bc-forest-industry-economic-impact-study

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5. SOCIAL AND ECONOMIC BENEFITS
The following case studies illustrate some of the broader economic, social and community contributions of
the BC forest industry. Information used to prepare the case studies was obtained through a review of
publicly available secondary sources.
CASE STUDY
The BC Forest Industry’s Resiliency and Adaptability
The BC forest industry has faced unprecedented change and adversity, in the past decade. The mountain
pine beetle infestation, the collapse of the US housing market, the global economic crisis and land use
decisions are among the challenges faced by the industry.
Companies have made investments in equipment to retool
operations, and have made difficult capacity rationalisation
decisions to maintain competitiveness, and to better respond to
depressed product prices and demand reductions. Industry
stakeholders have worked collaboratively to develop new products
and to explore new markets.
The industry’s response has been one of resiliency and adaptability.
New industry sectors, such as bioenergy and wood pellets, have
emerged in response to cost competitive pressures in the pulp sector
and the mountain pine beetle infestation. A study completed in 2013
suggested that the BC Bioenergy Network’s $16.6 million of project
funding resulted in new investments for a total project value of
$123.5 million, which represented 1,826 FTEs of employment, $106
million in GDP and $19.75 million in tax revenue for government. 94
As of 2013, BC had 13 wood pellet plants with total annual capacity
of 2 million tonnes. Together with dedicated port storage and
handling infrastructure, this represented over $500 million in capital investment. BC’s wood pellet industry
generated more than $300 million annual revenue in 2012, while providing approximately 400 direct jobs in
rural BC communities. 95
Business success stories have emerged as forest operations have resumed production under new
ownership. For example, the employee-owned Harmac Pacific pulp mill restarted production in 2008,
generating an estimated $250 million in annual revenue and employing approximately 300 people. 96 The
mill has also invested in a cogeneration plant to offset its production costs and sell surplus power to the
grid.
Similarly, Conifex Timber Inc. purchased one of Pope and Talbot’s sawmill operations in Fort St. James in
2008. Since then the company has acquired additional sawmill capacity and is in the process of converting
an idled newsprint mill in Mackenzie for bioenergy generation.
94
Study by MMK Consulting in 2013, available here: http://bcbioenergy.ca/our-value/helping-our-economy/
95
Wood Pellet Association of Canada, Position Paper July 2013, available here: http://www.pellet.org/images/2013-07-
17_WPAC_Fibre_Supply_Issue.pdf Accessed May 2014
96
Business Review Canada, “Harmac Pacific – High Quality Pulp”, available here:
http://www.businessreviewcanada.ca/reports/harmac-pacific and Pioneer Timber Group, available here: pioneerfamilytimber.com
BC FOREST INDUSTRY: ECONOMIC IMPACT STUDY
MNP LLP