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Strong business, skilled people and effective communication
As we progress through 2026, Contractors continue to navigate a challenging operating environment. Recent reports from Te Uru Rākau and MPI’s Situation and Outlook for Primary Industries (SOPI) confirm what many of us are seeing firsthand: the sector faces ongoing pressure from rising fuel, freight and operating costs, softer demand from China, and the likelihood of reduced harvest activity over the next 12–18 months.
At the same time, there are positive signals emerging, including stronger domestic construction activity, improving export volumes, and growing investment in higher-value wood processing.
The SOPI report reinforces the importance of maintaining a long-term perspective. While the next couple of years may be focused on efficiency, productivity and cost control, the medium-term outlook remains encouraging. Forestry is expected to gradually recover from 2027 onwards, supported by increased domestic processing, demand for higher-value wood products, and greater market diversification beyond China. For contractors, this reinforces the importance of adaptability, innovation, and strong business management.
GETTING TO THE BUSH
One of the highlights for me this year has been the opportunity to spend more time in the field meeting directly with contractors. Visits to Otago, Nelson, Northland, Gisborne, Kawerau, Tokoroa and Taupō have reinforced the value of hearing firsthand about the issues, opportunities and innovations taking place across our membership.
Whether discussing productivity improvements, succession planning, workforce development or market conditions, these conversations continue to shape FICA’s priorities and ensure we remain focused on what matters most to contractors.
COMPETENZ 2.0
A recent major milestone has been the agreement between FICA and FOA to support forestry’s participation in the new Competenz 2.0 training organisation. This is a significant achievement for the industry. FICA will be both a shareholder and formal signatory to the new entity, ensuring contractors have a direct voice in shaping vocational training. As our industry faces increasing pressure to improve productivity, attract talent and build future capability, having influence over workforce development has never been more important.
NZ FORESTRY CONTRACTOR FINANCIAL HEALTH
I am also delighted with the outstanding response to FICA’s inaugural Forestry Contractors Financial Health Survey. With a great response rate from businesses across the country, we now have the foundation for what will become an increasingly valuable industry benchmark. In a period where financial resilience will be critical to contractor success, the information gathered will help FICA better understand industry challenges and strengthen our advocacy on behalf of members.
REGIONAL RECOGNITION
Recognition of excellence is another area where FICA is investing for the future. Our return to the regional forestry awards through sponsorship of Crew of the Year categories reflects our belief that forestry’s greatest achievements are delivered by teams. The strong response to date demonstrates the pride, professionalism and commitment that exists throughout New Zealand’s forestry workforce.
ENGAGING WITH FICA
Looking ahead, there are several opportunities for members to engage with FICA. We are supporting productivity workshops throughout the country and progressing initiatives focused on silviculture business management, costing capability and specialist industry forums.
Finally, I want to thank all members for your continued support and engagement. The latest industry outlook reminds us that success over the next few years will depend on strong businesses, skilled people, and effective collaboration across the supply chain. FICA remains committed to ensuring contractors have a strong voice, access to practical support, and a seat at the table on the issues that matter most.
Rowan Struthers
Timely payment and the forestry supply chain
In forestry, strong relationships across the supply chain matter. Over recent months, FICA has seen examples of forest managers and companies taking a responsible and practical approach when payment delays have occurred further up the chain.
In some cases, companies have stepped up to make sure contractors are still paid on time, even while they wait for funds themselves. That matters.
Forestry contractors pay wages weekly, rely on fuel and supplier credit, and carry major plant, finance, and compliance commitments. When work has been completed in good faith, timely payment gives contractors the confidence to keep operating safely, efficiently, and sustainably.
FICA believes this is the standard our industry should continue to build around:
Pay contractors on time, in line with agreed terms.
Communicate early and openly if issues arise.
Work together on practical solutions before pressure builds.
Recognise that strong contractor businesses are essential to a reliable forestry supply chain.
The companies that act early, communicate clearly, and protect contractor cashflow are showing real leadership.
That approach helps reduce disruption, protects jobs, supports safety, and strengthens the whole forestry sector.
FICA will continue to work with forest owners, managers, and contractors to support practical solutions and encourage fair, responsible payment practices across the industry.
A resilient forestry industry depends on strong partnerships — and timely payment is one of the foundations of that trust.
