December 23, 2015 - That freshly cut stump that I stepped upon just under a year ago when I took on the role to advocate for timber harvesting contractors in coastal B.C. has begun to turn a silvery gray. Amongst the many things I have learned about my contractor members, one standout trait is – as entrepreneurs – they are able to adapt to change.
December 7, 2015 - Canadian Forest Industries looks at the latest forwarders available in the Canadian marketplace.
The Eco Log D series forwarder range consists of four different machine models, with loading capacities from 10 tonnes up to 19.5 tonnes. Equipped with the latest technology to provide the utmost in power, low fuel consumption and high performance for forwarder operations. The 594D is the largest of the D series, with a 19.5 tonne loading capacity, and a 245 kNm pulling force.
Constantino Lannes, president of Sennebogen LLC, announced Redhead’s appointment as the latest addition to the Sennebogen distributor family.
“With seven locations from Lloydminster to Swift Current and more than 100 technicians in the province, Redhead can provide fast, reliable service for Sennebogen customers,” says Lannes. “As a matter of fact, they have already scheduled a number of their techs to come to Stanley for training before Christmas – that’s commitment.”
“What sets us apart is our long history of parts and service support in Saskatchewan,” adds Gary Redhead, president and CEO of Redhead Equipment. “We’re well respected in the industry. We have a reputation for getting the job done.”
Redhead views Sennebogen’s reputation for quality as a good fit for his business.
“I talked to a lot of dealers, and I never heard a bad thing about Sennebogen anywhere. That’s the kind of partner you want,” Redhead says.
Redhead also likes the fact that Sennebogen has a culture of problem solving for its customers.
“Sennebogen is willing to build equipment to solve a particular problem,” he says. “That means our customers’ choices are truly unlimited.”
Sennebogen applications in mining, steel mills, scrap, forestry & waste
By adding Sennebogen to its product lineup, Redhead can now offer its existing customers a purpose-built choice for their material handling applications. The change will help Redhead staff build on their existing customer relationships in a variety of industries. Redhead also identified applications for Sennebogen equipment within the scrap, steel and forestry industries. With a forestry specialist on staff, he plans to begin demonstrating Sennebogen forestry equipment soon.
The power of choice
As an award-winning Saskatchewan dealer, Redhead prides itself on its customer service. Over more than 65 years of business, Redhead has earned a stellar reputation in the province. SaskBusiness Magazine has named Redhead Equipment as one of the Top 100 Companies in Saskatchewan for 19 consecutive years.
Sennebogen has been a leading name in the global material handling industry for over 60 years. Based in Stanley, North Carolina, within the greater Charlotte region, Sennebogen LLC offers a complete range of purpose-built machines to suit virtually any material handling application. Established in America in the year 2000, Sennebogen LLC has quickly become a leading provider of specialized equipment solutions for recycling and scrap metal yards, demolition, barge and port operations, log-handling, transfer stations and waste facilities from coast to coast. A growing network of distributors supports Sennebogen LLC sales and service across the Americas, ensuring the highest standard of professional machine support and parts availability. Learn more at www.sennebogen-na.com.
The company made the announcement as part of its third quarter financial release, which saw revenues decline by 10% from Q3 2014 to $1.5 billion, driven by 30 per cent lower new equipment sales, down in all operations due to a difficult economic environment and reduced demand for new equipment across all market segments. While consolidated product support revenue was up 3% from Q3 2014, product support was lower in all regions in functional currency, reflecting reduced activity levels.
In response to a further decline in market activity, marked by a 27% drop in new equipment sales from Q2 2015, the Company announced an additional workforce reduction of approximately 1,100 people or 8%, bringing the total workforce reduction to approximately 1,900 people or 13% in 2015.
Excluding severance, loss on a building sublease, and facility closure costs, Canada's operating profitability or EBIT margin in Q3 2015 improved from the previous two quarters, despite lower revenues. Including the recent workforce reduction of 450 people, the Canadian operations will have reduced their workforce by approximately 1,100 people or 20% in 2015.
The Company generated $140 million in free cash flow, a 28% increase from Q3 2014, driven by Canada, including a positive contribution from the newly acquired Saskatchewan dealership.
"In line with significant steps already taken to adjust to the economic downturn, we took further decisive actions to reduce costs and implement sustainable operational improvements as market conditions weakened in the third quarter," said Scott Thomson, president and CEO of Finning International. "These steps include reducing the size of our global workforce by 1,900 people since the beginning of the year and 2,500 people since the start of the downturn in mid-2013. We also continued to restructure our Canadian branch network, effectively reducing our facility footprint by over 20% since the beginning of the year, to optimize the utilization of our assets throughout the cycle. While these are difficult decisions, we believe we are taking the right path to adjust our business to market realities and ensure financial strength, while simultaneously positioning Finning to deliver customer service more effectively and efficiently over the long-term."
"These organizational changes, coupled with the operational improvements we are implementing, are driven by our focus on providing value for our customers and our shareholders. In particular, the changes made to our facility footprint are underpinned by our solid commitment to our customers and follow careful consideration of their needs. We believe our resulting facility footprint provides the right support to enhance our customers' experience, meet their evolving requirements, and improve sales and service levels through our larger service centers and extended resident field teams," continued Mr. Thomson.
"Our focus on managing the factors within our control has contributed to preserving a strong balance sheet and allowed us to improve profitability in our Canadian operations on a quarter by quarter basis throughout 2015 despite a very challenging business environment. Being able to achieve these outcomes under current market conditions gives me confidence that we will be well-positioned when demand strengthens. Going forward, we will continue to implement operating improvements which earn our customers' loyalty, and maintain cost and capital discipline as we manage through persistent market uncertainty," concluded Mr. Thomson.
Summary of Canadian results
Revenues were down 16%, driven by a 35% decline in new equipment sales due to significantly lower demand from all sectors, particularly for core construction equipment in Alberta. Product support revenues were 3% below Q3 2014, mainly as a result of lower service revenues, as customers continued to postpone maintenance and in-source some service work to reduce operating costs. Rental revenues declined by 15% reflecting the slowdown in the short-term rental market.
Compared to Q2 2015, revenues declined by 14%, as a 37% drop in new equipment sales was partly offset by a 5% increase in product support revenues, including a positive contribution from the Saskatchewan dealership.
Gross profit margins declined in all lines of business, with the exception of service margins, which increased over last year as a result of the successful implementation of operational improvement initiatives. Difficult market conditions, customers' continued focus on cost reductions, and a weaker Canadian dollar has led to increased competitive pressures. These pressures were offset by the shift in revenue mix to higher-margin product support, which contributed 56% to Canada's revenue compared to 49% in Q3 2014.
The Canadian operations announced additional cost reduction measures in response to weaker market conditions, including further rationalization of its workforce and facilities network. Q3 2015 SG&A included severance costs of approximately $12 million compared to $3 million in Q3 2014. Excluding severance, SG&A costs decreased almost 10% from Q3 2014 primarily due to workforce reductions, cost saving initiatives, improved operating efficiencies, and lower variable costs due to reduced sales activity. Since the end of 2014 and including the recent workforce reduction announcement of approximately 450 people, the Canadian operations will have reduced their workforce in 2015 by approximately 1,100 people or 20% to align its cost structure to reduced activity levels.
To improve efficiencies, reduce costs, and optimize service delivery to customers, the Company announced that it will exit 11 facilities in Western Canada. The changes to the facility footprint follow comprehensive review and are designed to support the Company in delivering on its commitment to earn customer loyalty by providing superior sales and service support. Combined with the previously announced closure of 16 facilities, the Company's footprint in Western Canada will be reduced by 600,000 square feet or more than 20% by mid to late 2016. Q3 2015 results include a $6 million loss related to centralizing the Canadian head-office operations into one building as part of cost reduction efforts. In Q4 2015, the Company expects to recognize up to $15 million in restructuring costs associated with the facilities optimization announcement.
EBIT decreased to $34 million from $80 million in Q3 2014 reflecting significantly lower revenues and gross profit due to the market downturn, as well as higher severance costs and a loss on a building sublease. Excluding these items, Q3 2015 EBIT would have been $52 million.
EBIT margin declined to 4.6% from 9.2% in Q3 2014. Excluding severance costs, and the loss on a building sublease, Q3 2015 EBIT margin was 7.0%. This was a sequential improvement from the adjusted EBIT margin of 6.5% in Q2 2015 (excluding $2 million of severance costs), and the adjusted EBIT margin of 5.8% in Q1 2015 (excluding $17 million of severance and facility closure costs), despite lower revenues which were down 14% from Q2 2015, and down 7% from Q1 2015.
Invested capital in Canada increased by about $130 million from Q2 2015 due to the addition of the Saskatchewan dealership ($240 million purchase price). Excluding the acquisition, the decrease in invested capital levels from Q2 2015 was driven by lower accounts receivable and a reduction in equipment inventories. The Canadian operations continue to focus on reducing inventory to align with lower activity levels. Invested capital turnover declined to 1.92 from 2.05 in Q2 2015 due to lower revenues and higher average invested capital.
U.S. carriers who are employers under the Workers Compensation Act must register with WorkSafeBC and pay premiums, pro-rated based on the kilometres travelled in B.C., but many out-of-province Canadian employers in the trucking industry do not. Canadian carriers registered under the Alternative Assessment Procedure for Interjurisdictional Trucking register for workers‚ compensation coverage in each province where they operate or have workers, but only pay premiums in the province(s) where their workers live and usually work.
In the discussion paper, WorkSafeBC is proposing policy options regarding exemption criteria to address this issue of U.S. carriers paying premiums in their home state as well as in B.C. WorkSafeBC also proposes to change the wording of the policy to better reflect how the exemptions work within the larger legal framework.
Stakeholders are invited to review the discussion paper and proposed options and to provide feedback by November 24, 2015.
The discussion paper, policy options, and information on providing feedback are available here.
October 26, 2015 - Resource road networks provide vital year-round access to forestry operations across Canada, in addition to general public access for remote communities and recreational activities. They also provide access for silviculture, land management, and fire suppression crews.
October 23, 2015 - In B.C, we typically see an increase in commercial vehicle incidents during the winter months, particularly during the transition periods from fall to winter and winter to spring. Driving during these periods takes extra skills, preparation and time when compared to driving on the clear, dry roads of summer.
October 14, 2015 - The Ram 1500 Ecodiesel has repeated as the 2016 Canadian Truck King Champion.
A new feature of the Canadian Truck King Challenge is an invitation to reigning segment champions to return and defend their title. The Ram 1500 Ecodiesel did just that and for the second time beat out the competition at the annual event held at Head Lake in Northern Ontario.
The Ram won the Full-Size pickup division, and took the overall win with the highest score of all the assembled vehicles.
Ford Transit 250 also defends its title!
In the Large Commercial Van category, last year's winner - the Ford Transit 250 has again won its division.
Mid-Size Pickups welcomes the GMC Canyon diesel as its new leader
In the Mid-Size Pickup category, the judges choose the GMC Canyon diesel powered pickup. This 2.8L turbo-diesel engine is a first for this category.
Mid-Size Commercial Van's experience an upset with newcomer Mercedes Metris
First time competitor Mercedes Metris has won the Mid-Size van category
Full judges scoring, stories, video and real-world fuel consumption results will be available in the coming weeks.
For more information on the Challenge, please see our website at canadiantruckkingchallenge.ca
An evolution of the long-time consumer favourite, the Michelin LTX M/S2, the Defender LTX M/S with EverTread combines durable tread life and all-season traction superiority in a single tire that is designed to better meet the higher-torque demands of modern vehicles. Most light and heavy duty trucks produce twice as much torque as they did 20 years ago and some models produce nearly three times more torque. With the EverTread compound, the Defender LTX M/S tire lasts 10 percent longer in severe conditions than its predecessor.
“The Michelin Defender LTX M/S was created to better address the size and power needs of today’s trucks and SUVs, giving drivers what they want – a combination of durability and longevity – without sacrificing safety and performance,” said Sylvaine Cuniberti, marketing director for Michelin North America (Canada) Inc. “As vehicles evolve, we must develop tires that match their powertrain performance, resulting in a tire that is stronger and lasts longer, even in tough conditions.”
Defender LTX M/S tires are offered with an 80,000 to 115,000 km warranty. The Defender LTX M/S will be available to consumers across Canada in 69 sizes ranging from 15-inch to 22-inch diameter rim sizes. The majority of the dimensions (44) will be available in 2015, including 23 dimensions in September. Additional sizes will be phased in throughout 2015 and into 2016. Michelin Defender LTX M/S with EverTread technology is produced in North America, including Canada. For more information on the Defender LTX M/S, visit www.michelin.ca.
Michelin is dedicated to sustainably improving the mobility of goods and people by manufacturing, distributing and marketing tires for every type of vehicle. It also offers innovative business support services, digital mobility services and publishes travel guides, hotel and restaurant guides, maps and road atlases. Headquartered in Clermont-Ferrand, France, Michelin is present in 170 countries, has 112,300 employees and operates 68 production plants in 17 countries. The group also has a technology centre, responsible for research and development, with operations in Europe, North America and Asia. (www.michelin.ca).
Based on resistance to gravel and severe wear testing compared to MICHELIN® LTX™ M/S™2.
 While all-season tires are designed to provide reliable performance in moderate winter conditions, the use of four winter tires is recommended for optimal performance and may be mandatory in certain jurisdictions.
While all-season tires are designed to provide reliable performance in moderate winter conditions, the use of four winter tires is recommended for optimal performance and may be mandatory in certain jurisdictions.
Based on third-party treadwear tests versus MICHELIN® LTX™ M/S™2 in size LT265/70R17 121/118R; using the MICHELIN® DEFENDER™ LTX™ M/S™2 tire in size LT265/70R17 121/118R. Actual on-road results may vary.
September 1, 2015 - The new cab guard guideline assists parties to determine if a cab guard complies with section 26.65 of the Occupational Health and Safety Regulation. It includes the method to determine cab guard height and width and structural requirements.
The guideline also discusses WorkSafeBC’s approach to cab guards that aren’t compliant with certain requirements of section 26.65. The cab guard must be 15 cm (six inches) taller than the cab area of the log truck under section 26.62 (2)(A), or as tall as the cab area for a self-loading log truck under section 26.65 (3).
In recent decades, a number of developments in the design of log transporters including sloped roofs, sleeper compartments, and air foils, have made the traditional measurement difficult for some vehicles. To recognize these changes, WorkSafeBC accepts other measures of cab height.
These measures must ensure that the driver and passenger area in a moving log transporter are protected. In most log transporters, the interior ceiling immediately above the driver may be used to determine cab height. In addition to extending 15 cm above the cab, the guards must also be as wide as the cab. This means the cab guard must be as wide as the driver and passenger area. Items that are located outside the driver and passenger area do not form part of the cab for the purposes of measuring width.
For more information on these guidelines, visit: http://www2.worksafebc.com/publications/OHSRegulation/GuidelinePart26.asp.
In celebration, Edmonton Kenworth – Leduc will host an open house from 11 a.m. to 5 p.m. on Friday, Sept. 18. The dealership will provide food and refreshments and guided tours of the facility, plus offer multiple interactive parts and truck displays. More than 2,000 customers have been invited. The dealership will also hold a ribbon-cutting event on Thursday, Sept. 17, with the Leduc city and county mayors, regional chamber of commerce, members of parliament and Kenworth representatives as special guests.
Edmonton Kenworth – Leduc is on 16 acres at 8202 42nd Street near the Edmonton International Airport. It features an 111,500-square-foot main building with an indoor showroom large enough for customers to view up to four Kenworth trucks out of the elements.
The main building also offers several specialty bays to provide service for fabrication, component rebuild and liquefied natural gas-powered commercial vehicles, four triage bays to provide customers rapid diagnostic reports, plus a 37,000-square-foot parts department providing customers access to more than $5 million worth of parts inventory. A second 17,000-square-foot building features four quick-lube service bays for preventative maintenance service, two drive-through wash bays and two alignment bays.
“Over the past several months, we worked diligently on recruiting and training our employees at Edmonton Kenworth – Leduc," said Gary King, Edmonton Kenworth president. "As a result, we were able to provide customers with a qualified and capable staff of 115 full-time employees to serve their needs when we recently opened our doors.”
The opening of the Leduc dealership marks another milestone in the dealership’s longtime presence in the Edmonton community since the early 1950s.
“Since our dealership was first established more than 60 years ago, we’re proud that Kenworth has contributed to Alberta growing into an economic powerhouse,” King said.
The Leduc location joins another new full-service facility Edmonton Kenworth built and opened in Fort McMurray last year. Edmonton Kenworth also operates full-service dealerships in North Edmonton, South Edmonton and Lloydminster, Alberta.
Mark Denny manages the Leduc location’s parts department and Ed Stadnyk manages its service department. Parts and service are available from 7:30 a.m. to 9 p.m. Monday through Friday and 7:30 a.m. to 8 p.m. on Saturday. The service department offers full warranty support for the PACCAR MX-13 engine, plus a Taylor engine dyno bay chassis. The phone number is 780-612-9855.
Edmonton Kenworth – Leduc is part of the Kenworth dealer network of more than 360 locations in the United States and Canada. Kenworth's home page is www.kenworth.com. Kenworth is a PACCAR company.
This recall, which has been reported to Transport Canada, includes eight specific commercial light truck tire sizes that were produced under the following three product names: BFGoodrich Commercial T/A All-Season, BFGoodrich Commercial T/A All-Season 2 and BFGoodrich Rugged Terrain T/A.
BFGoodrich has observed that a limited number of these tires experienced a rapid loss of air pressure due to a rupture of the sidewall in the bead area under severe usage conditions. This can result in a potential risk of loss of vehicle control or vehicle crash. At this time, there have been no injuries or fatalities reported.
The tires involved in this recall include:
BFGoodrich recommends consumers remove these tires as soon as possible in order to receive a similar product at no cost.
To return and replace these tires at no cost, please visit an authorized BFGoodrich dealer for assistance. To locate a BFGoodrich dealer visit www.bfgoodrichtires.ca . For questions or concerns please contact BFGoodrich Consumer Care at 1 866-424-2638 (Canada).
In Canada, the BFGoodrich tires brand is licensed to operate by Michelin North America (Canada) Inc.
About BFGoodrich Tires
With more than 100 years of heritage, BFGoodrich® Tires is dedicated to providing high performance tires for those who have a passion for driving in virtually any environment. Combining technical expertise with 40 years of motorsports experience, BFGoodrich Tires delivers tires for a full range of driving experiences from ultra-high performance street to off-road terrain with one common theme – extreme performance. Come upgrade your performance with BFGoodrich and see where our tires can take you at www.bfgoodrichtires.ca/, on Facebook athttps://www.facebook.com/BFGoodrichCanada or on Twitter at @BFGoodrichCAN.
“Tigercat is a growing global company and this investment to expand our production capabilities is a great testament to the commitment we have to our customers and to serving them better,” said company president Tony Iarocci, who was Tigercat’s first employee when the company started in 1992.
Tigercat now has nine southern Ontario locations, a large parts distribution and training centre in Georgia, sales and distribution facility in Sweden, and a dealer network that spans the globe.
The new plant will house production of swing machines and cut-to-length attachments including the 200 series loaders and the 800 series track feller bunchers, harvesters and loggers.
The building features light sensor skylights and bay door windows along with motion detector lights to save energy. The building's roof is a white rubber membrane that reflects UV rays and helps reduce heating and cooling costs. There are six overhead cranes in each bay with room for more, if needed. Specialized concrete was used for the floors to support the machines that will be produced in the plant.
“We export 75 percent of what we produce,” said Iarocci. “Tigercat has produced over 16,000 Tigercat machines. And in a time of economic turmoil, the company has managed to gain marketshare. The only thing holding the company back was its inability to produce more machines. The demand was there last year and we could have produced more, and now we can moving forward.”
EACOM adds continuous kiln to Timmins operationNov. 17, 2017 - Eastern Canada’s first continuous kiln has…
Young forestry stars: Meet Cory WilsonNov. 15, 2017 - Canadian Forest Industries Top 10 Under…
China benefitting from hardwood chip importsNov. 16, 2017 - Roughly half of all hardwood chips…
Increasingly mechanized logging supports strong gains in demand for forestry equipmentNov. 14, 2017 - Global demand for forestry equipment is forecast to…
Scaling Up Conference – Bioeconomy
November 27-29, 2017
2017 Prairie Wood Solutions Fair
December 13, 2017
BC Natural Resources Forum
January 16-18, 2018
Truck Loggers' Association Convention & Trade Show
January 17-19, 2018