In 2017, the secondary wood and paper product industries in Canada generated over $5.9 billion in real gross domestic product (GDP). This represents a 3.6% increase from 2016 but is still 14% less than 2007.
- Secondary wood manufacturing increased by 2% in 2017 from 2016, while secondary paper manufacturing fell by 5%.
- Secondary manufacturing accounted for 34% of the total contribution of forest product manufacturing to GDP in 2017, down slightly from 2016.
Lumber and paper are used in secondary wood and paper product manufacturing to make intermediate and final products, such as doors and envelopes.
Gross domestic product from primary and secondary wood and paper product industries, 2007–2017
|Year||Primary wood||Secondary wood||Primary paper||Secondary paper|
Why is this indicator important?
- Secondary manufacturing of forest products generates additional employment and revenue, which in turn increase the forest industry’s overall contribution to the Canadian economy.
- Largely focused on domestic markets that tend to be more stable than the primary products geared to international demand, secondary manufacturing helps balance 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 US housing market continues to expand.
- This favourable demand outlook for both segments is tempered by the increase in competition from low-cost international producers, possible cooling in the domestic housing market and the threat of tariff restrictions.
What reporting frameworks does this indicator support?
- Montreal Process (MP): 6.1.a (157 Kb PDF)
Sources and information
- Industry Canada. Trade data online (accessed April 6, 2018).
- Statistics Canada. CANSIM table 304-0014: Manufacturers’ sales, inventories, orders and inventory to sales ratios, by North American Industry Classification System (NAICS), Canada (accessed April 6, 2018).
- Statistics Canada. CANSIM table 379-0031: Gross domestic product (GDP) at basic prices, by North American Industry Classification System (NAICS) (accessed April 11, 2018).
- Real GDP in 2007 constant prices.
- 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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