BC leads wood products industry into profitable territory
Aug. 12, 2013 - Total sales in the wood product industry were up 19.7 per cent over the 12-month period from June 2012 to May 2013, compared with the same period one year earlier. Wood product manufacturing was one of only eight industries where sales increased from June 2012 to May 2013.
Higher prices and volumes were both factors in the increased sales in the wood product industry, as foreign demand rose. From June 2012 to May 2013, the average Industrial Product Price Index (IPPI) for the wood industry was 9.2 per cent higher than the previous year, and was at its highest point since 2005/2006.
The sawmills and wood preservation was the main source of growth over the 12-month period accounting for $10.6 billion in total sales and up $2.0 billion from the same period a year earlier. Sales reached their highest level since 2006/2007.
Healthy wood industry sales (46.8 per cent) were attributable to higher exports to the United States as well as higher prices thanks to growth in the US housing market. Exports from sawmills and the wood preservation industry to the United States increased 36.9 per cent from June 2012 to May 2013, up $1.2 billion from the same period one year earlier.
BC tops the list
From June 2012 to May 2013, BC was responsible for 33.2 per cent of national wood product manufacturing sales. From June 2012 to May 2013, sales rose $1.4 billion to $7.5 billion, up 22.9 per cent from the same period one year earlier.
Quebec maintained its role as the second largest producer of wood manufacturing products in Canada from June 2012 to May 2013, accounting for 25.7 per cent of the national total. Over the 12-month period, the sawmills and wood preservation sub-industry also accounted for the largest share of wood product manufacturing sales in the province, at 39.7 per cent.
Alberta surpassed Ontario as the third largest manufacturer of wood products. From June 2012 to May 2013, Alberta accounted for 15.7 per cent of all sales nationally, compared with Ontario's 14.8 per cent share.
August 12, 2013 By Canadian Forest Industries
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