Indicator: Secondary manufacturing

In 2016, the secondary wood and paper product industries in Canada generated over $6.3 billion in real gross domestic product (GDP). This was a 2% increase from 2015 but still 11% less than 2006.

  • Secondary wood manufacturing increased by 7% in 2016 from 2015, while secondary paper manufacturing fell by 2%.
  • Secondary manufacturing accounted for 36% of the total contribution of forest product manufacturing to GDP in 2016, the same as in 2015.

Secondary wood and paper product manufacturing uses lumber and paper to make intermediate and final products such as doors and envelopes.

Gross domestic product from primary and secondary
wood and paper product industries, 2006–2016
Graph displaying the gross domestic product in billions of dollars from primary and secondary wood and paper product industries for each year between 2006 and 2016.
Graph data
Table displays the value added in millions of Canadian dollars from primary and secondary wood and paper product industries for each year between 2006 and 2016.
Year Secondary wood Secondary paper Primary wood Primary paper
2006 3,435 3,659 7,135 5,758
2007 3,411 3,482 6,291 5,822
2008 3,157 3,304 5,524 5,362
2009 2,546 3,039 4,635 4,023
2010 2,448 2,998 5,182 4,703
2011 2,587 2,905 5,228 4,525
2012 2,679 3,057 5,446 3,976
2013 2,749 3,175 6,033 3,596
2014 2,744 3,275 6,458 3,741
2015 2,737 3,493 7,034 3,924
2016 2,924 3,422 7,530 3,870

Why is this indicator important?

  • Secondary manufacturing of forest products generates additional employment and revenue, which in turn increases the overall contribution that the forest industry makes to the Canadian economy.
  • Secondary manufacturing, being geared mainly to domestic markets that tend to be more stable than the primary products geared to international demand, helps balance out changes in world markets.

What is the outlook?

  • Demand is expected to be stable for secondary paper products, given the steady growth of the North American economy.
  • Demand is expected to grow for secondary wood products as the U.S. housing market continues to expand.
  • However, this favourable outlook for both segments is tempered by the increase in competition from low-cost international producers and possible cooling in the domestic housing market.
Sources
Notes
  • Data based on chained (2007) dollars.
  • Industry Canada defines “value added” as a measure of net output, meaning gross output minus the purchased inputs that have been embodied in the value of the product.
  • Domestic consumption is calculated as domestic sales minus exports plus imports.