bc-forest-industry-economic-impact-study

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Forest Management
The annual revenue of the forest management sector was estimated as the product of the number of forest
management firms operating in BC and the average annual revenue of those forest management firms.
The estimated number of forest management firms operating in BC was collected from Statistics Canada
Cansim Table 551-0005. The average revenue for forest management firms was retrieved from Industry
Canada’s SME Benchmarking tool.
The forest management industry has been defined as firms categorised in the following NAICS codes:
Logging (except contract logging) [NAICS code 113311]
Contract logging [NAICS code 113312]
Support activities for forestry 118 [NAICS code 115310]
MNP has assumed that revenue received by forest management firms is from operations in BC and
therefore all revenue is attributable to economic impacts in the province.
To estimate the coast and interior allocation of forest management revenue, MNP estimated the total value
of timber harvested from the coast and interior regions. To calculate this, MNP relied on harvest data from
the Harvest Billing System and timber values from the Ministry of Forests Land and Natural Resource
Operations’ Log Market Reports.
Secondary Manufacturing
MNP used the sales of goods manufactured (shipments) by secondary manufacturing firms in BC from
Statistics Canada Cansim Table 304-0015 to estimate the revenue of the secondary manufacturing sector
in BC. MNP has assumed the sales of goods manufactured are a good proxy of the total revenue received
by secondary manufacturing firms in the province.
The secondary manufacturing industry has been defined as firms categorised in the following NAICS codes:
Other wood product manufacturing [NAICS code 3219]
Converted paper product manufacturing [NAICS code 3222]
Wood kitchen cabinet and counter top manufacturing [NAICS code 33711]
Other wood household furniture manufacturing [NAICS code 337123]
To estimate the coast and interior allocation of secondary manufacturing-based revenue, MNP estimated
the regional allocation of secondary manufacturing firms from the “Study of Lumber Remanufacturing in
British Columbia Post-Implementation of the Canada-US 2006 Softwood Lumber Agreement” 119 published
on the Ministry of International Trade’s website.
Fibre Supply and Wholesale
The annual revenue of the fibre supply and wholesale sector was estimated as the product of the number
of fibre supply and wholesale businesses operating in BC and the average annual revenue of those fibre
supply and wholesale firms. The estimated number of sales and export firms operating in BC was collected
from Statistics Canada Cansim Table 551-0005 and the Federation of BC Woodlot Associations. The
average revenue for sales and export firms was retrieved from Industry Canada’s SME Benchmarking tool.
The fibre supply and wholesale sector has been defined as firms categorised in the following NAICS codes:
Lumber, plywood and millwork wholesalers [NAICS code 416320]
Log and wood chip wholesalers and brokers [NAICS code 419120]
MNP has assumed that revenue received by fibre supply and wholesale firms is from operations in BC, and
therefore all revenue is attributable to economic impacts in the province. Note that exports of log, commodity
118
Note that both silviculture and forest management have firms in NAICS code 115310. In order to ensure there was no double
counting, the number of silviculture firms in NAICS code 115310 was removed from the support activities for forestry under the
forest management sub-industry
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Ministry of International Trade [September 2007], available here:
http://www.mit.gov.bc.ca/softwood/Lumber%20Reman%20Final%20Report%20Sept%2028%202007%20with%20cover.pdf
BC FOREST INDUSTRY: ECONOMIC IMPACT STUDY
MNP LLP