PwC Report Highlights Economic Impacts of B.C Forest Industry

VANCOUVER (Scrap Monster): PwC has published the results of the Economic Impact Study of the British Columbia Forest Industry for calendar year 2016. The report is based on data collected from as many as 19 forestry companies operating in BC for the abovementioned year. The PwC Report provides an overview of the province’s forest sector and also provides a summary of the economic impact results.

According to the report, the B.C Forest Industry is a significant contributor to the province’s economy, providing 59,900 direct jobs. In addition it also provides over 81,000 indirect and induced jobs in the province. The sector accounts for a total labor income of $8.56 billion per year and generates nearly $33 billion in output. The B.C. Forest Industry generated $12.94 billion to the province’s GDP. The total payments to the provincial government including taxes totaled $4.12 billion, the report said. The B.C. Forest Industry exported $13.7 billion worth of forest products in 2016.

The report categorizes the B.C. Forest Industry into four key sectors- Forestry and Logging; Panels and Veneer; Pulp and Paper; and Lumber. Out of this, Forestry and Logging accounted for approximately 28% of the total contribution of B.C. Forest Industry to the provincial economy. The B.C Wood Manufacturing Sector including sawmills, veneer, plywood etc., accounted for nearly 56% of the Industry contribution. Pulp and Paper constituted the remaining 16%.

PwC report provides a list of 15 B.C. Forest companies that employed over 300 employees in 2016. The top five companies- Canfor, West Fraser, Tolko Industries, Western Forest Products and Catalyst Paper together provided employment to nearly 13,000 workers during the year. Of the 15 companies, six companies were ranked among the 15 largest public B.C. companies in terms of revenue.

The B.C. Forest Industry recorded capital investment of close to $650 million in 2016. This includes Canfor’s upgrade at Polar mill and kiln replacement at Houston mill, West Fraser’s reengineering works at West Pine MDF mill in Quesnel and Western Forest Product’s modernization of Duke Point sawmill. As per surveys, B.C. Forest companies are likely to invest $650 million per year on capital expenditure in each of the next five to ten years.

The leading destination of B.C Forest Sector products was the US, capturing 53% share of total export market out of the province. The other leading export markets were China, Japan, South Korea and the UK. Also, lumber accounted for majority of exports, followed by pulp, other forest products and paper.