At the Truck Loggers Association (TLA) Conference, a panel of forestry leaders convened to discuss “The Future of BC’s Forestry Sector.” Moderated by Bob Brash, Executive Director of the TLA, the panel featured Nick Arkle, CEO of The Gorman Group; Duncan Davies, President and CEO of Mosaic Forest Management; and Steven Hofer, President and CEO of Western Forest Products. Together, they addressed key challenges, opportunities, and pathways for the industry to navigate a rapidly changing landscape. Below is a summary of some of the key questions [paraphrased] and panelists’ insights.

Question 1: How is the industry addressing the drop in harvest levels below the Allowable Annual Cut (AAC)?

The panelists agreed that the significant drop in harvest levels—far below the AAC—has created operational challenges and economic strain. Nick Arkle pointed to the complexities of the current regulatory framework, which has delayed harvesting permits and reduced industry output. “The disconnect between what’s allowable and what’s accessible is a major issue,” he said, calling for reforms to streamline permitting processes. Arkle emphasized the importance of forest landscape planning tables as a long-term solution, focusing on their potential to align priorities and improve outcomes through collaboration with First Nations and government.

Duncan Davies added that the uncertainty around land use planning, particularly in relation to old-growth deferrals and environmental policies, has compounded the problem. “It’s not just about what’s on paper; it’s about what we can actually access sustainably,” he remarked, emphasizing the need for clarity and predictability in government decisions. He highlighted inefficiencies in wildfire salvage operations and stressed the importance of balancing conservation with operational needs to stabilize fiber supply.

Question 2: What is needed to encourage investment in new technologies and value-added products?

Steven Hofer highlighted the importance of creating an investment climate that supports innovation in the sector. “We need to shift from a commodity mindset to a value-added mindset,” he said, pointing to opportunities in engineered wood products, biofuels, and carbon sequestration technologies. He emphasized the need for stable economic conditions to foster confidence among investors and companies willing to explore new technologies.

Nick Arkle echoed this sentiment, emphasizing the role of collaboration between industry and post-secondary institutions in fostering innovation. He noted successful examples from other jurisdictions, such as Scandinavia, where value-added manufacturing has transformed the forestry sector. “Investment in technology isn’t just a choice; it’s a necessity for staying competitive globally.,” Arkle stated. He also called for an expedited process for accessing grants and subsidies for small-to-medium enterprises.

Question 3: How can contractors be supported amid escalating costs?

The panelists acknowledged the financial pressures faced by contractors, particularly in managing escalating costs related to equipment, fuel, and regulatory requirements. Duncan Davies stressed the importance of fair contractor compensation and better alignment of risk-sharing mechanisms within the supply chain. “Contractors can’t bear all the risk alone,” he said. He proposed direct financial assistance programs, such as low-interest loans, to help contractors manage rising costs.

Steven Hofer advocated for greater transparency in cost-sharing agreements between contractors and forest companies. He suggested adopting best practices from other industries to create more equitable partnerships. “We need to create a system where both contractors and companies can thrive,” Hofer remarked. He also highlighted the role of digital technology in enhancing contractor efficiency, citing innovations in predictive analytics and fleet management as tools to reduce operational costs.

Question 4: What role does sustainability play in your operations, and how are you integrating climate-conscious practices?

All panelists highlighted their companies’ efforts to integrate climate-conscious practices. Duncan Davies outlined Mosaic’s initiatives in carbon offsets and sustainable harvesting, describing them as critical to maintaining public trust. “Sustainability isn’t optional; it’s our social license to operate,” he stated. He also discussed Mosaic’s investment in fire-resilient forest management practices, such as controlled burns and commercial thinning, to mitigate wildfire risks and preserve ecosystems.

Nick Arkle discussed The Gorman Group’s investments in reducing waste and improving resource efficiency. “Every part of the tree should be used. Waste is no longer acceptable,” he emphasized, referencing the company’s commitment to a circular economy model. Arkle also shared examples of engaging with local communities to promote sustainable land-use planning and reduce carbon footprints.

Question 5: How are companies working with Indigenous communities to promote economic reconciliation?

All panelists acknowledged the importance of meaningful collaboration with First Nations. Steven Hofer highlighted Western Forest Products’ partnerships with Indigenous communities, including co-management agreements that provide economic benefits and shared stewardship responsibilities. “True reconciliation means shared prosperity,” Hofer said. He elaborated on initiatives that emphasize long-term economic empowerment and shared resource stewardship.

Duncan Davies shared Mosaic’s experience with tenure transfers and capacity-building programs, emphasizing the need for long-term partnerships that respect Indigenous rights and knowledge. “This isn’t just good for business; it’s the right thing to do,” he stated. Davies also pointed to Mosaic’s collaboration on training Indigenous workers and supporting First Nations in achieving tenure ownership.

Question 6: What steps are necessary to improve BC’s global competitiveness?

The panelists agreed that BC’s forestry sector faces stiff competition from jurisdictions like Scandinavia, where streamlined regulatory processes and advanced manufacturing have given them a competitive edge. “We need to modernize our approach,” Nick Arkle said, advocating for a cohesive strategy that integrates innovation, sustainability, and efficiency. He highlighted the importance of streamlined stumpage systems and regulatory reforms to reduce operational barriers.

Duncan Davies pointed to the importance of reducing regulatory barriers and increasing government support for value-added manufacturing. “Competitiveness isn’t just about costs; it’s about adding value at every stage of the supply chain,” he explained. He proposed creating a centralized task force to prioritize and address critical competitiveness issues facing the sector while fostering innovation to enhance global standing.