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Helilogging Capability GuideLike other facets of the forest industry, helilogging has remained in a holding pattern for the last few years as the economy and other factors have made staying in the black even more of a challenge for helilogging companies. Rising fuel costs and a falling Canadian dollar are just two of the factors to be overcome in a business that must be finely tuned in order to make a profit. Bob Holt, chief pilot for Cariboo Chilcotin Helicopters Ltd in Lillooet, British Columbia, says the industry faces many challenges in the current economy. "This year is going to be one of the worst. (Cont'd below the summary) Please use our Reader Service Form Located at the bottom to obtain more information on these products.
The helicopter industry is very fragile right now," he says, citing the high cost of necessary but expensive replacement parts shipped from the United States and priced in US dollars. There is also pressure on the industry to remain competitive. "We have a glut of helicopters in Canada right now," says Holt. Keeping costs down is a constant challenge. Holt has changed his company's Workers' Compensation Board designation from "helilogging" to "aerial work" in order to avoid ever increasing premiums that will exceed $20 per $100 of earned income for heliloggers by 2005. As a result of this change, his company no longer provides ground or landing crews. He notes that there is a substantial amount of wood that is lost to the market solely because crews aren't allowed in fast enough to take the wood out in blowdowns or bug killed forests. "The loss of revenue is incredible. They're losing billions of dollars." Although many of the larger helilogging companies seem to fare a bit better than the smaller ones, Holt foresees a "mediocre outlook" for the industry in general. Jonn Bertramm, a principal in Pacific International Helilog of Delta, BC, agrees with Holt's assessment, for the most part. "The last two years have been challenging to say the least," he says, adding that the supply of aircraft has made for a competitive market. "It seems like there's been ample aircraft to do the job out there." Bertramm, whose company has been carrying out most of its helilogging in the interior lately, says that, when necessary repairs must be done, "the key is having good maintenance backup ." His ground crews have also become quite proficient during the five years they have been working together. "Safety is a big item for us. The equipment operators know exactly what's going on," he says, "and they've learned how to work together safely. It makes such a difference when your crew works together all the time. We're very proud of our people. We just can't say enough about them." Several of the helilogging companies contacted by Logging and Sawmilling Journal report that they are no longer carrying out helilogging, but hope to reestablish themselves in that sector in the future. A few heliloggers have gone out of business. Large or small, helilogging companies have been feeling the pinch. "The industry in general has been subject to severe market pressures and challenges in the last few years and heliloggers too have found it to be very, very competitive," says Harold Hayes, vice-president of Hayes HeliLog Services Ltd of Cobble Hill, BC. He notes that, despite inadequate stumpage appraisal allowances on crown land, his company has done well this year, developing new customers and building a solid reputation. "Helilogging will continue to be part of the harvesting profile," says Hayes. "In the long term there will be steady and continued helilogging and probably some growth."
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