COFI: STUDY ON SUPPLY CHAIN AND COMMUNITY BENEFITS OF FOREST SECTOR

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BRITISH COLUMBIA – A new economic study focusing on local communities across BC was released today by the BC Council of Forest Industries (COFI). This study highlights the vital role of British Columbia’s forestry industry, as it touches so many communities across the province and employs British Columbians in a wide array of jobs. In 2022, the forestry industry engaged over 9,970 suppliers and vendors across BC, resulting in $6.6 billion in expenditures on goods and services.

The reach of the forest industry in BC extends across all regions, supporting small and medium-sized businesses in both rural and urban communities. Suppliers range from manufacturers producing and servicing equipment used in mills and logging operations, to tech companies in urban centers developing innovative digital solutions. The industry’s diverse supply chain also includes communications, drones, road maintenance, safety equipment, and marketing services, among many others.

“This study demonstrates that when BC’s forest industry is performing well, it benefits communities throughout the province. Without a healthy forest economy, thousands of businesses are impacted,” said Kurt Niquidet, Vice President and Chief Economist at COFI.

“The forest industry has a diverse supply chain that supports businesses across 335 different communities,” explained Niquidet. “However, the BC forest industry faces significant challenges that threaten its stability and growth. These include greater regulatory complexity, higher costs, and uncertainty over access to the land base. The industry also needs to grapple with rapidly changing market conditions, including increased U.S. tariffs on softwood lumber.”

To measure the impact of the supply chain, COFI worked in collaboration with iTOTEM Analytics. This study was conducted over 12 months during 2023-2024 and involved 15 forest product companies operating in BC. It provides comprehensive data on the supply chain, Indigenous participation, and community investment benefits derived from the annual operating expenditures and capital investments of the forest industry. A copy of the Technical Report can be found at cofi.org

Among the Study’s key findings for 2022 were:

 	
BC’s forest sector contributed $6.6 billion to suppliers across BC in 2022, through the purchase of goods and services across the supply chain
 	
BC’s forest industry works with 9,970 companies and vendors
 	
BC’s forest industry is connected to 335 municipalities and First Nations communities
 	
BC’s forest industry spent $326 million on supply chain expenditures with Indigenous-affiliated vendors, with more than 220 Indigenous-affiliated vendors in BC
 	
BC’s forest industry has an average spend of $662,000 per vendor
 	
BC’s forest industry had $1.2 billion of expenditures on logistics and transportation
 	
BC’s forest industry had $23.2 million of total community investments from 2020-2022, benefiting more than 1,230 organizations across 165 communities

“To ensure a sustainable future for the forest sector in BC, industry stakeholders, government, First Nations, and local communities need to collaborate and find ways to address these challenges.  This will ensure the long-term viability of this foundational industry, and the ongoing benefits it brings to communities throughout the province” said Niquidet.

The Executive Summary of the report can be found here.
The full Technical report can be found here.

Source: cofi.org
    [post_title] => COFI: STUDY ON SUPPLY CHAIN AND COMMUNITY BENEFITS OF FOREST SECTOR
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BRITISH COLUMBIA – A new economic study focusing on local communities across BC was released today by the BC Council of Forest Industries (COFI). This study highlights the vital role of British Columbia’s forestry industry, as it touches so many communities across the province and employs British Columbians in a wide array of jobs. In 2022, the forestry industry engaged over 9,970 suppliers and vendors across BC, resulting in $6.6 billion in expenditures on goods and services.

The reach of the forest industry in BC extends across all regions, supporting small and medium-sized businesses in both rural and urban communities. Suppliers range from manufacturers producing and servicing equipment used in mills and logging operations, to tech companies in urban centers developing innovative digital solutions. The industry’s diverse supply chain also includes communications, drones, road maintenance, safety equipment, and marketing services, among many others.

“This study demonstrates that when BC’s forest industry is performing well, it benefits communities throughout the province. Without a healthy forest economy, thousands of businesses are impacted,” said Kurt Niquidet, Vice President and Chief Economist at COFI.

“The forest industry has a diverse supply chain that supports businesses across 335 different communities,” explained Niquidet. “However, the BC forest industry faces significant challenges that threaten its stability and growth. These include greater regulatory complexity, higher costs, and uncertainty over access to the land base. The industry also needs to grapple with rapidly changing market conditions, including increased U.S. tariffs on softwood lumber.”

To measure the impact of the supply chain, COFI worked in collaboration with iTOTEM Analytics. This study was conducted over 12 months during 2023-2024 and involved 15 forest product companies operating in BC. It provides comprehensive data on the supply chain, Indigenous participation, and community investment benefits derived from the annual operating expenditures and capital investments of the forest industry. A copy of the Technical Report can be found at cofi.org

Among the Study’s key findings for 2022 were:

• BC’s forest sector contributed $6.6 billion to suppliers across BC in 2022, through the purchase of goods and services across the supply chain
• BC’s forest industry works with 9,970 companies and vendors
• BC’s forest industry is connected to 335 municipalities and First Nations communities
• BC’s forest industry spent $326 million on supply chain expenditures with Indigenous-affiliated vendors, with more than 220 Indigenous-affiliated vendors in BC
• BC’s forest industry has an average spend of $662,000 per vendor
• BC’s forest industry had $1.2 billion of expenditures on logistics and transportation
• BC’s forest industry had $23.2 million of total community investments from 2020-2022, benefiting more than 1,230 organizations across 165 communities

“To ensure a sustainable future for the forest sector in BC, industry stakeholders, government, First Nations, and local communities need to collaborate and find ways to address these challenges.  This will ensure the long-term viability of this foundational industry, and the ongoing benefits it brings to communities throughout the province” said Niquidet.

The Executive Summary of the report can be found here.
The full Technical report can be found here.

Source: cofi.org