Forestry

The Mackenzie region is the province’s fifth largest producer of forest products, such as lumber.  In 2009, the region accounted for 6.0% of all the wood fiber processed in the province.  As a result, the region’s largest manufacturing sector is wood products (mainly lumber).    

All of the 1.3 million cubic metres of logs consumed by this manufacturing sector in the Mackenzie region in 2009 was used to produce lumber.  Lumber production fell by 24% between 2005 and 2009.   

In 2009, forestry accounted for an estimated 1,000 jobs (direct plus indirect and induced jobs) in the region, down from nearly 2,200 jobs in 2005.  About 350 of these jobs are direct jobs (processing jobs), a 50% decline from 2005.  In Census year 2006, total employment in the region was 8,125.  As the forestry sector accounted for an estimated 1,900 (direct plus indirect and induced jobs) in the same year, about 23% of the region’s jobs are directly or indirectly related to the forestry industry.  The loss of about 50% of forestry employment between 2006 and 2009 would have a serious impact on the entire region.

Over the past four years, the value of shipments by Alberta’s wood products sector fell by one-half, mainly because of the precipitous decline of the U.S. housing market.  Between the first quarter of 2006 and the first quarter of 2009, U.S. housing starts fell from more than two million starts (on an annual basis) to fewer than 600,000 starts.  During the past 18 months starts have remained in the 500,000 to 600,000 range.  Canadian housing starts fell by one-half between mid-2008 and mid-2009, but have recovered most of their losses since then.  Alberta housing starts also peaked in 2006, and fell by more than one-half between 2006 and 2009.  Since then they have recovered strongly, but are not expected to return to 2006 levels over the near future.

The value of shipments by the Mackenzie region’s wood products sector totaled about $175 million in 2009, a 49% decrease from 2005.

The global economic and U.S. housing crises have had a profound impact on forest product prices.  Prices for lumber had dropped by more than one-half between early 2006 and the early of 2009.  However, these prices have increased sharply by about one-third since then. 

Date Updated:
RDP-2432