In 1991, forestry employed one in eleven workers, but by 1994, only one in sixteen workers had jobs in BC's forest sector
It is hardly surprising, given the abundance of forest resources in this province, that forestry has played an important role in the development of the province's economy since the middle of the last century. The forest industry includes a variety of activities ranging from primary logging to manufacturing such as millwork or the production of paper or furniture. Virtually every community in British Columbia relies to some degree on this industry. But the forest industry has been undergoing tremendous changes. Thirty years ago, millwork was mainly done in small mills located near the forest resource. Many of these small mills have closed and timber is now being shipped for processing by more efficient larger mills in central locations. Thirty years ago, our major trading partners were in the United States and Europe. Now, countries like Japan, Korea, and other Asian nations account for a larger share of our exports than Europe.
Due to its reliance on world markets, the forest industry is particularly susceptible to economic upswings and downturns in countries like Japan and the United States. The forest industry is also facing a number of challenges such as coping with concerns about the environment and dealing with competition from other producers of wood and paper in Europe and Asia. New technology and changes in the demand for forest products have also had a major impact on BC's forest industry.
In 1991, forestry employed one in eleven workers, but by 1994, only
one in sixteen workers had jobs in BC's forest sector
The average worker in the logging industry spent 38 hours on the job and earned $816 per week in 1994. Those employed in the wood processing industry earned an average $741 for a 36-hour week, while workers in the paper products industry earned $970, on average, for a 38-hour week.
A third of the occupations in the forest sector involve product
fabricating and processing
Not surprisingly, self-employment is considerably more common in the logging industry than in forest-related manufacturing. One in five workers in primary industries (forestry, fishing and mining) is self-employed, compared to one in fourteen workers in the manufacturing sector. The set-up costs for establishing a logging operation tend to be lower than in the wood and paper manufacturing industries.
The size of establishments in the forest sector varies between its component industries. Most logging establishments in BC are small businesses. In 1994, there were 3,900 logging establishments in the province, and 3,500 of them had fewer than 20 employees. There are also large businesses in the logging industry, though: 15 establishments had more than 200 employees in 1994.
Establishments in the wood and paper manufacturing industries tend to be larger. In 1994, 52 of BC's 1,300 wood-manufacturing establishments had at least 200 workers. In the paper industry, about a fifth of the 130 paper establishments had more than 200 employees. There are relatively few furniture manufacturers in the province, and most of them have less than 20 workers.
Although logging activities occur in most parts of the province, more than half of forest-related manufacturing in BC occurs in the Vancouver Island and the Mainland areas. About 40% of the work force in the paper industry is located in Vancouver Island, mainly in the central and northern areas of the island, with another 25% of workers in this industry located in the Mainland/Southwest Region of the province. Another 15% of the labour force in the paper industry is located in the Cariboo Region.
In wood manufacturing, about a third of the experienced labour force is located in the area around the Lower Mainland. The Cariboo (17%), Thompson-Okanagan (16%) and Vancouver Island/Coast (15%) Regions also account for fairly large shares of the province's work force in this industry.
By the year 2005, it's expected that the forest sector will employ
only one in twenty workers in BC
How can GDP in an industry increase even when the industry's employment has declined? This happens when workers are able to produce more output per person. Changes in production methods might allow workers to process materials more efficiently, or automation could result in fewer workers being required to produce the industry's output.
It is reasonable to expect that the forest sector will continue to be one of BC's most important industries. However, as the economy continues to evolve, resource-based industries like forestry and its related manufacturing activities are likely to play a smaller role in the economy.