FPAC report highlights forest sector’s role in strengthening Canada’s economy

Produced with the expertise of iTOTEM Analytics and in partnership with BC Council of Forest Industries (COFI), the FPAC report “Canada’s Forest Economy: An Analysis of the National Supply Chain and Community Investment Impact” highlights how 19 leading forest products companies in Canada are sustaining a network of 30,000 vendors spanning approximately 1,595 municipalities nationwide.

Together, these partnerships generated CA$14.9 billion in supply chain expenditures in 2022 alone, demonstrating a compound annual growth rate of 9.5 percent since 2020.

In alignment with the recent First Nations Major Projects Coalition Conference Valuing Reconciliation in Global Markets, the forestry sector is deeply invested in partnering with Indigenous communities across the country and learning more about how reconciliation strengthens both commercial success and project sustainability.

The forest products sector touches every corner of Canada, fueling growth in urban hubs like Montreal, Toronto, and Vancouver while serving as a pillar of economic strength for rural communities and Indigenous businesses. From Prince George to Yellowknife to St. John’s, the forest sector is an essential partner in building sustainable communities, creating jobs, and fostering innovation, said Derek Nighbor, President and CEO of FPAC.

Beyond supply chain expenditures, the study also revealed that between 2020 and 2022, the forest sector made CA$39.2 million in community investments, supporting over 2,000 organizations across 380 communities with funding for health, education, public amenities, and Indigenous initiatives.

Key findings from the FPAC report include:

• CA$14.9 billion in annual supply chain expenditures in 2022, supporting approximately 1,595 municipalities and Indigenous communities.
• 30,000 vendors, with many engaged by multiple forest companies, demonstrating an integrated national network.
• Indigenous-affiliated vendors contributed nearly CA$500 million in goods, materials, and services in 2022 – a 35.8 percent increase from 2020.
• CA$39.2 million in community investments, targeting health, education, public amenities, and Indigenous initiatives.

As our sector continues to evolve, this research helps shine a light on the outsized and interconnected role that Canada’s forest sector, along with our commitment to growing the economy and building strong partnerships across rural and urban communities alike, plays in Canada’s national economy, said Derek Nighbor.