Economic Engine for Canada
The story is similar for Canada. The forest industry is one of Canada’s most important manufacturing sectors, and the country is the fourth-largest forest product exporter in the world. According to a 2018 report by Natural Resources Canada, the industry:
- Injected about $23.7 billion into Canada’s economy
- Directly supported more than 205,000 jobs across the country, including employment for an estimated 12,000 indigenous people
- Generated more than $1.9 billion in revenue in 2018 for provincial and territorial government
The forest industry is critical to the Canadian economy and often serves as the lifeblood of rural economies.
Domtar’s Financial Impact
For its part, Domtar shares the economic impact of its forestry and manufacturing activities through annual sustainability reports. Our reports highlight the positive impacts that come from running mills and multiple external paper converters throughout the United States and Canada, generating nearly 9,000 North American jobs.
Financial Gain for Landowners
Because of the great economic benefits associated with forests, the forest products industry is sometimes misunderstood. Some people think that it exploits this natural resource for financial gain, leaving fewer forests standing for future generations. In fact, the opposite is true.
A study by Dovetail Partners, Inc. found regions with the highest levels of timber harvest for forest products are actually the regions with the lowest rates of deforestation. This makes sense, as many private landowners rely on harvests as a periodic source of income. Without a financial incentive to maintain their forests, landowners might consider other land uses that don’t include trees, such as agriculture or development.