The Forest Industry Contractors Association (FICA) and Forest Owners Association (FOA) are encouraging New Zealand contractors to access support early during the logging downturn. The price drop has been felt across the industry in recent weeks.
FOA President Peter Weir says “Woodlot owners and managers are highly likely to reduce or cease log harvesting in the short term in response to price pressure in export markets. Larger owners will have a focus on the longer term and will be keen to make sure they maintain their labour force, for when the market picks up again.”
FICA President Ross Davis reiterates that a key concern for contractors is retaining their skilled, reliable staff, who will be instrumental in maximising production once the market picks up again. He encourages struggling contractors to access support early, including seeking advice from their accountants and advisors.
“Keeping your crew/s operational in the short term while the market corrects itself is the key focus,” he says. “We encourage contractors to keep up communication with your accountants and advisers, who can give you advice whether it’s to reduce your operational overheads or volumes or a short-term rate reduction for example.”
He adds that FICA and FOA are actively working with government, industry and professional advisors to deliver a coordinated network of support. “We encourage contractors in need of support to get in contact. We may be able to connect you with appropriate agencies or provide guidance to help you get through.”
“While we can’t predict the extent of this downturn, we want to assure contractors that we are here to support you and are with you through this challenging time.”
Source: FICA
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