Forest Industry

Ontario’s forest product markets have historically been categorized into two major sectors; wood products and pulp & paper.

In 2009, the value of Ontario's forestry sector (total shipment revenues of primary and secondary wood products) was $12 billion, the majority of which was pulp and paper products ($7.2 billion). Sawmill, engineered wood and other wood product manufacturing was valued at $3 billion, and value-added furniture/kitchen cabinet manufacturing represented $1.8 billion.

In 2009, the value of forest products exports – 95% bound for the U.S. – was $4.0 billion but due to declining exports, contribution to the provincial trade balance was negative $869.3 million (down from $316 million in 2007 and $1.3 billion in 2006). Tax contributions have historically been about $2.3 billion, including $800 million to the province, but have been declining due to mill closures. Wages and salaries in 2008 were approximately $2.45 billion.

In Ontario, the sawmill segment represents about 26% of the revenue generated by the solid wood products sector and is an important component of the Province’s primary wood industry which consists of other products, primarily oriented strandboard (OSB) and medium density fibreboard (MDF).

The secondary, or value-added wood product sector in Ontario consists of a number of products; including furniture, mill work, manufactured housing and engineered wood products. Together these secondary products contribute a significant portion of the revenue generated by Ontario’s wood product sector and are seen as a growing and important component for the future of the industry in Ontario.

According to Statistics Canada, Ontario’s forest products sector had 58,700 direct jobs in 2009. In total, the forestry sector supports almost 200,000 direct and indirect jobs across over 260 Ontario communities.