Reconstruction and Forestry SMEs: A Boost to Regional Resilience

By Ignacio Vera Izquierdo, General Manager of Forestal Santa Blanca

The Chilean forestry sector has proven to be a pillar of resilience, facing challenges that have tested our operational and financial capacity. During the last summer seasons, the destruction caused by forest fires affected hundreds of thousands of hectares, an impact still felt in the infrastructure and resource availability of many communities. To this has been added a structural pressure factor: the energy uncertainty caused by the rise in oil prices, which directly increases the cost of transportation from work sites to ports and key industrial processes such as drying.

In this scenario, the Reconstruction Plan presented by the Executive Branch emerges as a fundamental tool for small and medium-sized enterprises (SMEs) in the sector. The forestry sector is highly concentrated, where smaller players often face greater difficulties in accessing raw materials or competing in international markets. Therefore, the cross-cutting measures of this plan have the potential to act as a necessary reactivation engine to balance the scales.

One of the most relevant points is the expansion of the Emergency Fund for Fires to the Ñuble and Biobío regions, with funding of up to $1.2 trillion. Given that these areas concentrate a large number of timber SMEs, the injection of these resources is vital for repairing infrastructure and the continuity of productive zones.

Likewise, the relief in the SME Regime —which proposes a 12.5% rate for the First Category Tax for 2026 and 2027— and the establishment of tax credits for employment are strong signals. These measures help reduce hiring costs and strengthen companies' cash flow at a time when margins have narrowed dangerously.

Finally, we cannot fail to value the effort to unblock the so-called "permitting process." The reform that reduces the timeframes for invalidating already granted permits, from two years to just six months, provides indispensable legal certainty. For an SME, bureaucracy is often an insurmountable barrier; streamlining these processes ensures that smaller-scale investments are executed predictably and without delays that jeopardize their viability.

The reconstruction of our sector is not only about recovering what was lost in the fires but also about strengthening the business model in the face of demanding cost cycles. With adequate support and clear rules, forestry SMEs will continue to be a strategic player for the economic development and sustainability of the most vulnerable territories in our country.