Industry

Canada is the third largest exporter of forest products in the world, after Germany and the United States. The forest sector is also the third largest contributor to Canada’s balance of trade, after energy and minerals. The industry is an important employer in many regions of Canada, particularly in rural and remote communities. Major forest products include softwood lumber, structural panels, newsprint, pulp and various paper products. Other new and innovative products, ranging from bioenergy to new building solutions to bioplastics, are also being developed and produced in Canada’s forest sector.

A sector in transition

Canada’s forest industry is recovering from a number of major challenges over the last decade. These include a worldwide economic downturn, strengthening of the Canadian dollar against the currencies of key competitors, a structural decline in North American newsprint demand, and increased competition from other forest product suppliers.

Recovering from these difficult circumstances has seen Canada’s forest sector work hard to survive, transform and adapt.

  • Industry transformation and a focus on innovation are leading to improvements that will strengthen the competitiveness of Canada’s forest sector in all areas.
  • Market challenges have been faced head on, and new market opportunities are being targeted. Work is underway to identify both new products from fibre and new markets for Canada’s traditional products.
  • Non-traditional products and services are the focus of intensive research and development. Of particular note are those products and services derived from forest biomass (for example, bioenergy, bioproducts and biochemicals). Increased production of bioproducts is expected to give the industry a significant boost in the highly competitive global marketplace.
  • The importance of environmental sustainability has been recognized across the forest sector by government, industry and other players. Sustainable forest management practices at every stage of production demonstrate responsible resource stewardship and respond to the expectations of the new “green movement” reality of today’s global marketplace.

Regional snapshot of the industry

Canada’s forest industry varies across the country:

  • Eastern Canada is dominated by pulp and paper product manufacturing.
  • Western Canada is dominated by wood product manufacturing.
  • Quebec, Ontario and British Columbia have the greatest numbers of forest workers.
  • The Atlantic Provinces, Quebec and British Columbia are the most forest-dependent regions, with a large share of their economy based on the sector.