bc-forest-industry-economic-impact-study

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2 TABLE OF CONTENTS 1. Executive Summary ......................................................................................... 3 2. Introduction ...................................................................................................... 8 Background and Study Purpose ......................................................................... 8 Study Approach .................................................................................................. 8 Report Limitations .............................................................................................. 8 3. Profile of the BC Forest Industry .................................................................... 9 Industry Overview .............................................................................................. 9 Linkages with Other Industries ......................................................................... 10 Value Chain ...................................................................................................... 14 4. Economic Impact Analysis ............................................................................ 15 Economic Impact Analysis Methodology .......................................................... 15 Estimated Economic Impacts of the BC Forest Industry .................................. 16 Estimated Economic Impacts by Sector ........................................................... 20 Economic Impact Comparison with Other Industries ........................................ 30 5. Social and Economic Benefits ...................................................................... 33 6. Appendices ..................................................................................................... 38 Appendix A – Glossary of Economic Terms ..................................................... 38 Appendix B – Economic Impact Approach and Assumptions ........................... 39 Appendix C – Data Sources ............................................................................. 44 Appendix D – Economic and Other Factors Affecting the Industry ................... 45 Appendix E – About MNP ................................................................................. 49 BC FOREST INDUSTRY: ECONOMIC IMPACT STUDY MNP LLP
3 1. EXECUTIVE SUMMARY The BC forest industry is a key contributor to the BC economy, and is important to the social fabric and economic well-being of many communities throughout the province. The industry provides employment and economic opportunities, generates government revenue and develops working relationships with First Nations communities. The industry supplies a broad range of products to domestic and international markets, and operates in an environment with complex forest ecosystems and species. Estimate of Economic Impacts In 2013, total BC forest industry revenue was $15.7 billion. Of this revenue, approximately 62 percent was generated in the interior region and 38 percent from the coast region. The economic impacts for the industry in that year are estimated to have been: Total economic output was $31.4 billion. Approximately 50 percent was direct output and 50 percent was indirect and inducted output. Total GDP generated was $12.4 billion. Direct GDP was approximately $5.8 billion, which would equate to approximately 2.5 percent of provincial GDP. Total employment generated was 145,800 FTEs. Of this, almost 63,500 FTEs were created within the industry, while an additional 82,300 FTEs were created though linkages with other industries. Total revenue created for federal, provincial and municipal governments was almost $2.5 billion. Of this, the federal government received an estimated $934 million, the provincial government received an estimated $1.4 billion and municipal governments received $150 million. The industry consists of six main sectors: primary manufacturing, forest management, secondary manufacturing, fibre supply and wholesale, forest innovation, and silviculture. Primary manufacturing is the largest sector within the industry, and accounted for 68 percent of the GDP and 57 percent of the employment generated by the industry in 2013. Figure A: BC Forest Industry’s Total Estimated GDP and Employment Impacts by Sector BC Forest Industry by Sector 2013 Total Estimated GDP Impacts $12.4 billion BC Forest Industry by Sector 2013 Total Estimated Employment Impacts 145,817 FTEs Primary Manufacturing 68% Forest Management 14% Secondary Manufacturing 13% Fibre Supply and Wholesale 3% Silviculture Forest 1% Innovation 1% Primary Manufacturing 82,843 Silviculture 1,812 Forest Management 24,229 Secondary Manufacturing 23,839 Fibre Supply and Wholesale 11,026 Forest Innovation 2,068 BC FOREST INDUSTRY: ECONOMIC IMPACT STUDY MNP LLP
Page 1: BC Forest Industry Economic Impact
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 and 14: 13 In total, an estimated 14 millio
Page 15 and 16: 15 4. ECONOMIC IMPACT ANALYSIS ECON
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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