Silvaram Holdings Ltd.

[replant]

This thread is devoted to gossip and discussion for employees and stakeholders of Silvaram Holdings Ltd.

This company is believed to work predominantly in British Columbia/Alberta.

[Scooter]

This company has a website at:

http://www.silvaram.com

[Loon]

Silvaram passed away last night in it's sleep, vetenarians say that fiscal problems led to massive organ vailure leading to chapter 11.

Silvaram is outlived by silver-ewe who was not available for comment.

[Loon]

Silvaram passed away last night in it's sleep, vetenarians say that fiscal problems led to massive organ vailure leading to chapter 11.

Silvaram is outlived by silver-ewe who was not available for comment.

[korno]

I also heard that silvaram went under. I hope everybody still got paid.

[Scooter]

The change will certainly change the dynamics of the reforestation industry in British Columbia. Maybe this will also be a wake-up call to the industry, and prices will make an upward correction which can keep players' returns on investment feasible for continued operations.

[dot]

Well, i have to say wow, that a big company like that, with its million camps went under. Not only does this change things totally with contracts and seasons, but think of all those planters without jobs...this is HUGE for the remaining companies..its exciting to see what is going to happen. I am sorry all the people involved, but truly we have to look to the future...wow! -d-

[Scooter]

The problem is that with SilvaRam out of business, plus the huge extra amount of trees from Mountain Pine Beetle work, plus trees in Alberta from Bruin disappearing last summer ... and the list goes on. There are probably an extra 100 million trees to be planted this year.

Experienced planters are going to be in demand. I really don't know how the industry is going to find enough workers to get everything done, even if prices increase 15-20%. Contracts that have already been bid out may not see much in the way of increases, but contracts going forward are certainly going to be pursued far less aggressively by any rationale player in the market.

[RedBaron]

Personally Im glad to see things starting to change in the Canadian reforestation industry. There was simply to many company's creating to much supply for the contractors and following simple business models of supply and demand the prices the planter got for each tree were decreased. Now with company's like Silvarado/Bugs merging and like you say other company's like SilverRam ceasing to exist complied with a growing number of seedlings that need to be planted from the pine beetle, we are going to see a very high demand and instead of the supply following that demand we are seeing the opposite witch ever more intensifies it.

This problem seems to be concentrated in the PG area and will be the first to show sings of where this industry is heading. Now will the contractors react accordingly or will they just put off planting so many #'s of seedlings hoping for the demand to recover in a couple years.

2006 will give us some insight and my thoughts are that we have seen tree prices hit there all time lows and over the next few years we will see an ever increasing price first starting in central BC and eventually spreading across the country. The contractors can only hold off planting seedlings for so long and it is only a matter of time before they are forced to raise the prices and follow the demands of the market.

Another option I see is allot more private contractors will pop up to cover the demand EG// joe blow and his friends will start bidding and with almost no overhead cost will be able to take as many trees as they can handle while still making more then working for any company and at the same time appeasing the contractor. However this would be hard to sustain and can only last for so long. Like you say scooter up to 100 million seedlings out a total of 500 million nation wide will need to be covered either buy existing planting company's and/or smaller private enterprises. The industry could go so many ways its mind boggling and as the 2006 season approaches we will get a better understanding for what lies ahead.

The Price of each tree should have already gone up since the 80's and 90's simply because of inflation and an increased cost of living for us Canadians. If we could treat the price of trees as a commoditie thats publicly traded I would be buying allot right now because things look like there shaping up to run ... Hey maybe the next step in reforestation will be large publicly traded corporations who knows.


Any how just some thoughts from a fellow planter/brusher/forman
currently working for Spectrum (silvarado/bugs) in the PG area.

Regards

Reiner--

[Gregor,Spangler,Eurotits]

"Another option I see is allot more private contractors will pop up to cover the demand EG// joe blow and his friends will start bidding and with almost no overhead cost will be able to take as many trees as they can handle while still making more then working for any company and at the same time appeasing the contractor."

I have a tough time seeing this happen. Not as easy as it once was to pick up a truck and a crew and bid for a block. Too many requirements within the industry with insurances and standards and such. I feel like this is a big reason why prices have not increased in past years. The nature of our market is a different one. Companies take on more of a risk now than before.
This is simply a thought from someone who has had pipe dreams of picking up a block and planting it without the "middle man". What do ya think Scooter?

[RedBaron]

Yes there is allot of requirements with insurances, standards and such but nothing that cant be overcome as I have seen on multiple occasions this been carried out, especially in manual brushing sector. All im saying is that something is going to have to fill the demand and that will either be current company's expanding allot or private smaller enterprises popping up. I know that there is allot of people capable of running there own show bidding on the contracts and so forth scooter probably being one of them.

When there is a huge demand you would be surprised to see some of the rules that can be bent to suit the grasp of the market. Im not saying this is going to happen just a thought of what very possibly could.

Hey who knows mabye nothing will change and we will plant untill October next year =D

[Scooter]

This company went out of business in the Fall of 2005.

[steve]

good riddance.

i showed up for work at one of their camps last year with a couple of other planters. After I was already well out into the bush they informed me that Silvaram does not supply TP.

things went downhill from there, and the 5 of us that showed up together all left within the next two days.