Daily News for June 24, 2024

Today’s Takeaway

Rail strike in Canada more likely—but not until mid-July

The Tree Frog Forestry News
June 24, 2024
Category: Today's Takeaway

A rail strike in Canada is deemed more likely now, as Union votes on whether to extend strike threat. In other Business news: BC’s Conservative leader outlines forest-friendly election platform; Maine’s T&D Wood Energy is fined for excess emissions; Timberlab’s South Carolina mill reaches full capacity; Forestry Innovation Investment releases its 2023/24 Year in Review; and Massachusetts Institute of Technology features famed timber architect Schim Menges.

In Forestry/Wildfire news: USDA seeks comment on old-growth guidance report; ENGOs say US old-growth plan is wanting; a Montana judge is set to rule on the Pintler logging project; Quebec’s Port-Cartier wildfire is slowed by weather; an evacuation alert is announced for Zama City, Alberta; and the Churchill Falls, NL evacuation order remains in place.

Finally, and sadly, forestry billionaire James K. Irving, has died at the age of 96.

Kelly McCloskey, Tree Frog Editor

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Special Feature

Forestry Innovation Investment releases 2023/24 “Year in Review”

By Kit Crowe, Manager, Corporate Communications
Forestry Innovation Investment Ltd.
June 24, 2024
Category: Special Feature
Region: Canada, Canada West

Forestry Innovation Investment (FII) is excited to share our “Year in Review” – a compilation of market development activities completed by FII and our many industry, association, government, academic and research partners over the past year. We are committed to a collaborative delivery approach, building on the strengths and shared resources that other organizations bring to this important work. This report summarizes not only the work of FII, but also the many organizations and programs that we contribute to and work closely with. Despite recent industry and market challenges, B.C.’s forest sector remains a significant contributor to our economy and a global leader in forest product exports. This is due in part to the progress made by the suite of programs supporting the evolution and diversification of the sector. In this report you will learn more about the range of work underway, and the milestones achieved over the past year. While market diversification efforts often take many years to pursue, it is valuable remind ourselves of the important work being done to support the sector. 

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Business & Politics

Rail strike in Canada likely as ‘essential services’ hurdle seems to have tumbled

By Charlotte Goldstone
The Loadstar
June 18, 2024
Category: Business & Politics
Region: Canada

Final submissions to the Canada Industrial Relations Board (CIRB) reveal neither rail companies nor union believe “essential services” will be disrupted by a strike, which could pave the way for action. On 14 June, the CIRB took final submissions from Canadian National (CN), Canadian Pacific Kansas City (CPKC), the Teamsters Canada Rail Conference (TCRC) and other affected organisations, to make a final decision on whether a strike should be allowed to go ahead. In the submission documents, both rail operators and the union conclude that rail services could not be deemed as essential. …Submissions arguing that a strike would cause immediate risk to public safety came from industries affiliated with named “essential” products. …Meanwhile, some stakeholders, including CN and CPKC, requested a 30-day “cooling off period” before a strike, currently only 72 hours is required.

Related coverage in FreightWaves: Union voting on whether to extend strike threat by CN, CPKC rail workers

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A former Liberal’s Conservative prescription for B.C.

By Nelson Bennett
Business in Vancouver
June 21, 2024
Category: Business & Politics
Region: Canada, Canada West

John Rustad

A BC Conservative government would axe B.C.’s carbon tax, lower taxes in general, tackle government debt, remove CleanBC restrictions that hamper new LNG development, reform B.C.’s stumpage system for forestry, reverse course on drug decriminalization, get tough on violent crime, and take a different approach to reconciliation with First Nations. John Rustad, leader of the Conservative Party of B.C., sketched out his party’s election platform Thursday before a business audience at a meeting hosted by the Greater Vancouver Board of Trade. Rustad opened with a criticism of the NDP government’s handling of the economy, spending and social issues. …He said the NDP government’s commitment to protecting 30 per cent of B.C.’s land by 2030 threatened working forests, farmland and ranch land. Rustad said he would also address permitting for other resources, including forestry to free up timber for sawmills, and would reform the current stumpage system.

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Billionaire businessman James K. Irving dead at 96

By Sam Farley
CBC News
June 21, 2024
Category: Business & Politics
Region: Canada, Canada East

James K. Irving

The billionaire businessman James K. Irving, chairman of J.D. Irving Ltd., has died at the age of 96, according to a news release from the company Friday evening. J.K. Irving died peacefully Friday in Saint John, N.B., the release said. He was the son of Irving patriarch K.C. Irving, who died in 1992. K.C. was an industrialist who turned a single gas station and sawmill into a family-controlled business conglomerate, making him and his three sons among Canada’s wealthiest businessmen. …J.K. Irving’s net worth at the time of his death was $5.5 billion, according to Forbes. The Forbes website says the company has planted over a billion trees since 1957, and Irving Woodlands, a division of the company, is the sixth-largest landowner in the United States. The forestry and paper operations overseen by J.D. Irving are New Brunswick’s largest private-sector employers.

Additional coverage in CTV News: Tributes remember J.K. Irving for his business, community contributions

Bloomberg in the Financial Post, by Rebecca Penty and Thomas Seal: James K. Irving, Canadian Forestry Billionaire, Dies at 96

Company press release: Irving family announces the passing of James K. Irving

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T&D Wood Energy fined for repeated environmental violations, excess emissions

By Emmett Gartner
The Maine Monitor in the Press Herald
June 23, 2024
Category: Business & Politics
Region: United States, US East

SANFORD, Maine — State officials voted Thursday to fine the operators of a Sanford wood pellet manufacturing facility $151,550 for a string of violations dating back to 2020. The violations – which include failing to meet testing deadlines, exceeding emissions requirements and failing to keep sufficient records — were ongoing even as the facility was awarded $600,000 in state funds in 2022. The money has not yet been distributed. The plant, operated by T&D Wood Energy and formerly included Player Design, has been the subject of several complaints made to the state Department of Environmental Protection over the years, DEP staff said. …Despite warnings from the department, issues abounded over the next few years. DEP staff conducted several full inspections and issued four license amendments to address noncompliance issues, said Kennedy.

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Finance & Economics

Prices if raw materials purchased in Canada declined 1.0% in May

Statistics Canada
June 21, 2024
Category: Finance & Economics
Region: Canada

On a monthly basis, Canada’s Industrial Product Price Index (IPPI)  was unchanged in May following four consecutive months of increases. Lower prices for energy and petroleum products (-3.9%) and lumber and other wood products (-4.9%) were largely offset by price increases for primary non-ferrous metal products (+4.3%) and meat, fish and dairy products (+1.6%). Excluding energy and petroleum products, the IPPI rose 0.5%. …Prices for lumber and other wood products (-4.9%) also declined from April to May. Lower prices for softwood lumber (-10.2%) drove the month-over-month decline. This was the largest monthly decrease in softwood lumber prices since June 2022 (-29.4%). Lumber demand was soft in May 2024 amid continued housing affordability challenges. For example, 30-year mortgage rates in the United States, the primary market for Canadian lumber, surpassed 7.0% for the first time this year, in late April. 

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US Leading Economic Index® (LEI) Fell Again in May

The Conference Board
June 21, 2024
Category: Finance & Economics
Region: United States

The Conference Board Leading Economic Index® (LEI) for the U.S. decreased by 0.5 percent in May 2024 to 101.2 (2016=100), following a 0.6 percent decline in April. Over the six-month period between November 2023 and May 2024, the LEI fell by 2.0 percent—a smaller decrease than its 3.4 percent contraction over the previous six months. “The U.S. LEI fell again in May, driven primarily by a decline in new orders, weak consumer sentiment about future business conditions, and lower building permits,” said Justyna Zabinska-La Monica, Senior Manager, Business Cycle Indicators, at The Conference Board. “While the Index’s six-month growth rate remained firmly negative, the LEI doesn’t currently signal a recession. We project real GDP growth will slow further to under 1 percent (annualized) over Q2 and Q3 2024, as elevated inflation and high interest rates continue to weigh on consumer spending.”

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Siemens Predicts Rapid Uptick for the Construction Industry

By Kitty Wheeler
Construction Digital
June 21, 2024
Category: Finance & Economics
Region: United States, International

The construction industry worldwide should brace for a potential upturn, according to recent analysis by Siemens, the German multinational conglomerate. …While the industry has faced challenges in recent years, including supply chain disruptions and inflationary pressures, several indicators suggest a more positive outlook is on the horizon. The Building Cost Information Service (BICS) has now predicted over the next five years, total new work output is forecast to grow by 21%. …This anticipated surge is expected to drive a corresponding rise in demand for plant-hire services across various categories, including: excavation, pumping, piling, bulldozing, lifting, and earth-moving equipment. …Primarily, the anticipated upturn in the construction industry is thought to be driven by increasing infrastructure investments and government stimulus programs aimed at economic recovery and modernisation. 

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Falling Lumber Prices Are Just the Start. The Whole Economy Is Slowing.

Trading View
June 21, 2024
Category: Finance & Economics
Region: United States

Data released on Friday shows that housing starts and building permits have dropped to their lowest levels since mid-2020, and lumber prices are responding. …As of yesterday’s close, lumber is down 9.7% over the last month and down 15% since this time last year. Permit issuance dropped 3.8% last month to an annualized pace of 1.38 million, down from 1.44 million in April. Everyone is getting housing wrong now. The interest rate lags are beginning to hit, and housing construction is clearly telling you the impacts are just starting to manifest. …The data isn’t good, which matters for U.S. markets. Lumber is likely to continue its downtrend in response; it is one of the most expensive materials used in a new home, and homebuilder sentiment has a big impact on lumber’s prices. As homebuilding permits and housing starts slump, lumber demand slacks and prices fall — just as we are seeing today.

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Wood, Paper & Green Building

Meet the architect creating wood structures that shape themselves

By John Wiegand
MIT Technology Review
June 24, 2024
Category: Wood, Paper & Green Building
Region: United States, International

Achim Menges

Humanity has long sought to tame wood into something more predictable. …But wood is inherently imprecise. Its grain reverses and swirls. Trauma and disease manifest in scars and knots. Instead of viewing these natural tendencies as liabilities, Achim Menges, an architect and professor at the University of Stuttgart in Germany, sees them as wood’s greatest assets. Menges and his team at the Institute for Computational Design and Construction are uncovering new ways to build with the material by using computational design—which relies on algorithms and data to simulate and predict how wood will behave within a structure long before it is built. He hopes this work will enable architects to create more sustainable and affordable timber buildings by reducing the amount of wood required. Menges’s recent work has focused on creating “self-shaping” timber structures like the HygroShell, which debuted at the Chicago Architecture Biennial in 2023. 

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Mass timber facility in Greenville reaches full capacity

By Ross Norton
GSA Business Report
June 24, 2024
Category: Wood, Paper & Green Building
Region: United States, US East

Greenville, South Carolina — It’s not often that proximity to New York City is cited as a reason for being in Greenville, but that was the case when Timberlab began operations in April 2023. Timberlab’s product — large glulam members for mass timber structures — is pretty specialized. Timberlab, a nationwide provider of what the company calls “holistic mass timber systems,” has reached full capacity at its facilities on Old Grove Road in Piedmont. The company, based in Portland, Ore., made the announcement recently with a plant tour in partnership with its affiliate, Swinerton, a commercial general contractor with offices nationwide. Since spring 2023, the 75,000-square foot engineering and fabrication plant has supported nearly a half-million square feet of sustainable development east of the Mississippi River, Timberlab said in a news release. Timberlab at full capacity, with two state-of-the-art CNC machines, can produce annually 1 million square feet of mass timber fabrications.

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Forestry

Percy Guichon discusses reconciliation in forestry on YourForest podcast

Prince George Daily
June 21, 2024
Category: Forestry
Region: Canada, Canada West

In a special episode of the YourForest Podcast released on June 19, 2024, Percy Guichon, executive director of Central Chilcotin Rehabilitation Ltd. (CCR) and Councillor of Tŝideldel First Nation, sat down with host Matthew Kristoff to delve into topics surrounding reconciliation in the forestry sector. Throughout the episode, Guichon shared details about his life, discussing his experiences attending residential school, ongoing challenges faced by Indigenous peoples due to inequitable opportunities, and the origins of CCR and its vision. YourForest Podcast, created in 2017, deals with diverse topics around environmental issues and forest management, discussing the challenges and triumphs of the pursuit of sustainability and providing insight to both the public and forest professionals alike. 

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A moment of celebration for pristine old growth saved

By Chris Hatch
The National Observer
June 24, 2024
Category: Forestry
Region: Canada, Canada West

Let’s pause for a moment of gratitude. June 26 will be a kind of armistice day — the old growth battlegrounds of the “War in the Woods” in Clayoquot Sound will receive permanent protection. The Ahousaht and Tla-o-qui-aht First Nations have landed an agreement with the province of B.C. to protect about 760 square kilometres of the world’s most stupendous ancient forest and other unique biomes, creating 10 new conservancies to protect the old growth. In the process, the nations forced a local revamp of B.C.’s heinous “Tree Farm Licence” system — the “TFLs” that reign across the province’s “crown lands,” effectively privatizing the living world into corporate satrapies. The armistice has been a long time coming. The Tla-o-qui-aht Nation declared Meares Island a tribal park in the early 1980s — long before such inconveniences were taken seriously by provincial governments or Ottawa.

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USDA Seeks Comment on Draft Guidance for Old Growth Management on National Forests

Morning AgClips
June 24, 2024
Category: Forestry
Region: United States

Randy Moore

WASHINGTON — The U.S. Department of Agriculture’s Forest Service is taking the next step to advance President Biden’s commitment to conserve old growth forests by publishing a draft environmental impact statement for the proposed national old growth forest plan amendment. The proposed amendment is available in the Federal Register, and is open for public comment for 90 days following publication. The purpose of this amendment is to provide consistent guidance for the stewardship, conservation, and recruitment of old growth across national forests. The proposed amendment highlights the importance of proactive stewardship actions in managing threats to old growth forests, and to reduce wildfire risk, considering current and emerging climate-driven threats. It also calls for adaptive management strategies to be developed using local, geographically relevant information and the best available science, including Indigenous Knowledge.

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Forest Service Urged to Strengthen Protections for Mature, Old-Growth Forests in Draft Plan

Center for Biological Diversity
June 21, 2024
Category: Forestry
Region: United States

WASHINGTON— A coalition of environmental groups called on the U.S. Forest Service today to strengthen protections for the nation’s mature and old-growth forests and trees. The move came in response to the agency’s release of a draft environmental impact statement with proposals that could conserve old-growth across all national forests. This is the most recent step in response to President Biden’s 2022 executive order to develop policies to protect mature and old-growth forests on federal lands. …A 90-day public comment period for the draft environmental impact statement closes Sept. 20. Mature and old-growth forests store huge amounts of carbon. They also contain essential habitats and clean water and feature highly fire-resilient trees. …protecting these forests is critical to preventing the worst consequences of climate change. The vast majority of old-growth forests have already been logged. 

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Judge set to rule on massive Montana logging project

By Mark Moran
Kiowa County Press
June 21, 2024
Category: Forestry
Region: United States, US West

A federal judge in  Montana is holding a hearing next Tuesday on a motion for an injunction against the Pintler Face logging and burning project on Beaverhead-Deerlodge National Forest. A coalition of conservationists and activists has sued to stop work altogether. The Pintler project, northwest of Wise River, Montana, calls for 11 miles of new logging roads to access to 3,400 acres of clear-cuts, prescribed burns and logging of more than 560 acres of aspen. It would also log another 5,800 acres in a commercial segment of the project. Mike Garrity, executive director of the Alliance for the Wild Rockies, said the project will disrupt a continuous ecosystem that lynx and grizzly bears need to thrive. Critics of the lawsuit and supporters of the Pintler project said it would make strides to preventing wildfires and also backtrack on years of economic development the state has made in the region.

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‘Sirius Woods’ a Sanctuary for Old Growth, Wildlife

By Larry Mauter
The New Era Oregon
June 21, 2024
Category: Forestry
Region: United States, US West

Katie and Steve Kohl

In the night sky, Sirius is the brightest star. For 2024, Sirius Woods, Steve and Katie Kohl’s 42 acres near McDowell Creek Falls, will shine brightly. The Kohls have been named Linn County Small Woodlands Association (LCSWA) tree farmers of the year. They will host a gathering of fellow woodland owners on a September Saturday yet be determined. The couple has actively nurtured the property for 33 years, working with Oregon Department of Forestry staffers to create wildlife habitat, recreation opportunities and maintain old-growth timber. …The Kohls are both OSU Extension Service master woodlands managers. They have advised other forest owners on their projects for the past two decades. …The Kohls exemplify woodland owners who choose a variety of goals relating to their property, said Mike Barsotti, LCSWA president. The Kohls and other honorees will be spotlighted in the fall at a ceremony at the Oregon Gardens in Silverton.

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Forest Fires

Evacuation alert in place for Zama City, Northern Alberta

By Curtis Galbraith
Everything Grande Prairie
June 22, 2024
Category: Forest Fires
Region: Canada, Canada West

Fire watchers said on Sunday evening that this fire now covers at least 3350 hectares. The cause is under investigation. Mackenzie County has issued an evacuation alert for Zama City because of a wildfire. Fire watchers in the High Level Forest Area say the fire is burning 8.5 kilometres southwest of the community. The fire is listed as out of control and has burned 2100 hectares. There are 72 firefighters, air and ground equipment fighting the blaze. The alert from Mackenzie County says the fire is not moving towards the community but people are still asked to keep their essentials ready. Crews are working on protecting structures in Zama City.

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Situation Remains Stable Amid Forest Fires Near Churchill Falls; Evacuation Order Still in Place

VOCM News Now
June 22, 2024
Category: Forest Fires
Region: Canada, Canada East

NL Hydro has provided another update on the forest fires near Churchill Falls. In the most recent update around 9 a.m. this morning, officials said the situation remains stable with the fire still burning on the south side of the river. They say resources will continue to focus on suppression efforts today, stating “the response remains highly co-ordinated and we continue to support the ongoing needs of those who have been displaced.” More than 500 residents were evacuated late Wednesday, first to Happy Valley-Goose Bay and later to the homes of friends and families in the area. That evacuation order remains in place. NL Hydro says operations at the generating station in Churchill Falls remain unaffected and the facility is not at immediate risk. However, in a statement the utility said smoke remains an ongoing concern.

Additional coverage from Canadian Press in CTV News: Wildfire that triggered town evacuation in central Labrador grows only slightly

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Weather slows forest fires near Port-Cartier, but no plans yet for 1,000 evacuated residents to return home

Canadian Press in the Montreal Gazette
June 22, 2024
Category: Forest Fires
Region: Canada, Canada East

As forest fires continue to progress, a return home for 1,000 residents evacuated from Port-Cartier on Friday evening is not yet being considered. Mayor Alain Thibault, declared a state of emergency Saturday for a period of five days because the fire was “out of control and close enough to infrastructures” of the north shore city. He ordered the evacuation of residents from the Parc Brunel and Parc Dominique areas, as well as those living north of Route 138. …The forest fires have continued to progress, albeit with a more optimistic scenario: SOPFEU representative Mélanie Morin explained weather conditions Saturday and Sunday, with less wind and more humidity, prevented the fires from spreading toward the south and toward homes. However, the fires remain active and out of control. Positive news — ground teams can be sent in Monday. Until now, the sheer intensity of the fires made it impossible for ground teams to fight the fires safely.

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