|
 |
 |
 |
BC’s forest industry competes globally and staying competitive is a major challenge for the industry. In terms of the global forest industry BC is a small player and we do not control the prices of our products. We export most of our products to the US and therefore are highly vulnerable to changes in the exchange rates as well as trade disputes like the softwood lumber dispute.
BC’s most important product is lumber, but the big global forest industry players are pulp and paper producers. BC is an important player in the Canadian lumber sector, producing almost half of Canada’s lumber sales. And it remains a key sector in BC, responsible for 1 in 5 manufacturing jobs and over 40% of manufacturing shipments.
And despite the relatively small size of BC’s companies and the negative impacts of the softwood lumber dispute, BC interior lumber companies have worked hard to maintain or improve their relative competitiveness. Marked increases in the lumber recovery factor – a 16% improvement over 10 years – have increased BC interior productivity relative to other parts of Canada.
Companies have also been consolidating and increasing mill size? Does size really matter? The evidence is, yes it does. The chart below shows that manufacturing costs for a “super size” sawmill are 64% of those of a small sawmill.
The interior industry has developed a new production and operating paradigm that has taken the extreme external and internal pressures on the industry and created a leaner and more efficient industry
The pressure to stay competitive is always present but interior companies have shown they are strong and resilient and will continue to play a dominant role in BC’s economy for a long time into the future. |
|
| |
|
|
|
