Gateway Gazette

Alberta’s Forest Industry Continues to Grow

 

Alberta Forest Products Association 3rd Quarter Results

Revenues up from 4% from same period last year

Edmonton – Values of lumber, pulp and paper, and panelboard manufactured by Alberta Forest Products Association (AFPA) members totaled approximately $696 million for the 3rd quarter of 2014. The value of production was up $26 million or 3.9% from the same period last year.

“Although the torrid pace of growth has begun to slow somewhat, 2014 has still been an exceptional year for Alberta’s forest industry,” said AFPA President and CEO Paul Whittaker. “Four percent growth for our industry means more investment into communities, stable jobs for Albertans, and an important source of economic diversity for Alberta.”

In 2012 and 2013, Alberta’s forest industry averaged growth rates of 9% and 14% respectively. Growth in the first three quarters of 2014 averaged 7%. This growth was fueled by strength in Asian markets and a turnaround in the home building sectors in both Canada and the United States. Strong results led to significant capital investments, with approximately $1.5 billion in capital upgrades made by the industry between 2011 and 2015.

The industry’s continued growth also means strong demands for skilled workers, particularly in the trades. For more information on forestry careers, please visit workwild.ca.

More information can be found on our website at albertaforestproducts.ca.

The Alberta Forest Products Association is a private, non-profit industry organization, representing lumber, panelboard, pulp and paper, and secondary manufacturing wood products companies operating in Alberta. AFPA member companies are active participants in sustainability advancements that contribute economic, environmental, and social benefits for Albertans.

BACKGROUND INFORMATION

Sector Analysis

LUMBER – AFPA-member companies produced 884 million board feet of lumber in the 3rd quarter of 2014 with a value of $342 million. Part of this production came from the secondary manufacturing sector. Compared to the 3rd quarter of 2013, production volume increased by 29 million board feet (3.4%) and values climbed by $52 million or 18%. From the 2nd quarter of 2014, production was up 12 million board feet (1.4%), and values increased $24 million (7%).

PANELBOARD – AFPA-member panelboard operators produced 264 million square feet of 7/16 inch equivalent product in the 3rd quarter of 2014 valued at $85 million. Production decreased from the 3rd quarter of 2013 by 14 million square feet or 4.9%, but stronger prices caused values to increase by $2 million (2%). Compared to the 2nd quarter of 2014, production decreased by 26 million square feet (8.8%) and values declined $6 million or 6.6%.

PULP & PAPER – The AFPA’s pulp and paper sector production for the 3rd quarter of 2014 was 339,900 air dried metric tonnes (ADMT) valued at $268 million. Production was up 49,000 ADMT (12.6%) from the same period in 2013, but values declined by $28 million or 9.4%. Compared to the 2nd quarter of 2014, production was down 51,400 ADMT (13.1%), and values decreased by $50 million (15.8%).

Production Figures and Values – (2013 and 2014)

Lumber

2013

2014

Year/Quarter

Production

(mmfbm)

$C Value

(000,000s)

Production

(mmfbm)

$C Value

(000,000s)

1st Quarter

743.6

$291.7

746.4

$301.6

2nd Quarter

838.1

$290.1

871.5

$318.2

3rd Quarter

855.1

$290.2

883.9

$342.3

4th Quarter

770.7

$298.0

Yearly Totals

3,207.5

$1,170.0

2,501.8

$962.1

Source: Random Lengths (S-P-F, Western Kiln Dried 2×4, STD&BTR, Random, Prices Net FOB Mill)

Panelboard

2013

2014

Year/Quarter

Production

(mm sq ft)

$C Value

(000,000s)

Production

(mm sq ft)

$C Value

(000,000s)

1st Quarter

277.8

$100.2

290.9

$91.5

2nd Quarter

288.2

$93.4

289.8

$91.2

3rd Quarter

277.8

$83.5

264.3

$85.2

4th Quarter

283.4

$85.0

Yearly Totals

1,127.2

$362.1

845.0

$267.9

Source: Random Lengths, Madison’s Lumber Reporter

Pulp and Paper

2013

2014

Year/Quarter

Production

(Thousand Air Dried Metric Tonnes)

$C Value
(000,000s)

Production

(Thousand Air Dried Metric Tonnes)

$C Value

(000,000s)

1st Quarter

374.2

$278.8

388.5

$324.9

2nd Quarter

358.3

$277.5

391.3

$318.6

3rd Quarter

388.9

$296.1

339.9

$268.2

4th Quarter

371.4

$293.9

Yearly Totals

1,492.8

$1,146.3

1,119.7

$911.7

Source: Pulp & Paper Week – Resource Information Systems Incorporated

CUMULATIVE TOTALS – ALL AFPA SECTORS

Q3-2014          $695,700,000          Q3-2013          $669,800,000                  

Q2-2014   $727,910,000    Full year 2013  $2,678,400,000

 

 

 

 

 

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