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 Investment Chapter
The Logging industry has a relatively high level of capital intensity. Capital investment is mainly in vehicles and logging equipment. Typical logging equipment includes logging trucks, chippers, stump cutters, log skidders, log splitters, delimbers, grinders and saws. Investment in capital equipment declined in the early part of the past five years as demand was depressed, and operators had more equipment than they could use. However, as production picked back up, companies were more likely to invest in capital equipment to mechanize their businesses, relying less on a large staff of specialized workers.
Although capital investment declined, industry operators also reduced labour expenses over the past five years... purchase to read more