COLUMN: Forestry at the heart of B.C.’s export economy

Jock Finlayson is the exectuive vice president and chief policy officer of the Business Council of BC

The B.C. forest industry is grappling with challenging market conditions and recent provincial government actions that have increased costs and made it harder to do business. That is worrisome. Forestry is a sustainable, high-wage industry that is the mainstay of many regional economies across B.C. – particularly outside of the lower mainland and Greater Victoria.

The activities that take place across all segments of the forest products sector combined account for $13 billion of B.C.’s economic output (GDP), provide direct employment for up to 60,000 British Columbians, and pay $4 billion a year in taxes, royalties and fees to various levels of government. Another 70,000-80,000 jobs also depend on forestry because of the industry’s extensive linkages with other sectors of the B.C. economy. According to a new economic study, in five of seven B.C. regions forestry supports between 8 per cent and 22 per cent of all jobs. By any measure, the industry packs a substantial economic punch.

Below, I discuss one important way forestry is critical to our economy: its outsized place in B.C.’s exports.

British Columbia is a small market that relies on trade for its economic well-being. Exports of goods and services amount to about one-third of the province’s GDP. These exports furnish the economic wherewithal that enables our households, businesses and public institutions to pay for imports of a wide array of goods and services – everything from vehicles, medical devices, and pharmaceuticals to IT equipment, consumer electronic products, digital services, clothing, and many foodstuffs.

As a small jurisdiction, B.C. needs to pay close attention to the performance and prospects of its “traded industry clusters.” These industries produce goods and services for sale outside of the province – globally, and across the country. Traded industries are vital to the province’s overall prosperity.

Today, forestry ranks as B.C.’s biggest traded industry, and by a significant margin.

The figure below shows the average share of forest products in B.C.’s total merchandise exports, measured on a three-year rolling basis starting in 2009 and ending in 2017. Despite the province’s increasingly diversified economy, forestry continues to loom large as a source of exports, generating 31-35 per cent of the earnings that B.C. reaps from selling goods abroad every year. The annual figures bounce around based on trends in commodity markets, the exchange rate, and foreign demand for B.C. exports.

It may surprise some readers to discover that forestry’s contribution to B.C.’s merchandise exports hasn’t fallen, even though other industries – e.g., energy, agriculture, and high technology – have gained a higher profile. Indeed, if anything, forestry’s place in B.C.’s merchandise export mix has expanded slightly since 2009.

The accompanying table provides more detail on B.C.’s forestry-based exports as of 2017. Lumber and pulp are the top export categories, followed by logs, panel products and paper.

The information summarized above underscores two key points.

First, forestry is still the province’s leading industry, based on the value of exports. Second, forestry’s place within B.C.’s export portfolio has not diminished by much over the past decade, contrary to what many people may believe.

Jock Finlayson is executive vice president and chief policy officer of the Business Council of British Columbia

www.facebook.com

 

Just Posted

Theft of gas from Fairwinds golf course results in environmental damage

Approximately 400 litres seeped into nearby areas, including ponds

LETTER TO THE EDITOR: City has an obligation as far as pedestrian safety

This is about ensuring the basic physical safety of our citizens, says letter writer

UPDATE: Deer that may have been hunted in area known for chronic wasting disease located

Conservation officers made urgent request for any info about hunters thought to be from Nanaimo

Nanaimo hospital foundation trying to Light the Trees to combat colon cancer

December campaign calls for donations to build new $1.5-million endoscopy suite at NRGH

Nanaimo Hornets to play first-ever quadruple-header

Hornets women and three men’s squads in action Saturday, Nov. 23, at Pioneer Park

Fashion Fridays: Holiday outfits on a budget

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Beefs & Bouquets, Nov. 21

To submit a beef or a bouquet to the Nanaimo News Bulletin, e-mail bulletinboard@nanaimobulletin.com

B.C.’s largest catholic archdiocese names 9 clergymen in sex abuse report; probes ongoing

Vancouver Archdioces presides over 443,000 parishoners in B.C.

City of Nanaimo budget talks underway, projected tax increase up to 5.6 per cent

Series of special finance and audit meetings was held Wednesday at conference centre

One person injured in rollover crash on Nanaimo Parkway

Accident happened a little after noon in southbound lanes near Cedar Road

Eagles congregate around Salish Sea for one last feast before period of famine

Mountainaire Avian Rescue Society preparing to receive birds in need of care

Canadian Forces member charged with possessing magic mushrooms in Comox

Master Cpl. Joshua Alexander, with the 407 Maritime Patrol Squadron, facing two drug related charges

Most B.C. residents, including those hit by 2018 storms, not prepared for outages: report

Create an emergency kit, BC Hydro says, and report all outages or downed lines

Study finds microplastics in all remote Arctic beluga whales tested

Lead author Rhiannon Moore says she wasn’t expecting to see so many microplastics so far north

Most Read