bc-forest-industry-economic-impact-study

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Table 1. Industry Revenue by Sector
Industry Sector
Estimated Revenue (millions)
Primary manufacturing $10,793
Forest management $2,223
Secondary manufacturing $2,036
Fibre supply and wholesale $463
Forest innovation $124
Silviculture $101
Total $15,740
Sources: Statistics Canada, MNP estimates
Key Differentiators of the BC Forest Industry
The following are among the key factors that differentiate the BC forest industry from the forest industry in
other regions:
Leader in Sustainability. BC is recognised as a world leader in sustainable forest management.
BC has more land certified to internationally recognised sustainability standards than any other
jurisdiction in the world. This certification has helped to differentiate products from BC’s forests as
originating from environmentally sustainable sources. 29
Largest Producer of Softwood Lumber in Canada. BC is the largest producer of softwood lumber
in Canada. In 2013, BC’s production was 12.7 billion foot board measure of softwood lumber,
representing 52 percent of Canada’s softwood lumber production. BC exported 53 percent of that
production to the United States, 31 percent to China and 10 percent to Japan. 30
Export Market Potential. BC’s close proximity to markets in Asia is an advantage for the BC forest
industry in terms of both trade relations and transit times. The BC forest industry has made efforts
to diversify its markets, by exporting lumber to key markets in Asia, including China, South Korea
and India. Export opportunities are being pursued in South Korea for residential and commercial
construction, in India for doors, wooden furniture and architectural millwork, and in Japan for
construction and value-added products. In addition, the Canada and European Union
Comprehensive Economic and Trade Agreement is expected to remove tariffs on wood products
and forestry-related services, thereby providing access to new market opportunities in the
European Union.
LINKAGES WITH OTHER INDUSTRIES
Industry Inputs, Operations and Outputs
The BC forest industry generates economic impacts through its ties with other industries. (Direct economic
impacts arise from the industry’s core activities, while indirect and induced economic impacts arise from
the linkages that exist with suppliers and other sectors and from the spending of employees).
As depicted in Figure 2, BC forest industry operations receive raw materials as input, add value to the raw
materials through various processes and distribute finished products to customers. Among the related and
ancillary sectors involved in BC forest industry operations are transportation, energy, environmental
management, education and research, and professional services.
29
Naturallywood.com, “Comparison of Selected Forest Certification Standards”, available here:
http://www.naturallywood.com/sites/default/files/Comparison-selected-forest-certification-standards-summary.pdf
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Industry Canada Trade Data Online, available here: http://www.ic.gc.ca/eic/site/tdo-dcd.nsf/eng/Home
BC FOREST INDUSTRY: ECONOMIC IMPACT STUDY
MNP LLP