Challenges and Opportunities in the Forest Products Sector Economic Developers Alberta Kananaskis Thursday April 9, 2015 1 Forest Products Association.

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Presentation transcript:

Challenges and Opportunities in the Forest Products Sector Economic Developers Alberta Kananaskis Thursday April 9, Forest Products Association of Canada | Association des produits forestiers du Canada |

Natural Resources: A Global Product Forest Products Association of Canada | Association des produits forestiers du Canada | 2

Resource Development Economy Forest Products Association of Canada | Association des produits forestiers du Canada | 3

Perfect Storm- mid 2000s Global financial crisis/ economic downturn Decline in US housing starts Appreciation of Canadian dollar Decline in newsprint demand Growing international competition Forest Products Association of Canada | Association des produits forestiers du Canada | 4

Result: Decline in GDP and Exports

Climbing back from the recession

Forest Products Industry: Alberta 7 Forest Products Association of Canada | Association des produits forestiers du Canada | $5.3 Billion industry 20,000 employees Boyle Alberta

Alberta Forest Sector Averaged 7.65 percent growth since 2010

Vision2020 Goals Generate an additional $20 billion in economic activity from new innovations and new markets Products Deliver a further 35% improvement in the sector’s environmental footprint Performance Renew the workforce with at least 60,000 new recruits including women, Aboriginals and immigrants People 9

Diversified Markets Export now to more than 180 countries Forest Products Association of Canada | Association des produits forestiers du Canada | 10

Exports 2004 and 2014

Vision2020 product goal = Innovation Forest Products Association of Canada | Association des produits forestiers du Canada | 12

New Products Forest Products Association of Canada | Association des produits forestiers du Canada | 13

Economic Goal: Products Canada first: Lignin separation West Fraser plant, Hinton Alberta Forest Products Association of Canada | Association des produits forestiers du Canada | 14

Nano application for the oil patch. Use of nano-crystalline cellulose to enhance productivity of oil and gas wells. Forest Products Association of Canada | Association des produits forestiers du Canada | 15

New Products 16 Forest Products Association of Canada | Association des produits forestiers du Canada |

Product Innovation Forest Products Association of Canada | Association des produits forestiers du Canada | 17

Innovating for the Environment Forest Products Association of Canada | Association des produits forestiers du Canada | 18

At the Mill Greenhouse gases down 70% since 1990 Air pollutants down 52% since 2005 Water pollutants down 70% since Toxics as PCBs and dioxins eliminated. Use of coal eliminated Oil use cut by more than 90% since Forest Products Association of Canada | Association des produits forestiers du Canada | 19

Recycling Canada recycles almost 70% of its paper and cardboard, making Canada among the top countries in the world. Waste to landfill has been reduced by 30% since 2005 Forest Products Association of Canada | Association des produits forestiers du Canada | 20

A New Paradigm Forest Products Association of Canada | Association des produits forestiers du Canada | 21

Canadian sector #1 reputation in world Forest Products Association of Canada | Association des produits forestiers du Canada | 22

Admitting there’s a way to go Forest Products Association of Canada | Association des produits forestiers du Canada | 23

Future of Forestry Forest Products Association of Canada | Association des produits forestiers du Canada | 24

Back to Community Development Forest Products Association of Canada | Association des produits forestiers du Canada | 25

Community Economic Development in the Resource Sector 1. Recognize the commodity cycle in the Global Economy 2. Recognize the life cycle of the resource; (20 year mine is a camp but 200 years of forest is sustainable development) 3. Attract employees (not just workers) and build for families. 4. Innovation isn't just products but markets and processes. 5. Celebrate your credentials but continuously improve. Globally competitive means global competition Forest Products Association of Canada | Association des produits forestiers du Canada | 26