Lumber production in Canada continues to face many hurdles
Canada forest management practices are some of the bests in the world
Canada planted over 440M in seedlings back in 2018. It is now 2022 which means close 2M seedlings have been planted.
All levels need to put more focus on urban and rural planning solutions
More work including spending on wildfire and forest fire mitigation
Canada and USA need to find a path forward to resolve the softwood lumber dispute
There needs to a better balanced between climate change policies and growing the economy in a sustainable way
3D printing for housing needs to become mainstream
More protection needs to happen with key ecosystems like wetlands, forest, and peatlands.
There is a risk of debt default if interest rates are hike over the next few months
What is next for the Forestry Sector and Lumber Production - September 2023.pptx
1. What is happening to
World’s forest?
Paul Young CPA CGA
SME Data and AI and Business
Strategist
2. Paul Young - Bio
• CPA, CGA (1996)
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Customer Success Management
• SME – Risk Management
• SME – ESG Policy Development and
Reporting
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email: Paul_Young_CGA@hotmail.com
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/
SlideShare - https://www.slideshare.net/paulyoungcga
Twitter: https://twitter.com/paulyoungcpa
Youtube - https://www.youtube.com/user/youngercga1968/videos
3. 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
• West Fraser and Forestry
• Carbon Sink
• Government Cutbacks and
Global deforestation
Poor urban planning
Eco-Terrorism
Automation / Forestry Management
Siberia
Forest Fires
California / Fires
3D Housing
What’s next
7. Global Housing Outlook
Source -
https://www.fool.com/
the-ascent/personal-
finance/articles/4-signs-
that-a-housing-market-
crash-is-coming/
4 Signs That a
Housing Market Crash Is Coming.pdf
8. 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%
10. 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
• Regulations - http://www.chamber.ca/media/news-releases/Canada-competiveness-ranking-drops-4-spots-in-2-years/
• Small business tax reforms - https://www.bnnbloomberg.ca/economics/video/cfib-concerned-by-potential-tax-hits-to-small-businesses-
in-2019~1560874
• Forestry losses - https://www.wri.org/blog/2020/06/global-tree-cover-loss-data-2019
• PBO / Tree Fund - https://www.570news.com/2021/01/28/liberals-two-billion-trees-promise-to-cost-2-78-billion-more-than-planned-pbo-
says/
• Biodiversity - Blog – Biodiversity – Protecting Wildlife from Traffic and Human through Fending and other Measures – Municipal and Local Government - https://www.linkedin.com/posts/paul-young-
055632b_when-covid-rules-kept-humans-home-wildlife-activity-7081633458157993984-PjIf?utm_source=share&utm_medium=member_desktop
11. 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
• Analytics and Forestry Management - https://www.ibmbigdatahub.com/tag/6399
16. Eco-Terrorism and other ignition points
There has been a rise in eco-terrorism
• Australia bushfires - https://www.bbc.com/news/world-australia-50568026
• BC Wildfires - https://vancouversun.com/news/local-news/rcmp-say-arson-behind-29-okanagan-
wildfires-over-last-four-years
• Amazon - https://www.washingtonpost.com/world/the_americas/arsonists-are-torching-the-
amazon-this-elite-team-of-firefighters-stands-in-their-way/2019/10/08/525330f4-d8a8-11e9-a688-
303693fb4b0b_story.html
• California Appl Fire caused by a poorly maintained car -
https://www.mercurynews.com/2020/08/04/apple-fire-at-26450-acres-relief-crews-for-weary-
firefighters-arriving/
• Oregon Fires - https://ktvz.com/news/fire/2020/07/28/three-suspicious-la-pine-area-wildfires-
investigated-as-arson-tips-sought/
Source - https://www.slideshare.net/paulyoungcga/is-the-world-headed-to-more-ecoterrorism
17. Forestry Fires
Fire was purposely set/Eco-Terrorism
San Jose Fire/Cal Fire
Power Lines
Balloon collides with power line that sent sparks to
the ground
• Mitigation
• More insulation of wires - https://energized.edison.com/stories/insulated-wires-help-reduce-wildfire-
risk
• Use of AI and Data Analytics in terms of forest prevention/detection
18. Automation
• Using drones to plant trees - https://www.nextbigfuture.com/2020/06/flash-
forest-and-tree-planting-with-
drones.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed
%3A+blogspot%2Fadvancednano+%28nextbigfuture%29
• Innovation / planting - https://www.fastcompany.com/90504789/these-drones-
can-plant-40000-trees-in-a-month-by-2028-theyll-have-planted-1-billion
• Tree Planting / Drones -
https://www.standard.co.uk/news/world/treeplanting-drones-could-help-
restore-world-s-forests-a4116376.html
19. Canada Boreal Forest
• Canada’s boreal forest make up 9% of the world forest -
https://www.nrcan.gc.ca/our-natural-resources/forests-
forestry/how-much-forest-does-canada-have/17601
20. Forest Fires – BC and California
https://www.linkedin.com/posts/paul-young-055632b_blog-forestry-management-and-california-
activity-6703181159909724160-qWzg
I think all levels of government need to take a hard look at how they managed their forest to mitigate
the impacts of wildfires
21. Audits
• Significant financial-control weaknesses / NS Forestry and Land -
https://globalnews.ca/news/6095967/nova-scotia-auditor-general-financial-report/
• Forestry Management / City of Toronto -
https://globalnews.ca/news/5221912/toronto-forestry-crews-audit/
• Audit – Clear Cut and Water Management - https://thenarwhal.ca/muddied-waters-
how-clearcut-logging-is-driving-a-water-crisis-in-b-c-s-interior/
• Tree planning / Corporations - https://www.terracestandard.com/news/skeena-
sawmills-in-terrace-contracts-local-firms-for-2020-reforestation-projects/
• Timber Audits -
https://www2.gnb.ca/content/gnb/en/news/news_release.2020.10.0543.html
• Australia - https://www.smh.com.au/environment/conservation/multiple-problems-
with-state-logging-agency-damning-audit-reveals-20201008-p563dj.html
22. California / Fires
Source - https://www.latimes.com/california/story/2020-09-11/california-wildfires-climate-change-gavin-
newsom-trump
• California has done poor job with management of its forests - With CA ablaze, Newsom blasts Trump admin
for failing to fight climate change Source - https://wattsupwiththat.com/2019/05/14/californias-government-
solely-responsible-for-states-forest-management-and-wildfire-debacle/
It is time to for governments to bring in better forest mgmt. practices
• https://www.slideshare.net/paulyoungcga/fiscal-and-economic-management-state-and-local-government-
united-states
23. Blog – Flood, Forest Management, and Land Use
risks from Climate Change
• Warmer air leads to more intense precipitation
• More rain, less snow
• Changing patterns of rain on snow
https://www.slideshare.net/paulyoungcga/how-to-mitigate-geopolitical-risks-as-part-of-safeguarding-
your-assets-249988353 https://www.canadianmanufacturing.com/features/climate-change-is-making-
flooding-worse-3-reasons-the-world-is-seeing-more-record-breaking-deluges/ or
https://www.slideshare.net/paulyoungcga/climate-change-and-the-green-economy-canada-october-
2022pptx
I will add lack of audited crisis & emergency plans that mitigate climate change impacts on
infrastructure & property.
24. What’s next
• Lumber production in Canada continues to face many hurdles
• Canada forest management practices are some of the bests in the world
• Canada planted over 440M in seedlings back in 2018. It is now 2022 which means close 2M seedlings have been planted.
• All levels need to put more focus on urban and rural planning solutions
• More work including spending on wildfire and forest fire mitigation
• Canada and USA need to find a path forward to resolve the softwood lumber dispute
• There needs to a better balanced between climate change policies and growing the economy in a sustainable way
• 3D printing for housing needs to become mainstream
• More protection needs to happen with key ecosystems like wetlands, forest, and peatlands.
• There is a risk of debt default if interest rates are hike over the next few months
Blog – What is next for the Forestry Sector – September 2023
Summary:
In the week ending August 25, the price of Western S-P-F 2×4 #2&Btr KD (RL) was US$420
mfbm. This is up by $10, or two per cent, from the previous week when it was $410.
That week’s price is down by $35, or eight per cent, from one month ago when it was US$455
mfbm. Compared to the same week last year, when it was US$624 mfbm, that week’s price is
down by $204, or 33 per cent. Compared to two years ago when it was US$390 mfbm, that
week’s price is up by $30 or eight per cent.
Source: https://www.woodbusiness.ca/late-season-demand-pushes-lumber-prices-up-madisons/
Other links and sources:
Fires - https://qz.com/canada-has-more-than-doubled-its-annual-record-for-land-1850804009
Housing – Outlook - https://finance.yahoo.com/news/housing-market-predictions-forecast-next-
175441472.html
Planning - https://www.slideshare.net/paulyoungcga/how-do-you-best-support-urban-planning-
rural-vs-urban
Rural - https://www.slideshare.net/paulyoungcga/what-is-required-to-better-support-rural-canada
Biodiversity - https://www.linkedin.com/pulse/global-biodiversity-why-proposed-changes-
ontarios-greenbelt-young
Global Housing - https://stonenews.eu/global-house-price-downturn-fades-most-markets-to-rise-in-
2024/
Canada housing - https://building.ca/feature/canada-needs-all-hands-on-deck-to-address-the-housing-
affordability-crisis/
Outlook - https://www.resourcewise.com/forest-products-blog/canadian-lumber-market-shrinking-
could-europe-fill-gap
Editor's Notes
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