“We need liquidity supports now,” he said, with more risk-tolerant lending than is offered by the mainstream banks that can be quickly rolled out and not force companies to provide more security. While the demand for toilet paper is expected to level off, the demand for sanitary wipes and paper towels should remain strong. As RBC senior commercial account manager Ron Forster noted, working with industry clients in the context of historic sectoral instability can cause “heartburn for bankers.” While sound financial statements are critical, Forster emphasized that lenders working with the sector require also have to depend to some extent on “faith and forecasting.”. That is why the BC Coalition for Forestry Reform (BCCFR) is calling on the provincial government to immediately implement the recommended changes to forestry regulation and governance. With the global population predicted to hit 9 billion by 2050 – and two out of every three people living in cities by 2050 – the demand for construction has never been greater. “. Forest sector transformation. 's economy. Nighbor called sawmills the “heartbeat” of a highly integrated sector that feeds pulp and paper mills. will lose its capacity to function competitively in the international marketplace. “The forestry sector has seen reduced revenues, mill closures and job losses across the The American forestry industry faces multiple large-scale challenges that threaten to erode recent gains and must address them to ensure future success. This constant state of shifting circumstances creates both challenges and opportunities. After a decade of difficulty, many in the industry are themselves “tired,” and ready to retire, he noted. FPAC represents Canada’s wood, pulp, paper, and wood bio-products manufacturers, a $73-billion industry employing 230,000 in northern and rural communities. “We just need some help to keep our heads above water and keep as many people working as possible over the next few months,” he said. “They can’t get the chips they need to make their in-demand products,” said Nighbor. “Our biggest issue is liquidity – managing increased operating costs, working through falling prices and markets, and making our credit payments.”, In his remarks, Nighbor said he sees no evidence that the credit availability program, run through the federal Business Development Bank of Canada, “is going to deliver what we need.”. Copyright © Canada Wide Media Limited. Coast.” Nelson was on hand at the annual Truck Loggers Association convention in Vancouver last week to elaborate on challenges faced by the province’s forest industry. Sign in or register for your free account, Industry association urges Ottawa for lifeline to restart sawmills and resume wood chip flow, The Forest Products Association of Canada counts 39 sawmills closed across the country, which is staunching the supply of wood chips to pulp and paper mills. There’s a lot of passion in this industry. This resulted in an amendment to the RFA, the Tasmanian Community Forestry Agreement, increasing the reserve area by 170,000 ha and providing $150 million for more intensive forest management and industry compensation. Want to read more stories about business in the North? That’s the message of a report by UBC professor Harry Nelson entitled “Tired Iron: The State of the Harvesting Sector on the B.C. Wood is increasingly gaining favour as a renewable construction material of choice. Take advantage of it.” Doing business in the forest industry’s “new era” means knowing the lessons learned from tough times, he said. In the forest sector, ROI has been at or less than zero for years. Between 1990 and 2008, around 46 million acres of forest were harvested in Canada at an average of more than 2.5 million acres per year, with historic rates estimating around 65% coming from the boreal forest. “If we don’t have chips flowing, our industry’s biggest artery is cut off – and thousands more will be out of work.”. He proposes more of a segmented, mill-by-mill, approach. But the wage subsidy is “by no means a magic bullet,” he added. The program will cover three-quarters of the salaries of any size company that can show their revenues dipped by at least 30 per cent due to COVID-19.