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 Key Buyers Chapter
The Logging industry has a low level of market share concentration, with no single company holding more than 5.0% of the industry's revenue. The logging industry is for the most part highly localized. Companies normally deliver logs and other wood products to mills within a 200-mile radius, and the average establishment in the industry has about four workers.
Furthermore, much of the logging done in Canada is conducted on a contract basis. According to the latest data available from Statistics Canada, in 2013, 61.1% of industry establishments were loggers that operated on a contract basis, cutting timber on a fee, often from a downstream wood products manufacturer looking to outsource logging operations... purchase to read more