APEC: There's hope for N.B. forest industry
Published Wednesday August 20th, 2008
New Brunswick's forestry industry needs more wood, more skilled workers, cheaper energy and more value-added products, says a new report by the Atlantic Provinces Economic Council.
The report, entitled Building Competitiveness in Atlantic Canada's Forest Industries: A Strategy for Future Prosperity, was released in Fredericton on Tuesday.
"The forest industry in Atlantic Canada cannot remain as it is," said Elizabeth Beale, president of the economic council.
"A fundamental restructuring is already underway and further changes are required if the industry is to remain viable," she said.
Beale said the council decided to release the report in Fredericton because the sector is so important to New Brunswick.
The study states the region's forest industry is under enormous pressures from low-cost producers in other parts of the global economy, the weak housing market in the United States, shrinking markets for newsprint, the rise of the Canadian dollar and high energy costs.
Employment in the sector has tumbled 20 per cent, or 7,000 jobs, since 2004, said Beale. New Brunswick still has the region's highest number of workers in the sector at 16,500 employees.
The economic council is making eight recommendations to improve the industry, including setting up a new Atlantic Forestry Industry Task Force. The new group will be under the leadership of industry officials and the provincial government and will develop new markets and products and make tax changes to encourage productivity growth.
"Both the forestry industry and its government partners need to focus on the long term," said Beale.
She said the industry has to be part of the task force process.
"They are the ones that have their necks on the line," said Beale.
It also calls for:
* a five-year, value-added initiative to help smaller companies;
* setting clear goals for the wood supply;
* more wood from private woodlots;
* reduce reliance on fossil fuels;
* position the industry as an environmental leader;
* set up a new, independent watchdog to review industry compliance with provincial regulations;
* boost the supply of skilled workers by tapping into non-traditional sources of labour such as First Nations' communities
* and raising funding for community colleges.
When it comes to increasing the wood supply, Beale said spending more on silviculture is vital.
But the provincial government slashed silviculture funding on private woodlots.
She said having a high percentage of private woodlot owners in New Brunswick is an asset, and there needs to be more work done to make those woodlots more productive.
The study does not give a cost estimate for implementing the recommendations.
Mark Arsenault, president and CEO of the New Brunswick Forest Products Association, said this study differs from previous assessments because it's upbeat about the future.
"What strikes me the most is her position that this is not a sunset industry," he said. "That there is an incredible amount of potential."
Arsenault said the challenges facing the industry can be overcome. Forestry is still the largest industry in this province and there is room for growth because of new technology, he said.
"Overall I am optimistic about the future of forestry," said Arsenault. "It is a good analysis of the current situation."
University of New Brunswick forestry policy Prof. Don Floyd said the report shows there are a lot of reasons to be optimistic about the long-term future of New Brunswick's forest industry.
"They have done a good job in terms of identifying what some of those potentials are," he said.
Floyd said the report reiterates a lot of things that have been stated in previous reports.
"There is a consistent message here in terms of the way that the industry needs to change and the kinds of public involvement we need to have in order to make things different," he said.
New Brunswick needs a competitive forest industry with healthy sustainable private and Crown forests, said Floyd.
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