.

Business at a glance

Mazereeuw’s target as far as volume is to move roughly 130,000 cubic metres a year in any form of wood, from 0.15-0.75 cubic metre per piece. The tree size that they harvest is usually from 6- to 30-in. in diameter, but more commonly on the lower end of the scale.

“This is more of a specialized take on logging. We are very focused on the finish product as far as what gets sent in, but more so what we leave the bush looking like. This needs to be a sustainable industry. How we leave these sites matters to us as much as anything. We’ll always be working in the cut-to-length sector, with max piece length at 33 ft.”

He adds, “That’s about the max that we will put on the forwarders. But lots of lengths are cut in the 12- to 20-ft. range as well. I log mostly pine and spruce. Some stands have pretty large amounts of balsam but that is about the big 3. We have done some blocks that go almost entirely to pulp.”

When in full production, an average day is “never really shorter than the 12-hour mark when driving is included.”

All the timber goes to Canfor’s Plateau sawmill in Vanderhoof. Sometimes the wood is sold through Canfor and winds up at other local mills.

Pulp goes to Arrow Group of Companies’ biomass power generation facility in Fort St James. Some goes to BC Custom Timber Products in Vanderhoof to be chipped. 

“The pulp outlet is a huge asset. It allows us to get maximum utilization out of every piece we handle and erases the need for burn piles, especially when we are using these harvesters and forwarders. All the limb debris is left where the tree is harvested to break down and get right back into the ecosystem.”

Business not as usual

Although he is excited for the future, he acknowledges that times are hard. 

“Now is a pretty rough time, especially with a startup – it’s a big load on the shoulders, that’s for sure,” he sighs. “I’m trying not to focus on all the negatives in the industry and the economy, however payments never cease to show up and the bank account always needs to be topped up.”

Mazereeuw says he has to keep options open for work – whatever it may be – to keep his company above water. 

“I’m relying heavily on my roots as a heavy-duty mechanic to pick up some income and stay busy while the world figures itself out. I think there’s a future in logging, not with clear cutting and leaving wide open acres in the bush, but with the selective approach we are taking with the harvesters and forwarders and focusing largely on retention,” he says.

“There is not a lot of guys logging in this style in the area, so it’s tough to get the idea of what can be done in the bush out there.”

As far as old growth trees, Mazereeuw says anyone who works in the bush can see that forests need to be managed. 

“Not clearcutting, but selectively picked through and groomed to something that will prevent the wildfires we’ve had. Also, to get rid of old rotten growth and blow down trees, which will only promote the growth of juvenile timbers, which is the future of our forests. It will also promote stewardship of the animals in these areas.”

While his main priorities will soon include his newborn, he is looking forward to continue building his business, with the goal of passing it on to his children in the future.

Q: How did you get started in logging?

I’ve been surrounded by logging my whole life. My dad was in logging, and my brother followed. One day my brother came home and said to me, “Grab your stuff. You’re coming to work with me.” I thought it was so cool just to be going somewhere with my brother. That’s where it started.

I also married into a logging family. My husband’s family has had a logging company for over 60 years.

Q: What’s a normal day on the job like for you?

I used to log full-time. I did five seasons of logging. Now I work for Nicola Post & Rail in Merritt, British Columbia, cutting fence posts, posts and rail. I love running my limber.

Sometimes I cut sawlog, and we have customers that like firewood. We do a little bit of everything. I have two huskies and a husband, so not logging full-time is kind of nice. I like being able to do something different. Not a lot of operators like cutting this kind of small wood.

Q: What kind of equipment are you operating?

I’m using the Waratah 622B to get through the wood that we have in the mill. I really like the 622B because it’s quite versatile, has great speed and good measurements. It’s by far my favourite head. Waratah heads are built to work. That’s why the company has been around for 50 years.

Q: You’re a woman in the logging industry. Do people in the industry treat you any differently?

I grew up around it, so I don’t think anything of it. I’ve been lucky enough to meet some really great guys. I had one instance where a guy wouldn’t let me drive him to work because I’m a girl. But I just laughed and drove away. You have to have that attitude.

But it’s also nice to see more women are getting into the industry.

When I first started back in 2007, my nickname was Sasquatch, because it was so rare to have a woman on the job. But now, it’s becoming more common, which is really great to see!

Q: What are you most proud of?

I just love that I’m able to have a family life and do what I love at the same time. I have great friendships because of logging, and our family has created memories I’ll hold forever.

Logging is hard work, but it’s not just a job – it’s a passion. That’s what gets me up in the morning. I’m usually out there first to watch the sun come up. It’s very peaceful. If you enjoy being alone and quiet, then it’s the thing for you.

This article is part of CFI, Pulp & Paper Canada and Canadian Biomass’ Women in Forestry series, an annual celebration of women in the industry. Find more content here and follow us on social media with the hashtag: #WomeninForestry.

Remember to join us for the Women in Forestry Virtual Summit on Mar. 7 at 11 am ET/8 am PT! It’s FREE to register. Sign up now!

But where supporting local seems to come to a grinding halt is in the forests. For many, it seems, wood products do not fall under “grow and process local.”

It’s an issue the province’s forest industry has grappled with since news broke in 2020 of the shutdown of Pictou, N.S.-based Northern Pulp – a key player in the forest industry as a massive consumer of low-grade wood. 

Without an alternative to the income Northern Pulp provided to logging contractors and woodlot owners, forestry in Nova Scotia is transitioning to a much smaller industry with fewer and fewer players. 

The co-owners of a 21-year-old Nova Scotia logging company, Next Generation Forest Management (Next Gen), have witnessed many forestry contractors quietly downsize, have equipment repossessed, or auction equipment and close up shop. It’s a reality that Calvin Archibald, 77, and Mark Bannerman, 45, are hoping their company’s experience, reputation and work ethic will allow them to survive.

Company history

Next Gen came about in 2001 as a handshake agreement between Archibald and Bannerman. Archibald had just handed over the keys of his first logging company, owned with his brother, to his sister-in-law. Intending to retire, he suggested a new company with Bannerman as a retirement project. But forestry and farming is in Archibald’s DNA, so, 21 years later, he’s still at it, taking care of Next Gen’s books and negotiating contracts.

The company’s succession plan was always for Bannerman – a University of New Brunswick forestry graduate – to grow ownership through what Archibald calls “sweat equity.” That work ethic is what grew Next Gen’s reputation in the industry, he says.

From left, Dave Boutilier, Mark Bannerman, and Duncan Cameron on a harvest block in central Nova Scotia in early May.

Next Gen started up with a focus on commercial thinning, which was a rarely used harvesting method in Nova Scotia at the time. The company’s wheeled 2001 Timberjack 1270C harvester and Rottne forwarder were running in a province full of feller bunchers and processors.

“I didn’t really know what we were getting into. I didn’t have much of a mechanical background, for sure. But it was an opportunity and something to try so we went at it,” Bannerman says. “There were some… but not many contractors had wheeled machines. Most were tracked.” 

The company grew over the years, purchasing some new, but mainly used equipment to help keep costs low. 

Like many contractors, it was a family business. Bannerman’s father, Donnie, ran a forwarder for Next Gen for 18 years, retiring three years ago at 70. His wife, Selena, as well, did some forestry and mapping for the company for a few years before returning to school to get her education degree. 

Today, Next Gen is among the largest contractors in the province with eight operators and a mechanic on the payroll. They’re running six harvesters daily – a Ponsse Ergo and three Fox, a Komatsu 901 and a John Deere 1170 – as well as two John Deere 1510 forwarders. A spare Fox harvester and 1510 forwarder are used as needed.

Bannerman is quick to jump in a machine for the day if needed. “I do the odd shift to fill in. If somebody’s off, sick, or we’re between employees, I’ll try to make sure the machines aren’t sitting,” he says. 

Next Gen’s senior employee of 19 years, Grant MacDonald is an important part of the company. Grant has transitioned from operator to full time mechanic and parts manager.

Next Gen averages around 90,000 cubic metres per year, much of which is small wood around 0.06 piece size. Most of their stud wood goes to Scotsburn Lumber and the pulp to Port Hawkesbury Paper in Cape Breton. 

Next Gen runs six harvesters and two forwarders daily, employing eight operators and a mechanic.

Forest practices transition

Nova Scotia is also going through an overhaul of forest practices. The province’s stated goal is to revamp forest management, prioritizing conservation and biodiversity through lower impact harvesting. The new forest practices guide is based on a 2018 report from William Lahey, president of the University of King’s College in Halifax, that recommended forest practices that would balance environmental, social, and economic objectives.

As a trained forester, Bannerman says he supports the conclusions in the Lahey report.  “Our operators have the skills to implement any kind or treatment, as long as it is economical,” he says.

But an inherent contradiction of the government’s policies is that prioritizing biodiversity and a return to higher-quality Acadian trees requires the removal of low-grade pulpwood.   

“When the pulp mill was there, you could go into a woodlot and pay a decent stumpage rate for low-grade species. If you were doing a thinning job and there’s pulp you knew you could get rid of it. Now a lot of that is just left behind or not cut in a lot of areas of the province,” Bannerman says.

Biomass harvesting, as well, is not typically economical with few large-scale customers in the province.

What’s working?

Before Northern Pulp closed, a large portion of Next Gen’s work was commercial thinning for the pulp mill. Now, the company does a variety of harvesting treatments mainly for Wagner Forest Management based in Truro, N.S. 

“We’ve had little change in our employees. We were lucky enough to find work. Eighty per cent of our harvesting is for Wagner and we do some private woodlots still,” Bannerman says. 

One continual strength for Next Gen has been their operators. Over the years, as many contractors struggled to recruit and retain operators, Next Gen has had to fill only a few seats.

“The operators are what keep us going, they’re the main reason we’re still in business,” Bannerman says. “We try to work as close to home as possible. We can balance out the shifts or maybe work an hour less a day so they can get home on time. And we’re pretty flexible if people need time off.”

Harvester operator Duncan Cameron has been running forestry machines for 16 years, mostly with Next Gen. 

“For me, now, there’s a good work-life balance,” Cameron says. “I think it goes for anyone here, if they need a day off or you need to be somewhere, you can take it. There’s no big issue.” 

Next Gen has a few younger operators as well. Archibald credits the Canadian Woodlands Forum for supporting the contractor communities in Atlantic Canada and helping draw in and train younger operators. 

Before Northern Pulp closed, much of Next Gen’s work was commercial thinning for the mill. Now, the company does a variety of harvesting treatments, mainly for Wagner Forest Management based in Truro, N.S.

What’s next?

Archibald says he sees a future for Next Gen, but that all depends on whether or not there will be a healthy future for forestry in Nova Scotia. 

“We named it Next Generation on purpose,” he says. “A lot of forestry companies are one or two generations at the most. We wanted an organization that would last beyond our generation and also the generation of trees.”

But some things are simply out of their control. A recent economic study shows a dramatic decline in Nova Scotia’s forest industry over the past few years.

“A lot of people just don’t understand the forest industry,” Bannerman says. “Our forests are a renewable resource that can supply jobs and sorely needed government revenue especially post pandemic. It doesn’t seem like recent governments publicly support forestry. They should have worked closer with forest companies to create markets and ensure a strong industry after the closures of Northern Pulp and Bowater.”

Both Bannerman and Archibald note that forestry stakeholders need to do a lot more to educate the public, and that will take work.

“Forestry workers tend to put their heads down and go to work to support their families. They aren’t out there publicly advocating for the industry. We need more of that, but most aren’t comfortable doing it, including myself. I’m not an outspoken person,” Bannerman says. 

It’s difficult to rally when contractors are feeling more than a little defeated in the province, Archibald says. But Next Generation is the name, and the company has positioned itself to weather this storm. 

“We’re successfully maintaining used equipment, and you combine that with our ability to negotiate and Mark’s and our crew’s top-notch reputation . . . we’ll be here for a while,” Archibald says.   

“It must have been a slow day because we actually had a conversation and the guy had an interesting story about a unique buyer overseas,” Greg recalls.

The company was LOTS Group, a Swedish-based diversified transport company offering leading transport within heavy industry around the globe. At the time, the company was looking to enter North America and identified Munden Ventures as a prime opportunity to enter the logging and transport industry in Canada.

Greg, along with other members of his family – Jim (dad), Chad (brother) and Nolan (son) – agreed to sit down and take a call with the LOTS Group in August 2020 with a few of the company’s top executives.

“It was a really interesting conversation learning about LOTS Group,” Greg says. “The parent company, Scania, manufactures trucks. Scania is owned by Volkswagen Group.”

Although Munden Ventures wasn’t for sale at the time of the call, the conversation made Greg and Chad start thinking a little differently about the future of the family business, so they continued talks with LOTS Group.

Chad Munden leads the company’s forestry arm.

“We had a succession plan. We were starting to implement that succession plan, and just the notion of it being an interesting party that was looking made us continue the conversation just to find out more about what their vision was,” Greg says. “It was a multi-generational family business. There were very emotional discussions about even considering taking a different path than we’d ever considered.”

But with a strong suitor looking to purchase the company, coupled with significant challenges facing the industry, there was a lot to consider.

“We got to know the LOTS Group and see where it went. For us, or anyone that’s in the industry, we think the forestry and transport sectors are pretty challenging businesses. Despite the challenges, LOTS was excited about the opportunities in the market and have the benefit of significant resources, both financially and people-wise, to grow a larger North American business,” Greg says.

He’s not wrong about those challenges. Between driver and worker shortages, regulatory hurdles, and constantly shrinking allowable annual cuts, the two industries have major challenges to manage.

“For Chad and I, finding a path eventually where you could exit the business was important,” Greg says. “Our kids could certainly take over the business, but we can’t afford to make too many mistakes, and our retirement would be tied up in financing them to take over the business.”

In Spring 2021, the family decided to make the tough decision to sell Munden Ventures, J. Munden Transport and Peak Forestry to the LOTS Group. Greg said he was impressed with the company’s vision for entering North America, its values as an organization, and its interest in optimizing the transportation business and applying their knowledge to other aspects of the Munden companies.

The company’s harvesting operations have a radius of approximately 200 kilometres around Kamloops in almost every direction.

“They’re a transport business by nature. Harvesting and forestry wasn’t a piece of what they had until this point,” Greg says. “They also had no experience with commercial truck shop operations. We have a fairly sizeable truck shop where we do 75 to 80 per cent of the business for third-party customers and 20 to 25 per cent for our own fleet. It’s not an area they were familiar with, so it was a real departure for them from a pure transport operation. Their philosophy comes from lean manufacturing and optimizing how trucks are built in a factory setting and taking that lean methodology to the transportation sector.”

Greg views this approach as having a lot of potential benefits for other aspects of the Munden businesses.

“In forestry, agriculture, it hasn’t always been done. The use of technology and lean processes and analyzing how things are done makes LOTS interesting and unique from what we’ve seen in forestry,” he says. “The idea of changing how things are done from a pretty traditional business was appealing to us.”

Another interesting piece of the partnership for Greg and Chad is being tied to an OEM that is directly developing new technologies.

“It gives us a lot of insight into what is possible,” Greg says.

The Mundens operate a sizeable commercial truck shop.

Labour woes

Like many other companies across the country, Munden Ventures has found attracting and retaining skilled workers to the forestry and trucking industries a huge challenge.

“We are going to have to grow our own people,” Greg says. “The industry has done a really poor job of communicating to young people and demonstrating the really great careers in these sectors.”

The tough task of attracting new talent to the LOTS Group in Kamloops is overseen by operations and business development manager Trish Kohorst.

“Historically, the forest sector and natural resources sector have relied on the demographic that’s been in the industry for 30-plus years. They have a great work ethic and do what needs to be done,” Kohorst says.

Trish Kohorst, operations and business development manager, oversees the company’s employee recruitment.

With those workers now retiring in large numbers, the industry now needs to focus on bringing in the younger generation to replace them, but there are constraints that don’t make it easy.

“With Class 1 drivers, they can’t get a license until they’re 19 or 20 years old. Because of this, they can’t see a pathway until they’re two years after high school. So, we’re losing a chance to engage with the youth,” Kohorst says.

To help combat these issues and get more engaged with students about the industry, LOTS Group has been working with the local school district in Kamloops to get them a taste of a career in forestry and transportation.

“We had a Grade 12 student that was thinking about a career in carpentry, and we got him to operate a processor and he thought it was awesome,” Kohorst says. “I think our whole industry needs to think about how we attract the youth and work with regulators to give them a pathway that they can see the benefits of the industry – being able to show folks that early on and not lose them to other industries. The industry pays well, and safety and culture are very important to us. We have long-term employees that have been with us for 20 and 30 years, but we need to find ways to attract new folks.”

The Munden Ventures fleet.

Greg says there is a perception that the forestry and transportation industries are all about long hours and having a lot of time away from home. He says the industry must find ways to compete with other sectors that are able to accommodate workers’ wants and needs with things like shorter shifts and investing in the latest technologies.

“Make it the best of both worlds where people can still earn a very good living and balance all the other things in their life. I think for a long time this has been missing in transportation, particularly,” he says.

Optimizing operations

Greg says that it has been interesting to learn about the lean processes of the LOTS Group and see many of those practices implemented into the different divisions of Munden Ventures.

“They kind of overlay those lean processes in areas they haven’t been exposed to before. At a supervisory level, lots of change is happening. I don’t think our professional drivers, forestry drivers have changed in any significant way, yet. We’re certainly taking it slow. Change can be scary for people. It’ll be a slow, methodical approach,” he says.

One area where Greg has seen lots of opportunity is in LOTS Group’s control tower concept to optimize the flow of wood between trucks moving long distances, reducing the number of empty trucks on the road.

“It optimizes the use of the truck, improves the pay or time away for a driver, and helps with driver shortages because you can move more product with fewer people and helps environmentally by reducing the number of trucks on the road. That’s a big part of what LOTS stands for,” he says.

The LOTS Group’s Canadian operation currently staffs about 75 people.

Growth opportunities

The LOTS Group’s Canadian operation currently staffs about 75 people. It recently expanded to include a new operation on Vancouver Island with a fleet of 11 trucks and 12 staff members on the island. The long-term plan is to grow the company’s Canadian operations significantly in coming years, and not just in Kamloops and the rest of B.C.

“There are several business cases we’re working on right now. LOTS is not exclusive in terms of forestry, globally. They do agriculture, mining, and forestry,” Greg says. “LOTS have opportunities in South America in large sugar cane operations, and hub-to-hub delivering of truck parts to Scania’s truck plant in Sao Paolo, Brazil. In Chile, they have a relatively new mining operation. And then there’s our operation in Canada, and they recently acquired an operation in South Carolina in forestry, transportation and harvesting.”

Although there is significant growth being planned for the future, LOTS Group’s Canadian operations is currently focusing on backfilling opportunities between Kamloops, Vancouver Island and the BC Northwest. The company’s harvesting operations have a radius of approximately 200 kilometres around Kamloops in almost every direction.

The company’s forestry fleet is significant, consisting of two John Deere 953M feller bunchers; a John Deere JD848 skidder; a John Deere JD948 skidder; three John Deere JD2154 processors with Waratah heads; a JD2154 hoe chucker/road builder; a John Deere JD2656 decker; one Eltec 317LL log loader; a Tigercat 875 log loader; a John Deere JD850J dozer; a John Deere JD160 excavator; and a Hyundai 140 excavator. The company also has a fleet of 34 log trucks, a mix of Kenworth T880s and Western Star models.

Like most forestry companies throughout the province, reductions in allowable annual cuts and the old-growth initiative recently implemented by the provincial government are major concerns for the LOTS Group.

“That’s what makes it really valuable to have scope and scale, and relationships with multiple mills and licensees, and in multiple geographic areas.

“The diversity of customer base and geography is going to be critically important for companies to be successful in the longer term. We’ve faced reductions, but have been fortunate to have the relationships that we’ve had, and our customer base,” Greg says.

“LOTS’ connection is giving us the opportunity and resources to look at developing more diversification outside of forestry. I’d say we’re forestry-centric and it’s what we know. I don’t think the forestry industry isn’t going away any time soon, it’s going to be an important part of the western provinces’ economies, I hope, forever. But having the opportunity to look at mining and agriculture opportunities, and the depth of people and resources out of Stockholm and the backing of Scania and Volkswagen, I think that’s going to bode well for us going forward,” he says.

Managing wildfires

Another way the company has grown and diversified over the years is through offering wildfire management services.

Chad and his crews are helping protect many small communities during wildfire season in B.C.

“The biggest thing is we get a call from the Ministry of Forests and they ask for our equipment to go out and we follow people around the fires and clean up the ground. We get down to the dirt and wrap the fires all the way around them, so you can get crews on the ground on foot to put them out,” Chad says. “I think if you have forestry equipment, you get that call because you’ve got the experience with the ground, dealing with the timber, and being able to get around in the bush to get it out.”

“Chad and his crews have gotten pretty good at this,” Greg adds. “There’s an art to working with the ministry and other ground crews, and just by virtue of the number of fires we’ve seen in B.C., we’ve had opportunities to work with the ministry on these fires. We’ve gotten really good at it. There’s nothing better than experience, and we’ve, unfortunately, had a lot of experience over last several years.”

By helping manage the wildfires, Chad and his crews are helping protect many small communities.

The gratitude that has been shown to the crews by residents thanking them for saving their homes and protecting their lands has been incredible, Greg notes.

“Sometimes you don’t get a lot of ‘thank you’ in forestry, but that’s one time where you feel the value in what you do,” he says.

With 225 direct employees and approximately 2,000 people employed through long-term, primarily unionized contracts, Mosaic Forest Management is the largest private timberland producer in Canada by volume.

“Including our external fibre procurement program, we’re typically handling five to six million cubic metres per year at Mosaic,” Iannidinardo says. “It works out to about 10 per cent of the provincial production or one-third of Coastal British Columbia production.” 

Harvesting operations
The company harvests primarily regenerated forests of Douglas fir, western hemlock and western red cedar, in a range of sizes. Mosaic’s contractors do many different types of harvesting, including mechanized ground-based, and on steep slopes with tethered equipment, hand fallers, and helicopter logging. The logs are cut to a variety of lengths for their domestic and international customers. 

“All logs produced in British Columbia from private or public land, by law, are required to be offered to domestic purchasers first before they can be exported. About half of our sales go to local customers, and the balance is exported,” Iannidinardo explains. “Those logs are typically exported to Asian markets and some American markets.” 

Domestically, the logs go to over 50 different sawmills in B.C., as well as some pulp mills. The logs are delivered to the mills via truck or towed across the strait to mainland mills. Mosaic has one company crew with 17 trucks, and contracts over 250 additional log trucks across its land base to deliver over 500 loads daily to Mosaic facilities and local customers. 

“We have all ranges of log truck configurations because of our range in custom lengths and sizes, to really maximize our utilization,” Iannidinardo says. “We utilize larger quad-axle trucks, central tire inflation, and other strategies to reduce fuel consumption.” 

To produce this high volume of logs, Mosaic’s contractors use a wide variety of machinery, including equipment from Tigercat, John Deere, Caterpillar, Kenworth and local manufacturers like Madill, T-Mar, and Nicholson. 

While the contractors are given freedom to choose which machines to use, Mosaic has emphasized standardizing safety features across their fleet. “For instance, we have telematics units in all of our contractors’ log trucks that work for Mosaic to help us monitor speed, convey information and dispatch trucks. Managing speed promotes safety and helps conserve fuel. We are deploying safety features like state-of-the-art electronic stability control and airbag systems into contractors’ equipment as they rotate new trucks into their fleets. Surprisingly, these are not standard with new trucks,” Iannidinardo says. 

“The goal is, in our working groups with our contractors, to keep researching and sharing information so we can get the safest and most environmentally efficient equipment we can, as part of our continuous improvement,” he continues. 

While Mosaic’s contractors are given freedom to choose their machines, they have standardized safety features across the fleet.

Reducing the carbon footprint
Speaking of the environment, much of Mosaic’s operations are focused on managing the forest sustainably and ensuring their operations are as environmentally friendly as possible. 

Forest management is “a multi-decade investment in a biological asset,” Iannidinardo says. “That means it requires tending and nurturing. We have an orchard where we produce our own seed, which includes pest resistance and improved climate tolerance.” 

As part of their forest management operations, Mosaic also collaborates with local pulp mills to “realize as much of the lower-end of the fibre spectrum as we can,” he says. 

“Part of our objective for reforestation is to ensure the post-harvest status of a site is amenable to planting while also abating wildfire hazards,” he elaborates. “We recover fibre from those areas in many places with specialized equipment after primary harvest, and we’ll deliver that to pulp mills, or we will chip it on site.” 

That chipping is done with a unique, self-propelled chipper that can follow the harvesting equipment around in the bush. 

This chipper is a Bandit tracked machine that is remote controlled from an excavator’s cab. The chipper chips the residual fibre left over from logging operations, which is then dispersed back into the block to reduce the amount of slashpile burning that needs to happen, Iannidinardo explains. 

These initiatives have helped Mosaic to reduce slashpile burning by over 25 per cent in the last five years, forming part of the company’s carbon improvement objectives. 

Mosaic is also certified by the Sustainable Forestry Initiative (SFI), and was the first forest company in Canada to achieve that certification. 

“We were also the first company in the world to, a few years ago, obtain certification for our organizational carbon footprint including Scope 1, 2 and certain Scope 3 emissions,” Iannidinardo adds. 

As part of the company’s efforts to reduce its carbon footprint, Mosaic has started to electrify its pick-up truck fleet. Mosaic also announced a trial of the world’s first electric log trucks in partnership with a local business, EcoWest Driven.  

All of these efforts to ensure the sustainability of their operations are also communicated to local communities and First Nations through multiple campaigns and initiatives.

“We have a very big program, because of our location in particular, of communications with our neighbours, in our communities, with First Nations,” Iannidinardo explains. 

Much of Mosaic’s operations are in areas of recreational interest to the public, so the company works with communities to provide opportunities such as campsites and mountain biking trails on its private land. 

“We also have a whole team of foresters that work with schools, public interest groups, recreational organizations, and local environmental groups like the Pacific Salmon Foundation.  The goal is to continuously improve the public interface, improve local habitat, and ensure cultural access for First Nations. The team is available to address questions or concerns that the community has,” he says. 

Layers of uncertainty
But, like any forestry company in Canada, Mosaic also faces challenges in managing its business. 

Log exports are an important part of Mosaic’s business. Under the current regulations, log producers must first offer their logs to domestic mills before they export them, and if a mill puts in an offer for the logs, the federal- or provincial-mandated body determines if that offer is a fair price. 

“We are not against domestic mills having the first right to purchase our logs. The issue arises when local buyers offer an amount well below the international price for the same log. The government-mandated body determines whether the price is fair and that process often results in a substantial discount to what international customers are willing to pay,” Iannidinardo says. “It takes many decades to grow the tree, and we don’t know whether we can get a fair price until after its harvested and offered to local customers.  Our local customers process our logs into wood products and often sell them into export markets capturing additional margin”. 

“We are the only place in the North America where private logs are subject to these types of constraints, so that reduces the opportunity for us to make long-term arrangements with international customers,” he adds. 

 Over the last several years, there has been significant policy changes.  “It has increased the uncertainty in our business. We are in a business with a multi-decade investment horizon. It is important to have a predictable, stable regulatory framework to have confidence that the investments we are considering today will pay off in the future.”

The B.C. government last November announced the deferral of old-growth logging, as many readers know. Although Mosaic harvests relatively little old-growth, it recently announced a new carbon crediting initiative on seven per cent of its private forest land.  

 Fibre supply in the province could also be impacted by the upcoming 2022 wildfire season, especially if it’s as severe as the devastating wildfires B.C. saw last summer. Mosaic, like many other logging contractors, had to curtail their operations during the fire season, which was tough on production, Iannidinardo says. 

Continuing leadership
But, for now, it looks as though the healthy markets for forest products will continue, and this is beneficial for the industry, particularly as the world begins to recognize the environmental benefits of forestry, Iannidinardo says.

“It’s gratifying to work in an industry that contributes sustainable, culturally sensitive, low-carbon materials the world needs,” he explains. 

And in the next five to 10 years, Mosaic plans to be leading the charge when it comes to sustainable forestry. 

“Mosaic will continue its leadership, by demonstrating that sustainable forestry can simultaneously produce social, environmental and economic benefits,” he says. 

Part of the investment includes funding of $206,92 for Shawn Lecours Logging Ltd., a logging and forest road construction company, to buy new equipment that will allow them to expand their operations, as well as reduce their wood waste and environmental impact.

“Through the collaborative partnerships we are announcing today, our government is ensuring Hearst’s economy continues to grow,” said Greg Rickford, Ontario Minister of Northern Development, Mines, Natural Resources and Forestry, in a statement. “By investing in projects from varied sectors, we are promoting a more diverse, dynamic and innovative economic climate.”

At 43-years-old, Fraser has been in the logging industry for more than 20 years. He started in his early 20s as an operator for outfits in the Thunder Bay area before moving to Longlac where he continued working for those larger companies. About eight years ago, he took the jump into ownership, incorporating as a single-phase harvesting contractor.

“We were a little larger a few years ago. But everything is tough – the whole industry – including finding employees,” Fraser says. He’s downsized as a result and now employs just two other operators.

The downsizing is not unique to him, but rather a symptom of region-wide changes to the forest industry in Northern Ontario, Fraser says. Today there are no longer stump-to-dump contractors working in his area. Instead, mills employ a handful of small phase contractors like Fraser.

His employer is AV Terrace Bay – a northern bleached softwood kraft mill owned by Grasim Industries in Terrace Bay, Ont. The pulp mill takes nine-foot pulp logs, while 16-foot Jack pine and spruce sawlogs are sent to nearby Nakina Sawmill and Hornepayne Lumber.

Smaller footprint, larger payoff

A few years ago, Fraser made the switch from feller bunchers, skidders and delimber-slashers to a single harvester and forwarder.

Dan Fraser recently made the switch from feller bunchers, skidders and delimber-slashers to a single harvester and forwarder. He’s now running a brand-new Waratah H425X felling head. Photo courtesy Waratah.

“We were in the dinosaur years, per se, in Canada, I would call it,” Fraser says. “A few years ago, I added a roadside processor and then two years ago, I bought a forwarder. We started by following the buncher and processing the bundles at the stump and forwarding it out. Now, six months ago, I traded my buncher in for a harvester. We’re now harvesting direct at the stump.”

Fraser says his motivation for the change was to run a smaller operation without compromising profits. And that is exactly what happened. His fuel costs alone are nearly half of what they previously were.

The change will likely mean Dan Fraser Logging cuts around 75,000 cubic metres this year, a drop from the 100,000-115,000 cubic metres they would typically cut with their old harvesting model.

“I run a bit smaller crew now. We’re cutting a bit less wood, but at the end of the day it’s a lot better for myself. It’s more profitable,” Fraser says.

The biggest challenge in making the switch was training his operators. Fraser had been trained on both machines in previous jobs, so he was able to take on the training.

 

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Running fresh

Even before switching up his harvesting style, Fraser would typically replace his equipment every two or three years to keep up with the latest technology advancements.

His current fleet includes an Eco Log 594E forwarder, a 2021 Link-Belt 3240PHN forestry machine with a brand-new Waratah H425X felling head, which recently replaced a HTH622B Series-III head from Waratah.

“It’s a nice head. It’s very fast. It was a little bit more learning again for even myself just because it’s 100 per cent harvester head and it’s a bit different to get used to than the 622,” Fraser says. “The 622s are a tried-and-true battle-axe of the forest industry, I would say. The 425 is more like running a sports car. It’s a little more delicate but it’s very fast.”

The H425X has what Waratah calls an “extreme duty” main saw box with beefed-up steel plating, extra feed motor component guarding and hose protection. The head is designed for durability in mixed stand harvesting, and especially in large timber.

Fraser works with Itec 2000 – a logging equipment dealer out of Thunder Bay that set him up with the Eco Log, Link-Belt and Waratah machines. “The service with them is one of the best around here. That’s the biggest reason I went with that package,” he says.

The Eco Log 594E forwarder is a 2018 model that Fraser purchased in 2019. The machine will average about 22 cubic metres a load going an average distance of 400 metres with excellent fuel economy, he says. In the next year or so he’ll be looking to upgrade that model.

The Eco Log 594E forwarder is a 2018 model, purchased in 2019. Photo courtesy Dan Fraser.

Logger life

At its height, Dan Fraser Logging ran four machines, with a subcontractor running another four, with a combined 12 to 15 employees cutting between 150-180,000 cubic metres a year.

“Labour was a huge issue up here. I dropped down to one buncher and dropped a few guys for about a year-and-a-half before we made the switch to harvesting at the stump,” Fraser says.

For young people especially he finds it a tough sell. “I’ve trained quite a few and given a few chances and some of them have left and went to other companies. It’s a tough market with employees. Once you have them, you have to treat them really well. You have to stay competitive to keep them. There is not a lot of loyalty in the woods anymore,” Fraser says.

Keeping equipment new and comfortable, fair wages, benefit packages and company trucks are just a few of the ways Fraser stays competitive.

Another important lifestyle aspect to the job for Fraser and his employees is that they are able to go home at night. Their cutblocks are, on average, an hour’s drive from Longlac. Now that they are cutting a bit less than before, and with a new harvesting plan from AV Terrace Bay that includes larger cutblocks, they’ll be spending longer at each site before moving on to the next.

With all the ups and downs for the forest industry over the past few years, Fraser says he sees the industry settling to some extent in Northern Ontario. Markets are strong and he expects the industry will be taking advantage of that.

“I’m going to always log, as long as it’s around here. I love it. It’s me and I can’t see myself doing anything else. I’ve tried other things in the past – I’ve tried the oilsands and mining a little bit – and even in between breaks in the logging industry I went and tried different things, but I always come back to this,” Fraser says.

Pro Link is no stranger to the challenges of the forest industry, and has learned to adapt over the years, diversifying its business and investing in new equipment.

Backer’s father and uncle, both experienced loggers, started the company in the late 1990s. In 2009, when his father passed away in a motorcycle accident, Backer took over the company.

“We mostly survived up until then on BC Timber Sales – that’s why it’s such a big thing, the government not advertising any more sales until they sort this out, because our livelihood relies on timber sales,” Backer says.

However, when he became owner, Backer decided to diversify Pro Link’s harvesting operations, purchasing a 140,000-cubic-metre evergreen contract with West Fraser. This, in addition to his side business running a gravel pit, will help Pro Link combat the uncertainty brought about by the old-growth deferrals, he says.

Today, Pro Link Logging employs 45 people year-round and another five in the winter when harvesting operations ramp up. Of those 50 people, approximately eight are logging truck drivers, four are gravel truck drivers, and five work in the office or in the maintenance shop.

Approximately 25 people work in the bush, alongside Backer, who works in the field three days a week and in town twice a week.

Pro Link Logging owner Tyler Backer took over his family’s company in 2009 and is diversifying their harvesting operations to adapt to the challenges facing B.C.’s forest industry. Photo courtesy Pro Link Logging.

“We’re harvesting anywhere from 0.4 wood, mostly spruce and balsam, to two-metre wood,” Backer says, although Pro Link also occasionally logs fir, aspen, cottonwood, hemlock and cedar.

On average, the company does six-hour-long hauls, doing two-trips a day. Pro Link also contracts five logging trucks to help transport the 250,000 cubic metres of wood the company harvests annually.

‘Attacking the hills’

But, a lot of the wood is getting further away, and becoming more challenging to harvest. Consequently, Pro Link is investing in new equipment for steep slope logging, including a new TimberMax head for one of the company’s feller bunchers.

“We’re going to start tethering our machines on the side of the mountains starting later this winter or early summer,” he explains.

“A lot of the easy ground is gone, so we’re forced to attack the hills,” he continues. “Especially if we want to continue on with the size of crew that we have. The mills are having a harder time finding conventional blocks that we can operate at the capacity we’re at, so we basically have to adapt.”

Photo courtesy Pro Link Logging.

Pro Link has already done some steep slope logging, and the new equipment will contribute to the operators’ safety, Backer says. Until now, the company has been using a tilting John Deere 959M feller buncher, two six-wheeler 635E and 635H skidders and a Tigercat 855E with an IMAC powerclam. A new Tigercat 870LXD feller buncher will replace the John Deere buncher this winter.

“We really like the Tigercat brand. They have good mechanics, good service, the dealership treats us well and the equipment is good,” he says. “It’s robust; it’s stable on the steep slopes and has lots of power to get around on those hills. It’s pretty amazing where they can go now. We’ve logged some pretty steep ground with that stuff.”

However, Backer admits that there are some logistical challenges when it comes to logging on the hills.

“It’s like orchestrating a concert, keeping everybody organized, because when we’re on the hill, we usually put a couple of skidders and hoe chuckers out, and everybody has to work together. It’s not like on a flat block where everybody can go do their own thing and then at the end of the day go home,” he explains.

Being organized and having a safe plan for operators to get wood off of the hill is critical, he says. If his crew is harvesting in an area with a road system or a switchback, Backer will start harvesting at the bottom of the mountain and work his way up. This way, they can find spots to put the wood as they move up the mountain.

Iron fleet

The majority of Pro Link’s operations are still cut-to-length on flat ground. This, much larger fleet includes a new Tigercat 870D feller buncher and a Tigercat 870C buncher. They also have four processors – two 260 Hitachis with 623C Waratah harvester heads, a Hitachi 240 with a 623C Waratah head and a Hitachi 210 with a 622C Waratah head, along with a Hitachi 370 log loader and a Tigercat 875 log loader.

Pro Link’s log hauling employs around eight log truck drivers and five contract drivers. The company has six trucks from Kenworth and another two from Western Star, along with five Kenworth trucks for their gravel pit business.

These gravel operations have helped the company stay afloat despite the industry’s ups and downs. Backer’s father had purchased the gravel pit to act as a sort yard for logs from BC Timber Sales.

“It was a really good sort yard because it was hard ground and we were able to run it all year,” Backer says. “After we weren’t able to do the sort yard anymore, we started selling gravel out of there.

“It’s nice because in the spring, as it gets slow here, I will concentrate on doing more construction projects if I have to, to keep our guys going.”

Photo courtesy Pro Link Logging.

On top of this, Pro Link also does some road building, constructing around 70 kilometres of road per year. To do so, the company has invested in several pieces of equipment, including two Hitachi 260 excavators, a Case 210 excavator, two Caterpillar dozers, an 850J John Deere dozer, a new John Deere grader and a Champion grader.

Challenges abound

With such a large fleet, Backer, like other logging contractors, has to contend with rising equipment prices.

“Everything is sort of creeping up on us. It’s getting more costly to run a business nowadays,” he says. “Before, say your target was to have X amount of money at break-up to carry you through it and do repairs on your equipment. But, now, even if your goal is to have that much money in your account, it’s not going to go as far.”

To tackle this issue, West Fraser installed FPDats – a monitoring tool that collects and analyzes information on a machine’s productivity and performance – on some of Pro Link’s machines. Backer believes that going forward, monitoring equipment and fuel usage will be critical to stay on top of operating costs.

“That’s why I usually try to go to the bush three days a week and two days in the office, looking at jobs. If you don’t do that, you just can’t keep up or you work Saturdays,” he says. “I try to work roughly 14 hours a day, five days a week, to keep a cap on everything. If I don’t spend two days a week in town, I’d be working six or seven days a week.”

This set-up allows him to spend time with his two young daughters during the weekend, along with his wife, who occasionally helps with the business.

“We have a lot of skilled employees that play an important role to keep our business running, which has contributed to our company’s success,” Backer adds.

“I really enjoy what I do – I have a good relationship with the mill, I enjoy my crew and the people I work with. That’s why I continue to do it. But it seems like there’s always challenges,” he continues. “We’re still trying to get over the hurdle of COVID-19 that we’ve all dealt with, and now it seems like things are starting to come together, lumber prices were looking strong, and the government slapped this old-growth [deferral] on us. It would have a pretty big effect on our business if it did go through.”

Backer is unsure how the old-growth deferrals would work if the First Nations rights and title holders decide to indefinitely defer harvesting in the proposed areas.

“My concern is, if they’re going to spread it out through a block where you’ve got to leave all these old-growth trees, I’ve done that before on mule deer winter range blocks, and you come back the next year and it’s all blown down,” he explains.

For Backer, pausing the harvesting of old-growth is not proper forest management, given that aging trees deteriorate and don’t contribute as much to the environment as a young tree.

“You might as well log as much as is renewable, and we have a good working forest, good forestry companies that are managing the forests here, so our cuts are limited already,” he says. “It just seems like a waste of real estate to me to leave a bunch of trees standing that aren’t going to contribute anything to our reforestation as well as forest health.”

Adaptive logging

But, for now, industry must wait to hear what will happen with the old-growth forests. So, Backer is focused on implementing the new tethering system for steep slope logging and understanding its impact on his operations.

Although most of Backer’s harvesting operations will continue to be on flat ground, the steep slope equipment will allow Pro Link to log previously inaccessible cut blocks.

“If that works out for us and we can make it safe and profitable for our business, then we’ll continue on with that. If that doesn’t work out or I’m not happy with that, we’ll adapt to another system,” he says.

“You have to try your best, and sometimes there are things out of your control that you can’t make changes for or predict. At the end of the day, you just have to adapt.”

This social economy model is spurring local economic development. Last year, the community forest generated $418,113 worth of investments in 50 community projects. The amount was redistributed between 11 local development corporations, which each received between $16,000 and $107,000. 

Those are substantial sums for small municipalities, some of which have barely a few hundred inhabitants, says Marc Laprise, president of l’Agence de gestion intégrée des ressources (AGIR) (Integrated Resource Management Agency). For example, the funds have been used to provide food aid, invest in a play centre, a municipal library, and a climbing gym, and for a youth physical training course.

André Fortin, owner of Forestiers AD Fortin, appreciates the quality of life he has working for AGIR, because he can sleep at home every night.

This community forest model, through which the private forestry contractors partner with the municipalities, has become a source of local pride. “People often see the negative side of forestry, which does not always get good press,” says Laprise, one of the concept’s initiators. “For us, forests are a resource managed sustainably, while being a good source of income.”

The idea of managing the forest differently originated in the 1990s, when the CLD Maria-Chapdelaine (a local development commission) launched consultations to revitalize local communities, says Laprise. “We proposed creating local corporations to generate more income from forests for the surrounding municipalities.”  

Corporations were created in eight municipalities, who began negotiations with forest industry players such as Alliance Forest Products to do the forestry operations close to the communities. 

“We offered a winning partnership that fostered local control of inhabited forest land,” says Laprise, referring to the public forest lands that surround many municipalities. “Closer hands-on management minimizes conflicts with citizens and enables us to generate income to invest in community projects.”

The local forest corporations obtained an initial logging contract of about 83,000 cubic metres, which had to be renewed each year. Since then, numerous companies have allowed the municipal corporations to manage the harvest on territories located next to intra-municipal public lands under a territorial management agreement managed by the municipalities.   

Pierre Cormier, vice-president of forestry operations at Resolute Forest Products, which was in the front row when the system was first put in place, says the model is a win-win. 

“It facilitates social acceptability while generating increased benefits for communities,” he notes.  

“The forestry industry has provided us excellent business opportunities,” says Michel Bouchard, AGIR’s general manager. “We run the organization like a private company. But instead of paying dividends to shareholders, we pay social contributions locally.”  

The quality of the wood is better in nearby forests, says André Fortin. Thus, operations are profitable even if the harvesting areas are smaller.

Over time, the informal agreement with the industry improved so that AGIR, which acts as a general contractor on the forest sites, now harvests more than 190,000 cubic metres per year. Last year, AGIR oversaw 14 harvesting contracts with Resolute Forest Products, one with Remabec and two with Norbord, including one for harvesting and another for road building. 

According to Bouchard, an openness among Quebec civil servants facilitated the implementation of this unique community forest model. He believes since forests are harvested and managed according to the needs of the environment and different users, social acceptability is much greater.

“When people have questions, they ask them directly to the representatives on the boards of the local corporations,” adds Laprise, who has been AGIR’s president since 2008. “This gives them a way to make their concerns known.”

Three years ago, AGIR opened its membership to include four new municipal corporations to maximize the economic spinoffs in the area. In total, 12 corporations are administered locally by more than 85 volunteers. Allowable cuts are harvested and the wood is delivered to the mills, but the benefits in the communities are much greater. 

Smaller quality lots
Instead of focusing on large logging areas, AGIR plans harvests in small areas while taking into account other land users. The approach requires forestry contractors hired by AGIR to move their machinery more often, which means extra costs, but there are benefits as well.

“The logs are bigger here, which enables us to run profitable operations,” says André Fortin, owner of Forestiers AD Fortin. André says he appreciates the quality of life fostered by local operations because he gets to sleep at home every night, instead of near logging areas. 

William Fortin, 24, a harvester operator, also appreciates being close to home. “I didn’t want to go logging deep in the woods,” he says. “I like it right here.”

Being in close proximity to managers from AGIR also facilitates quick decision making for the contractors and thus efficiency, notes André. 

In his operations for AGIR, he uses Tigercat 845 and 855 harvesters fitted with Ponsse H7 heads. During CFI’s visit, the company was using a Ponsse Elephant forwarder, which was due to be replaced by a Ponsse Elephant King. This forwarder was repatriated from Forestiers AD Fortin’s operations further north with Resolute Forest Products, as the company had opted for a larger model, a Tigercat 1085 with a 24-tonne basket.

At the beginning of July, Forestiers AD Fortin was logging an area 10 kilometres north of Saint-Edmond-Les-Plaines, Que., which was ravaged by the spruce budworm. 

“We harvest under a special ministerial plan,” says Bouchard. “Instead of harvesting a single large cutting area, we harvest in patches. This enables us to better distribute cuts and moderate harvest intensity, while leaving residual forest, which improves the landscape.”

AGIR is testing a new market in this area – harvesting black spruce tops for Labrador Production, which produces essential oils. 

AGIR also offers technical and professional services to the Opitciwan sawmill, the municipality of Domain-du-Roy, and other organizations, and carries out urban forestry, agroforestry, agro-environment, environmental management and biodiversity projects as well as recreational tourism development.

A.K. Goodwin Enterprises employs more than 25 people including John’s spouse, Crystal, and their sons, Nick and Alex.

The CWF selected Steve Gosson, owner of Gosson Enterprises Ltd. in Saint John, N.B., as this year’s forest trucking contractor of the year.

Gosson employs six full-time drivers and one part time, which keeps his three trucks on the road hauling for J.D. Irving year-round.

Peter Robichaud, executive director of the CWF, introduces both winners in the video below:

The CWF profiled all its 2021 logging and trucking contractors of the year nominees here.

But, Parfitt and his partners never intended to begin their own logging operations on a full-time basis. 

“We were only supposed to have one machine because I had bought some private property that I couldn’t get logged,” Parfitt explains. “We logged that property in six weeks, and we had another job at the end of logging our property, and it grew from there to about 25 pieces.” 

Harvesting profile

Although the company has only been operating since 2016, they quickly expanded their operations. On an annual basis, Freya Logging harvests around 350,000 cubic metres of wood, with an emphasis on commercial thinning in small wood or partial harvesting very large wood. The company harvests a wide range of species, including cedar, hemlock, pine, spruce, balsam, aspen and birch. 

These logs are delivered to a variety of customers in the Prince George area, including Carrier Lumber and Sinclar Group’s Lakeland mill. They also send pulp wood to Canfor and biologs to Pacific Bioenergy, and work with West Fraser on the private wood side. 

To run their operations, the company employs 25 people directly and subcontracts an additional 30-35 truckers and mechanics. In the spring treeplanting season, Freya also employs up to 20 treeplanters and support people.

“We found our sweet spot for size about two years ago,” Parfitt says. “We are always focusing on constantly attracting and retaining talent; what we’re trying to do is sort of hybridize good local talent, especially focusing on young locals and exposing them to experienced mentors. We’ll hire good local people who are older if they’re available, but there’s such a lack of experienced people in the wage pool that we’ve been focusing on either training younger people in harvesting and forwarding or bringing in immigrants, particularly from Europe where training is much more developed and serious.” 

Initially, the company was double shifting on equipment. 

“It was a very fast ride from one to 25 pieces, so we had to look under rocks and scrape and pinch and do everything we could to put that money back into the company,” Parfitt explains. 

But, in the last six months, Freya has made the switch to single shifting, and even added a few new pieces of equipment to their fleet, including a new Ponsse Elephant King. At the time of writing, they plan to add a new Ponsse Bear to their fleet in November. 

This is in addition to five wheeled harvesters, three track harvesters, seven forwarders, three log loaders, three crawlers, five excavators and some other support equipment. The majority of this equipment is from Ponsse, John Deere or Hitachi, as well as Eltec, Cat, Komatsu, and Volvo. The company also has machinery from Liebherr, including a 926 excavator, and an Ecolog. 

“Ponsse and John Deere harvesters, built close together in Finland, exemplify excellent qualities of wheeled equipment as they are strong, reliable and productive,” says Parfitt. “Many operators have preferences and keeping a mixed fleet allows us to match talented operators with their preferred machines.

Freya Logging recently acquired Moore’s Harvesting’s fleet of equipment, including a late model John Deere 8WD 1270G wheeled harvester. Photo courtesy Freya Logging.

“In late 2020 we had the opportunity to acquire a fleet from another contractor – Moore’s Harvesting – and allow them to retire, which worked out well for Freya as well as them,” Parfitt adds. 

The acquisition included a late model John Deere 8WD 1270G wheeled harvester, an Eltec 227 feller buncher with a Ponsse H8 HD head, as well as three forwarders, an Ecoforst winch and some older pieces. Purchasing a number of fairly new but used machines paved the way for Freya to switch to single shifting. 

“It also helped Moore’s Harvesting owners Randy and Tina Moore sell all their machines at once so they could focus on their health without the stress of the auction process,” Parfitt says. “Freya believes that Randy and Tina’s commitment to selective harvest has been captured and continued in the spirit of Freya.”

Freya Logging has also invested in some equipment for the roadbuilding side of their business, including two Cat D6 crawlers, two Hitachi excavators, a Volvo excavator, and a Komatsu dozer. 

However, the company tries to do as little roadbuilding as possible, choosing instead to have longer forwarding distances in an effort to reduce the impact on the landscape. More roads reduce the biodiversity of the landscape and introduce invasive species, hunters and other people who want to use the roads, Parfitt explains.  

“One of the reasons we’ve been able to succeed is because roadbuilding is expensive,” he adds. “Prince George is getting wetter with climate change and I think forwarding is a much more effective way to collect wood than skidding because you don’t have to have as short of a skidding distance, and your roadside areas are much cleaner.”

On top of that, less roadbuilding helps the company free up more land to increase the annual allowable cut. 

“If you can take your permanent access structure on a block from seven per cent to three per cent, that means you can increase your annual allowable cut by four per cent, and in B.C., that’s more than two million cubic metres,” Parfitt explains. 

Disrupting the industry

The choice to do less roadbuilding and increase forwarding distances lines up with Freya Logging’s overall goal to “be a bit disruptive to the industry.” 

While commercial thinning is not very common in B.C., the company is focusing on this type of logging because they see a big business opportunity in the area.

“We’ve taken a different approach to logging. Most people get a block from the mill and they go out and log it, whereas we’ve had to create demand for our products,” Parfitt says.

“One of the ways we create demand is by doing the job and coming back several years later and showing people what it looks like. That tends to create huge demand.” 

Commercial thinning also helps the company manage the fluctuating stumpage rate in B.C., which typically increases after lumber prices have gone up. Oftentimes when lumber prices are high, stumpage rates are low, and then they increase when lumber prices have dropped back down, Parfitt explains. But, the provincial government does not charge as much for thinning as they do for clear-cutting mature timber, and that helps the company ride out the changes. 

Commercial thinning has also helped Freya Logging attract new talent to their company, particularly women, because their operations are closer to town. Since women are often the primary caretaker of children, this gives female operators the flexibility they need in case a family emergency happens, Parfitt says. 

“In a lot of ways, one of the struggles we have is talent, and one of the ways to increase that talent is to go into non-traditional labour pools, because the traditional labour pools are very shallow and there’s a lot of competition for those few people that are good at what they do,” he says. “But, if you can expand beyond those traditional labour pools, it pays well and it’s a pretty nice job.” 

Freya has also taken on tree planting contracts in 2020 and 2021 that allow the company to plant two trees for every tree harvested. This has benefited the seasonality of logging as treeplanting typically occurs in the off-season of harvesting, and has exposed new talent to the logging industry, Parfitt says.

“Treeplanting is a difficult job and requires a high work ethic and the ability to use some of those treeplanters in the logging operations is another way to deepen the talent pool,” he says.

To carry out their thinning and selective harvesting operations, Freya Logging has invested in several pieces of equipment from John Deere, Hitachi, Ponsse, Komatsu and Eltec.

Biodiversity benefits

Commercial thinning can also have a big impact on climate change and biodiversity, which is one of Freya Logging’s top priorities, Parfitt says. 

“We’re kind of pioneering what is proven technology in Europe in British Columbia,” he says. “So, there’s a real sense of doing a good thing for the planet, because selective logging is arguably one of the very best ways to improve forestry practices. It improves biodiversity and changes people’s interactions on the land, especially in how they perceive logging.” 

In fact, Freya Logging recently commissioned a study from a university to explore the impact of commercial thinning on biodiversity in Prince George. The study found that there is a 300-600 per cent increase in moose activity in selectively logged areas compared to a clear-cut, plantation or old-growth stand, Parfitt shares. 

“Moose are a keystone species – 80 per cent of the biodiversity in a forest is represented if you have a good moose population, and our moose population has been declining, which is an indication that we have declining biodiversity on a landscape basis around Prince George,” he explains. “So, if we change how we log and we increase moose populations, we’re probably increasing general biodiversity and the number of different animals in a stand.”

On top of that, actively managing forest stands can help reduce fire hazards, Parfitt says. This is increasingly important as wildfire seasons have become more severe due to climate change. 

“If we can take some of those stands that are socially constrained and manage them in a better way, especially with a traditional, Indigenous knowledge application…I think we can increase the timber supply as well as make people feel better about logging,” he says.

“That’s kind of the goal of Freya – to be disruptive and to improve things.”  

Consequently, Parfitt believes that increasingly intense wildfire seasons won’t reduce fibre supply, but rather increase it because more people will recognize the benefits of managing forests through commercial thinning. 

“Shaded fuel breaks created by selective harvest last longer than clearcuts, reduce ground temperatures and increase moisture levels in understorey, improving protein levels for ungulates as well as significantly slowing fire spread,” Parfitt explains.

“What we need to do is create forests that can be actioned, i.e., thinning, and then do thinning of trees of all ages, from 30 years to 200 years old, because if you reduce the volume in the stand spatially, the fire spreads much more slowly,” he adds. 

According to Parfitt, decades of fire suppression has increased the density of trees, making fire behaviour aggressive and impossible to safely fight until weather patterns change.

Freya Logging has been working with the B.C. Ministry of Forests and other licensees to pioneer this concept. 

Constant improvement

However, unlike other parts of B.C., the Prince George area is not seeing fibre supply challenges due to wildfires. The Prince George area is becoming warmer, but it’s also experiencing more rain, which results in a longer growing season and larger trees, Parfitt explains. 

“The average temperature is warming, but the summers are getting slightly cooler and the winters are getting quite a bit warmer. So, loggers don’t have to deal with the hard frost as much as we used to,” he elaborates. 

Consequently, Parfitt believes Freya Logging is in a “pretty good position.” 

The company is not necessarily looking to continue growing their operations, but Parfitt is not opposed to this if the opportunity makes sense. 

“The problem is keeping things tight because it’s not a high-margin industry,” he says. “We’d grow if there was a high-margin opportunity, very carefully and thoughtfully. Having said that, my biggest concern, and I think my partners’ biggest concern, is that we have 55 to 60 people depending on us for a paycheque. We have to consider that in everything we do.” 

So, moving ahead, Freya Logging will look at “constant improvement, and potentially growing if there is a quality opportunity to grow into – not just growth for growth’s sake,” Parfitt says. 

To acknowledge and highlight each winner’s contributions, CFI will feature one of 2021’s winners every week for the next 10 weeks.

This week, we introduce our readers to Stephan Posselt, operations manager for Tahtsa Timber in Burns Lake, B.C.

Posselt grew up in the logging industry, spending weekends and summers working for his father, Klaus, at Klaus Posselt Logging Ltd., and later at Tahtsa Timber Ltd. After graduating high school, Stephan completed a carpentry program and a wood engineering and technology program.

Stephan then interned for a summer with West Fraser in Williams Lake, B.C., where he worked as a quality controller. During that time, he suggested innovative ways to improve the flow of the milling process, which mill management adopted.

After running a homebuilding/renovation company in Prince George for seven years, he moved back to Burns Lake, where he is now the operations manager for Tahtsa Timber. The 38-year-old oversees many aspects of the business, including logging, fire management, Indigenous partnerships, road construction, community forest partnerships, and specialty projects for the B.C. Ministry of Forests.

Stephan is also involved in growing Tahtsa’s trucking division, the associated maintenance shop, the company’s four logging divisions, and the three canter mills belonging to Pacific Timber (a subsidiary of Tahtsa Timber).

“His attention to detail and outlook towards the future help to move the Tahtsa Group forward and to stay competitive,” says Kevin Porowski, Stephan’s co-worker at Tahtsa Timber. “You will rarely find Stephan without a smile at work, lifting the spirits of his co-workers. He enjoys what he does at work and in life in general.”

Up next: we showcase the achievements of winner Keven-Derick Auclair Savard.

To acknowledge and highlight each winner’s contributions, CFI will feature one of 2021’s winners every week for the next 10 weeks.

This week, we introduce our readers to Spencer Stewart, owner/operator of SS Logging Ltd., in Kamloops, B.C.

Spencer Stewart has been involved in the log trucking industry since he was a baby, when his mother, Tiara Seitz, would take him with her on her truck.

“Even at a young age, he was instilled with a strong work ethic and wouldn’t take no for an answer,” says Todd Chamberlain, general manager of the Interior Logging Association (ILA).

Growing up, Spencer volunteered with the Lower Nicola Indian Band fire department. There, he met Ben Klassen, owner of Valley Carriers Ltd., and was hired to work in the shop. Valley Carriers later sponsored Spencer to obtain his Class 1 Driver’s License, and he soon became one of their top drivers.

Eventually, he chose to strike out on his own, purchasing his first truck and starting his own company. Now, at 25 years old, he owns two trucks – with a third on the way.

Spencer, who is also a member of the Upper Nicola Indian Band, “provides an example to both Indigenous and non-Indigenous youth that a strong work ethic and positive attitude nothing is unattainable. He has a passion for what he does and continues to excel,” Chamberlain says.

Up next: we showcase the achievements of winner Stephan Posselt.

To acknowledge and highlight each winner’s contributions, CFI will feature one of 2021’s winners every week for the next 10 weeks.

This week, we introduce our readers to Janis Simpkins, senior vice-president at Alberta Forest Products Association in Edmonton, Alta.

Although Janis Simpkins has only been with the Alberta Forest Products Association (AFPA) since July 2020, she made an immediate impact on the organization, says Jason Krips, AFPA’s president.

“Janis has an incredible work ethic and is an empowering leader who brings an infectious energy level and an insatiable ability to learn complex files in a short period of time,” Krips says.

In her role, Janis leads the AFPA’s advocacy on regulatory reform. Her conversations with senior provincial government regulatory officials on changing to an outcomes-based model led the Alberta government to choose forestry as the pilot industry for a new streamlined process for industrial facility renewals, which will help forestry companies save time and resources.

The 39-year-old provides leadership to the AFPA’s environment, forest policy and sustainability units. She also chairs the Forest Sector Red Tape Panel, leading the design of an industry submission that quantified impact and prioritized areas of impact within the forest industry.

This work with the provincial government is a natural transition for Janis, who previously spent five years working for the government of Alberta.

“Having Janis’ skillsets, leadership skills and energy have made AFPA a go-to industry organization for individuals looking to join a renewed, forward-looking organization and vastly increased AFPA’s relevance with our key stakeholder and government interlocutors,” Krips says.

Up next: we showcase the achievements of winner Spencer Stewart.

To acknowledge and highlight each winner’s contributions, CFI will feature one of 2021’s winners every week for the next 10 weeks.

This week, we introduce our readers to Thomas McCay, chief forester for Haliburton Forest & Wildlife Reserve in Haliburton, Ont.

Five years ago, Thomas McCay became a Registered Professional Forester (RPF) in Ontario. Today, at 32 years old, he is the chief forester of Haliburton Forest and Wildlife Reserve Ltd. in Haliburton, Ont.

After completing a Master’s of Forest Conservation at the University of Toronto, he worked as a horse logging contractor and then a conventional cut-skid contractor while working towards his RPF designation, explains his manager, Malcolm Cockwell. It was only after working as a logging contractor for a few years that Thomas became a forester with Haliburton Forest.

“This boots-on-the-ground experience provides a strong foundation for his work today – and earns the respect of all the contractors that he now manages,” Cockwell says.

As the chief forester, Thomas is responsible for the sustainable management of Haliburton Forest and Wildlife. He has played a key role in the turnaround of Haliburton Forest, which owns and manages 100,000 acres of private land, says Cockwell.

He was also instrumental in the creation of a private land consulting practice called Stewardship Services, the formation of the Haliburton Forest Research Institute, the start-up of hardwood sawmill Almaguin Forest, the recent acquisition of Huntsville Forest Products, and more.

“It is hard to imagine that there are any young forestry professionals as dedicated to the advancement of the sustainable management of hardwood forests in Ontario or in the world,” Cockwell says.

Up next: we showcase the achievements of winner Janis Simpkins.

Thomas McCay
Chief forester, Haliburton Forest & Wildlife Reserve, Haliburton, Ont.

Five years ago, Thomas McCay became a Registered Professional Forester (RPF) in Ontario. Today, at 32 years old, he is the chief forester of Haliburton Forest and Wildlife Reserve Ltd. in Haliburton, Ont.

After completing a Master’s of Forest Conservation at the University of Toronto, he worked as a horse logging contractor and then a conventional cut-skid contractor while working towards his RPF designation, explains his manager, Malcolm Cockwell. It was only after working as a logging contractor for a few years that Thomas became a forester with Haliburton Forest.

“This boots-on-the-ground experience provides a strong foundation for his work today – and earns the respect of all the contractors that he now manages,” Cockwell says.

As the chief forester, Thomas is responsible for the sustainable management of Haliburton Forest and Wildlife. He has played a key role in the turnaround of Haliburton Forest, which owns and manages 100,000 acres of private land, says Cockwell.

He was also instrumental in the creation of a private land consulting practice called Stewardship Services, the formation of the Haliburton Forest Research Institute, the start-up of hardwood sawmill Almaguin Forest, the recent acquisition of Huntsville Forest Products, and more.

“It is hard to imagine that there are any young forestry professionals as dedicated to the advancement of the sustainable management of hardwood forests in Ontario or in the world,” Cockwell says.

Janis Simpkins
Senior vice-president, Alberta Forest Products Association, Edmonton, Alta.

Although Janis Simpkins has only been with the Alberta Forest Products Association (AFPA) since July 2020, she made an immediate impact on the organization, says Jason Krips, AFPA’s president.

“Janis has an incredible work ethic and is an empowering leader who brings an infectious energy level and an insatiable ability to learn complex files in a short period of time,” Krips says.

In her role, Janis leads the AFPA’s advocacy on regulatory reform. Her conversations with senior provincial government regulatory officials on changing to an outcomes-based model led the Alberta government to choose forestry as the pilot industry for a new streamlined process for industrial facility renewals, which will help forestry companies save time and resources.

The 39-year-old provides leadership to the AFPA’s environment, forest policy and sustainability units. She also chairs the Forest Sector Red Tape Panel, leading the design of an industry submission that quantified impact and prioritized areas of impact within the forest industry.

This work with the provincial government is a natural transition for Janis, who previously spent five years working for the government of Alberta.

“Having Janis’ skillsets, leadership skills and energy have made AFPA a go-to industry organization for individuals looking to join a renewed, forward-looking organization and vastly increased AFPA’s relevance with our key stakeholder and government interlocutors,” Krips says.

Spencer Stewart
Owner/operator, SS Logging Ltd., Kamloops, B.C.

Spencer Stewart has been involved in the log trucking industry since he was a baby, when his mother, Tiara Seitz, would take him with her on her truck.

“Even at a young age, he was instilled with a strong work ethic and wouldn’t take no for an answer,” says Todd Chamberlain, general manager of the Interior Logging Association (ILA).

Growing up, Spencer volunteered with the Lower Nicola Indian Band fire department. There, he met Ben Klassen, owner of Valley Carriers Ltd., and was hired to work in the shop. Valley Carriers later sponsored Spencer to obtain his Class 1 Driver’s License, and he soon became one of their top drivers.

Eventually, he chose to strike out on his own, purchasing his first truck and starting his own company. Now, at 25 years old, he owns two trucks – with a third on the way. 

Spencer, who is also a member of the Upper Nicola Indian Band, “provides an example to both Indigenous and non-Indigenous youth that a strong work ethic and positive attitude nothing is unattainable. He has a passion for what he does and continues to excel,” Chamberlain says.

Stephan Posselt
Operations manager, Tahtsa Timber, Burns Lake, B.C.

Stephan Posselt grew up in the logging industry, spending weekends and summers working for his father, Klaus, at Klaus Posselt Logging Ltd., and later at Tahtsa Timber Ltd. After graduating high school, Stephan completed a carpentry program and a wood engineering and technology program.

Stephan then interned for a summer with West Fraser in Williams Lake, B.C., where he worked as a quality controller. During that time, he suggested innovative ways to improve the flow of the milling process, which mill management adopted.

After running a homebuilding/renovation company in Prince George for seven years, he moved back to Burns Lake, where he is now the operations manager for Tahtsa Timber. The 38-year-old oversees many aspects of the business, including logging, fire management, Indigenous partnerships, road construction, community forest partnerships, and specialty projects for the B.C. Ministry of Forests.

Stephan is also involved in growing Tahtsa’s trucking division, the associated maintenance shop, the company’s four logging divisions, and the three canter mills belonging to Pacific Timber (a subsidiary of Tahtsa Timber).

“His attention to detail and outlook towards the future help to move the Tahtsa Group forward and to stay competitive,” says Kevin Porowski, Stephan’s co-worker at Tahtsa Timber. “You will rarely find Stephan without a smile at work, lifting the spirits of his co-workers. He enjoys what he does at work and in life in general.”

Keven-Derick Auclair Savard
Vice-president, sales and business development, StarrForest Inc., Montreal

Keven-Derick Auclair Savard comes from a family of lumber and forestry entrepreneurs in Lac Saint-Jean, Que. Originally working in commercial banking, he later took over the family business,  StarrForest, which specialized in plywood and supplying floor and furniture manufacturers.

The 38-year-old decided to diversify the business, noting the precariousness of the quickly evolving market, says Laurence Lachance, a supplier for StarrForest. Under his direction, StarrForest expanded its offerings to include lower grade plywood to serve the roofing and concrete industries, as well as commodity lumber, in order to meet demand year-round.

He was also instrumental in the development of the STARR-LAM product, a glue-laminated scaffolding plank created in collaboration with Chantier Chibougamau. STARR-LAM is now a staple in Quebec’s construction sites, says Lachance.

Keven-Derick also created a new company website, launching marketing automation campaigns paired with a CRM to gather business intelligence. He also implemented inventory software to be able to trade and follow-up on StarrForest orders in real-time.

“Even with COVID-19 and the supply chain upheaval, the last year has been very prolific for StarrForest as Keven used his background in finance to successfully surf the wave of recent prices increase in various categories of wood products, taking some risks and making sure his clients got the products they needed at the best price,” Lachance says.

Melinda Morben
Senior manager, logistics, Mosaic Forest Management, Nanaimo, B.C.

Melinda Morben’s forestry career started when she was 18 years old, logging in the Interior of B.C. where she ran a processor for three years. She later earned a Forest Resource Technology Diploma from the College of New Caledonia and a Bachelor’s of Science in Forestry at the University of British Columbia, along with a Registered Professional Forester (RFP) designation.

Melinda then made the move to Mosaic Forest Management, where she has been for more than 10 years, working her way up from quality control supervisor to senior manager, logistics. Now, the 37-year-old leads Mosaic’s logistics department to manage the land-based supply chain and implement centralized dispatch for a fleet of more than 250 trucks, six dryland sorts, two export terminals and the vessel, barge, and container loading operations.

She has also designed and implemented supply chain technology, and customized system development for centralized trucking dispatch and electronic load description slips for 250-300 trucks. On top of that, Melinda has been instrumental in driving a partnership to implement electric log truck trials on Vancouver Island, says Domenico Iannidinardo, Melinda’s manager.

A board member of Canadian Women in Timber and the Log Truck Technical Advisory Committee, Melinda “is a trailblazer for women in the forestry industry, taking every opportunity to voice the need for inclusivity and diversity and inspiring young women to pursue a career in forestry,” says Iannidinardo.

Melissa Harborne
Forestry supervisor, Interfor, Adams Lake, B.C.

As a forestry supervisor for Interfor’s Adams Lake, B.C., division, Melissa Harborne is involved in multiple different aspects of the business. She contributes to the Adams Lake planning department’s strategic timber inventory in South Adams, is involved in stakeholder liaison and operational planning development, and oversees the development of forest management plans.

Melissa also contributes to Interfor’s environmental program, exceeding targets for identifying environmental concerns or hazards related to operations and implementing plans with specialists, says Tara Greiner, Melissa’s co-op student.

Having obtained her Registered Professional Forester designation in 2020, the 26-year-old continues to periodically attend workshops to increase her knowledge and become a more well-rounded planning forester.

Melissa also managed the 2021 summer student program for the Adams Lake division’s planning department, where “she is extremely motivating and goes out of her way to provide a meaningful experience for her student,” Greiner says.

An active member of the Scotch Creek fire department, Melissa also attends elementary school classrooms to educate children about forest management.

“Melissa is a terrific role model for young women such as myself entering forestry. She takes her time to make everyone at the jobsite feel comfortable, she is hyper-focused on safety, and at the same time creates a positive job atmosphere. It is a pleasure to work with and be mentored by Melissa!” Greiner says.

Jessica Prior
Assistant forester, AV Group NB, Nackawic, N.B.

Jessica Prior

Since Jessica Prior joined AV Group in 2017, she has progressively taken on more responsibility each season and developed into a leader, says Conway Elkins, AV Group’s woodlands manager. She has worked as a scaler, a harvesting supervisor, silviculture supervisor, and now an assistant forester.

In her current role, she is responsible for all silviculture activities across the company’s provincial operations, as well as the company’s environmental management system (EMS) and certification duties.

Prior to the COVID-19 pandemic, Jessica was also active in her community, visiting schools and attending career fairs to help promote the forest industry. The 32-year-old also helped out with Forest NB’s meetings.

“She’s very motivated,” says Pierre Mezzetta, Jessica’s direct manager at AV Group. “She’s always said, ‘I want to be the best at whatever I do.’ She’s very goal-oriented, but while she’s worked towards those goals, she’s very conscientious – she works very well with a team and has great communication skills.”

“Jessica takes on each new task with zeal, eager to learn and succeed,” Elkins adds. “All along the way Jessica can be found with a smile and brings a personality to our office that brings people together and challenges us to succeed. In a short period of time, Jessica has made a positive impact to our operations and will continue to succeed as a forestry leader.”

Adam Blyth
Sawmill superintendent, Tolko Industries, High Level, Alta.

Adam Blyth

With more than 17 years’ experience in the industry, Adam Blyth, at 36 years old, is the sawmill superintendent at Tolko Industries’ High Level, Alta., division.

Adam joined Tolko Industries in 2004, working clean-up and production spare board. After learning the ropes in several production roles, Adam completed his training as a planer technician. He quickly moved up to head planerman and was responsible for running the planer maintenance department.

Adam’s passion for developing great trades employees led him to his next role as apprenticeship and training co-ordinator for the site, says his colleague Caroline Carstens.

In this role, he was involved in developing Tolko’s employees and worked with Careers the Next Generation and the local school, promoting forestry as a career choice for youth across northern Alberta. His leadership and “get-it-done” attitude led him to be promoted to sawmill superintendent at the age of 32. To further develop his skills and knowledge, he took part in the pilot cohort of the British Columbia Institute of Technology (BCIT)’s Industrial Wood Processing program.

“Adam has worked tirelessly to develop capacity at all levels within the sawmill – developing employees and processes that have improved production quality, as well as employee safety and engagement,” Carstens adds.

Cédric, Samuel and David Bérubé
Bois d’oeuvre Cedrico, planing supervisor, transportation logistics manager, purchasing manager, Causapscal, Que.

Bois d’oeuvre Cedrico, a sawmill in Causapscal, Que., will be able to count on not one, but three Bérubés to ensure its success in the future. Brothers Cédric, Samuel and David, aged 33, 25 and 22, respectively, will succeed their father Denis, the current president and CEO of the sawmill, in the next five to 10 years. 

“When you are born into a family of sawyers, you cannot escape your fate! Even though our desire to ensure its longevity has only manifested itself in recent years, we have always been involved in the company,” says Cédric, the planing supervisor at the Causapscal plant. The eldest in the family, Cédric has held several production positions at Cedrico.

The youngest, Samuel, followed a similar path. He is currently in charge of the logistics of transporting finished products while he studies administration. David is completing a Bachelor’s in Finance at Saint Mary’s University in Halifax, N.S., and finished a summer purchasing internship at the mill in August.

“Working for the company puts you in the shoes of the employees. We better understand their reality,” says their father.

This initiation is also an integral part of the company’s succession plan, which was entrusted to a specialized external firm. It’s no small task to have three brothers pick up the torch at the same time.

“This support facilitates certain discussions that would otherwise be difficult to have. Fortunately, our skillsets are complementary, so the burden of the company will be spread over several shoulders,” says Samuel.

Editor’s note: A previous version of this article incorrectly identified Janis Simpkins’ age as 32 (she is 39) and Stephen Posselt’s age as 32 (he is 38).  CFI apologizes for the errors.

“Our FESBC-funded project allowed us to increase the overall recovery of fibre from our area forests, resulting in a greater availability of logs for domestic pulp producers and a reduction of the amount of biomass that is burned each year,” said Cathy Craig, CEO, NorthPac Forestry Group Ltd.

Residual waste wood fibre in the forest is typically legally required to be burned to reduce wildfire hazard, and because this fibre has a low economic value, it is usually piled and burned. Leaving and burning pulp logs is, in many cases, the only solution as the incremental operational costs of skidding, processing, loading, hauling, and increased road maintenance is greater than the value of the fibre. This is especially difficult within the Kispiox area where there are minimal wood processing facilities and a forest dominated by low-value hemlock. The grant helped to create positive economic conditions for NorthPac which allowed Craig and her team to utilize the fibre and avoid burning.

“The dollars allocated to us as a grant from FESBC provided us with operational certainty,” said Craig. “These dollars allowed us to commit to contracts with loggers and truck drivers, which further stimulated our local economy. Our crew at NorthPac is grateful for the grant and consider the project a great success.”

When piles of residual wood are burned, greenhouse gases including carbon dioxide, methane, and nitrous oxide are released. If the piles are not burned and the fibre is instead utilized, then much of the greenhouse gas emissions are avoided.

The FESBC-funded NorthPac project will save approximately 42,000 cubic metres of pulp logs from being burned in the forest. That equates to approximately 1,050 truckloads of fibre not being burned and instead delivered to the point of sale in Kitimat, B.C. The pulp logs were purchased by All West Trading Limited and barged to coastal pulp mills to be used to make pulp, paper products, and green energy. Gord Pratt, RPF, FESBC operations manager, is pleased with the overall outcomes citing it as a team effort of many forest sector professionals.

“The project was delivered by a team of local logging and trucking contractors, and it contributed to the regional economy of northwest British Columbia,” said Pratt. “This is a win-win because it not only creates economic benefits for local communities, but global environmental ones as well.”

For Seth Dickinson, owner of Dickinson Logging Ltd. in Hinton, Alta., the solution to these problems is obvious: invest in technology that will help increase his productivity.

Dickinson, who was raised in New Brunswick, got his start logging with his father. In 2002, he moved out to Hinton, where he worked for different companies until he decided to start his own company in 2009, buying a Cat 322 processor and a used John Deere 748 skidder.

Since then, he has built up his fleet of equipment. In 2014, he scored a steady contract logging for West Fraser, harvesting about 350,000 cubic metres per year. That volume mainly consists of 15-20-inch pine and spruce, which goes to West Fraser’s mill in Hinton. Anything over 24 inches goes to West Fraser’s mill in Blue Ridge, Alta., he explains.

This puts the average hauling distance for the company at 70-90 kilometres one-way, although Dickinson and his crew also harvest some aspen, which is cut to eight-foot lengths and hauled to Weyerhaeuser in Edson, Alta.

In order to harvest all of this fibre, Dickinson employs 34 operators and hires 14 or 15 subcontractors. In the summer, they work a double shift five days a week; in the winter, that goes up to six days per week. 

The company also does road building, constructing 30-40 kilometres of cutblock road per year. For this side of his business, Dickinson’s employees work a single shift, Monday to Friday.

Iron fleet
The majority of Dickinson’s harvesting fleet is John Deere, including a 903M buncher, a 948L skidder, 748G3 skidder, and one 2154 processor, all of which have Waratah heads on them.

“For loading, I’ve got three loaders,” he adds. “We load with two of them all of the time, and one’s a spare, if we do some forwarding. One loader is a 2656G, the other a 2454D and then a 2054D.”

To haul the fibre out to the mills, Dickinson has eight of his own trucks – three Kenworth W900s, three Kenworth T800s, one Kenworth C500, and one “black sheep,” a 367 Peterbilt. He also hires another 11 trucks.

When it comes to roadbuilding, Dickinson also uses John Deere equipment, including a 290 excavator, a 270 excavator, a 2154 road builder, a 700K dozer, an 850L dozer and a 772 road grader.

“In general, John Deere has been pretty good,” he says when asked about his experience with the equipment manufacturer. “They always have a lot of parts and they have a resident mechanic who lives in town here, and there’s another one in the neighbouring town. I’ve had pretty good luck with them so far. And the equipment seems pretty decent on fuel.”

Outside of the John Deere roster, Dickinson has a Link-Belt 3240 loader with a live heel for decking and two 855 processors from Tigercat.

But, Dickinson actually downsized his fleet recently. Two years ago, he was logging for Weyerhaeuser in Grande Prairie. When he came back at the end of 2019, he sold off 26 pieces of equipment, most of which was parked, he explains.

As a result, he had to hire some equipment this past winter to help meet their production targets.

“But, I think for next year I’m going to buy some more equipment and just do it myself,” he says. “It seems easier to me – you have a lot better control over how it goes and when it goes.”

He plans to invest in a new loader, buncher, skidder, processor, and another truck. Dickinson also wants to buy a dump truck for his road building operations.

“It would come in pretty handy because a lot of the ground we build on, it’s not rock, it’s mostly clay. So, sometimes it’s kind of tricky to find a good dirt road to build in the summer,” he explains.

‘Slick’ technology
Dickinson has not just invested in machinery – he’s also invested in technology, such as John Deere TimberMatic Maps and TimberManager, to help boost his productivity and efficiency.

With TimberMatic Maps, he can build cutblock maps in his office and send them out to his operators, who can view the maps in their machines.

“We’re not allowed to let those guys work without a paper block map in the machine. So, when we’re operating 24 hours a day, it’s kind of hard to get to everybody because we’re usually running two or three sites at once,” he says. “But, with this system, they can just look at the screen, pick a block number and then bring the block map right up on the screen. I’ve found that works really well for them.”

The maps can also be updated in real-time, which helps keep operators within the cutblock boundaries and avoid environmentally sensitive areas.

“I usually try to walk ahead of the bunchers and see if there’s something like a spring or a creek, because sometimes the maps miss these things. So, if I come across something like that, I can update that live on my iPad, and it will automatically update any machines that are connected to that system,” he explains.

“You can put buffers on TimberMatic Maps, you can put an alarm on it,” he continues. “It’s really slick. John Deere is doing some really cool stuff with it, so by the time it’s done, it’s going to be a really good system.”

With this technology, operators can also contact Dickinson if they have trouble in the middle of the night or if he’s on a different jobsite. He can bring up the map on his laptop and iPad to monitor their position and give advice.

These solutions have saved Dickinson a lot of time and energy because he no longer has to examine every machine every day when he’s doing his rounds in the morning. Instead, he can check his computer to see if an operator is almost done with his or her current job, and then check their machines.

Every move counts
Technology like this helps Dickinson overcome a number of challenges facing the logging industry, particularly increasing costs and a lack of available manpower.

“The margins are so tight now, and everything is getting so expensive with the machines, wages and fuel. So, you really have to watch what you’re doing. Every move has to count nowadays,” he explains.

That includes hiring and training new operators. A lot of the older, more experienced operators are retiring, and there are fewer young people available to take their place. In Dickinson’s experience, those young people don’t have a very good work ethic.

On top of that, training new operators is an expensive endeavor, and “if you put all that time and effort in to train someone and they don’t stay, it burns you,” he says.

“That’s why the more they come up with technology-wise, the better. It’s going to be a big help. Anything we can do to make it easier to get out there, get people started faster – even supervisors – it’s going to be a huge help.”

But, it’s not just operators who are retiring. More contractors are retiring too, and that presents an opportunity for the younger contractors.

“If you can figure out how to keep up with technology and make it work for you, and if you can figure out how to recruit people and keep them, then there’s definitely work out there,” Dickinson says.

“If you consider technology and how to really make it work for you, I think it’ll set you above the rest,” he adds. “It will give you a bit of an edge, which is what we need more than ever, because the profit margins are just so tight.”

The company, which does contract trucking for various pellet plants, sawmills, power plants and pulp mills, sold off some of their equipment and trucks and began to focus more on their grinding operations. This transition was in line with the company’s mission, says Valley Carriers CEO Ben Klassen. 

The family-owned and operated business, which employs approximately 100 people, was started by Klassen’s grandfather in 1963. It “has always been a business based on wood residuals, sawdust and any kind of waste products from the mills,” Klassen says. “We always had that value-added piece of, ‘What can we do with this fibre to turn it into a product that people can use?’”

So, when the Forest Enhancement Society of BC (FESBC) put out a call for proposals in the fall of 2020, Klassen saw an opportunity to bring economic and environmental benefits to the community. He applied for funding for a project that would use a forest slash bundler to recover residual forest fibre – which would normally be burned in slash piles – to be used for electricity by a local power producer, Merritt Green Energy. FESBC approved a grant of $416,029 to Valley Carriers for this project, which began in December 2020. 

“Valley Carriers already had FESBC funding from our earlier call for proposals, so they had demonstrated good performance, and they were quick to provide us with a new and additive proposal that increased the amount of work they could do,” Dave Conly, FESBC operations manager, says when asked about FESBC’s motivation for awarding this grant. 

Valley Carriers’ initial proposal called for using a slash bundler to bundle logging slash so it could be transported using conventional logging trucks. 

The idea was to “make this tube, essentially, of slash, wrapped in twine, and then we would be able to haul it out a little bit easier at the time of logging,” Klassen explains. “But, that never really took off. We ran it for two months, but it proved too inefficient.” 

This was because the cut blocks Valley Carriers planned to take residual fibre from had less fibre piled on the roadside than originally anticipated. The primary logger had used more of the fibre than expected, Conly says. 

As a result, there was less volume to haul, with a further distance to travel, and fewer suitable logs to support the bundles. 

“Ultimately, this created production issues and the bundler was only able to produce about one-third of what a traditional grinder is able to do,” Conly explains. 

Pivoting to grinding
To overcome this problem, Valley Carriers pivoted to traditional horizontal grinding, partnering with Huska Holdings to use three CBI grinders – two 6800s and one 6400. 

“Grinders are temperamental machines. Most of the time, it’s a pretty violent process that they go through, so they tend to breakdown, but these seem to be pretty consistent,” Klassen says. 

The partnership with Huska Holdings was a natural one, he adds, noting that Valley Carriers has the trucks and the contracts, and Huska Holdings has the capacity to grind a large amount of volume. 

Initially, Valley Carriers ground the residuals directly into their chip trucks, but using these chip trucks on steep logging roads proved to be a challenge. 

“It’s a pretty daunting task for a driver to drag a 53-foot tail around these switchbacks that were made for logging trucks,” Klassen explains. 

So, the company sold off some of their logging trucks to purchase three new walking-floor B-trains from Titan Trailers, through their long-term dealer Delta, B.C.-based Ocean Trailers, to haul the residual fibre. 

“It has a better ground clearance and the hog doesn’t freeze in the winter. You get more volume on the walking floor on flow-through trailers, and their unloading capabilities are pretty quick,” Klassen explains when asked about the benefits of the walking floor B-trains. 

Valley Carriers worked with Titan Trailers to make some changes to their flow-through B-train, such as adding a hydraulic fifth-wheel plate so the trailers can slide together without needing traction. This means that, if operators are unloading the trucks in the winter, the hydraulics hold the trailers together, rather than the traditional method “where you try to lock your brakes, then undo an air lock and try to use your truck’s dry tires to slide the two trailers together,” Klassen says.

Although these types of trailers can’t carry as much fibre as traditional chip trailers, they are more robust because they are welded together, while traditional chip trailers are pot-riveted, Klassen says. And Valley Carriers can unload these trailers in 23 minutes on average, compared to around 40 minutes for a traditional B-train. 

Overall, transitioning from slash bundling to horizontal grinding was the right move, and FESBC’s funding made it possible for Valley Carriers to extend their grinding operations, keeping 10 people employed for the project. Employment included the operation of the grinders, a log loader, four Western Star 53-foot trucks with a mix of Titan and TyCrop walking floors, a John Deere D7 grader, and a John Deere 7000 dozer for road building. 

The project also involved a large amount of road maintenance, for which the company uses a Kobelco 195 excavator with a six-way dozer blade.

“There’s a fair amount of prep that’s involved, especially in our area, down here in the southern Interior – everything just goes up, so it takes a bit of effort to get those units in,” Klassen says.

Impact of grinding
But the benefits of this project made the effort worth it. For one thing, grinding wood waste rather than burning it in slash piles provides environmental and public health benefits. 

“By not burning these piles, we are avoiding emissions that are harmful to the atmosphere,” Conly explains. “In addition, in areas close to communities, smoke is avoided when the fibre can be utilized. Delivering this wood to a green energy plant produces clean electricity for public use and distribution. This means less small particulate in our air that we breathe.” 

By March 31, Valley Carriers had met its commitment to FESBC, which was to provide Merritt Green Energy with enough fibre for 37 days of run time.

“We overachieved on our contracted commitments at a time when, 18 months ago, the power plant in Merritt was running at 70 per cent capacity because they didn’t have enough fibre,” Klassen says. “This year, they have not been down due to a lack of fibre. So, that I would say is a success.

“For us in particular, to have our people employed and our equipment continuing to move, it just tells us that it may take volume to keep our business strong. It’s not the biggest part of our business, but adding that capacity of four or five trucks and diversified revenue stream keeps us being able to hold a fibre basket for the small mills that we service,” he adds. 

Valley Carriers plans to execute similar grinding projects this spring on private land. The company has only used approximately half of the FESBC funding, so they have lined up some cut blocks where they can grind residual fibre in August and September using the remaining funds. Klassen expects the FESBC grant to generate $1.75 million in revenue overall.

“We’re hoping to see FESBC get re-funded, and if it does, this is something we can continue for the next four to five years,” he says. “There’s fibre around and available that’s getting under-utilized, being burned, so it would be nice to see that opportunity come again.” 

According to Conly, FESBC is planning to support similar projects to help forestry companies find new ways to utilize fibre and avoid burning wood waste in the forest. 

“We have encouraged the industry transformation to be more focused on bioenergy opportunities,” he says. “Contractors have been able to adjust their programs, their capital and their workflow.”

Both Klassen and Conly believe grinding wood waste is a good way for loggers to overcome the effects of B.C.’s decreasing fibre supply, but acknowledge that the economics are very tight. 

“The economics of bush grinding are hard just because it’s an expensive process. The end users – the pellet mills and power plants – their business models usually don’t support that fibre. So, that’s where FESBC comes in and tries to bridge that gap. The end users can’t afford it at $55 per tonne, but they can afford it at $45, so FESBC funds our operations so that we’re able to keep our production prices attainable for the end users,” Klassen says.

“It’s definitely been a struggle, and some people say we shouldn’t be doing it, but it’s still employment, it’s still value, it turns into power,” he adds. “I can’t see a downside to it.” 

“Increased utilization is good for the environment and the economy,” said Jo-Anne Lang, RPF, EFF forester. “To be able to do this successfully in remaining mountain pine beetle-killed and significantly deteriorated stands, support such as that provided by FESBC is necessary.”

EFF mill owners Pat and Richard Glazier have always believed that the full utilization of sawlogs and residual material is the right thing to do, which is why 30 years ago the company built a whole log chip plant equipped with the first drum debarker in B.C. This allowed for efficient debarking of small-diameter logs and debris that would otherwise have been left at roadside to be piled and burnt.

“In 2005 and 2006,” said Pat, “we logged a mountain pine beetle-attacked block, and by bringing it in tree length and processing in the yard, we were able to realize 98,000 cubic metres of sawlogs and 35,000 cubic metres of pulp from a block that originally cruised out at 92,000 cubic metres.”

Although it has not always been profitable, EFF has continued to hold on to their vision of enhanced utilization of fibre because they strongly believed in the long-term benefits this approach would bring to revitalizing forests for future generations. “We worked together to make it work,” said Pat.

One of the ways EFF has been working together with partners was through a log purchase agreement with Three Feathers Limited Partnership, a consortium of the Kwadacha First Nation, Tsay Keh Dene First Nation, and the McLeod Lake Indian Band. Three Feathers holds a Non-Replaceable Forest Licence with requirements to harvest significantly damaged leading pine stands of which EFF is currently harvesting and managing volume under this agreement.

“We’re still harvesting mountain pine beetle-impacted stands, which are well past their prime,” said Lang. “Harvesting is more costly, and blocks are further and further away from the mill. FESBC funding made it possible to substantially increase the utilization of residual fibre from damaged and low value stands that our company may otherwise have had to leave or burn at roadside because of the costs to transport it. Being able to harvest and deliver the fibre to those who can utilize it will benefit the community, contractors, employees, and the environment.”

Also, EFF now has a business relationship with Sasuchan Development Corporation (SDC) to do similar work.

“Similar to Three Feathers, SDC holds a non-replaceable forest licences (NRFL) with conditions to harvest significantly damaged leading pine stands,” said Lang. “EFF is currently managing and harvesting a portion of this volume under our agreement with SDC, and some of pulp will be extracted from the SDC NRFL utilizing the FESBC funds.”

In providing the grant to EFF through its seventh intake, FESBC recognized the proposal’s many benefits.

“A project like this generates so many benefits,” said Steve Kozuki, executive director of FESBC. “Healthy forests for future generations of British Columbians, improved wildlife habitat, better water quality, reduced greenhouse gases, reduced wildfire risk, jobs in the Port of Vancouver and beyond, and the enhanced utilization of pulp products which can displace fossil fuels such as plastic straws. Hard-working people in the Mackenzie area are doing their part to make life better for all of us.”

Robert MacCarthy, EFF’s regional manager commented on the good work: “On any given block, we can extract up to 50 per cent additional volume in the form of pulp logs. There is immense overall benefit to the public in making sure the fibre is brought in and utilized.”

EFF’s operations in Mackenzie include a chip plant, logging side, and a finger joint mill. The finger joint mill is a value-added plant that utilizes residual fibre from sawmills to produce finger joint studs. Residual material from the finger joint and chip plant is sold to others to generate power or produce pulp. Providing employment through every phase, Mackenzie Mayor Joan Atkinson notes the diversity of operations and the economic stability it brings to the community.

“Mackenzie exists to support the forest industry, that’s why the town is here. It’s nice to see a local business like East Fraser Fiber so focused on community and supporting their employees. And kudos to FESBC for raising the bar in terms of forest management and practices. I think companies should be looking at what FESBC is trying to achieve to support sustainable forest management practices especially with so much of our forests having been lost to fire and insects.”

This project is funded in part by the Government of Canada.

Efficiency is key
Tri Valley Construction is located in the town of Princeton, in southern B.C. McKenzie, a third-generation logger, has a crew of 19 and 23 machines in his fleet, including a full line of forestry equipment and complimentary construction equipment. 

The family has been logging since the early 1960’s, so they know reliable equipment is crucial to operations. They work in some of the toughest conditions and their operators spend 10 to 12 hours a day in the cab of a machine. Figuring out ways to work smarter has helped with their long-term success, but it’s easier said than done. 

The daily challenges of logging are as unpredictable as the weather. Late springs result in a shorter summer season; too dry and they are dealing with forest fires; too wet and the equipment can’t get through the mud. They are increasingly working in darkness to try and increase the number of hours in the work day. 

Add to this a changing market, a shortage of workers, a more difficult forest to harvest and increasingly strict environmental regulations and you’ve got a long list of challenges to contend with. Higher productivity, increased worker safety and efficiency are the answer, but how do you get there? It all starts with the right equipment.

So, when Tri Valley was given the opportunity to do extended field testing on the new Caterpillar 538 forest machine, they jumped at the chance – not just because it’s a Cat, but because it’s a totally revamped machine with some big improvements.

I asked Tri Valley what features of the next generation of 538s are making the biggest difference for them. Here are their top five: 

1. Operator comfort and safety is No. 1
For Tri Valley, the increased comfort of this next-generation machine has been a game-changer. The better their operators feel at the end of a shift, the safer and more productive the whole operation becomes, whether they are working day or night, during the summer heat or freezing winter temperatures.

“The biggest difference is the cab and comfort for the operator,” says McKenzie. “My operators are in the machine for 10-12 hours and they’re not sore or fatigued at the end of the day. These machines are their second home, so you want them to be comfortable.” 

Large windows, smaller cab pillars and a flat engine hood have improved visibility by 50 per cent and with lighting and rear-view cameras, it further enhances visibility and safety.

2. Less downtime means better productivity
Keeping forestry equipment productive and on track can be a tough job even in the best conditions. Traction, power, speed and fuel efficiency all play a role. Features like added swing torque, higher ground clearance and better control allow the Cat 538 to work faster, surpassing Tri Valley’s older machines which process 100 pieces per hour. 

Tyson Leduc, an operator for Tri Valley, says there are a couple of other new features that make this machine stand out from the pack. “Caterpillar has ramped up the horsepower on this machine, adding swing torque, and increased the ground clearance. I just love the performance on this machine. The swing torque is really nice, especially in this heavy wood. You’ve got more traction and control from the track power and it’s faster.” 

Doubling the fuel capacity has also added to the performance. “With the increased fuel capacity, I don’t need to fuel up every day. I can go three 10-hour shifts no problem and having the extra weight in the back means the stability is really good on it,” Leduc says.      

Operator comfort also has a huge impact on productivity. The added comfort means less stress on the body and the easy-to-use controls mean operators get more done in less time. 

According to McKenzie, “The biggest thing about the cab is that you’ve got the room to get in with all your stuff, no problem. I really like the controls on it now that they’re integrated on the touch screen. There’s lots of visibility and you can see past the boom now and you’re not tired at the end of your shift. I actually look forward to coming to work to get in that machine every day.” 

3. Extended maintenance intervals save time and money
Unpredictable weather and ground conditions means forestry equipment is at a greater risk of breakdowns, which can result in unplanned downtime and costly repairs. The next generation of equipment is ready to go from the moment it arrives on the jobsite. With extended maintenance intervals, the machine doesn’t need servicing as frequently, which means less downtime. This also results in lower maintenance costs and fewer oil and filter changes. 

Working with the right equipment dealer is also key. It can ensure not only the best service for forestry equipment but that it stays healthy and well maintained. Tri Valley is half a day’s drive from anywhere but, according to McKenzie, a good relationship with Finning (their service provider) is key. 

“We have a field mechanic in town that provides us great service and they always have parts available when we need them,” he says.      

4. Upgraded cab and intuitive settings make for easier operation
The Cat 538 is designed with the operator in mind. As a result, cabs have been given a total overhaul – increased visibility, more space, heated and cooled seats, large windows and better controls. 

Operators can start the engine with a simple push of a button. Touchscreen monitors deliver intuitive navigation and each operator can program and store their own machine settings. There is also the benefit of added visibility, which is especially important when operating in the dark or on a busy site where there are other workers and logging trucks to think about. The lights on the machine also mimic the same brightness as daytime, meaning loggers can feel safe operating day or night. 

5. Better hydraulics reduce warm-up time
These new 538s are coming factory direct with built-in systems that automatically check for low fluid levels in the engine oil, hydraulic oil and engine coolant and alert the operator through the monitor. Hydraulics is a huge component of these machines since they are often working in extreme conditions and cold temperatures. Previously, it would take up to half an hour to warm up the machine and bring the hydraulics up to temperature. With the new warm-up feature, it now only takes minutes.

Next-gen forestry machines
The forestry industry is experiencing a big shift – older workers are set to retire and there are challenges attracting the younger generation to the unpredictable career of a logger. Unlike the controlled environments of construction and mining, a forestry site is constantly changing and needs on-site operators, so remote operation is unlikely to solve the labour shortage. Loggers are increasingly forced to move to higher ground to access the trees, which means slopes are getting steeper and the jobsite more unpredictable. As a result, more specialized equipment combined with highly trained on-site workers are needed to operate at these higher elevations. 

It may not be the answer to all of McKenzie’s challenges, but adding the Cat 538 to his fleet has been a game changer for his productivity.  

“This goes above and beyond my expectations, with what they’ve done,” he says. “The 538 has always been a great platform, but this one has hit it out of the park. I can’t wait to get a fleet of them.” 

With the new 538 offering an extended lifecycle, higher productivity and minimal downtime, Tri Valley can harvest more wood in less time while keeping operators safe and comfortable, which is all a logger can ask for. 

Brian Mulvihill is the industry manager – forestry for Finning Canada.

“I have rarely seen such beautiful wood,” adds Éric Laperrière, a forestry entrepreneur and head of the harvesting division at Groupe Aishkatsh, which was founded last year by Steeve Paul, Philippe Buckell, James Moar and Éric Courtois. The goal was to set up an integrated firm run by Indigenous entrepreneurs based on a “strength in numbers” philosophy that combines road building, loading, transportation, and forestry operations.

The four entrepreneurs brought to the table considerable experience, which they gained managing businesses such as Ilnu Gaz., a service station, and Transport C. Moar. Simon Proteau, a forest engineer with 22 years’ experience, was recruited to handle planning and site operations.

A key initial plan at Groupe Aishkatsh (which means “moving forward” in nehlueun) was to bid on lots at auctions held by Quebec’s Bureau de mise en marché des bois, so that it could begin operations in spring 2020. While elbowing out competition forced the company to keep pricing tight, Groupe Aishkatsh won auctions to harvest 263,000 cubic metres in its first year. 

Groupe Aishkatsh initially began by working with Laperrière through Multi SE, a forestry firm he headed. The partnership worked so well that the two companies decided to merge. 

“I had bad experiences with some previous clients and wanted to sell everything,” says Lapperrière. “Working for a general contractor provides me security. I know I will get paid on time and we can think about expanding.”

Groupe Aishkatsh also hired Les Forestiers Multi-SIM, a subsidiary of Remabec, which has three harvesting teams, to round out its roster.

When CFI visited the site in January, the division was operating two Direct harvesters with Log Max heads and a Cat transporter. They had also recently added a Ponsse Elephant King forwarder, which enables them to run day and night shifts. 

“We would like to add a third harvesting kit,” says Proteau. “But first, we need to find operators. These days it is harder to find manpower than to buy equipment.”

Groupe Aishkatsh also recently partnered with two additional entrepreneurs to buttress its harvesting operations. Pascal Potvin is now responsible for the loading division, which recently acquired a Liebherr LH 40 material handler. Martin-Pierre Langlais, an Ilnu operator who had long wanted to go into business, invested in the forestry road division, which now employs fifteen workers operating three new Caterpillar hydraulic tree spades and three sandblasters. The transport division has seven trucks and trailers and works with subcontractors as needed. 

The creation of Groupe Aishkatsh and the $7 million it has invested into its operating capacity has increased competition for existing players, says Proteau. By the end of March, the company had harvested and sold 280,000 cubic metres to Rémabec for reprocessing and distribution. 

“We are happy with the results during our first year,” says Proteau, who is studying future supply guarantee contracts and rights auction opportunities. “But, we want to do better.” 

Groupe Aishkatsh has already won the rights at auction to harvest an additional 125,000 cubic metres of wood and would like to harvest at least 400,000 cubic metres per year. The company intends to invest at least $3 million dollars in 2021 to build a garage in Mashteuiatsh, Que., that will help make that happen.

More Indigenous jobs
“We wanted to create a business that would broaden opportunities for Indigenous community members in the region,” says James Moar, head of Groupe Aishkatsh’s transport division. 

According to Buckell, another shareholder, Indigenous involvement is a major issue in Nitassinan territory. “Our community is not involved enough in forest operations,” he says.    

Groupe Aishkatsh wants to change that by acting as role models for youngsters and facilitating integration within their different divisions. That strategy is already bearing fruit as 40 per cent of the company’s 40 employees are Indigenous.

“Many young people came back to the region to work for us,” says Courtois, who notes that some Indigenous workers feel uncomfortable in outside worksites.

Groupe Aishkatsh’s managers quickly realized one of the most obvious talent pools to draw upon was their own family members, some of whom had moved away from the community to find work. For example, Moar recruited his cousin, William Moar, an excavator operator who had been working in the mining industry, to join the road crew.

Martin-Pierre Langlais recruited his uncle, Camille, and his father, Martin, a retired municipal inspector, who helps in the transport division. “Two of my nephews will also join soon,” he says proudly.

Paul, for his part, convinced two of his sons, Guillaume and Maxime, to work with him. Guillaume operates a hydraulic tree spade, while Maxime, who is 24, is undergoing training in forest management and plans to join the team soon. 

Martin-Pierre Langlois (left) and his father, Martin Langlois. Martin-Pierre is an Ilnu operator who invested in Groupe Aishkatsh’s forestry road division, while Martin helps in the transport division.

Secure employment
Company officials agree that working for an Ilnu-owned business provides an element of security for community members.

“Many young people have never seen a logger in their lives,” says Moar. “The fact that local employers can offer them a well-paid job, particularly in the woods where many locals love to work, changes the dynamic.”

The labour shortage, which has been a limiting factor on growth in forest operations in recent years, means passing on knowledge to Indigenous workers is a cornerstone of Groupe Aishkatsh’s success. This creates pressure on designated mentors such as 17-year industry veteran Marc Laforge, who provides workforce training at Groupe Aishkatsh.

While the company is proud of the large percentage of Indigenous employees, they want to increase that portion by attracting more younger worker into the sector and recruiting heavy equipment operators who work outside the region.

The partners agree that their success stems from hard work, not counting hours and having confidence. 

“We started from nothing but have proved that we can deliver the goods,” says Paul. “Now, we want Groupe Aishkatsh to serve as a model for young people in the community and for all First Nations.” 

It used to be you could buy a line skidder, go out to fall a turn, hook up chokers and drag it to the landing for hand bucking. If you were working in steeper country, it wasn’t unreasonable to borrow enough money to purchase a 90-foot steel spar and a TL6 or 966C for loading. Point is, you worked with ratty mainlines, used every last millimetre of the chain life on the powersaw and begrudgingly spent money on a new crummy only when the current one was too far gone to repair.

But those days are long gone. Most contractors now need leading edge and multi-million-dollar equipment spreads to compete for slim margins and an ever-shrinking workforce. 

The cost of equipment has become a barrier to entry, but at the same time, the contractors who have built companies capable of performing the work are looking to exit. Transitions are ramping up as baby boomers increasingly look toward retirement. More businesses are changing hands and many contractors are planning to exit within the next five years. Counting on cash flow to finance retirement may not be an option and it’s a good time to think about the mechanics of exit.

Not so simple
The challenge of exiting a contracting company can be manifold. Many owners don’t have a clear successor. The industry workforce is aging, and the younger generation is increasingly disinterested in entering the industry. There isn’t a lot of consolidation activity going on right now – and those who are keen to take over lack the capital required to buy shareholders out.

To prepare for your eventual exit, it’s best to know what exit options look like. But before that, it all starts with understanding the time factor.

Time can be your friend
Getting a company ready for transition takes time. Just like selling a house or a car, preparation is vital. With a car, it means performing all routine maintenance, getting your service records in order, and thoroughly cleaning it inside and out. With a house, it’s ensuring you’ve done all the pesky renos, made sure the switch plate covers are on straight and the flower garden is weed-free. 

You put a lot of effort in presenting your assets in the best light – you should do the same for your business. Create a situation where you know a potential buyer will see a clean, well-managed operation when they come to poke around. All the legacy issues are put to bed and your financials are clean and well laid-out.

As with the auto or home sale, multiple offers are highly desirable. Well-presented companies attract investors who are confident they can rely on your systems, cash flow, team, brand and culture to create future reliable revenue streams.

Time can be your enemy
Just as preparation helps ensure a favourable result, not having enough time can have the opposite effect. Even worse, not allowing yourself enough runway may cause business fatigue – a premature exit where you accept terms below your enterprise value just to get the deal done.

As logging contractors, you know all too well how lonely it can be to carry the risk and responsibility of running a business. Many people shoulder the weight effortlessly for years, but everyone has their breaking point. We roll with the challenges, but enough eventually becomes enough. Problem is, too many people put off planning until they feel the need to exit. And by that time, some are willing to get out at any cost.

This panic to exit can act as a negative force multiplier. Since businesses generally sell for a multiple of EBITDA (earnings before interest, taxes, depreciation, and amortization), becoming disillusioned and letting revenue decline often allows a buyer to offer on a lower multiple. They see the business is on a downslope and are therefore less certain it can generate sufficient cash flow to justify the investment, so they hedge by discounting for risk.

Say your EBITDA has recently dropped from $2 million to $1.5 million. A buyer may look at the decline, note your lack of enthusiasm and decide they’d feel more comfortable offering a three times multiple rather than the four times industry standard. What could have been an $8 million deal is now nearly halved to $4.5 million, all because of fatigue.

Photo: Annex Business Media

Time for some solutions
Begin the conversation around exiting the business early so you and your advisor can establish a timeframe and examine what you need to meet your goals. What will your next phase require? Do you want to pursue other opportunities, or is this retirement? This baseline helps you figure out how much money you need and when. Then you can determine if you have the personal assets required for the next phase or if that needs to come from the business.

This is the crux of succession planning. It helps to clarify what we need to do based on what we want to do. It could be retirement, but it’s often so much more. And once you know what you need from the business, we can look at the options for exit.

Options for exit
So, what are the options for exit? Below are the most common ways for owners to exit their business. While no option is the wrong way forward, some are more beneficial to the overall stakeholder group than others.

Selling to employees – More and more companies are setting up employee share ownership programs (ESOPs) to attract and retain top talent. Some employees are willing to share in the risk, build culture and bring the team closer together. In many cases, this can help grow top line sales and improve profitability.

Bringing the business to market – Sometimes the best way to exit is to sell. Employees may not be interested in buying or you may lack clear successors. This process can be as simple as reaching out to a competitor. Or it could be a full corporate finance engagement where a specialized team brings the company to market and solicits and fields offers.

Transferring to family – Many resource businesses are multi-generational, passed down from mom and dad to sons and daughters and beyond. The challenges are many – styles, perspectives, and ways of seeing the world change over time. We all have our own view of how to manage and this can be compounded when one generation takes over from the next.

Wind up/orderly liquidation – This ends up being an all too common option in the resource industry. The business is wound down, employees are laid off, and the assets are sold through orderly liquidation via direct sales or auction.

Remember, your stakeholders aren’t just shareholders and employees. Many people in your community and beyond may rely on your business for business and economic prosperity. These include employees’ families, suppliers, upstream and downstream parties, and local communities.

Time is your friend and knowledge is power when charting the path forward. Understanding and anticipating your challenges allows you to carve out the most enjoyable, productive, and profitable route. The first step is acknowledging that change is coming and you need to embrace it. Consider how you want your future to look; from there, you can build a transition plan that will help you meet your goals and exit on your terms.

Chris Duncan, CPA, CA, is national leader of forestry and forest products at MNP. For strategies and advice to increase the value and performance of your business, contact Chris at 250.856.2443 or chris.duncan@mnp.ca. Brent Tolmie, MBA, ICD.D, PMP, is senior manager, succession services at MNP. To learn more about planning for succession and how to maximize your return on an exit, contact Brent at 778.72.0570 or brent.tolmie@mnp.ca.

“The loader can operate without even lifting its legs,” says Stéphane Roux, who co-owns contracting company Groupe Val with Sébastien Dufour and Frédéric Bonneau.

A little more than a year ago, Groupe Val partnered with Mathieu Bouchard, Luc Simard and Maxime Simard to launch Chargement 2 ML, a trucking firm.

“The partnership solved challenges we were having with our existing truckers,” Bonneau explains. “Entrepreneurs who own their own vehicles know exactly how much money they are making and what the costs are. This enables them to mobilize the right equipment at a job site, to optimize loading, and to avoid downtime.”

When Groupe Val operated its own loader, it only filled between 22 and 25 trucks per shift. However, Chargement 2 ML increased that total to between 30 and 35 loads.

Maxime, who at 21 years old is Chargement 2 ML‘s youngest co-owner, sometimes handles 40 loads per shift.

“I never thought that they could do that much,” says Dufour, who is thrilled to have “young blood” in their operations.

Groupe Val’s arrangement with Chargement 2 ML, which was done in part to facilitate access to financing, was a natural fit. Group Val handles administration and legal requirements. The contractor-operators take care of the machinery and operations.

It’s a winning formula that Groupe Val also uses in its investments in Forestiers Dary Lalancette and Forestiers SDR, both of which specialize in harvesting operations. As part of the deal, Groupe Val agreed to enable the entrepreneurs to buy back the shares in the company over time if they want to become independent again.

The company won’t hesitate to support the development of other subsidiaries. “We don’t want to close any doors,” Dufour says. “If these entrepreneurs want to grow, we are not going to stop them. Because if we try, they can always go elsewhere.”

Harvesting operations
Groupe Val works with seven forestry teams (soon to be eight). These include partnerships in two subsidiaries. The company also operates three feller bunchers (two Eltecs and one Direct) that are equipped with Ponsse heads, as well as two Ponsse Elephant King forwarders. Roux leads the harvest team.

In all, the 15 hard-working team members who work for the general contractor harvest a little more than 700,000 cubic metres of wood per year, most of which is related to supply guarantees tied to two sawmills: Scierie Lac St-Jean and Scierie Martel. Groupe Val also does harvesting for contracts won through the Bureau de mise en Marché des bois, as well as for Resolute Forest Products, Arbec and Industries TLT.

In fact, the company recently harvested a 90,000-cubic-metre lot for Resolute Forest Products. Of that amount, 20,000 cubic metres of hardwood were sent to Westrock in La Tuque, Que.

The road to cost savings
To be able to harvest such large tracts of land and still make a profit, it’s critical for the group of entrepreneurs that their operating costs stay low.

The increasingly large number of land auctions has transformed the balance of power between entrepreneurs and processors, Bonneau says.

“Before, you had to accept the price that was offered,” he says. “However, companies are adjusting to working with the bid process, which enables them to offer pricing that is in line with operating costs.”

One key to lowering operating costs is to properly prepare. “When you build the logging roads a year in advance, you only need to put on six inches of gravel,” Bonneau says. “But if you wait until you do the harvesting, you have to put on three times as much.”

The difference works out to $10,000 more per kilometre. With more than 50 kilometres of road per year to cover, that means acting early can save the company $500,000 per year.

With Groupe Val’s razor thin operating margins running between one and three per cent, building logging roads in advance can make the difference between making a profit or reporting a loss. Four years ago, it was difficult to get operating sectors defined in advance. However, the message is slowly getting through. Today, the company almost always completes a large portion of its logging roads a year in advance.

Groupe Val handles all road operations using an internal fleet of about two dozen pieces of heavy equipment. These include several tractors; excavators from Cat, Komatsu, Doosan, and Link-Belt; Komatsu wheel loaders and John Deere levelers. The most recent addition is a Link-Belt excavator, an increasingly popular model, says Stéphane Taillon, owner of JYL Equipment, who has sold 70 such machines in the past three years.

Leading by example
Groupe Val, which was founded in 1972 by Paul-Émile Morin, employs about 170 people. That includes 45 employees and a range of sub-contractors.

“We are proud of the entire team,” says Dufour. “But, we also lead by example by working hard, focusing on effective communications and being present in the field.”

Two years ago, Dufour, Bonneau and Roux took complete ownership of Groupe Val, after gradually acquiring the company from then-owner Mario Pelletier.

However, the three entrepreneurs continue to seize opportunities when they arise. That includes the integration of a fuel supply service into Groupe Val and the acquisition of Industrie L. Lapierre, a supplier of forestry machinery parts. This enables the company to source fuel and parts internally, thus increasing profitability.

The other good news is that the average age of Groupe Val’s employees is under 40 years old. That means these advances might just be the start.

The one-hour-long panel discussion, moderated by Danny Dructor, executive vice-president of the American Loggers Council, featured four loggers from the U.S. and Canada: Brendan Moore, from Mountaineer Mechanized LLC., part of the Lyme Timber Company, LP; Thomas Johnson, owner of DeRidder, La.-based Thomas Johnson Logging; Seth Dickinson, owner of Hinton, Alta.-based Dickinson Logging Ltd; and Dillon Stratton II, owner of St. Augustine, Fla.-based D.M. Stratton LLC.

Technology in the forest industry has made big strides in recent years, making loggers’ jobs more efficient and, therefore, profitable. The first pieces of technology the panelists implemented were fairly simple, but effective.

Stratton first invested in scales, when the nearby sawmills put a weight limit on how much timber they could haul. As a result, the company bought lighter trucks and trailers so that they could haul more wood.

For Dickinson, the first piece of technology he invested in was the Avenza maps application, which allowed him to see his location in the cut block and avoid difficult terrain. This meant he no longer had to go out into the block layout with a paper map and a compass, hanging ribbon to mark the boundaries of the block.

Moore agreed, noting that “technology has allowed us to avoid hanging up ribbons and having to take them down.”

The switch to digital, with new technology such as John Deere’s TimberMatic Maps and TimberManager, has “really saved us,” he said.

Removing the doubt

Technology has also helped the contractors train their operators more easily.

Since investing in TimberMatic Maps and TimberManager, Johnson has trained four different operators using the set-up, and found that the technology helps make training more efficient.

“I can pull anybody off the street right now, and if they can drive a pick-up truck, I can put them in a skidder and have them up to speed within seven operating days,” he said.

Moore has had a similar experience when it comes to training new operators.

“Technology has removed a lot of the doubt – they can look on the screen, know exactly where they are, the back-end of the cut boundary,” he said. “It gives them confidence, and they don’t waste time walking around, on the radio trying to figure out where they are.”

And since the technology is in the machine, anyone can use it.

“They get more confident with it – the map is sitting right there and it’s easy for them to learn and pick up,” Stratton added. “If we go to a block, and they just put in the number of the block [in the program], everything’s loaded there. It takes all the guess work out of everything.”

Attracting a younger workforce

With the added digital technology in their operations, it also makes it easier to attract and retain younger employees.

“I’ve taken a couple of guys who had next-to-no operations experience and put them in the machine. This one guy had never seen a logging site in his life, and within two weeks, he was almost up to the same level as my experienced operators. It definitely helps to get them up-to-speed and retain them longer,” Johnson said.

“It definitely helps to retain them because, for a new guy, it’s quite stressful – there’s a lot going on in the woods – and having this technology takes some of the stress off. We do work long hours, so anything you can do to make your day easier and a little less stressed helps people and keeps them coming back,” Dickinson added.

The learning curve, in the panelists’ experience, has not been very steep. Moore noted that while they do have fairly young operators, they also have a number of older operators who haven’t had trouble picking it up.

Improving efficiency

Technology has also helped operations become more efficient overall. Within a month of implementing TimberMatic Maps and TimberManager, “we noted a two-load-a-day increase out of our skidder operator,” Johnson said.

He uses TimberManager to oversee his crews, and JDLink to monitor the performance of each of his machines. Since he implemented this technology, some of his machines have even become obsolete.

“With TimberManager and TimberMatic Maps, I can make one machine so efficient, that we’re able to reduce the fleet size and save us money on insurance,” he shared.

TimberManager also helps Stratton keep track of his crews, who are sometimes 50 miles apart. With this software, he can answer operator questions, monitor their productivity and see what they’re seeing in real-time. This keeps him from having to be physically present at each jobsite, so he feels more secure leaving his operators to run the equipment on their own.

Meanwhile, TimberMatic Maps has helped Dickinson improve his productivity because he can build cut block maps in his office, and then send them out to his crews, who can view them in their machines. His crews are operating 24 hours a day, which means that they sometimes move to a new cut block in the middle of the night.

“Now, I can build the map and send it to them, so when they move to a new block, they can pick it out, have the map right in front of them, know where they are in the block and what’s there for production,” he explained. “It’s saved a lot of manpower and running around.”

Moore shared an innovative use of a different type of technology – laser scanners. His company, Mountaineer Mechanized LLC, runs log sorting yards, sorting for high-quality hardwood timber. Each log gets a barcode tag nailed to the end of it after it has been weighed. To be able to record each log, they used to have an operator on the ground scanning each log.

But, the company built a scanner onto the end of their knuckleboom loader to improve productivity and safety. Now, each time the operator swings a log in front of it, the scanner can read the barcode, and the log is recorded in the computer, inside of the cab.

Each of the panelists have seen strong returns on their investments.

For Dickonson, the mill he works for feels more comfortable working with him, knowing that his operators have maps in their machines and therefore won’t cross the cut block boundaries. As a result, the mill has allowed Dickson to do more work for them.

For Stratton, the technology has opened doors for his company in the construction industry. “I’m getting jobs I never thought I would get,” he said. “I would recommend it to everybody because it makes a world of difference.”

An earlier version of this article incorrectly spelled Seth Dickinson as Seth Dickson. CFI apologizes for this error.

The final report includes:

• An executive summary
• Themed reports on trends such as logging rates and profits, succession planning, operating costs, contractor age and more!
• Regional reports on the B.C. Coast, B.C. Interior, Ontario, Quebec and Atlantic Canada
• Quotes from loggers across Canada

To read the full report for free, click here.

Thanks to our generous sponsors, Tigercat, Hultdins and John Deere, for making the 2020 survey possible.

Owner Clint Carlson runs three five-piece crews with 20 employees. Each crew has a feller buncher, shovel logger, skidder, processor and loader.

Carlson started hand falling, line skidding and yarding after high school. In 1989 he started working for Sunshine Logging. Nine years later, he purchased half the business, and in 2018 he took full ownership. His wife, Vanessa, manages the books and keeps everything in order. Carlson’s oldest daughter, Kelsey, runs the company’s safety program and helps out in the office. His youngest daughter, Julia, operates equipment, currently working on the road-building side of the business.

Logging in the Kootenays
Sunshine Logging has a one-year renewable harvesting contract with Kalesnikoff Lumber Company based in Castlegar, B.C., and a contract with Porcupine Wood Products out of Salmo, B.C. Carlson also buys timber on private land.

“It is a bit of a mix,” he says. “That is what the Kootenays has going for it; we still have a log market here. We still have multiple mills. We don’t have one big licensee in the area running the whole show.”

Typical terrain in the Kootenay region is quite steep. The forests generally are mixed stands of fir, hemlock, cedar and spruce, known as ‘Kootenay Mix.’

“Right now, we’re harvesting a 30-hectare tract of Kootenay Mix for Kalesnikoff Lumber Company,” Carlson says.

The new iron
Sunshine Logging received B.C.’s third and fourth Tigercat 850 processors – both equipped with the new Tigercat 568 harvesting head. Carlson was tired of playing tug of war between the carrier and head with his processing equipment.

“Tigercat is a good product and I was attracted to the full package,” he explains.

The gear was purchased through Inland sales specialist Jason Quaife out of Cranbrook, B.C. With the new Inland dealership in Castlegar, Sunshine Logging will now be serviced by this location.

“Castlegar is ramping up. They have hired some new mechanics – it’ll be good for us having a closer branch,” Carlson says.

Carlson ordered the 850/568 packages in April 2019 and toured the Tigercat plant in Ontario the following month.

“I was impressed. It’s amazing what they’re doing there. It’s a factory with a customer touch,” he says. “A lot of the factories I’ve been to, they’re mass-producing excavators. You’re just getting what everybody is getting. You walk into Tigercat and you can see your machine. There’s a good chance I was climbing through the frame of our 850 when it was still steel. As for the head, I think we determined we were watching ours being built when we were there.

“I’m fully aware that we are in a bit of a prototype phase when you get the first of anything, but I wasn’t worried,” he continues. “If any problems do come up, Tigercat has always been good about bringing that improvement back to us. And it’s not my first early Tigercat. I bought a brand new 870C buncher in 2005 and we had two early L870s before that.”

First impressions
Sunshine Logging’s first 850 processor with the Tigercat 568 harvesting head arrived onsite in January 2020. Carlson wanted a head that could work efficiently in both eight-inch pine and 30-inch fir.

“It is a big factor,” he says. “We were worried the head was going to be a bit small since we do push 30-inch wood. The whole thing is getting the right size head to be efficient in both.

“The swing on it is really good. I definitely notice a difference from the previous excavator-style carrier. The twin swing drive is a lot better,” he adds. “The saw is a lot faster cutting than on excavator conversions, which is saving time, and it’s actually producing a better product. We’re getting less ladder check.”

If the saw cuts too slow and there’s tension in the log when it cuts, it tries to break it, and it will leave splits. Because the saw is cutting faster, it is more of a clean cut. This is especially important as the wood gets bigger.

Carlson also commented on how the right-hand side visibility has improved due to the hooked main boom profile. “It was always a blocked view with the straight style boom,” he says.

Dave LaMarsh
Operating the first machine Sunshine Logging received is Dave LaMarsh. LaMarsh has 19 years of experience operating equipment, including experience with different brands and multiple processors.

LaMarsh was inpressed by the processing performance.

“It doesn’t matter if the logs are eight inches or 30 inches, it just pulls them through effortlessly,” he says. “It’s set up nice. The way the head hangs makes it easy for picking. The length and diameter reading are really good. The length of the logs has not varied two inches from what the reading is telling you.

“The heated seat is awesome and the visibility with the bent boom is way better. Overall, it’s much better than a regular excavator. That is for sure.”

Kerry Gouldsborough
The second 850/568 processor package arrived the first week of February and is operated by Kerry Gouldsborough. At the time of this writing, Sunshine Logging’s machine had accumulated 120 hours.

This is Gouldsborough’s first Tigercat. “It’s fast,” he claims. “I really like it. It’s way quicker than I expected. I find the operating station really comfortable. It’s a small cab but when you’re sitting in there, it’s actually quite comfortable.

“I’m surprised at how big of a piece I can run through that head. I’ve run logs up to 30 inches through it,” he continues. “I haven’t had to work on the carrier yet, but I like how everything is contained. Everything is airy and it opens up well. There is good access into the centre of the machine and all the way around it.”

And, “because it’s purpose-built, your functions are a lot better,” he says.

On his previous processor, if the head was having an issue, it basically eliminated the rest of the hydraulic system.

“You had to wait for the head to finish before you could do anything. It didn’t multi-function as well as the new package. With this, you don’t have that issue,” he explains. “Other guys that have run the Tigercat brand all say they’re great. So, I was actually quite excited to be getting it, especially brand-new, straight out of the box.”

Increased productivity
Carlson, LaMarsh and Goldsborough have all noticed an increase in productivity since getting the new machines.

“We’re early on, but I think for sure we will see an increase. We just haven’t got past all the visitors,” Carlson says, laughing. At the time, the crew hadn’t been able to run at full capacity for several weeks because of all the interested people coming out to see the machines in action.

Carlson wanted the full Tigercat package and is very happy with his decision. “At the end of the day, the two work better together since they’ve been designed and tested together.”

Samantha Paul is a marketing specialist with Tigercat Industries Inc.

Flanagan has been deeply involved in the industry since he was in his mid-teens living in Atlantic Canada. After moving to Vancouver Island in 2008, he earned a technical diploma in forestry, natural resources management, through Vancouver Island University. He then went on to work for Industrial Forestry Service in Prince George.

Over the next six years, he worked on projects for governments, licensees, utilities, and First Nations. He then decided to get involved in the hand falling industry. However, when he first began talking to foresters and friends in the forest community about this, there were many naysayers.

“People were telling me there are declining levels of work and that it’s mostly short-term. A couple of people used the argument that hand falling could disappear entirely, but it didn’t dissuade me,” he says.

In 2013, he took the BC Forest Safety Council’s 30-day New Faller Training program, and then went to work for Alternative Forest Operations, based in Duncan, B.C., at the time.

But he wanted to pursue freelance falling on his own terms, so in July 2014, Flanagan founded Maritime Timber Ltd.

Initially, launching his own company was done out of necessity more than anything else. Manual tree falling and bucking is such a risky profession that fallers often have to create their own contract company to keep liability off of the other project stakeholders, he explains.

As an independent contractor, Flanagan acquired the WorkSafeBC–required insurance to provide his services to a wide range of industrial clients, including public and private landowners, development corporations and project sponsors.

In the bush
Once Maritime Timber was established, he and his network of friends “chased helicopter projects for several years, basically living in barge camps, working for prime contractors,” he says.

Today, Flanagan has grown his business into various operations, with manual falling and bucking as the stalwart. Typically, he’s falling for helicopters and large conventional loggers up and down the B.C. Coast.

Given the diversity of trees along the Coast, he falls a range of species, the main ones being Western Red Cedar and SPF. The trees are anywhere between 10 inches and 14 feet in diameter. Often, he’s falling smaller diameter timber on steep slopes.

“Historically, as land managers, we’ve accessed the lowest-cost operating areas first. But the valley bottoms turned into the toe slope, which went into mid-slope, and since helicopter logging became so prominent, we’re into the upper slope, and now everybody jokes that we’re in goat country,” he says.

However, since the recent B.C. old-growth strategy two-panel review earlier this year, there is a lot of old-growth logging happening now – a countermeasure to potential future restrictions on the old-growth component of B.C.’s working forest, he says.

To fall these trees, he uses Stihl and Husqvarna 90cc chainsaws.

“The general rule on the Coast for a manual tree falling job is to show up with two or more saws running 36-inch bars. Often, I’m running a ground chain instead of a round file, so we have a grinder that chisels a square edge on the tooth and keeps every tooth symmetrical. It’s a great instrument,” he says.

Flanagan also works as a danger tree assessor and faller during severe wildfire seasons. He began doing this type of work after taking a danger tree assessor (DTA) course through the University of Northern British Columbia.

“It feels nice to serve the communities in need, and often in the fire season, the regular logging sites are shut down because of the risk of fire, so it can be a way to keep the work flowing,” he says.

In Flanagan’s opinion, becoming a danger tree assessor is the best thing a B.C. hand faller can do for their career.

“If you have your DTA, you’re a lot more likely to be brought out as a faller, because otherwise you’re going to be there with the tools, but the province will have to ask somebody else to do the assessment. So, they really prefer it if you have the dual certification,” he explains.

Although a fairly wet summer in B.C. this year kept demand low, Flanagan expects danger tree assessing to be a big driver of his business in the future.

A new market
Along with manual tree falling and bucking, Flanagan also founded a residential tree services company under the Maritime Timber umbrella, operating as Tech Tree Services Vancouver Island.

Tech Tree focuses on what Flanagan calls ‘mobile home services business,’ as well as land and lot clearing for commercial clients where most of the trees can be felled from the base (although some still need to be climbed, so he employs contract climbers).

The jobs vary from cutting a few branches over roofs and trimming hedges to removing large trees over targets. Flanagan uses a Stihl 201T topping saw for this work, but notes that he’s very fond of the new Husqvarna electric topping saws.

“Running an electric saw for the residential work has limitations, but when it feels right, it’s quite a bit nicer,” he says.

These types of chainsaws are much smaller and meant to be carried into the canopy with the climbers. “Matching the saw to the job allows for a more nimble practice when you’re in the trees,” he explains. “The saw is not strained much compared to a chainsaw where a faller might go out and build a helicopter pad.”

For that type of job, a chainsaw would run at high RPM for the entire duration of the cut, often several minutes. In contrast, the residential saws are usually turned on briefly to make a few cuts and then shut off again.

Elevating the game
The residential tree side of his business also allows Flanagan to mentor people interested in hand falling.

“What I like about it is I can take people who are aspiring to be a production faller and help elevate their game outside the confines of the heavily regulated and costly faller training industry, which I think will increase their odds of success should they pursue production falling and the aforementioned training,” he shares.

His interest in training and mentorship came after the death of one of his friends (who was also a hand faller) in 2016.

“It was a catalyst for wanting to support young and new workers in the forest industry as well as being comfortable navigating as a business owner,” he says.

Since then, he has taken courses in project management at the University of British Columbia’s Sauder School of Business and is following through on his Bachelor’s degree in Technology and Trades Management at Thompson Rivers University.

When working as a danger tree assessor, he also advises and networks with seasonal workers who are interested in forestry. He shares his knowledge about timber cruising and block layout, and his experience moving to the Coast to pursue logging.

“A favourite adage of mine is that ‘a rising tide lifts all boats.’ I think by lifting others in the forest industry, it will only ever help the operations I’m part of, even indirectly,” he says. “Plus, it just feels good to share this knowledge. So, I’ve put a couple of formal power saw courses on for novices, and now I’m adapting this delivery for specific audiences to come.”

Flanagan is most passionate about proper training for new hand fallers entering the industry. In his opinion, there are multiple challenges in this area.

Training new hand fallers is difficult because “there’s not always a ton of will within the seasoned fallers to bring new fallers in,” he says. “Because it’s a hawkish industry, and there is a finite amount of falling work in a given year, industry veterans who have seen the industry slim down through tighter market conditions may feel as though they’re training their competitors.”

The BC Forest Safety Council (BCFSC)’s New Faller Training program is one of the available entry points for hand fallers in the province, and, according to Flanagan, costs upwards of $30,000. The other is the Enform licensing system, provided by the Canadian Association of Geophysical Contractors (CAGC), which he says is less costly and restrictive.

Although fallers in both programs receive training to the WorkSafeBC Faller Training Standard, the network and knowledge they develop are different, he says.

In Flanagan’s experience, it seems that BCFSC trainees know the landscape better and have a better knowledge base. They also focus on further development and competencies post-certification. In contrast, he has found that Enform trainees sometimes think their skills are sufficient and their training is complete after they get their first license.

To combat this, Flanagan would like to see trainees shown what a typical falling job and crew culture looks like. This will help them choose their employment more wisely by discerning potential hardships.

Safety culture
Once trainees complete their chosen training program, they work for an established contractor for a lengthy period to validate their training time. After that, they test into the BC Forest Safety Council’s more robust certification.

Safety is, of course, a critical component of the faller industry, and B.C. requires all fallers to be certified to the standard. While Flanagan believes the standard and certification are good safety measures, he wants to see some changes that consider the variability of the forest.

“I think it needs to be known that the standard works to identify and protect but not completely manage for the hazard. Hand fallers are out there in one of the most dangerous capacities, and I think the men and women employed in this trade need to be allowed to operate not just at the standard but also to one that understands outliers in the data set. This includes allowing people more flexibility in how they make their stumps and putting less focus on the stump itself,” he explains.

Building professional development in the industry would also help, he says.

“Instead of just proving competency one time, there need to be more opportunities to develop a better relationship with the safety agencies and keep up-to-date with the ebb and flow of our skills,” he elaborates. “My end goal, if I had all the power, would be to make this a Red Seal trade where you work through your apprenticeship levels, and you finally become certified years later. A significant benefit to this would be classifying falling as a high-skill trade, thereby opening up possibilities for skilled immigration and student loan options.”

Future outlook
Despite these challenges, Flanagan believes the future of the B.C. hand faller industry is bright.

Some might argue hand falling is a dying industry thanks to mechanized machinery, but “because the regulation exists that you can’t have an uncertified person take on the work after a certain diameter limit, you create a requirement for certified fallers,” Flanagan says.

The trend towards logging on steeper slopes in B.C. also makes it more difficult to get machines in certain areas, particularly if a logger is working on a small block because the cost becomes prohibitive.

While the volume of timber available for hand falling will probably continue to shrink as it has over the past few decades, Flanagan believes more severe wildfire seasons and a lack of available hand fallers in B.C. will help increase demand.

“We’ll always have a necessity for hand fallers when it comes to the smaller scale, high-value resource extraction,” he says.

The impact of this closure is evident in the results of CFI’s 2020 Contractor Survey. While Atlantic loggers are still reporting decent profit margins and have even increased their harvesting volume, there are multiple signs of trouble brewing: difficulty negotiating logging rates, few young people entering the industry, higher operating costs, and fewer customers for wood products.

In general, here’s what Atlantic loggers had to say:

Rates and profits

In light of the Northern Pulp closure, it’s no surprise that Atlantic Canada contractors are struggling more than ever to negotiate better rates. In 2018, just 28 per cent saw a rent increase compared to five years ago. That number has halved to just 14 per cent, and in Nova Scotia, that number is zero.

For nearly half of all Atlantic Canada contractors (46.5 per cent), logging rates have been stagnant since 2015. And for 28.5 per cent, logging rates have decreased. In comparison, just 17 per cent reported lower rates in 2018, and 23 per cent did so in 2016. This puts the region solidly at the bottom in terms of rate negotiations. Nationally, 45 per cent of loggers saw a rate increase. In the B.C. Interior and Alberta, that number jumps to 53 per cent and 63 per cent, respectively.

Despite the dismal picture when it comes to logging rates, contractors in the region were the least likely to report making no profit in the last year. Just 10.5 per cent say they didn’t make a profit. In comparison, that number jumps to 38 per cent in Ontario. More than half (55.5 per cent) report a profit margin between one and five per cent. Interestingly, 17 per cent say their profit margin was above 20 per cent, tying with the B.C. Interior for the highest percentage in this category. This is higher than in 2018, when just six per cent achieved 11 per cent or higher profit margin.

These numbers may be skewed because 17 per cent of Atlantic Canada contractors preferred not to say or did not know their profit margin in the last year.

While Atlantic loggers seemed to have relatively steady operating costs in 2018, our 2020 survey shows that costs are on the rise in this region, just like they are across the country. More Atlantic Canada loggers rate labour costs as slightly higher than in any other region (65.5 per cent). And the cost of purchasing machinery has also gone up, with 77.5 rating it as more expensive than three years ago. Even more Atlantic Canada contractors (83.5 per cent) say the cost of machinery parts and services is up. This increase in machinery costs means insurance costs are up; 100 per cent of Atlantic Canadian contractors say insurance costs are higher than three years ago, just like in Ontario.

Operator pay

But, Atlantic Canada still has the lowest operator wages in Canada, at an average of $22.50 per hour. While this is higher than in 2018, when the average was $20, Atlantic Canada is the only region where contractors pay less than $16 an hour (12.5 per cent). Another 10.5 per cent are paid $16-$20 an hour and nearly half pay $21-$25 an hour. No contractors pay more than $30 an hour, unlike on the B.C. Coast and in Alberta, where 94 per cent and 91 per cent, respectively, pay that amount.

However, Atlantic operators are no longer the least likely to receive benefits on the job – in neighbouring Quebec and Ontario, 57 per cent and 56 per cent, respectively, do not provide benefits. That number drops to 53.5 per cent in Atlantic Canada. In contrast, in 2018, 57 per cent of Atlantic Canadian contractors said they did not provide benefits.

Those that do provide benefits are most likely to provide medical/dental insurance or life insurance. More than one-third of Atlantic Canadian contractors provide medical/dental insurance (35.5 per cent) compared to just 23 per cent in Quebec. But this is still much lower than in the B.C. Interior, where that number jumps to 82 per cent.

Company size

Atlantic Canadian contractors have historically run the smallest operations in Canada. But, the results of our 2020 Contractor Survey show that this is no longer the case. On average, they harvest 114,000 cubic metres per year, a big jump from the average in 2018 (82,000 cubic metres). Now, Quebec has the smallest operations, with an estimated average harvesting volume of 92,000 cubic metres.

Despite higher harvesting volumes, Atlantic loggers’ revenue has remained about the same as in 2018, at around $2 million. This number, like their harvesting volume, is higher than their neighbours in Quebec, where the estimated average revenue is just $1.74 million.

Atlantic Canadian operations still have the fewest pieces of equipment, with an average of six. No contractors run more than 20 machines, but fewer operations run between one and three machines in 2020 (34 per cent) than in 2018 (43 per cent). Most Atlantic contractors (41 per cent) run between seven and 10 machines. Another 14.5 per cent run four to six machines.

With such small fleets, it’s no surprise that Atlantic contractors employ the fewest number of people. The average contractor employs between seven and eight people – a far cry from the average of 32 people in Alberta, where operations are largest. More than half of Atlantic loggers employ one to five people. None employ more than 50 people, unlike on the B.C. Coast, where 13 per cent employ 51 to 100 people. But, there has been a drop in the number of Atlantic operations with no employees, from 18 per cent in 2018 to just 3.5 per cent in 2020.

Despite the closure of Northern Pulp, there is still high market competition for Atlantic loggers’ logs and other wood products. Twenty-eight per cent of contractors in the region have more than five customers, the highest in any region in Canada. But, this is a drop from 42 per cent in 2018. Now, 29.5 per cent of contractors say they have just one customer, compared to 11 per cent in 2018. Another 29.5 per cent have three or four customers compared to 36 per cent in 2018. It’s clear that the shutdown of Northern Pulp has had some impact on market competition, although perhaps not as much as some had feared when the mill closed at the beginning of the year.

Contractor age

With smaller companies and lower revenues, the barrier to entry for the younger generation should be lower. But, with the closure of Northern Pulp and higher operating costs across the region, it seems fewer young people are getting into the industry. Just eight per cent of Atlantic loggers are under 35 years old, compared to 24 per cent in Alberta and Ontario. The region has the largest percentage of contractors over 65 (24.5 per cent). Another 18 per cent are between 56 and 65 years old. The remaining 50 per cent are between 36 and 55 years old.

As a result, Atlantic Canadian contractors are among the oldest in the country, with an estimated average age of 54, the same as contractors on the other side of the country on the B.C. Coast. The national average age is 52 years old.

In comparison, neighbouring Quebec and Ontario have the youngest workforce, with an average age of 49 and 48 years old, respectively. Just like in 2018, this makes one wonder what needs to happen in Atlantic Canada to attract more young people to the industry?

Succession planning

Despite the older average age of Atlantic loggers, they plan to stay in the industry for another 12 years, on average. But, when broken down by province, there’s a clear difference between New Brunswick and Nova Scotia. In New Brunswick, the estimated average is 17 years. In Nova Scotia, it’s just seven years – again, a sign of the impact of Northern Pulp’s closure.

Nearly half (49.5 per cent) of Atlantic loggers plan to leave the industry in 10 years or less, and for 32.5 per cent it’s five years or less. This is a drop from 2018, when those numbers were 69 per cent and 39 per cent, respectively. But this could be because more loggers have retired in the interim.

Given these numbers, it’s especially concerning that nearly half (46.5 per cent) of Atlantic contractors have no succession plan. Another 27 per cent plan to sell or auction their equipment and shut down, and 23.5 per cent say they expect their children to assume control.

Future

It’s no surprise that, when asked about future challenges, they highlight the closure of Northern Pulp and the resulting lack of a pulp market. In fact, 82 per cent of Atlantic loggers rate access to markets as “very important,” compared to a national average of 65 per cent. In Nova Scotia, that number is 100 per cent. Logging rates are also a major concern, with 93 per cent of Atlantic loggers rating it as “very important.”

Despite how few young people are getting into the industry in the region, Atlantic loggers are still less likely to rate this as a major issue, with just 51 per cent saying it’s a concern, compared to 72 per cent nationally.

With the closure of Northern Pulp and the other challenges facing Atlantic loggers, we can expect that the industry will look very different five years from now. Many loggers are likely to leave the industry, especially in Nova Scotia. While there is still high market competition for logs and other wood products, such as wood chips, the industry will likely contract, and the impact of that will be felt for generations to come.

This survey was conducted in April and May 2020 by independent research firm Bramm & Associates, generating 271 replies to a detailed list of questions. Respondents were distributed according to the geographic breakdown of the forest industry, with 44 per cent of respondents in Western Canada, 26 per cent in Quebec and the rest found in Ontario, Atlantic Canada, and central Canada. Within B.C., responses were split between the B.C. Coast and Interior. Many thanks to our sponsors for making this research possible – Hultdins, Tigercat and John Deere.

But the results of CFI’s 2020 survey show that the picture is changing. While the region remains one of the most profitable in Canada, with a fair amount of success negotiating logging rates, the cost of operating is on the rise, along with the average age of contractors, and harvesting volumes remain low. Overall, the results suggest the industry could see significant changes in the next five years.

In general, Quebec contractors reported the following:

Rates and profits

Quebec contractors continue to have luck negotiating rates, with a total of 40 per cent seeing a rate increase compared to five years ago. In 2018, that number was 34 per cent, and in 2016, it was just 17 per cent. But, this is still a ways away from the 64 per cent of loggers in Alberta who saw a rate increase, or even the 50 per cent in Ontario.

As logging rates in the region have increased, so have profit margins. Quebec continues to be one of the most profitable regions for loggers, with 17 per cent reporting a profit margin of 11 per cent or higher. Only Alberta has better numbers, with 36 per cent reporting a profit margin of 11 per cent or more. Despite this, more Quebec contractors reported making no profit in 2019 compared to 2017 – 19 per cent versus 13 per cent. A large proportion (26 per cent) say they made a profit of one to three per cent.

This change could be explained by the fact that operational costs in the province have gone up since 2018. All told, 87 per cent of Quebec contractors say the cost of labour has gone up, and 76 per cent say fuel costs have increased. In comparison, 84 per cent of contractors nationwide report labour costs have risen in the past three years, and 61 per cent say fuel costs have increased.

Across the country, insurance costs have skyrocketed. Almost 100 per cent of respondents in Quebec (87 per cent) say insurance costs have gone up in the past three years, likely as a result of the increasing cost of machinery. But the cost of machinery remains lower in Quebec than in other provinces, with just 35 per cent of Quebec loggers rating machinery purchase as having increased significantly, compared to 55 per cent nationally.

Operator pay

Continuing the trend seen in recent years, machine operators in Quebec are paid less than those in Western Canada. But, operators in Ontario are now receiving a higher wage, with 50 per cent of contractors now paying $26-30 an hour. In comparison, just 35% of Quebec contractors pay that rate, while 38 per cent pay $21-25 an hour. These numbers have dropped since 2018, when 44 per cent of Quebec contractors paid $26-30 an hour. A small percentage pay more than $30 an hour (three per cent) and none pay less than $16 an hour.

This decrease in operator pay may be explained by the higher operating costs. Contractors across the country have also become less likely to offer some form of benefits, with Quebec contractors the least likely to do so. More than half (57 per cent) of Quebec contractors say they do not offer benefits. Ontario comes in at a close second, at 56 per cent.

Workload

Across the country, there has also been a corresponding decrease in the number of hours per week an operation runs. The proportion of operations that run more than 70 hours per week has dropped from 40 per cent in 2018 to 35 per cent in 2020.

This drop has mostly been seen in B.C., especially on the Coast, where 87 per cent of operations run fewer than 70 hours a week. In contrast, 68 per cent of Quebec operations run fewer than 70 hours a week, close the same number as in 2018 (69 per cent). Quebec still has the highest percentage of part-time operations running less than 20 weeks a year (13 per cent), but this number has dropped since 2018 (17 per cent).

Personally, the majority of loggers continue to work more than 55 hours a week (58 per cent). And it seems that Quebec contractors are less likely to understand the work-life balance factor than two years ago. In 2018, just 39 per cent of Quebec loggers worked 55 hours a week or more, but in 2020, that number has jumped to 47 per cent. Contractors on the B.C. Coast now seem to have the best work-life balance, with just 38 per cent working more than 44 hours a week.

Company size

In terms of harvest volumes, Quebec contractors have the smallest operations, with an estimated average of 92,000 cubic metres. Twenty-three per cent of Quebec companies harvest less than 10,000 cubic metres per year, the highest percentage in this category nationally. The majority (52 per cent) harvest between 10,000 and 250,000 cubic metres a year.

These numbers are fairly similar to those in Atlantic Canada, but unlike in 2018, 6.5 per cent of Atlantic Canada contractors report harvesting between 750,000 – 1 million cubic metres a year, while that number is just three per cent in Quebec.

It makes sense, then, that Quebec loggers have the lowest annual revenues in the country. The estimated average annual revenue for Quebec contractors is $1.74 million now, compared to $2.3 million in 2018. In Atlantic Canada, that number is $2.042 million, and in Ontario, the number jumps to $3.983 million. On the whole, loggers across the country are reporting lower revenues, likely as a result of the weak lumber markets in 2019. Given the booming lumber market in 2020 following the initial shock of COVID-19, we can expect these numbers to change in 2022.

When it comes to equipment fleet size, Quebec still has among the lowest numbers in Canada, with 58 per cent of Quebec loggers running between one and three machines. This is an increase from 2018, when that number was 52 per cent.

On average, Quebec loggers run just seven pieces of equipment, slightly lower than the eight pieces they ran in 2018. Only Atlantic Canada has a smaller average fleet size, at six pieces of equipment. Alberta runs the most equipment, with an average of 25 machines. But, there has been a big drop in the size of fleets nation-wide: only 18 per cent of operations run 21 or more machines, compared to 26 per cent in 2018 and 31 per cent in 2016.

Correspondingly, there has been a big jump in the percentage of operations with 10 or fewer employees across the country: from 41 per cent in 2016 to 55 per cent in 2020. Quebec continues to have among the smallest teams – 50 per cent of logs run with just one to five employees, and nine per cent operate individually. Only Atlantic Canada has a higher percentage of contractors operating with one to five employees, at 53.5 (an average between 57 per cent in New Brunswick and 50 per cent in Nova Scotia).

However, more Quebec contractors operate with more than 20 employees (18 per cent) than in 2018 (12 per cent). Alberta has the most employees, at an average of 32, with 36 per cent of contractors employing 51 to 100 people.

But, just like in 2018, these numbers are still a good sign because they suggest there is a lower bar for entry for new contractors in the region.

Contractor age

Despite the smaller company size and lower revenues, the estimated average age in Quebec has gone up from 40 in 2018 to 49 in 2020. This is slightly lower than the national average of 52, but Quebec contractors are no longer the youngest in the country. That title now belongs to Ontario, where the estimated average age is 48 years old.

One-quarter of Quebec contractors are still between the ages of 36 and 45, but only 19 per cent are under 35, a big drop from 2018 when that number was 31 per cent. The biggest age bracket is now the 55-65-year-old category, at 28 per cent. Another 12 per cent are over 65 years old. Ontario and Alberta now have the largest percentage of contractors under 35, at 24 per cent each.

Succession planning

However, Quebec loggers still expect to be in the industry for the longest, at 15 years. More than one-quarter (26 per cent) say they will be in the industry for another 20 years. This is a drop from 2018, when almost a third said so, but only 23 per cent plan to exit the industry in five years or less.

These numbers help explain why Quebec still has the largest percentage of contractors who do not have a succession plan (50 per cent). Given how long most Quebec loggers plan to stay in the industry, it’s not as important as in other regions, such as the B.C. Coast or Atlantic Canada, where 47 per cent and 31.5 per cent of contractors, respectively, plan to exit the industry in five years or less. However, as Quebec loggers become older and look towards retirement, it will be critical that they begin thinking of succession plans in order to ensure the success of the industry for years to come.

Quebec continues to be the region with the fewest loggers that plan to sell or auction their equipment and shut down, at just seven per cent. In comparison, 27 per cent of Alberta contractors and Atlantic Canada contractors plan to do so.

Future

The overall picture for Quebec’s logging industry is a mixed bag. On the one hand, Quebec loggers are still among the most profitable in the country and have been fairly successful negotiating rates. But on the other hand, operating costs are increasing, while harvesting volumes remain low, and the workforce is becoming older. This will make it harder to attract younger workers to replace those who are retiring, especially as operator pay and benefits have declined. There is work to be done to ensure that Quebec continues to have a successful logging industry for the next generation.

This survey was conducted in April and May 2020 by independent research firm Bramm & Associates, generating 271 replies to a detailed list of questions. Respondents were distributed according to the geographic breakdown of the forest industry, with 44 per cent of respondents in Western Canada, 26 per cent in Quebec and the rest found in Ontario, Atlantic Canada, and central Canada. Within B.C., responses were split between the B.C. Coast and Interior. Many thanks to our sponsors for making this research possible – Hultdins, Tigercat and John Deere.

But according to the results of CFI’s 2020 Contractor Survey, Ontario loggers are having much more luck in negotiating logging rates now. More young people have also gotten into the industry, and while harvesting volumes are lower than in 2018, they have not dropped off as dramatically as in other provinces. However, there is still work to be done: Ontario loggers are still among the least profitable in the country thanks to high operating costs. On the whole, the results are more positive for Ontario than in previous years, and there are signs that the industry will see more good news in light of the provincial government’s new forest sector strategy.

Contractors in Ontario, in general, reported the following:

Rates and profits

When it comes to logging rates, Ontario contractors have seen a big change since 2016. Back then, just 31 per cent of contractors said they had seen a rate increase in the past three years. That number has jumped to 50 per cent in 2020, with another 31 per cent saying their rates have stayed the same. Just 12 per cent report a rate decrease, and none report a decrease of more than five per cent. Only Alberta contractors have fared better, with 64 per cent reporting a rate increase there.

But, the higher logging rates does not equal higher profit margins. In fact, Ontario has the highest percentage of loggers who report not making a profit in 2019 (38 per cent). No contractors report making a profit of more than five per cent in the region, with just 51 per cent saying they made a profit of one to five per cent. The remaining 13 per cent prefer not to say or don’t know. The estimated average profit rate in the region is just two per cent, the lowest in the country. In contrast, Alberta contractors report an estimated average of 8.4 per cent. In neighbouring Quebec, that number is 5.6 per cent.

The lack of profit in the region can be explained by the increasingly high costs, particularly when it comes to insurance. Across the country, 92 per cent of contractors say their insurance costs have increased in the past three years. In Ontario, that number is a full 100 per cent. This is likely because the cost of machinery has also increased drastically, with 63 per cent of contractors rating it as significantly higher than three years ago. Loggers report a corresponding increase in the cost of machinery parts and services, with 69 per cent saying it’s significantly higher. On top of that, 93 per cent of Ontario contractors say the cost of labour has increased, and 50 per cent say fuel costs have increased. Overall, it’s clear that logging has become a much more expensive endeavor in the region.

Operator pay

Operator pay is also going up in the region, with 50 per cent of contractors paying $26-$30 per hour, and 19 per cent paying more than $30 per hour. In 2016, almost two-thirds (62 per cent) paid $21-$25 per hour, and none paid more than $30 per hour.

The estimated average wage in the region now is $28 an hour, higher than in Quebec ($25) and Atlantic Canada ($22.50), but far lower than in B.C. and Alberta, where the average is $35 or more.

This increase in pay might be explained by the higher level of competition for skilled trades workers in the province, as older workers retire and fewer younger workers come into the industry to replace them (more on that below).

However, fewer contractors in Ontario are providing benefits to operators. Only 31 per cent offer medical/dental insurance, and 19 per cent offer life insurance. In comparison, in 2016, 46 per cent offered medical/dental insurance and 31 per cent offered life insurance. This year, more than half (56 per cent) of Ontario contractors do not provide any benefits. Only Quebec has a higher number at 57 per cent.

Workload

Despite low profit margins, Ontario loggers are among the hardest working in the country. Forty-four per cent of operations run more than 70 hours per week, higher than the national average of 35 per cent. Another 31 per cent run 51-70 hours per week. This puts the estimated average number of hours per week in the province at 73. Only Alberta and Atlantic Canada have a higher average number, at 105 and 107.5, respectively.

On a personal level, Ontario loggers are second only to Alberta when it comes to the number of hours worked per week, at an average of 56 (in Alberta, the average is 59). No Ontario contractor reports working less than 46 hours per week, unlike their neighbours in Quebec, where 25 per cent do so. More than half of all Ontario contractors (56 per cent) say they work more than 55 hours per week. Another quarter work 51-55 hours per week, and 19 per cent work 46-50 hours.

But, Ontario contractors are working fewer hours than they did in 2016. At the time, 77 per cent claimed to work more than 55 hours per week.

Company size

Across the country, harvesting volume has decreased, with the percentage of those harvesting more than 100,000 cubic metres dropping from 60 per cent in 2018 to 40 per cent in 2020. The estimated average harvest per year fell from 189,000 cubic metres per year to 134,000.

Continuing the trend seen in 2016, Ontario loggers harvest more than their eastern neighbours, but less than their western ones. Unlike in Quebec, where 23 per cent of loggers harvest less than 10,000 cubic metres per year, no contractors in Ontario harvest that amount. One-third harvest between 50,000 and 100,000 cubic meres, and another third harvest 100,000 to 250,000 cubic metres.

The estimated average volume harvested is 116,000 cubic metres per year, just slightly more than the 114,000 cubic metres in Atlantic Canada and a good bit more than in Quebec, where the number is just 92,000.

It’s no surprise, then, that Ontario contractors report much higher revenues than their eastern neighbours. The estimated annual average is $3.983 million, compared to just $1.74 million in Quebec and 2.041 in Atlantic Canada. Across the country, annual revenue has dropped from $4.52 million in 2018 to $3.96 million in 2020.

But, with higher harvesting volumes comes larger machine fleets. This helps explain why despite having higher revenues, Ontario contractors are seeing low profits. While fleets have become smaller across the country, with just 18 per cent running 21 or more machines, 19 per cent of Ontario contractors are running 21 to 50 machines. One-quarter say they have seven to 10 pieces of equipment, and another quarter has 11 to 20.

On average, Ontario contractors have 18 pieces of equipment in their fleet, more than contractors on the B.C. Coast (16 pieces) and only slightly less than those in the B.C. Interior (19). In comparison, Quebec and Atlantic Canadian contractors have much smaller fleets, at 7 and 6 pieces on average, respectively.

To run these larger fleets, Ontario contractors fall in the middle between their eastern and western counterparts. Thirty-one per cent employ between 21 and 50 people, on par with the B.C. Coast. Another 26 per cent employ between six and 20 employees. But, more than one-third (38 per cent) employ just one to five people. This puts the estimated average number of employees at 20 people. This represents a significant drop from 2016, when 54 per cent of Ontario contractors employed 21 or more people.

Contractor age

Despite the large fleets sizes and high operating costs, Ontario is seeing more young contractors coming into the industry. In fact, the province has the lowest estimated average contractor age, at just 48 years old, compared to the national average of 52 years old. This is a drop from 2018, when that number was 54.

Ontario also has the largest percentage of contractors under 35 years old, at 24 per cent. This is a big jump from the six per cent under 35 years old reported in 2018. Nearly half (44 per cent) of Ontario contractors in 2020 are between 36 and 55, similar to 2018 when that number was 50 per cent. The province now has the lowest proportion of contractors over 65, at just eight per cent. This demographic change could be because some of the older contractors have retired, but it’s also likely that programs encouraging young people to get into the industry are helping the region. This is a good sign for the industry, suggesting that the transition to the next generation is well underway.

Succession planning

Although Ontario contractors are the youngest in the country, they are the most likely to have a succession plan in place. Only 25 per cent say they don’t have a plan, unlike their neighbours in Quebec, where that number is 50 per cent.

Ontario loggers are the most likely to have their children take control of their business, with 50 per cent saying they expect this to happen. In comparison, only nine per cent of Alberta contractors expect this to happen. Next door in Quebec, that number is just 20 per cent.

But Ontario contractors might be a bit optimistic, since only 25 per cent say they currently have children working in the operation that are likely to take over. Thirty-eight per cent have children who are too young to be involved, but they hope they will be one day. Another 19 per cent say their children are currently working in the operation but have no plans for them to acquire the business. Only six per cent say they are unlikely to be involved.

Only 13 per cent of Ontario loggers say they will sell their equipment and shut down, the second lowest percentage in the country (second to Quebec).

Future

Despite the high operating costs and low profit margins, there are reasons to be optimistic about the future of Ontario’s logging industry. With the youngest contractors on average and high likelihood of children taking over the business, it’s clear Ontario loggers see the industry as a good long-term investment.

The Ontario government released its final forest sector strategy in August this year. The plan calls for increasing the annual allowable cut and doing more with the available fibre, with a focus on value-added products and building up a market for low-grade logs to encourage economic growth in the industry. If the Ontario government follows through on these promises, loggers will likely see their profitability increase, especially with the high log prices the country has seen in the second half of 2020.

This survey was conducted in April and May 2020 by independent research firm Bramm & Associates, generating 271 replies to a detailed list of questions. Respondents were distributed according to the geographic breakdown of the forest industry, with 44 per cent of respondents in Western Canada, 26 per cent in Quebec and the rest found in Ontario, Atlantic Canada, and central Canada. Within B.C., responses were split between the B.C. Coast and Interior. Many thanks to our sponsors for making this research possible – Hultdins, Tigercat and John Deere.