So far, all is well at Canoe Forest Products Ltd. in Canoe, one of Salmon Arm’s largest employers.
Although British Columbia companies like Canfor and Tolko have been in the news recently due to mill closings or extended shutdowns, Canoe Forest Products, a plywood/veneer plant about five kilometers east of downtown Salmon Arm, remains stable.
For example, the plant was not shut down for extra time at Christmas, which has happened in the past.
“Plywood is holding up better than some of the other commodities in terms of sales volume and prices,” said Marcello Angelosi, general manager. “It’s been pretty consistent as far as sales go. We haven’t seen a major drought, knock on wood, but that doesn’t mean we’re immune.”
He said no changes to shifts or staffing are currently anticipated.
Read more: Tolko extends mill downtime in North Okanagan, Caribou
Read more: Canfor closes Houston plant in April amid weak market; a new facility is being considered
Read more: Hundreds of jobs affected as Canfor announces pulp line closure at British Columbia plant
Canoe Forest Products is a member of the Gorman Group of Companies, which also has operations in West Kelowna, Revelstoke, Lumby and Oroville, Washington.
Angelosi said subsidiaries such as Revelstoke’s Downie Timber have experienced some layoffs due to a market slowdown over the past year.
“We weren’t spared as a group … As far as the lumber goes, they feel it more than we do,” he said of the Canoe plant.
Any temporary closures or layoffs in the group of companies at this point are determined by the market, he said.
Right now in the industry, for some companies, sales aren’t strong enough and prices are lower than what makes the business worthwhile.
Canoe Forest Products currently has approximately 200 employees. It sells almost 100 percent of its products domestically, across Canada.
Angelosi said the long-term problem will be the supply of fiber – trees.
He said a combination of declining annual allowable cuts and old growth deferrals could have a big impact on future fiber supply.
The annual allowable felling is defined as the annual amount of timber that can be harvested on a sustainable basis within a certain forest area. Old-growth set-aside is stopping or pausing logging to help protect ecosystems while First Nations, the province and other partners develop a new approach to managing old-growth forests.
The industry will have to adjust to the new reality of less fiber, Angelosi said.
Read more: High lumber prices are good for two of Salmon Arm’s biggest employers
Read more: Gorman Group provides financial assistance for employees
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forestrySalmon Arm
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