REPORT SHOWS FORESTRY’S ROLE IN DRIVING ECONOMIC AND ENVIRONMENTAL RESILIENCE ACROSS CANADA

May 1, 2025

Derek Nighbor is FPAC President and CEO

BRITISH COLUMBIA – The Forest Products Association of Canada (FPAC) has released a new national research report, titled Canada’s Forest Economy: An Analysis of the National Supply Chain and Community Investment Impact.

The report emphasizes the forestry sector’s contributions to Canada’s economy, rural development, and urban sustainability and highlights how 19 of the country’s leading forest product companies support a vast supply chain network of 30,000 vendors operating in approximately 1,595 municipalities across Canada.

In 2022 alone, these business relationships accounted for $14.9 billion in supply chain expenditures, reflecting a compound annual growth rate of 9.5% since 2020. This steady increase signals the industry’s expanding influence and its critical role in Canada’s economic fabric.

Coinciding with the First Nations Major Projects Coalition Conference Valuing Reconciliation in Global Markets taking place this week, the forest sector continues to prioritize collaboration with Indigenous communities. These partnerships are helping to build stronger relationships and advance reconciliation, while also enhancing commercial outcomes and long-term sustainability.

“The forest products sector touches every corner of Canada – fueling growth in urban hubs like Montreal, Toronto, and Vancouver while serving as a pillar of economic strength for rural communities and Indigenous businesses,” said FPAC President and CEO Derek Nighbor. “From Prince George to Yellowknife to St. John’s, the forest sector is an essential partner in building sustainable communities, creating jobs, and fostering innovation.”

In addition to economic contributions through supply chains, the report reveals that the forest sector invested $39.2 million in Canadian communities between 2020 and 2022. These funds supported over 2,000 organizations across 380 communities, with funding directed to health, education, public infrastructure, and Indigenous-led initiatives.

 

Key Findings from the Report:

  • $14.9 billion in annual supply chain expenditures in 2022, supporting approximately 1,595 municipalities and Indigenous communities.
  • 30,000 vendors, with many engaged by multiple forest companies, demonstrating an integrated national network.
  • Indigenous-affiliated vendors contributed nearly $500M in goods, materials and services in 2022 – a 35.8% increase from 2020.
  • $39.2 million in community investments, targeting health, education, public amenities, and Indigenous initiatives.

“As our sector continues to evolve, this research helps shine a light on the outsized and interconnected role that Canada’s forest sector, along with our commitment to growing the economy and building strong partnerships across rural and urban communities alike, plays in Canada’s national economy,” added Nighbor.

The report was produced in partnership with iTOTEM Analytics and the BC Council of Forest Industries (COFI).

The full report is available for download here.

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