The results from the Canadian Forest Industries (CFI) 2020 Contractor Survey, which was conducted by the independent research firm, Bramm & Associates, during the months of April and May of 2020 has some interesting findings. The cost of upgrading machinery with the latest sensors, data interfaces and features that will improve power and efficiency, were sighted as items that would obviously drive up operating costs, but in the end, should pay for themselves in a more streamline operation. Parts and services for the machinery and labor have also increased but are deemed as necessities. On the decline are the cost of fuel and finance charges, which are helping to offset some of the expenses and keeping profit margins steady to marginally higher. The biggest surprise however is loggers’ issues with the skyrocketing cost of insurance, especially when compared to as little as 3 years ago. Nearly half (46%) of the loggers surveyed said insurance costs have significantly increased. In 2018 that figure was 12%. Another 46% indicated that their insurance costs have increased only slightly.
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.