Bc Timber Industry

gunner3006

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When I was coming back from the island this September I ran into the massive logging industry convoy heading for Vancouver coming from Merritt. I grew up in a small logging community in eastern Ontario so I know the effects of an industry swing on the economy. I have a bunch of links I will try it post in a different format so all can read. Just about every mill on the coast and interior bc are curtailing production. The industry is being demolished with most investment going to the USA. Soon enough bc small community’s will feel what Alberta small community’s are feeling with the gas industry. The perfect storm is brewing in canada. I know there are guys on here that are in the industry. Some asses need to be punted to the curb. To put in into perspective on how these community’s roll the closest store to my place growing up sold pop and chips, chainsaws and hard hats. 400 sq/ft of retail space. When cutbacks happen it effects everyone in the community.
 

X-it

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Well we elected the dipsh!t who thought bombardier was worth more than negotiating a proper softwood agreement. What ever happened to those 300% duties the Us slapped on bombardier after we handed them billions in bailout money? Everything he has done is at the expense of the west.
 

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It's pretty bad. Many are saying worse than 08/09 and worst they've seen since the 70's when the bush mills started closing. The irony is that it's government's fault. The industry is rationalizing as AAC's come down but it is being grossly exacerbated by the NDP's stumpage policy. The industry would be running even with all the external factors but the very high stumpage is killing the mills right now. NDP says they can't lower stumpage or the US will raise the duty but even if that happened the companies would rather be masters of their own destinies. And to be clear the industry isn't saying arbitrarily reduce stumpage they just want BCTS bid prices to be factored into the calculation quarterly instead of annually. The more progressive stumpage policies in other provinces, notably Alberta, doesn't raise the ire of the Americans it's NDP drivel to think BC's would.

NDP wants a more value added industry and that is a great idea but I work for a large value added company, basically one of the poster children of what they want and their policies are hurting us too. As usual gov't can't get it right.
 

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Bc voted in the ndp.... And it's ironic that the small lower mainland controls the whole province, of which i'm sure very few from the lower mainland have actually left that area for business or pleasure... It's the second center of the universe behind toronto
 

Bnorth

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More of a coup than he won the election. Ironically people out west are ndpers and they are mostly loggers.....they voted in their layoff slips.
I've never understood why private sector unions support the NDP all they do is kill development that creates and sustains these resource industry and manufacturing jobs. And then the island is really messed up they support the NDP and many have been on strike for 4 months fighting for more from an industry that is on life support. Seems like a total disconnect on where the money comes from.
 
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gunner3006

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More of a coup than he won the election. Ironically people out west are ndpers and they are mostly loggers.....they voted in their layoff slips.

The same thing happened here for Notley. There were lots of votes from the energy sector. Then the layoffs came. Sticking your head in the sand won’t help. They voted there own demise. Mostly due to a lack of proper info being spread.
 

tex78

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Bc voted in the ndp.... And it's ironic that the small lower mainland controls the whole province, of which i'm sure very few from the lower mainland have actually left that area for business or pleasure... It's the second center of the universe behind toronto
No no

B. C didn't vote horrible Horgan in the office


He got on his gelled knee pads and knelt down to the green party and got there seats
 

Summitric

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i've never understood why private sector unions support the ndp all they do is kill development that creates and sustains these resource industry and manufacturing jobs. And then the island is really messed up they support the ndp and many have been on strike for 4 months fighting for more from an industry that is on life support. Seems like a total disconnect on where the money comes from.

can't fix stupid....
 

freeflorider

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Soon enough the ndp will be sitting with there dic in hand wondering where to stick it next. The forest industry is puckered up so tight there might be no chance in hell they’ll get a chance to shove it there back door again. She’s not looking good guys.
Thinking it time to sell off and move on.
 

Bnorth

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Soon enough the ndp will be sitting with there dic in hand wondering where to stick it next. The forest industry is puckered up so tight there might be no chance in hell they’ll get a chance to shove it there back door again. She’s not looking good guys.
Thinking it time to sell off and move on.
The majors will abandon BC for the US if the Gov't tries to go much deeper.
 

skegpro

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Soon enough the ndp will be sitting with there dic in hand wondering where to stick it next. The forest industry is puckered up so tight there might be no chance in hell they’ll get a chance to shove it there back door again. She’s not looking good guys.
Thinking it time to sell off and move on.
Sorry to hear.

Same thing they did to the oil industry in Alberta.
 

gunner3006

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So if If I’m reading this correctly the big issue here isn’t with the big 6 selling the tenures. It’s that there not re-investing into B.C. but into the US?
 

Bnorth

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So if If I’m reading this correctly the big issue here isn’t with the big 6 selling the tenures. It’s that there not re-investing into B.C. but into the US?
The punitive duties that the US has been putting on Canadian manufacturers since the early 80s led to us being far better at building and running mills than our US counterparts. It has also forced the consolidation of small mills into larger mills to increase efficiency and decrease costs. This has required timber license consolidation and a situation where a lot of timber is milled in a community other than where it was logged. A lot of people complain about this and the 2003 decision by the provincial Liberals to allow the timber to be milled elsewhere. So in-spite of the US duties Cdn companies were still profitable enough to fund purchases of inefficient US mills in states with abundant timber supplies and cheap labour. Then introduce Cdn efficiency standards and strategic capital investment to build top quartile facilities and wash, rinse, repeat until Cdn manufacturers own more facilities than the major American timber companies. Now in BC after years of increased logging to mill pine beetle killed wood in huge efficient mills the timber supply is being reduced and some of these mills must close. This cycle was expected but it is vastly more destructive due to high stumpage costs and otherwise cost efficient mills that will continue to operate after the timber supply rationalization are being hurt as well.
 
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