New Report Highlights Forest Sector’s Vital Role in Strengthening Canada’s Economy from Coast to Coast

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April 28, 2025

Forest Products Association of Canada (FPAC) is proud to release a new national research report, titled Canada’s Forest Economy: An Analysis of the National Supply Chain and Community Investment Impact, which underscores the forest sector’s vital contributions to Canada’s economy, rural development, and urban sustainability.

Produced with the expertise of iTOTEM Analytics and in partnership with BC Council of Forest Industries (COFI) – the report 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 $14.9 billion in supply chain expenditures in 2022 alone, demonstrating a compound annual growth rate of 9.5% since 2020. In alignment with the First Nations Major Projects Coalition Conference Valuing Reconciliation in Global Markets happening this week, the forestry sector is deeply invested in partnering with Indigenous communities across the country and learning more on how reconciliation strengthens both commercial success & 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,” said FPAC President and CEO Derek Nighbor. “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.”

Beyond supply chain expenditures, the study also revealed that between 2020 and 2022, the forest sector made $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 Report:

• $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 $500M in goods, materials and services in 2022 – a 35.8% increase from 2020.

• $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,” added Nighbor.

The full report is available for download here.

FPAC provides a voice for Canada’s wood, pulp, and paper producers nationally and internationally in government, trade, and environmental affairs. As an industry with annual revenues exceeding $87.2B, Canada’s forest products sector is one of the country’s largest employers—providing 200,000 direct jobs and operating in hundreds of communities across the country. Our members are committed to collaborating with Indigenous leaders, government bodies, and other key stakeholders to develop a cross-Canada action plan aimed at advancing forest health, while supporting workers, communities and our environment for the long term.

For more information contact:
Kerry Patterson-Baker
Vice President, Communications and Public Affairs
kpatterson-baker@fpac.ca
(613) 563-1441 x 314
Follow FPAC on X (Twitter): @FPAC_APFC
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