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.
|Year||Secondary wood||Secondary paper||Primary wood||Primary paper|
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.
- Industry Canada. Trade data online. (accessed March 27, 2017).
- Statistics Canada. CANSIM table 304-0014: Manufacturers’ sales, inventories, orders and inventory to sales ratios, by North American Industry Classification System (NAICS), Canada. (accessedMarch 27, 2017).
- Statistics Canada. CANSIM table 379-0031: Gross domestic product (GDP) at basic prices, by North American Industry Classification System (NAICS). (accessed March 27, 2017).
- 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.
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