2. This is a primary industry engaged in growing and harvesting timber on a long production cycle of ten years or more. Industries in this subsector specialize in different stages of the production cycle- Reforestation, Timber production and The harvesting of timber. Production of wood products, pulp and paper are not included in this industry. Timber Tract Operations Primarily engaged in the operation of timber tracts, for the purpose of selling standing timber. Forest Nurseries and Gathering of Forest Products Primarily engaged in growing trees for the purpose of reforestation, and those primarily engaged in gathering forest products. Logging Primarily engaged in cutting timber, producing rough, round, hewn, or riven primary wood, and producing wood chips in the forest.

3. Number of employer establishments by employment size category and region: December 2013 Forestry and Logging (NAICS 113) Province or TerritoryEmployment Size Category (Number of employees) Micro 1-4 Small 5-99 Medium 100- 499 Large 500+ Alberta25214350 British Columbia1,082679151 Manitoba232000 New Brunswick25612220 Newfoundland and Labrador 212600 Northwest Territories1100 Nova Scotia1695500 Nunavut0000 Ontario43421460 Prince Edward Island10500 Quebec725448110 Saskatchewan322500 Yukon Territory1100 CANADA3,0061,739391 Percent Distribution62.8%36.3%0.8%0.0% Source : Statistics Canada, Canadian Business Patterns Database, December 2013 http://cwc.ca/wp-content/uploads/visuallygraded-forest_map-big.gif

4. 20102011201220132014 China28.73%48.98%44.06%49.54%48.63% Japan31.77%17.10%23.14%22.39%22.61% United States17.32%12.02%17.65%13.09%14.53% Korea, South18.90%20.00%13.73%13.16%13.20% Taiwan0.91%0.54%0.51%0.85%0.69% Netherlands0.20%0.01%0.53%0.39%0.18% Germany0.35%0.09%0.13%0.06%0.03% Australia-- 0.02%0.03% Pakistan0.03%0.02%0.01% 0.02% Vietnam0.03%0.01% --0.02% Sub-total98.25%98.77%99.77%99.51%99.95% Others1.75%1.23%0.23%0.49%0.05% Total All Countries100.00% CANADIAN TOTAL EXPORTS NAICS 113 - Forestry and Logging TOP 10 Countries, Latest 5 years Data Source: Statistics Canada & US Census Bureau Source : Statistics Canada, Canadian Business Patterns Database, December 2013

5. Worldwide economic downturn and Environmental concernDecline in North American newsprint demandIncreased competition from other low cost forest product suppliers. Industry integration and business synergy can reduce the cost of operation.Product and process innovation to strengthen the competitivenessNon-traditional products and services (Bioenergy, bioproducts and biochemicals)Entering new markets.Development of more secondary industry can reduce the amount of imports.Sustainable forest management practices at every stage of production Source: Natural Resource Canada retrieved from http://www.nrcan.gc.ca/forests/industry/13305