'Historic spike' in lumber prices keeps northern Ontario mills humming

With the ballooning price of lumber, mills in northern Ontario are busier than ever.

But in the boom-and-bust wood business, it's hard to know whether this historic spike will have lasting affects.

"We do make a lot of puns about volatility, things being on fire, etcetera," saysBiliana Necheva, senior public relations adviser forEacomTimber Corporation.

"It is good news for us because we're able to sell our product at a higher price."

She says new home construction in Canada and the U.S. is "flying off the charts," plus there is increased demand for home renovationmaterials during the pandemic.

But Necheva saidit also puts a lot of pressure on their sawmills including in Timmins, Gogama, Elk Lake and Nairn Centre in the northeast to meet that demand and cash in on those higher prices.

There are also disappointed customers, paying a lot more for lumber and often not getting as much wood as they want.

Necheva saidit's not as simple as just cutting more trees, since the harvest is highly regulated by the provincial government and drying the logs takes time.

"So it's not as wonderful as it may seem right off the bat," she said.

"In as much as we are enjoying this historic spike, and it is historic, we're at the same time very mindful that it will come down."

Necheva saidEacom is looking to invest some of the profits from this lumber boomthat will help its sawmills weather the next market downturn, including $8.9 million worth of new machinery for its Elk Lake operations.

"They want their plants to be running and it's good for the workers. The workers are going to be working," saidJacques Jean, president of United Steelworkers Local 1-2010.

His union represents nearly 2,000 northern Ontario forestry workers, from those who cut trees in the bush, to the workforce in sawmills and paper plants.

Jean saidsome mills were offering overtime pay to meet the demand for lumber, butmost were already running "full blast," with two shifts before the prices jumped up and adding a third would infringe on maintenance time for the equipment.

He saidif the timber companies keepturning big profits, his union will likely be seeking a bigger cut for workers, with contract talks at several mills scheduled for this fall.

"I don't have a crystal ball, but I believe it's going to be like that for a while."