bc-forest-industry-economic-impact-study

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1. EXECUTIVE SUMMARY
The BC forest industry is a key contributor to the BC economy, and is important to the social fabric and
economic well-being of many communities throughout the province. The industry provides employment and
economic opportunities, generates government revenue and develops working relationships with First
Nations communities. The industry supplies a broad range of products to domestic and international
markets, and operates in an environment with complex forest ecosystems and species.
Estimate of Economic Impacts
In 2013, total BC forest industry revenue was $15.7 billion. Of this revenue, approximately 62 percent was
generated in the interior region and 38 percent from the coast region.
The economic impacts for the industry in that year are estimated to have been:
Total economic output was $31.4 billion. Approximately 50 percent was direct output and 50 percent
was indirect and inducted output.
Total GDP generated was $12.4 billion. Direct GDP was approximately $5.8 billion, which would
equate to approximately 2.5 percent of provincial GDP.
Total employment generated was 145,800 FTEs. Of this, almost 63,500 FTEs were created within
the industry, while an additional 82,300 FTEs were created though linkages with other industries.
Total revenue created for federal, provincial and municipal governments was almost $2.5 billion.
Of this, the federal government received an estimated $934 million, the provincial government
received an estimated $1.4 billion and municipal governments received $150 million.
The industry consists of six main sectors: primary manufacturing, forest management, secondary
manufacturing, fibre supply and wholesale, forest innovation, and silviculture. Primary manufacturing is the
largest sector within the industry, and accounted for 68 percent of the GDP and 57 percent of the
employment generated by the industry in 2013.
Figure A: BC Forest Industry’s Total Estimated GDP and Employment Impacts by Sector
BC Forest Industry by Sector
2013 Total Estimated GDP Impacts
$12.4 billion
BC Forest Industry by Sector
2013 Total Estimated Employment Impacts
145,817 FTEs
Primary
Manufacturing
68%
Forest
Management
14%
Secondary
Manufacturing
13%
Fibre Supply
and Wholesale
3%
Silviculture Forest
1% Innovation
1%
Primary
Manufacturing
82,843
Silviculture
1,812
Forest
Management
24,229
Secondary
Manufacturing
23,839
Fibre Supply
and Wholesale
11,026
Forest
Innovation
2,068
BC FOREST INDUSTRY: ECONOMIC IMPACT STUDY
MNP LLP