A somewhat smaller share of total economic activity
should not be interpreted as meaning that forestry’s
economic importance to BC has passed. The true picture
is more complicated.
Forestry... (cont’d)
Forest Sector GDP,
Provinces & Selected States*
billions,
$ Cdn** & Selected States*
Forestry Sector GDP
Provincial
BC
Quebec
Georgia
Washington
Ontario
Alabama
Oregon
S. Carolina
Arkansas
Louisiana
Alberta
Mississippi
Atlantic Provs.
Alaska
Sask.
N. Dakota
Manitoba
The forest products cluster makes an outsized contribution
to the province’s overall prosperity. Some data and
comparative metrics help to underscore this point.
BC is the biggest source of softwood lumber in Canada.
In 2013, BC’s production was 12.7 billion board feet of
lumber, representing just over half of Canada’s total
softwood lumber production. The vast majority of this
production is shipped to other countries, with around 53%
of exported lumber going to the United States, 25% to
China, 13% to Japan, and smaller shares to other markets.
BC is also home to three of the four largest forest products
companies in North America.
0
1
2
3
4
5
6
7
** Provinces are average levels 2011-2013,
states are average levels 2011-2012.
** Average exchange rates for each year are near parity so no currency
adjustments are made.
Source: Statistics Canada and US Bureau of Economic Analysis.
Figure 3
Forest Sector GDP as a Share of
Provincial & Selected State GDP*
Forestry GDP as a Share
Provincial
& Selected State GDP*
% ofof
total
GDP
3.40
BC
Arkansas
Alabama
Quebec
Oregon
Mississippi
S. Carolina
Georgia
Washington
Louisiana
Atlantic Provs.
Alberta
Alaska
Ontario
N. Dakota
Sask.
Manitoba
2.00
1.26
0
1
2
3
4
* Provinces are average shares 2011-2013,
states are average shares 2011-2012.
Broadening our comparisons to include the US and looking
at value-added economic output, BC’s forest sector stands
out as the largest in North America (Figure 3).
In considering the proportional size of the forest products
sector, forestry looms even larger in BC than in other
jurisdictions. In recent years, forestry’s direct contribution
to, or share of, the provincial economy has been ~3.5%.
Among relevant US states and other provinces, the next
largest share is in Arkansas (2.7% of total state GDP). In
Quebec, whose economy is larger than BC’s, forestry
accounts for a more modest 2% of provincial GDP.
To summarize, BC’s forest products cluster is the largest in
North America in both absolute and proportional terms.
When governments ponder economic development
strategies, the starting point is frequently to identify the
industries where a jurisdiction already has a comparative
advantage. Both historically and today, BC has a substantial
comparative advantage in the forest products sector
and related downstream activities. Thus, it makes good
economic sense for government to take steps to nurture
and support the sector.
Employment is another important measure. Forestry
directly employs more than 63,000 individuals in the
province.4 Those who work full-time in the sector receive
hourly wages and employment incomes that are well
above the all-industry average.
Source: Statistics Canada and US Bureau of Economic Analysis.
Figure 4
4 BC Forest Industry: Economic Impact Study, MNP, LLP.
(January 2015).
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