Transformation Of The Forest Industry

Transformation is never easy and more often than not it is thrust upon us, making the process of change that much more uncomfortable, and even at times, more painful. The North American forest industry has been going through a deep transformation, one that has arguably dragged the industry down to levels no one could have imagined. The words “painful” and “uncomfortable” don’t even begin to describe the carnage seen in the industry from logging to lumber sales during the past decade, but sometimes it’s necessary to tear something down to the foundation before you can rebuild.

During the last decade, while we were all busy doing what we do best—working hard to survive with our noses firmly pushed against the grindstone—the world was busy changing. Society found its voice on the Internet and through it, interest in global warming, bio-energy, the green movement, sustainability, and social conscience exploded. But what were once considered dirty words in our industry now offer an opportunity to create a bright and vibrant future for forestry. All we have to do is step up and grab it.

Our whole industry is based on renewable and environmentally friendly practices, and while we might not have had it right 20 years ago, we’re certainly leading most industries today. These new demands from society will eventually translate into new markets for wood-based products and a new generation of leaders and workers who want to work in a sustainable and environmentally friendly industry. But we must drive this transformation.

So here we are, entering a new era and a new reality in the North American forest industry, and while we don’t know exactly what it’s going to look like, it is certainly apparent we are not in Kansas anymore.

Embracing Green

Our industry has historically been at odds with the environmental movement and our sometimes slow and unorganized attempts to counter their efforts and get the facts about our industry out in the public eye haven’t helped our cause. Traditionally, this ongoing battle has resulted in public opinion based more on emotion rather than on science and facts. But times they are a changin’. Green initiatives, climate change, and the negative environmental impacts of oil and coal are top of mind for the public and government alike. Our industry is a story of renewal and sustainability and it’s very well-aligned with new societal demands for environmentally friendly products and jobs.

“We can start by explaining that the biggest difference is that we manage the forests which are going to grow back. Despite less old growth forest remaining, we have more trees growing than we ever have because we’ve learned. We aren’t cutting every tree down. We are managing. We have practiced bio-diversity and it has worked,” says Henry Schienebeck, Executive Director of the Great Lakes Timber Professionals Association (GLTPA).

Matt Jensen, President of the American Loggers Council and owner of White Tail Logging in Wisconsin, is a third generation logger and a father of three who agrees that public perception is not where it needs to be.

“The story of the logger needs to be told. People will respect our industry more if they can see what we do and how it serves our country, our local communities, our environment, and our families,” he says.

These organizations and many like it are taking the bull by the horns and are working towards improved public education. “The ALC has done things on a smaller scale, but the Sierra Club, for example, has deep pockets. We’ve made some educational videos that can be used in schools and are hoping to do more with the help of sponsors like John Deere, Caterpillar, and others. We need to get the word out a little better, but it’s certainly hard to combat,” Jensen says.

It boils down to resources, and both time and money are at a premium these days. “On one side of things, we have individuals fighting to keep their jobs locally, and then we also ask them to portray their industry in a positive way [by volunteering time]. There are not enough hours in a day to do both your regular job and be on top of the marketing/education side of things. It all takes time and energy,” Jensen continues.

Most organizations within the industry are actively working on lobbying government and the GLTPA and ALC are no exception. Jensen and Schienebeck agree change must happen at a local level first and electing individuals with an understanding of the industry and concern for its future will have a multiplying effect.

“The GLTPA believes the biggest change has to take place in third and fourth grade, and that forestry and multiple use has to be taught so our next leaders know the truth about forest management. That is the only way forest management is going to become socially acceptable,” says Schienebeck. “We feel it is the people with the hands-on knowledge, those with their boots on the ground, that have to be advising the decision makers, not the other way around. Public officials just don’t know anymore,” he continues.

Jensen agrees. “When forestry-related issues were brought to the government’s table in the past, we compromised, but, no more. We have given and given and now we would like the environmental community to compromise to our benefit for once. We’re talking about a group of highly intelligent, qualified people on our side of the fence. We have facts and figures, and we should not give in.”

Forestry Faces of Tomorrow

Difficult times in the industry have taken their toll on our work force. Neil Ward, Director of Communication for the Forest Resources Association (FRA), weighs in on the matter of current and future labour shortages.

“A possible long-term shortage in industrial foresters hasn’t been a hot topic for FRA, chiefly because other issues pose a more immediate concern, among them a near-term shortage of loggers. We are deeply concerned (and focusing efforts on) the shrinking of logging capacity—including the problems of attracting young people into the business of logging, either as entrepreneurs or as woods workers—which will be a serious concern once wood demand recovers, but I think that issue runs on an entirely different dynamic than any forester shortage would.”

While we do face an impending labour shortage in the near term, the next generation of workers and leaders bring with them a different set of core values than we’re used to, values which closely match many of the careers in our industry. Young people today not only want a career that allows them to achieve the financial rewards they desire, but also one that appeals to their social and environmental sensitivities as well. We need to understand they want to feel like they are part of something bigger; they don’t necessarily want to work for some nameless corporation trying to make profits at any cost. They want to feel like they are making a difference, that they belong, and that they are contributing somehow to the greater good. While it might be hard for some of us old-school managers to understand, it truly is how the next generation feels.

We must think differently when it comes to taking advantage of this change in attitudes. We need to align the story of our industry with the values of the workers and leaders we need. We must also change tools we use to reach them and their tools of choice for gathering information and communication are all based on Internet technology. The foresters and loggers of tomorrow are the kids who are online today and ALC and the GLTPA alike, as with many pro-forestry organizations, will be and are already taking important steps to use the web and related technology to reach them.

“Future generations have to understand that they can exercise environmental responsibility while still serving themselves and the environment for the betterment of everybody,” says Schienebeck.

A New Era Of Forest Products

No matter what type of crisis that has hit our industry in the past we always seemed to talk abut re-inventing the industry during the crisis but once the crisis passed we went right back trying to make a living chasing two-by-fours, but this time it has been different. The prolonged recession in the industry and a whole litany of events around the globe have actually got us a long way past the talking stage. Pulp mills are now re-tooling into dissolving pulp as a replacement for cotton markets, we are chasing all types of bio-fuels/bio-energy products from pellets to bio-diesel, and we’re working on some very innovative new products.

All this innovation and change doesn’t mean we don’t need a reasonably healthy housing market to sell our our two-by-fours into, but it starts further diversification of our wood fibre use. All the catchy phrases in mainstream media such as “green”, “sustainable”, “environmentally friendly,” and “certified” are also strengths of our industry’s products, we just have to leverage them and the sales will come. The more competition we create for using our fibre, the higher the prices for that fibre will go, whether it’s for lumber or energy.

In the end we can only drive down the cost of producing a two-by-four so far, and $1.50 for an eight-foot stud isn’t making any money for anyone in the supply chain. The technology and the desire to explore new uses for wood fibre is an exciting change for our industry and may just drive the price of that two-by-four back up to where it is both sustainable and profitable.

It Will Be Different This Time

Our industry is in the process of transforming into a new, more diverse and dynamic industry. While the exact outcome remains to be seen, the process is well underway. The new products will arrive, new people will join our teams, and money will be found in new places and products. The forest companies that have survived the last decade have learned not only to do more with less, but they have learned to think differently about their business and their industry. It is imperative that we all think different and not fall back into our old habits because the industry will move forward with or without us.