The rising value of the Canadian dollar, increased production, floods, fires and insect infestations, issues with accessing the largest timber markets and a decline in the American housing sector have combined to force the coastal and interior industries into periods of shutdown, Mr Zak told TTJ.
Canfor Corporation has recently announced a number of cutbacks in production at its mills, including 66.2 million board feet of lumber, 14 million ft2 of OSB and 8.5 million ft2 plywood, and Commonwealth Plywood has cut 1,200 jobs, almost half its workforce, as it closes 18 factories in the Québec area.
In addition, the workings of the Softwood Lumber Agreement have come into question, 8,000 loggers and sawmill workers in Vancouver have threatened strike action in a contractural dispute with employers and a new report by the International Wood Markets Group has warned that coastal regions face a challenging transition from old-growth forests to second-growth ones.
“Riding out a storm is not unusual in the forest industry,” said Mr Zak, Canada Wood’s western region phytosanitary and market access specialist.
“But this one has some large swells and we do not have a forecast as to how soon the storm will pass nor do we know what the damage will be when it finally subsides.”
However, Mr Zak added that the aftermath of the storm would “bring a new resolve and a new strength” to the Canadian timber industry as there will be a “ground swell amongst the survivors”.
