Forest industry continues to be economic pillar

Sector will endure despite challenges, write Susan Yurkovich and Rich Jeffrey.

B.C.’s forest sector recently released a new economic study that highlights the fact the province’s forest industry continues to be a cornerstone of the provincial economy and a significant economic contributor to communities around the province.

The study conducted by PwC shows B.C.’s forest industry is critically important to families and communities across the province. In fact, 140 communities depend on the forest industry through their mills, manufacturing facilities, forestry and logging operations. Employment-wise last year, forestry generated one out of every 17 jobs in the province, making it one of B.C.’s largest employers — that’s more than 140,000 total jobs that generate $8.6 billion in wages to workers.

Forestry was an equally important revenue generator for government, providing municipal, provincial and federal governments with $4.1 billion in payments that include stumpage, taxes and fees. The forest industry also contributed $12.9 billion to the provincial GDP with $33 billion in total output. Without question, the province and its ability to make ongoing needed investments in health, education, infrastructure and innovation depends on the financial health of the forestry sector.

Renewable B.C. wood is also in demand around the world with B.C. forest companies exporting $13.7 billion worth of forest products to more than 100 countries in 2016, accounting for 34 per cent of all provincial exports. The United States and its residential construction industry was the top destination for B.C. forest exports, accounting for 53 per cent of the industry’s exports, followed by China at 24 per cent and Japan at nine per cent. The B.C. forest industry continues to work hard alongside the provincial and federal governments to further diversify our products and overseas markets with Korea, Taiwan and India growing as trade partners.

Key to B.C. successfully opening overseas markets is our reputation as a world leader in sustainable forestry. Our industry is deeply committed to preserving the healthy forests that are a part of our shared ecological and natural heritage. Canada has more third-party certified forest than any other nation in the world, with most of B.C.’s forested land certified, meaning we meet internationally recognized criteria for environmental management systems. With that commitment, we planted 259 million seedlings in 2016 alone and harvest less than one per cent of the timber land each year.

While the findings of the report show that forestry continues to be a key driver of the B.C. economy, our industry is also facing challenges. The lingering effects of the mountain pine beetle infestation and the ongoing softwood lumber dispute have been further exacerbated by the devastating wildfires in B.C.’s Interior this summer.

Through a determined and collaborative approach in addressing these challenges, the industry will have a strong future and continue to support British Columbians. We are working with the provincial government and communities to understand the overall impact of the wildfires, expedite the salvage of timber and ensure access to fibre so our operations can continue to run.

Looking forward, B.C. forestry companies invested $650 million in new capital expenditures in 2016, in addition to the significant amount spent annually on repair and rehabilitation. That level of investment is expected to continue annually over the next five to 10 years. We will also continue to innovate and develop new products — including taller wood buildings — because building with wood helps us all reduce our collective carbon footprint.

For as long as we’ve been a province, B.C.’s forest sector and the families and communities across our province who are a part of it have contributed immeasurably to our quality of life. As an industry, we look forward to continuing to grow, invest, innovate and be an economic engine for families, communities and the province for generations to come.

B.C. forestry companies invested $650 million in new capital expenditures in 2016.