Lumber, paper and forestry leaders gathered to talk about their industry, its importance and the challenges it faces in Halifax on Tuesday.
“The forest sector in Canada is an over $90 billion business, over 200,000 workers, we export a lot to the United States. Our exports were close to $30 billion last year so it’s a significant industry for Canada’s economy,” says Derek Nighbor with Forest Products Association of Canada.
Nighbor says Nova Scotia and New Brunswick are key drivers of the forestry sector.
“Here in Nova Scotia there’s about $400 million of product every year that’s going to the United States so the U.S is a critical market for the Atlantic Canada provinces,” says Nighbor.
Kim Allen, executive director with Forest NB, says the forestry sector in New Brunswick is one of the largest GDP and economic contributors for the province.
“Forest NB represents about 14 producing members across the province so that’s everything from lumber to pulp and paper and all other kids of products in between there,” says Allen.
Allen says they generate $2.8 billion in revenue annually through exporting forest products in the province.
“Currently approximately 75 per cent of our forest products are exported to the U.S. from New Brunswick,” says Allen.
Nighbor says Americans need Canadian products.
“The Americans can only satisfy about 70 per cent of their own demand so they need Canadian lumber and this will drive up costs for them,” says Nighbor.
The need goes both ways, as some lumber companies rely on American customers to keep operations running. Freeman Lumber is one company that worries about the possible U.S. tariffs.
“Today we employ 185 direct employees on our site and then at our forest operation there is another 450 people that directly earn their living harvesting wood, trekking wood or hauling residual products like bark, chips or lumber from our site,” says Marcus Zwicker, Freeman Lumber’s chief operating officer.
Zwicker says the tariffs could have a devastating impact on employment.
“The average employee, if it got bad enough and our customers in the United States of America decided not to buy our product, they essentially wouldn’t have a job. At the end of the day, the majority of our revenue comes from buying wood from woodlot owners and turning that wood into lumber, of which half of it is sold to the U.S or our U.S customers and our mill operation would cease to exist,” says Zwicker.
Allen says forestry is one of New Brunswick’s largest economic drivers.
“The forest sector employs approximately 24,000 people directly and indirectly. Seven in 10 municipalities have forestry-related business in them, many of them are rural communities,” says Allen.
