Timber market column thought-provoking
I have been in the forest industry for 30 years and so I read Bruce Strachan’s column with great interest. It generated several reactions.
First, I was surprised that someone with Bruce’s knowledge would make such an uninformed (and off the cuff?) statement as: “dimension lumber will more and more be relegated to the category of yesterday’s building technology.” He seems to have forgotten that lumber is the only building material that comes from a renewable resource and, over its life cycle, has been proven to be the most environmentally friendly material for society to use for its housing needs.
As we all become “greener” in how we treat our world and its resources, lumber’s favoured position over steel and concrete, both environmentally and economically, will continue to grow. I would suggest that Bruce has incorrectly linked the current North American lumber market slump, due to normal supply and demand fundamentals, to some thought that lumber is falling out of favour. If falling out of favor was truly the case, then why are we seeing areas like Europe, China, Russia, South America, with huge populations, establishing some of the newest and largest sawmills in the world?
Regarding opening up B.C.’s log market farther, I think Bruce raises some interesting points. However, that discussion needs to continue with all of the players in our industry. In the absence of that, I would like to say that the current B.C. government has, in my opinion, done a very good job of opening up the log market through forest policy reforms that put 20 per cent more volume into the current log market.
Working for a company that buys a very high percentage of logs from the open market, I can attest to the benefit this policy change has created. Interestingly, Sandy Long, one of the owners of the recently closed Gateway Forest Products, made the same endorsement of the government’s log market policy on CBC Radio. He commented that Gateway did not have an issue with access to fibre. They had more logs than they needed. Rather, he stated that Gateway’s issues were a combination of regular, fundamental challenges facing all new business - timing around starting their business when the market was dropping and lack of sufficient financing.
– Blair Mayes
Source: Prince George