bc-forest-industry-economic-impact-study

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14 VALUE CHAIN The value chain (Figure 5) provides a graphical illustration of the industry’s primary activities and linkages that exist with other industries and stakeholders with which it interacts. The value chain highlights both the diversity and complexity of the BC forest industry’s activities. Figure 5: BC Forest Industry Value Chain BC FOREST INDUSTRY: ECONOMIC IMPACT STUDY MNP LLP
15 4. ECONOMIC IMPACT ANALYSIS ECONOMIC IMPACT ANALYSIS METHODOLOGY MNP’s estimates of economic impacts have been developed using BC Stats input-output model and related economic multipliers. An input-output model is based on statistical information about the flow of goods and services among various industries, and is normally used “to simulate the economic impact on the business sector of an expenditure on a given basket of goods and services or the output of one of several industries.” 44 Input-output modeling is a widely-used and widely-accepted approach, making it recognisable by many different stakeholders and audiences. The structure of the approach also facilitates comparisons between reported results for different projects and facilities. Economic impacts are generally viewed as being restricted to quantitative, well-established measures of economic activity. The most commonly used of these measures are output, GDP, employment and government tax revenue: Output is the total gross value of goods and services produced by a given company or industry measured by the price paid to the producer. This is the broadest measure of economic activity. Gross Domestic Product (GDP) or value-added refers to the additional value of a good or service over the cost of inputs used to produce it from the previous stage of production. GDP is the unduplicated total value of goods and services produced. GDP is a more meaningful measure of economic impact than output, as it avoids double counting during each round of production. Government Tax Revenue arise from personal income taxes, corporate income taxes, consumption taxes (e.g. PST and GST) and indirect taxes on production. Employment is the number of additional jobs created. Employment is measured in terms of fulltime equivalents (FTEs). Economic impacts may be estimated at the direct, indirect and induced levels. Direct impacts are changes that occur in “front-end” businesses that would initially receive expenditures and operating revenue as a direct consequence of the operations and activities of an industry. Indirect impacts are changes in the activity of suppliers to front-end businesses. Indirect impacts include the spending that suppliers make when purchasing goods and services. Induced impacts arise from shifts in spending on goods and services as a consequence of changes to the payroll of the directly and indirectly affected businesses. In the case of the BC forest industry, induced impacts reflect the additional spending by the employees of the BC forest industry and by the BC forest industry’s suppliers. A detailed description of our methodology and assumptions is provided in Appendix B. 44 Statistics Canada. (2013, April). Input-Output Model Simulations (Interprovincial Model). Retrieved from http://www5.statcan.gc.ca/bsolc/olc-cel/olc-cel?lang=eng&catno=15F0009X BC FOREST INDUSTRY: ECONOMIC IMPACT STUDY MNP LLP
Page 1 and 2: BC Forest Industry Economic Impact
Page 3 and 4: 3 1. EXECUTIVE SUMMARY The BC fores
Page 5 and 6: 5 KEY FEATURES OF THE INDUSTRY In 2
Page 7 and 8: 7 The forest industry is an importa
Page 9 and 10: 9 3. PROFILE OF THE BC FOREST INDUS
Page 11 and 12: 11 Figure 2: Relationships between
Page 13: 13 In total, an estimated 14 millio
Page 17 and 18: 17 Table 3. Estimated BC Government
Page 19 and 20: 19 Table 5. Largest BC-Based Forest
Page 21 and 22: 21 Primary manufacturing is capital
Page 23 and 24: 23 Total GDP impacts of $1.7 billio
Page 25 and 26: 25 Fibre Supply and Wholesale Highl
Page 27 and 28: 27 Table 12. Summary of Forest Rese
Page 29 and 30: 29 provides summer employment oppor
Page 31 and 32: 31 Employment Comparison As shown i
Page 33 and 34: 33 5. SOCIAL AND ECONOMIC BENEFITS
Page 35 and 36: 35 CASE Innovation - Emergence STUD
Page 37 and 38: 37 CASE STUDY Harvesting The BC for
Page 39 and 40: 39 APPENDIX B - ECONOMIC IMPACT APP
Page 41 and 42: 41 and traditional value-add forest
Page 43 and 44: 43 Step 5: Compare Model Results wi
Page 45 and 46: Volume (cubic metres) Housing Start
Page 47 and 48: Selling Price Index US$ 47 Figure D
Page 49: 49 APPENDIX E - ABOUT MNP For more

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