Forestry is at a crossroads in Gisborne, as declining contractors, increasing economic challenges and environmental scrutiny threaten the lifeline of this vital industry.
Five years ago, there were 22 towers in the region – 70 foot machines that get logs up hills. Today, only eight are left.
Three years ago, there were 118 forestry contractors (who employed teams) working in this region. Today, 36 are left.
The pandemic, followed by extreme weather events has meant the rainy day money in forestry is gone, companies are losing money to stay in this region and the contractors who are left are living week to week.
Erika Herries and her husband Dan started Lumberjack Logging 12 years ago and employ a crew of 10 men. She’s also a board member on Eastland Wood Council and Women in Forestry.
She says many in our community view forestry companies as the “big, bad” foreign entities: “But the reality is they employ hundreds of locals. Forestry is a big industry in this region.”
Keeping their contracting company afloat isn’t just important for their family but for the families of the men they employ, she adds, urging support for the industry in these tough times.
Flow-on effect
Infometrics’ 2024 Regional Economic Profile for Gisborne shows 18.6% of this region’s employment is made up of jobs in forestry, agriculture and fishing.
Across New Zealand, these same three industries make up only 5.4% of employment.
Clearly this region relies heavily on primary industries.
Forestry, logging and wood product manufacturing account for 32% of tradeable Gross Domestic Product (GDP) for the region.
Tradeable GDP refers to what can be sold outside the region – both internationally and within New Zealand. It supports the overall economy by generating jobs and economic activity. It also creates demand for non-tradeable industries like construction, retail, education and healthcare – keeping them thriving indirectly.
Infometrics’ July 2024 Assessment of Tairāwhiti's Tradeable Sector, created for Trust Tairāwhiti, showed this region is more reliant on the tradeable sector than the national average. This means when forestry suffers, it has a wider impact on this region’s economy.
As we know, the flow on effect is felt not only by those directly employed, and their families, but by all the businesses relying on forestry for their work. Diesel mechanics, tyre fitters, hospitality and retail – to name a few – all thrive when forestry is doing well.
The Truck Stop on Awapuni Road is a popular spot to grab something to eat for forestry crews and truck drivers. Owner, Reid Halliwell, says it’s very noticeable “when they’re not all going to work”.
“We’re not getting a lot at the moment – a few truck drivers but nowhere what it used to be like. We’re doing okay, but we’d be doing quite a bit better if they were around. When forestry is quiet the whole town goes funny.”
Ashley Fisher is an accountant, and the Gisborne Chamber of Commerce President.
“When forestry has a downturn, everyone feels it,” he says,...
