Industry Analysis & Industry Trends
The Logging industry in Canada supplies primary wood inputs to sawmills and paper mills for further processing. In the past five years, a boost in construction activity in the United States and Canada has strengthened demand for timber. However, a continued decline in paper usage has led demand from paper mills to plummet in the past five years, partially stemming revenue growth. Despite growing demand, threats to the industry loom. For the past two decades, an epidemic of mountain pine beetles has devastated forests in British Columbia and Alberta. Dead trees are still harvestable for eight to 12 years before they begin to deteriorate, but the vastly depleted stock is expected to catch up with the industry in the next five years... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Logging industry in Canada is in the mature phase of its life cycle. Industry value added, a measure of the industry's contribution to the overall economy, is forecast to decline at an annualized rate of 0.2% in the 10 years to 2021. By comparison, Canada's GDP is expected to grow an annualized 1.9% over the same period. The similar growth rates are an indication of a mature industry.
The majority of the industry's products are used as inputs for construction materials. While periodic swings in construction markets can cause the level of construction activity to decrease or increase dramatically, in the long run, construction is an integral part of the US and Canadian economies to which the industry supplies timber, and demand from this sector is here to stay... purchase to read more