This document summarizes key issues facing Canada's forestry sector. It discusses declining commodity prices, a slowing global housing market, falling employment in the sector, and challenges like the softwood lumber dispute and high production costs. While technology is modernizing forestry operations, the federal government under Justin Trudeau has done little to support the industry according to the document. It calls for the next government to implement an integrated strategy with tax and regulatory reforms to improve competitiveness for the struggling sector.
2. Paul Young - Bio
• CPA, CGA
• Financial Solutions
• SME – Business Process Changes
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• Academia – Advance Accounting, Public
Finance and Advanced Management
Systems
Contact information:
Paul_Young_CGA@Hotmail.com
3. Introduction
• Canada forestry sector is key sector to the Canadian Economy
• Canada forestry sector has faced protectionism policies -
https://www.canadianmanufacturing.com/financing/canfor-to-
curtail-operations-at-all-but-one-of-its-sawmills-in-british-
columbia-234114/
• The federal government under Justin Trudeau has done little to
support the forestry sector.
4. Agenda
• Commodity Prices
• Global Housing Market outlook
• Housing Starts – North America
• Merchandise Trade
• Wages / Forestry Sector
• Employment
• Issues facing Forestry
• Justin Trudeau and the Forestry Sector
• Technology and Forestry Sector
• What’s next
5. Commodity Prices
Source - https://www.scotiabank.com/ca/en/about/global-economics/commodity-price-index.html or
“Softwood lumber prices slowly recover from
recent lows: May 2019”
Source - https://www.woodbusiness.ca/softwood-
lumber-prices-slowly-recover-from-recent-lows-
may-2019/
6. Global Housing Outlook
Source - https://www.telegraph.co.uk/business/2019/05/16/global-
property-boom-house-prices-hit-breaking-point/
9. Forestry Sector (Wages)
Source - https://www.livingin-canada.com/salaries-for-forestry-professionals-canada.html or
https://www150.statcan.gc.ca/n1/daily-quotidien/190530/dq190530a-eng.htm
Average wages annually $52,800/year
• Forestry Sector pays between 25% to
70% higher wages than the service
sector
• Forestry sector personal income tax
ranges are between 35% to 40%
11. Issue facing Forestry
• Softwood Lumber dispute - https://www.bnnbloomberg.ca/economics/video/overall-impact-of-
softwood-lumber-dispute-minimal-for-canada-economist~1108540 or
https://www.globalwoodmarketsinfo.com/canada-has-filed-appeal-against-wtos-april-ruling-in-
softwood-lumber-dispute-with-us/
• Carbon Tax – Carbon tax is added on to the cost of production
https://www.bnnbloomberg.ca/commodities/video/applying-carbon-tax-without-cutting-back-
regulations-may-be-costly-jack-mintz~1649746
• High stumpage cost - https://www.timescolonist.com/business/teal-jones-shuts-down-logging-in-
honeymoon-bay-citing-high-log-costs-1.23841024
• Hydro Rates - https://www.drydennow.com/local/rickford-aims-to-cut-costs-for-forestry-sector
• Excessive regulations
• Small business tax reforms - https://www.bnnbloomberg.ca/economics/video/cfib-concerned-by-
potential-tax-hits-to-small-businesses-in-2019~1560874
12. Justin Trudeau and Forestry Sector
Source - https://www.sudbury.com/letters-to-the-editor/forest-industry-isnt-a-
priority-for-justin-trudeau-679008
“My predecessor wanted you
to know Canada for its
resources. I want you to know
Canadians for our
resourcefulness,” he said.
“Pulp and paper workers ask Trudeau to
fight for their jobs
”Source - https://unifor.org/en/whats-
new/news/pulp-and-paper-workers-ask-
trudeau-fight-their-jobs
Source – April 13, 2018
13. Technology / Forestry Sector
Source - https://www.woodbusiness.ca/how-technology-is-transforming-bcs-forest-industry-
5248/
• Investment into new technologies is revolutionizing the way Canada’s forest industry does business.
The federal government reports between 2005 and 2015, Canada’s forest industry cut its total energy use
by 31 per cent and reduced its greenhouse gas emissions by 49 per cent by generating bioenergy from
waste products and increasing energy efficiency.
• AI and Forestry - https://www.weforum.org/agenda/2018/09/ai-can-help-us-map-forests-down-to-
each-tree/
• Automation - https://www.woodbusiness.ca/fully-automated-applying-robotic-solutions-to-the-
sawmill/
• Supply Chain/Digital = https://www.poyry.com/news/articles/how-will-digitalisation-boost-
forestry-operations
14. What’s next
• All level of governments need to work on integrated strategy for Forestry
including streamlining regulations, tax fairness, hydro, fees, etc -
https://www.slideshare.net/paulyoungcga/2019-election-canada-and-global-
competitiveness-may-2019
• Next government needs to push for reforms at WTO including a better dispute
mechanism, reduction in protectionism policies, etc. -
https://www.slideshare.net/paulyoungcga/why-do-we-need-the-wto
• The next government needs to stop looking for ways to tax business, i.e. carbon
tax or plastic tax or other taxes.
• The next government needs to focus on port expansion as part of supporting
getting goods to market.
Editor's Notes
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