Survey Snippet #10 – Fleet replacement plans
Aug. 22, 2016 - Good times may be coming for Canada’s logging equipment dealers. More than half of Canadian loggers surveyed plan on replacing between two and five pieces of equipment within the next 24 months (excludes pick-up trucks).
By Scott Jamieson
How likely a given company will replace any gear depends to a large degree on company size as well as location.
Some 38 per cent of the largest contractors will be replacing six or more machines in the next two years (86% will replace three or more), while nine per cent of mid-sized contractors will replace six or more pieces of gear (81% will replace two or more), and only 16 per cent of the smallest contractors will replace between three and five machines (70% will replace at least one in the next two years). Almost one-third (30%) of the smallest contractors do not have plans to buy any gear in the next 24 months.
Despite having some of the largest volumes and revenues, and above average fleet sizes, contractors on the BC Coast are not as likely as many would assume to replace machines in the next two years. Just nine per cent plan on replacing six or more machines, compared to 33 per cent in the BC Interior, 30 per cent in Alberta, and 15 per cent in Ontario (albeit given their fleet size, Ontario’s replacement numbers seem on the low side as well).
Next week Survey Snippet #11 looks at age and succession planning.
Missed the last Survey Snippet #9 on fleet size? See it here.
Find more news for the CFI 2016 Contractor Survey on www.woodbusiness.ca and in our enews in the coming months, with a final digital report in late August and a summary in the Sept/Oct print issue. Be sure to subscribe to the enews to get every item.
The survey was conducted in April 2016 for Canadian Forest Industries by independent research firm Bramm & Associates, generating over 230 replies to a detailed list of questions. Respondents were distributed according to the geographic breakdown of the forest industry, with 50 per cent in Western Canada, 25 percent in Quebec, and the rest found in Ontario, Atlantic Canada, and central Canada. Within BC responses were almost evenly split between the BC coast and Interior. Many thanks to our sponsors for making the research possible – Hultdins, Stihl, Tigercat and Ponsse. Also made possible with support from the Ontario Media Development Corporation (OMDC).