Worse than 2008? B.C. forest industry facing unprecedented struggle

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The crisis facing British Columbia's forest industry is intensifying as markets decline, mills shut and a strike involving 3,000 forestry workers enters its seventh month.

The multiple threats are deeper than the global meltdown of 2008 and may rival the damage wrought by B.C.'s 1980s recession, setting off massive industry restructuring, says an insider who is hearing from many people on the brink of financial collapse.

Other factors hitting B.C.'s forest industry now include low timber prices, less demand from Asian markets, U.S. tariffs, high cost structures, government fees or stumpage rates, timber supply shortages, mill closures in B.C.'s Interior and the strike on Vancouver Island, he said.Late last year, Finance Ministry budget numbers revealed forest revenues were down 11 per cent and projected harvest volumes of 46 million cubic metres were the lowest in years.

Elstone said he heard from many forest industry contractors at the recent Truck Loggers Association annual convention who are struggling to make ends meet, especially from those on Vancouver Island where the strike has hit hard. He said he was aware many of the contractors have not been able to work since last July when the strike between Western Forest Products and members of the Steelworkers union started.

 

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Another factor that plays on profitability and that is the high cost of union wages/benefits. Seen the gradual decline of the forest and pulp industry for decades. There comes a point with wages that make business unprofitable, exception government workers.

This is great news for liberalism , good for the environment!

Meanwhile the lumber store charges $4 for a 2x4 that's only fit for firewood.

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