bc-forest-industry-economic-impact-study

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APPENDIX B – ECONOMIC IMPACT APPROACH AND ASSUMPTIONS
Overview
MNP’s estimates of economic impacts have been developed using BC Stats input-output model and related
economic multipliers. A step-by-step overview of our approach is provided below.
Step 1: Estimate Revenues of Each Industry Sector and Allocate to
Coast and Interior Regions
Step 2: Apply BC Stats Multipliers to Revenue Estimates
Step 3: Review and Revise Estimates
Step 4: Produce Total Forest Industry Economic Impacts
Step 5: Compare Model Results with Statistics Canada Estimates
Step 1: Estimate the Revenue of Each Industry Sector and Allocate to Coast and Interior Regions
The first step to estimate the economic impacts of the BC forest industry was to estimate the revenue
received by each sector in 2013. Our approach and main assumptions used to estimate revenue for each
sector are summarised in the following sections.
Primary Manufacturing
MNP used the sales of goods manufactured (shipments) by primary manufacturing firms in BC from
Statistics Canada Cansim Table 304-0015 to estimate the revenue of the forest industry’s primary
manufacturing sector. MNP has assumed the sales of goods manufactured are a good proxy of the total
revenue.
The BC forest industry primary manufacturing sector was defined as firms categorised in the following
NAICS codes:
Sawmills and wood preservation [NAICS code 3211]
Veneer, plywood and engineered wood [NAICS code 3212]
Pulp, paper and paperboard manufacturing [NAICS code 3221]
MNP allocated primary manufacturing revenue to the coast and interior regions based on the total value of
primary forest products manufactured in each region. To estimate this, MNP relied on total lumber, pulp
and paper and panel board production values from Statistics Canada and forest company annual reports,
as well as the average sales price for the products from the coast and interior.
BC FOREST INDUSTRY: ECONOMIC IMPACT STUDY
MNP LLP