Sean McLaren
West Fraser said key trends that have been positive drivers of new home construction in recent years are expected to continue, but also said potential US tariffs add an element of uncertainty. Sean McLaren, the company’s CEO, said the company saw somewhat challenging markets in Europe and the U.K. in the fourth quarter, as the region appears to be undergoing a protracted recovery. McLaren also said relatively high mortgage rates present an affordability challenge for consumers and housing markets. …”While we cannot control the threat of US tariffs, we can be proactive, creating a stronger organization with a continued focus on improving the cost position across our mill portfolio and investing capital to modernize mills where it makes sense,” McLaren said. …Over the medium term, new home construction, repair and renovation are expected to benefit from improved home affordability. …”Over the longer term, growing market penetration of mass timber in industrial and commercial applications is expected”.
WASHINGTON — Reports indicate that the B.C. Minister of Forests has created an “Advisory Council” to develop strategies for combating U.S. antidumping and countervailing duties. These duties are in place as a result of repeated findings by the U.S. Department of Commerce and U.S. International Trade Commission that Canada’s egregious ongoing dumping practices and long-standing subsidies to its industry have caused havoc in the U.S. market. Andrew Miller, Chairman and Owner of Stimson Lumber, stated that “this is not a complicated issue. Canada must stop dumping its excess lumber production into the U.S. market and should stop subsidizing its industry instead of convening an ‘Advisory Council’ in British Columbia to study ways of getting around U.S. trade laws.”
Data provided by the National Association of Home Builders (NAHB) and Fastmarkets Random Lengths confirm that cost of lumber is a very small component of the price of a new home. Consequently, duties on a share of that lumber imported from 
As President Donald Trump ushers in a slew of new policy changes, the proposed 25 percent tariffs on imports from Canada and Mexico—if implemented after the recently introduced 30-day pause—could significantly escalate the cost of lumber, further complicating the already strained U.S. housing market. Some experts predict a near-tripling of costs that could undermine home affordability at a time when the nation grapples with a housing crunch. …According to Carl Harris, chairman of the National Association of Home Builders (NAHB), over 70% of softwood lumber and gypsum, which is used in drywall, originate from Canada and Mexico. …Robert Dietz, chief economist at the NAHB, outlined the risks posed by tariffs as it relates to lumber costs. …Per Dietz, not only could they nearly triple the cost of lumber, a critical component of home building, but they would also drive up prices for consumers, putting homeownership out of reach for many Americans.
The Province has formed a new council to advance BC’s interests in the long-standing softwood lumber dispute with the US. The council brings together leaders from the forestry sector and labour, alongside experts on US relations and officials from the BC government. The B.C. Softwood Lumber Advisory Council convened its first meeting on Jan. 30. It advises the Minister of Forests, including the sixth administrative review, providing recommendations on steps BC can take to eliminate the 14.4% duties. The council will also help the Province advocate to the federal government. Parmar will chair the council… and the US Council members are:
VANCOUVER, British Columbia — Western Forest Products Inc. and Eastwood Forests, LLC announced today that Western has completed the sale of approximately 14,500 hectares of fee simple land on northern Vancouver Island in British Columbia, to a Canadian affiliate of the Eastwood Climate Smart Forestry Fund I LP for $69.2 million. “Eastwood has a dedicated focus on delivering climate benefits by supporting responsible forest management globally and we believe they will be excellent stewards of this land and partners in the region,” said Steven Hofer, President and CEO of Western. “The sale reflects our ongoing focus on optimizing and investing in our BC operations. We plan to use the sale proceeds to reduce our debt and support our accelerated transition to higher value products manufacturing, including the previously announced continuous kiln investments in BC.” “This forestland fits perfectly with Eastwood’s interest and experience in sustainable forest management and climate change mitigation,” said Alex Finkral, CEO of Eastwood. 
British Columbia’s lumber industry is facing uncertainty, as looming tariffs threaten the sector. “We don’t know what’s going to happen, businesses don’t like that because you can’t make investment plans,” said Nick Arkle, CEO of Gorman Bros. Lumber. …“About 60 per cent of our lumber in B.C. for the last couple of years has been going to the U.S., which in a way is funny because we have the president saying ‘We don’t need their trees.’ Well, that’s false,” BC Forest Minister, Ravi Parmar said. Gorman Bros. Lumber in West Kelowna sends about 50 per cent per cent of its product to the States, while about 30 per cent stays in Canada. “The U.S is a strong market, you never want to walk away from a market, where first of all you have loyal friends, partners, and customers, people we’ve sold to for 30 to 40 years in some cases,” Arkle said.
The largest creditor of the San Group wants to take control of some other Vancouver Island businesses connected to the former sawmill company. Kingsley Group operates in Coombs, and court documents show that it has some close ties to the San Group. The Royal Bank of Canada, which is owed $6.7 million from the Kingsley Group, wants to recall its loan and secure the company’s assets. The bank is owed more than $107 million from the San Group. It comes as the San Group’s Alberni Valley mills remain for sale as a court-appointed-monitor tries to drum up interest. …Kamal Sanghara and Sukhjit Sangara are directors with a 32.5 per cent stake each in Kingsley Group, and both are former owners of the group. …CHEK News spoke with Sukhijit Sanghera, a former owner of San Group at Kingsley, and asked if the San Group moved money to Kingsley Trucking and other places to hide assets or prop up Kingsley’s business.
The minister responsible for forestry and local MLA Ravi Parmar said a new council on softwood lumber will bring industry expertise together to help navigate the economic concerns with U.S. duties, and any potential tariffs that could be coming Canada’s way. While many people across the country have let out a sigh of relief about the pause on U.S. tariffs, Parmar said those in the forestry industry are still feeling the economic threat loom. “We’re already dealing with duties to the tune of 14.4 per cent. With tariffs on top of that—we could be dealing with 50 to 55 per cent duties and tariffs on our softwood lumber going into the United States,” he said, adding how that scenario would be devastating. …However, Parmar acknowledged the softwood lumber dispute with the U.S. has been a long-time problem, adding that his task of getting the industry back on its feet is made difficult by the duties.
