Market Slowdown’s Not Only Challenge; So Is Finding Skilled Workers
The hardwood sector is seeing a slowdown due to economic conditions and U.S. imposed tariffs. Producers are stating that production is being cutback due to the uncertainty surrounding tariffs causing exporters to reduce purchases of products shipped like Cherry, Red Oak and Walnut. Weather is also affecting logging activity in Ontario with certain areas experiencing heat waves from June throughout July, while in northern areas firefighters are battling forest fires.
Secondary manufacturers and wholesalers are seeking more Ash for their inventories. Production has been low and demand is not equal for all grades and thicknesses. Select grades are more in demand than Common grades.
Even though production of Aspen remains low, contacts noted a slight rise in activity for this species. With supply shortages in certain areas, prices were moderately higher for green Number 1 Common and Better, with weak interest in No. 2A and No. 2B. Contacts add that kiln-dried markets are somewhat better with green stocks, No. 1 Common and Better performing better than No. 2A.
Basswood production is steady with slightly better demand than earlier this year. Limited green lumber output and rising demand resulted in reduced inventories of kiln-dried items. Basswood markets are similar to that of Aspen as to interest to grades and thicknesses performance.
Some mills are processing Basswood and other Whitewoods as logs become available, so less green lumber is produced, with markets absorbing developing green Basswood supplies.
Some Birch sawmills had improved stocks in spring, with developing supplies selling very well, however prices were being impacted to a certain extent. Contacts note kiln-dried business is based on color and lengths with premium color and longer lengths in higher demand.
Green Hard Maple is meeting market needs, without being overabundant or there being shortages, while prices remain steady. Kiln-dried business is somewhat slower now than the beginning of the year state sales companies.
Inventories are higher, particularly for shorter lengths and less desirable color material. Prices have slipped, however, for better lengths and premium color.
Soft Maple demand has weakened, contacts indicated. Lumber distributors had enough lumber to carry them through so far and are only purchasing for immediate needs. Green Soft Maple is absorbed on markets, although quieter than earlier this year.
Output is down for most species, and also for Red Oak, even though production picks up during the summer. As Whitewood logs are being cut, Red Oak supplies are reduced. Oak wilt disease restrictions for certain areas at this time of year limits log supplies for certain areas. Demand is not strong; supplies closely matched to market needs.
Kiln-dried markets are good on the domestic front according to areas contacted, but supplies are exceeding demand.
Exports to European and Australian markets for certain companies are also good. China shipments have dropped for Red Oak. It is hoped the tariff rates will be eliminated, although there is no guarantee of it happening.
Contacts confirmed White Oak is a solid seller. However kiln-dried supplies have increased, and the pricing difference between Red and White Oak affects pricing. Mills are able to ship developing green production.
According to a new Canadian Federation of Independent Business (CFIB) report, small businesses are struggling to hire skilled workers due to a lack of applicants, skills mismatches, and labor mobility barriers.
Over four in 10 small firms say skilled labor shortages are limiting their ability to grow, said CFIB research director Marvin Cruz. Many can’t find candidates with the right skills or qualifications.
The study found 69 percent of small and medium enterprises (SMEs) cited a lack of qualified candidates as the biggest hiring challenge. Over half (54 percent) reported difficulty attracting any qualified applicants, and 47 percent saw mismatches between applicant skills and job requirements.
Even when skilled workers exist elsewhere in Canada, provincial licensing and certification rules often block employers from hiring them quickly—particularly in rural areas or hard-to-staff sectors.
Additionally, 57 percent of businesses cited a gap between candidate expectations and compensation offers, while half of small businesses said they cannot match large companies’ pay and benefits packages.
There’s a growing disconnect between workforce availability and small business needs. Even when roles are filled, poor productivity, lack of motivation and weak problem-solving skills force business owners to spend more time training or rehiring workers.
To improve labor quality, CFIB urges governments to: offer tax credits and grants to SMEs for training and upskilling; provide wage subsidies or EI premium holidays for SMEs hiring and training new or inexperienced workers; and, encourage partnerships between small businesses and educational institutions to create apprenticeship and internship programs that can help bridge the skills gap.
On labor mobility, CFIB recommends: mutual recognition of professional credentials across provinces; allow licensed professionals to work within their existing training and experience while undergoing registration processes in a new province or territory; work with professional colleges and associations to lower or waive interprovincial registration fees; and, streamline the registration process by legislating a clear timeline for professional certification approvals. Should approval timelines not be respected, implement compensation for businesses such as waiving registration fees.
“Since 2021, wage costs have gone up, but productivity has stagnated. By improving our workforce quality and removing labor mobility barriers, we could boost our productivity and strengthen Canada’s economic competitiveness,” Cruz concluded.
