Mike Egli, whose family-owned company Dalchako in Vanderhoof has worked with Canfor for over a decade, is scrambling to find jobs for his employees who were contractors with Plateau sawmill in Vanderhoof.
No one saw this coming that day, many of them got to know they lost their job just two hours before the forestry company made the announcement public, Egli said. Most of his employees, who were contracted by Canfor, will not receive any compensation or severance.
On Sept. 4, Canfor, announced the closure of its mills in Vanderhoof and Fort St. John. The mill closure will result in the loss of 500 direct jobs and the elimination of 670 million board feet of annual production capacity by year-end. The company cited difficulties in accessing economically viable timber, ongoing financial losses, weak lumber markets, and increased U.S. tariffs as reasons for the closures.
The news sent shockwaves through the local communities, impacting auxiliary businesses, independent contractors, and the broader economy in an area with few alternative industry options.
"The mill closure is a significant issue for Vanderhoof," Engli said. Dalchako provides logging and hauling services for Canfor and Egli reports the Plateau mill closure will leave around 70-80 of his 100 employees without jobs.
"We employ many people, purchase a lot of supplies locally, and support various community services. The impact will be severe as affected workers and contractors will have to find jobs elsewhere, which is difficult given the current job market. The local economy relies on these jobs, and losing them affects not just those directly employed but also local businesses that rely on their spending."
He is now focused on finding new employment opportunities for his workers, though this may require them to relocate from Vanderhoof.
"We’re not picky about the location at this point; we just need to find work."
Egli estimates that his company alone supplied about a quarter of the wood to the mill, meaning a substantial number of independent contractors are also impacted.
"All other contractors are in similar situations, struggling to find new work for their employees,” he said.
The mill closure is part of a broader trend; Canfor has shut four mills since 2023, including those in Prince George, Houston, and Vanderhoof. Other operators, such as West Fraser, which closed its Fraser Lake mill in 2024, and Hampton Lumber, which curtailed its Fort St. James operation in July.
“When mills close, it’s not just us but many contractors who are affected. The remaining mills are not looking for additional contractors, and with current lumber prices and stumpage costs, it’s uncertain if they will increase their operations,” Egli said.
Vanderhoof's Mayor Kevin Moutray announced that the district is actively exploring transition plans for those affected and working with several provincial ministries.
However, Egli expressed concerns that retraining programs may not address the immediate need for actual job opportunities.
"Without industry here, it’s unclear what kind of jobs people will be trained for,” he said. "The real need is for jobs, not just training."
Moutray also noted that the District of Vanderhoof is considering diversification options, but apart from a few mining projects, such as Artemis Gold’s Blackwater mine (108 km to the south ) and the Mount Milligan mine (150 km north), prospects in the area are bleak.
“BC needs industry to survive. Without it, there are no jobs,” Egli said.
He is calling on local and provincial governments to support small businesses, which is crucial for maintaining local employment and contributing to the community.
“Without jobs, everything falls apart.”
