Strategic Outcome: Economic Competitiveness
Expected Result: Natural resource sectors are internationally competitive, economically productive,
and contribute to the social well-being of Canadians.
Program Activity: Economic Opportunities for Natural Resources
Expected Result: Competitive national and international markets, stable economic
opportunity and investment in natural resources
Program Sub-Activity: Securing Forest Products Markets (PAA 1.1.2)
Expected results: Secured global markets for Canadian forest products
2010-11 evaluation covers:
Market Development Component:
2011-12 evaluation will cover:
Market Access Component:
Exhibit 3 shows a composite logic model containing the activities, outputs, immediate, intermediate, and final logic model outcomes for each of the three evaluated Forest Products Market Development programs (i.e., CWEP, NAWF, and VW). Each activity, Output and Outcome is in a box.
Under CWEP, activities include market development (e.g., trade missions, fairs, market research), international market presence (e.g., establishing foreign offices), and technology support (e.g., testing against foreign codes and standards, technical barriers, and training). CWEP market development outputs include missions, demonstration buildings studies, promotional events. International market presence outputs include offices staffed by experts. Technology support outputs include test results, reports, and building code revision recommendations.
Under NAWF, activities include testing, technology transfer (e.g., demonstrations, skills training seminars, and onsite QA), market research (e.g., benchmarking studies, strategy development), addressing technical barriers (e.g., standards, missions, tours, co-ordination), and marketing communication (e.g., participation in international events, curriculum, and training). NAWF testing outputs include the testing results. Technology transfer outputs include process demonstrations, and technical guidance materials. Market research outputs include market studies, strategies, and opportunities. Addressing technical barriers outputs include meeting minutes, reports, and tours. Marketing communication outputs include promotional materials, articles, ads, databases, and awards.
Under VW, activities include research (e.g., technology development) and technology transfer. VW research outputs include new and improved manufacturing products, processes, and market research. Technology transfer outputs include technical workshops, publications, mill visits, and training.
The immediate outcomes associated with CWEP, NAWF and VW are 1) Increased awareness of target markets by Canadian industry for residential and non-residential construction, or value-added manufacturing; and 2) Increased cooperation, collaboration and efficiencies among Canadian suppliers/ stakeholders. The immediate outcomes associated only with CWEP and NAWF are 3) Increased awareness in target markets about Canadian wood products (i.e., branding); 4) Increased awareness of Canadian wood attributes by construction regulation or standards bodies; and 5) Increased capacity by builders, architects etc. to use wood products. The immediate outcomes associated only with VW are 6) Production efficiencies for Canadian producers; and 7) New product and process development.
The intermediate outcomes associated with CWEP, NAWF and VW are 8) Increased pursuit of new markets, export profile or readiness by Canadian suppliers; and 9) Increased ability to respond to changes in target markets for wood products (construction and/or value-added). The intermediate outcomes associated only with CWEP and NAWF are 10) Removal of technological restraints on trade in target markets and acceptance of Canadian products and building systems in codes and standards; and 11) Increased receptiveness of target markets to Canadian products.
The ultimate outcome associated with CWEP and NAWF is 12) Increased Canadian wood product use/ exports in target markets. The ultimate outcome associated only with NAWF is 13) increased use of wood in North American non-residential construction (shopping centers, schools, hospitals). The ultimate outcome associated only with VW 14) is improved quality and diversity of value-added wood products and processes available.
Exhibit 4 shows a diagram of the program structure for CWEP. Each group identified in the structure is in a box with arrows indicating the linkages between groups. The Wood Markets Management Committee provides strategic direction and guidance on the management of CWEP to the CFS-Wood Markets Secretariat. The Secretariat administers the program and monitors the contribution agreements with Wood Products Associations and the Canada Wood Group, who propose projects for the contribution agreement funding and undertake program activities in target markets. The association members are companies in the Canadian wood products industry, who provide guidance to their associations and are able to sell wood products in the target international markets where activities have influence. Influence occurs among builders, architects, buyers, and standards bodies in target markets. The CFS-Wood Markets Secretariat also receives industry advice on program design and delivery from the Joint FII-NRCan Senior Industry Advisory Committee. A Program Advisory Committee evaluates and makes recommendations on proposals for projects once they have been screened in by the Wood Markets Secretariat. Provincial government partners with their own programs also provide funds to support projects proposed for CWEP funding by the associations.
Exhibit 7 shows a pie chart with the allocation of NRCan CWEP funding to each target market from 2006-07 to 2009-10. The total NRCan CWEP funding for all markets was $28 million from 2006-07 to 2009-10. Funding for Japan was 34.7%. Funding for China was 29.7%. Funding for Europe was 17.2%. Funding for South Korea was 10.04%. Funding for Australia and New Zealand was 2.0%. Funding for the Middle East was 0.4%. Funding for all other markets was 5.6%.
Exhibit 9 shows a diagram of the program structure for NAWF. Each group identified in the structure is in a box with arrows indicating the linkages between groups. The Wood Markets Management Committee provides strategic direction and guidance on the management of NAWF to the CFS-Wood Markets Secretariat. The Secretariat administers the program and monitors the contribution agreements with Canadian Wood Products Associations and the Wood Products Council, who propose projects for the contribution agreement funding and undertake Wood Works program activities in target markets. The association members are companies in the Canadian wood products industry, who provide guidance to their associations and are able to sell wood products in the target Canadian and U.S. markets where activities have influence. Influence occurs among builders, architects, buyers, and standards bodies in target markets. The CFS-Wood Markets Secretariat also receives industry advice on program design and delivery from the Joint FII-NRCan Senior Industry Advisory Committee. A Program Advisory Committee evaluates and makes recommendations on proposals for projects once they have been screened in by the Wood Markets Secretariat. Provincial government partners with their own programs also provide funds to support projects proposed for NAWF funding by the associations.
Exhibit 13 shows a diagram of the program structure for VW. Each group identified in the structure is in a box with arrows indicating the linkages between groups. CFS administers the Technology Development and Technology Transfer halves of the program. On the Technology Development side they and monitor the contribution agreements with FPInnovations and Universities who develop research proposals and conduct research. Proposals are submitted to the Research Advisory Committee who prioritize and recommend to CFS approval of projects based on relevance of research proposals to industry needs. Value added wood products manufacturers provide resources to support research. FPInnovations reports research results to industry through its technology transfer activities. On the Technology Transfer side, CFS provides funding for FPInnovations to administer an Industry Advisor network that provides direct and in-plant problem solving and support to industry. Provinces and Federal Regional Development Partners also provide funding for industry advisors through regional programs. Together, the Technology Development and Technology Transfer components influence Canadian value added wood products manufacturers to implement new and improved products and processes.
Exhibit 25 shows a diagram that depicts the growth in wood market share of the non-residential construction market by year in all buildings four stories and under. Vertical bars show WoodWorks target market share for wood in 2007 at 14.2%, in 2008 at 14.8%, and in 2009 at 16.1%. Vertical bars show market share for wood in all of the U.S. in 2007 at 13.8%, in 2008 at 11.9%, and in 2009 at 12.8%. Vertical bars show market share for concrete in 2007 at just under 40%, in 2008 at just under 30%, and in 2009 at just over 20%. Vertical bars show market share for steel in 2007 at just under 50%, in 2008 at just under 60%, and in 2009 at just under 60%. These numbers are approximations, as the chart only shows exact figures for wood.
Horizontal lines on the diagram illustrate the commodity price levels for wood, concrete, and steel between 2007 and 2009. The diagram does not contain exact numbers. The index trend line for steel is highest at just over 150 in 2007, between 200 and 250 in 2008, and at 150 in 2009. The trend line for concrete is level at between 100 and 150 for 2007, 2008, and 2009. The trend line for wood is at just under 100 in 2007 and slightly lower in 2008 and 2009.