Why PotlatchDeltic’s Skilled Workforce Strategy is a Timberland Investor’s Best Bet

In an era where labor shortages and rising operational costs threaten the stability of industrial sectors, PotlatchDeltic Corporation (PCH) is quietly building a moat of resilience. Its Electrician Apprenticeship Program, a cornerstone of its workforce development strategy, is not just a training initiative—it’s a blueprint for long-term cost efficiency, reduced turnover, and enhanced ESG credibility. Here’s why this program positions PCH as a standout investment in the competitive wood products market.

The Apprenticeship Program: A Pipeline of Skilled Labor

The four-year Electrician Apprenticeship Program combines 8,000 hours of hands-on work with 576 hours of classroom instruction, delivered in partnership with North Idaho College and the College of Southern Idaho. This structure ensures apprentices master critical skills—from OSHA compliance and PLC systems to motor installation—while simultaneously contributing to the company’s operations.

The program’s success is measurable: over the past five years, 8 out of 9 apprentices have earned journeyman status, a near-perfect completion rate. This creates a self-sustaining pipeline of skilled workers, reducing reliance on external hires and minimizing downtime caused by labor shortages. In an industry where recruitment is a persistent challenge, this is a game-changer.

Mitigating Turnover and Operational Costs

High turnover in skilled trades is a costly burden for manufacturers. Every new hire requires training, and unskilled workers risk operational disruptions. PotlatchDeltic’s apprenticeship model tackles both issues:

• Lower Training Costs: By investing in apprentices early, PCH avoids the expense of onboarding external hires. The program’s structured curriculum ensures workers are job-ready from day one.
• Reduced Downtime: A trained workforce reduces the likelihood of errors or unplanned shutdowns. The company’s SLAM safety technique (Stop, Look, Assess, Manage), integrated into apprenticeship training, has already cut workplace incident rates, further boosting efficiency.
• Long-Term Loyalty: The program’s emphasis on mentorship and career growth creates a culture of retention. With 80% of apprentices advancing to journeyman status, employees see a clear path to upward mobility—a rarity in many industries.

ESG Credentials: A Competitive Advantage in Capital Markets

ESG factors now drive investment decisions, and PotlatchDeltic’s apprenticeship program delivers across all three pillars:

Environmental:
The program supports the company’s goal to reduce Scope 3 emissions by 25% by 2030. Skilled electricians optimize energy use in manufacturing processes, directly lowering the carbon footprint of wood product production.

Social:
- The initiative aligns with UN SDG 8 (“Decent Work and Economic Growth”), fostering job creation and equitable career advancement.
- PotlatchDeltic aims to double the representation of women and minorities in leadership roles by 2030—a commitment that strengthens its social license to operate.

Governance:
The program’s transparency and alignment with global frameworks (SASB, TCFD) reflect strong governance. By addressing labor shortages internally, PCH reduces supply chain risks tied to external recruitment failures.

Investor Appeal: Stability in a Volatile Market

While competitors grapple with rising labor costs and supply chain bottlenecks, PCH’s strategic investments in workforce development are paying off. Key metrics to watch:

• ESG Ratings: Though third-party ratings like MSCI or Sustainalytics aren’t explicitly cited, PCH’s alignment with UN SDGs and its 2024 Business of the Year recognition (St. Maries facility) signal strong ESG momentum.
• Market Differentiation: The apprenticeship program and mechatronics training in Bemidji position PCH as an innovator in advanced manufacturing—a rarity in timberland firms.
• Financial Resilience: A stable, skilled workforce reduces operational volatility, allowing PCH to better withstand economic cycles.

Final Analysis: Act Now Before the Market Catches On

PotlatchDeltic’s Electrician Apprenticeship Program is more than a training initiative—it’s a strategic lever to dominate the wood products sector. By securing its labor needs, cutting costs, and bolstering ESG credibility, PCH is primed for sustained growth.

Investors should note: The company’s stock is still undervalued relative to peers, and its forward-looking goals (e.g., 100% forest certification, decarbonization targets) suggest further upside. With labor shortages unlikely to ease soon, PCH’s bet on skilled workers is a winning hand.

Bottom Line: For investors seeking stability and ESG-driven returns in timberland and manufacturing, PotlatchDeltic is a buy—and the time to act is now.