Sectoral Profile. Forestry and logging NAICS 113. Quebec

Transcription

1 Sectoral Profile Forestry and logging NAICS 113 Quebec Since the late 1990s, the industry has had to grapple with a sharp drop in demand for its main products: paper, wood products and furniture and kitchen cabinets The decline in printing due to the growth of electronic media has caused a substantial drop in demand for paper as well as major job losses Growing demand for less expensive furniture, along with the slump in residential construction in the United States, has taken a heavy toll on employment levels in Quebec s forestry industry in forestry and logging has experienced a sharp decline over the last 25. Before the downturn, employment was buoyed by the manufacturing of a variety of products (papers, paper pulps, lumber, furniture, etc.). However, later, demand for all these products dropped simultaneously in both the domestic market and export markets. Beginning in 2003, the Canadian dollar gained considerable strength against the U.S. currency, which further impacted exports. Kitchen cabinets and wood furniture was the first sector to be hit hard. Changing tastes and trends as well as competition from cheaper imports caused buyers to turn away from companies that obtained their timber supplies directly from Quebec forests. The wood furniture industry had undergone an expansion in the 1990s thanks to exports to the United States; however, falling demand later led to mill closures and major layoffs throughout the sector. On another front, the growing popularity of electronic platforms led to a 5 drop in demand for newsprint. In addition, Quebec pulp and paper manufacturers faced strong competition from foreign companies offering less expensive products to a shrinking market. Demand for other paper products used for print advertising, magazines and publishing has also contracted in recent, reducing supply requirements. Finally, the collapse of residential construction in the United States in put a damper on export market opportunities for Quebec lumber. The level of activity in the industry has also been affected by periodic adjustments to the allowable cut made by Quebec s Chief Forester. In keeping with his mandate to ensure the sustainability of the resource, the Chief Forester conducts a review of the state of public forests, which has resulted in periodic reductions in forestry companies cutting rights.

2 Forestry and logging Quebec Page Changes in GDP, and Production* GDP Total softwood and hardwood, production * Data are expressed as indices with 2007 = 100 Sources: Statistics Canada, LFS, Production CANSIM The business environment has improved since Growth in residential construction in the United States has led to recovery of demand for raw materials, and industry prices have risen considerably. Demand from the U.S. strengthened in 2014 and is expected to contribute further to gains in production and employment in 2015 and This should help to offset the anticipated slowdown in residential construction in Quebec. In addition, Quebec s forest industry could benefit from the fact that British Columbia, the biggest Canadian exporter of wood products, currently faces timber supply problems owing to the damage caused by mountain pine beetles. Another positive element relates to the establishment of the Bureau de mise en marché des bois [Timber Marketing Board] in By facilitating access to and emphasizing the optimal use of forest resources, the Bureau has helped put timber on the list of materials sought after by many companies lacking cutting rights. Between 2011 and 2014, the board reported total sales of over $108 million for more than 14 million cubic feet of timber which would otherwise not have been harvested. Investments are also planned for forest management and development, which should have a positive effect on employment over the coming, in addition to permitting better planning of resource harvesting. A sharp decline in demand for some types of paper has nonetheless occurred. In response to the contraction of demand over the, many paper manufacturing companies have had to order temporary shutdowns of their machines on a regular basis to avoid accumulating too much inventory. With the repeated production stoppages, many of which have become permanent over time, there has been a steady increase in job losses in the forestry industry. This is one of the greatest challenges the industry has faced to date. Over the coming, the increase in production and employment will depend almost entirely on the continued growth of demand on export markets. Gains in employment will be low, since the industry will focus on the optimal use of existing human and material resources before hiring additional staff.

3 Forestry and logging Quebec Page 3 Sectoral Dynamics for the with Outlooks In Quebec In the Economic AAGR Anticipated Dynamics over the Period % gain of approx. 230 positions Lanaudière 2.4% Abitibi-Témiscamingue 1. Laurentides 1. Mauricie 1. Bas-Saint-Laurent 0.8% Gaspésie Les-Îles 0.7% Saguenay Lac-Saint-Jean 0.7% Côte-Nord / Nord-du-Québec 0.7% Capitale-Nationale 0.7% Chaudière-Appalaches 0.7% QUÉBEC 0.6% Estrie 0.3% Centre-du-Québec 0.2% Montérégie 0. Outaouais 0. Montréal CMA 0. n/a: not applicable Source: Sectoral Outlook annual exercise Labour Market Analysis Directorate, Service Canada Quebec Region, April 2015 The following occupations in the forestry and logging industry are the ones most likely to be affected by the anticipated dynamics of the labour market (according to the Occupations/Industry matrix): 8422 Silviculture and forestry workers 8421 Chainsaw and skidder operators 8241 Logging machinery operators 8211 Supervisors, logging and forestry 2223 Forestry technologists and technicians.

4 Forestry and logging Quebec Page 4 SIZE AND DISTRIBUTION OF AND CHANGES IN EMPLOYMENT IN THE INDUSTRY IN QUEBEC Average Average Change in 2002/ /14 In thousands Quebec Regional In thousands Quebec Regional In thousands As a % All of Quebec % % % Resource % 3.4% % 1.7% % Abitibi-Témiscamingue % x x x x x Bas-Saint-Laurent % 3.4% % 1.9% % Côte-Nord / Nord-du-Québec x x x x x x x x Gaspésie Îles-de-la-Madeleine x x x x x x x x Saguenay Lac-Saint-Jean % 3.3% % 1.6% % Intermediate % 0.7% % % Centre-du-Québec x x x x x x x x Chaudière-Appalaches % 1. x x x x x Estrie x x x x x x x x Mauricie x x x x x x x x Greater Montréal area % 0.1% % 0.1% % Lanaudière x x x x x x x x Laurentides % 0.7% x x x x x Laval x x x x x x x x Montérégie x x x x x x x x Montréal x x x x x x x x Capitals % 0.6% x x x x x Capitale-Nationale x x x x x x x x Outaouais % 0.9% x x x x x Saguenay CMA x x x x x x x x Québec CMA x x x x x x x x Sherbrooke CMA x x x x x x x x Trois-Rivières CMA x x x x x x x x Montréal CMA x x x x x x x x Gatineau CMA* x x x x x x x x CMAs % 0.1% % 0.1% % Non-CMAs % 1.8% % % *: Quebec sector of the Ottawa-Gatineau CMA x: confidential data, fewer than 1,500 people employed in this region Source: Service Canada, Quebec Region Historical estimates based on Statistics Canada s Labour Force Survey

5 Forestry and logging Quebec Page 5 SOME CHARACTERISTICS OF THE INDUSTRY IN QUÉBEC Establishment distribution by Region distribution by Region 51% 24% 16% Resource Intermediate Region Greater Montréal area 49% 24% 18% Resources Intermediate Greater Montréal Area 9% Capitals 9% Capitals Source: Statistics Canada, Establishment Counts by Economic Region, industry, and Employee Size Ranges, December 2014 Size of establishment Source: Statistics Canada, Labour Force Survey; based on average employment in by industry subsectors employees employees Logging 66% employees 1% employees employees 2% 6% Support activities 32% employees 5-9 employees 1-4 employees 1 21% 6 Timber tract operations 1% Source: Statistics Canada, Establishment Counts by Economic Region, industry, and Employee Size Ranges, December 2014 Self-employed jobs compared to Total employment Source: Statistics Canada, Survey of, Payrolls and Hours; based on average employment in Share of total employment and industry in Canada 1 8% 6% 8% 6% 9% Total Brit.-Col. Québec 4% 2% All Industries Goods production Forestry Brit.-Col. Forestry Québec 5% 1 15% 2 25% 3 35% 4 45% Source: Statistics Canada, CANSIM Labour statistics, based on average employment in Source: Statistics Canada, Survey of, Payrolls and Hours; based on average employment in

6 Forestry and logging Quebec Page 6 35% 3 25% 2 15% 1 5% Employed Labour Force Aged 15 Years and Over 7% % Forestry and logging 32% % All Industries Source: Statistics Canada, 2011 National Household Survey, special tabulation for ESDC 3% 65 + distribution by skill type National Occupational Classification 0. Management 7% 1. Business, finance and administration 8% 2. Natural and applied sciences and related 9% 3. Health 4. Education, law and social, community and government services 5. Art, culture, recreation and sport 6. Sales and service 3% 7. Trades, transport and equipment operators 15% 8. Natural resources, agriculture and related production 51% 9. Manufacturing and utilities 7% Source: Statistics Canada, 2011 National Household Survey, special tabulation for ESDC FOR MORE INFORMATION and Skills Development Canada Labour Market Information: Information on job, skills and local labour market trends is important for making career decisions. In addition, information on wages, labour supply, labour demand and other factors helps employers recruit, train and retain workers and make business and investment decisions. North American Industry Classification System (NAICS) Canada 2012: Forestry and logging NAICS 113 Note: In preparing this document, the authors have taken care to provide clients with labour market information that is timely and accurate at the time of publication. Since labour market conditions are dynamic, some of the information presented here may have changed since this document was published. Users are encouraged to also refer to other sources for additional information on the local economy and labour market. Information contained in this document does not necessarily reflect official policies of and Social Development Canada. Prepared by: Labour Market Analysis Directorate, Service Canada, Quebec For further information, please contact the Labour Market Analysis Directorate, at: NC-LMI-IMT-GD@hrsdc-rhdcc.gc.ca Her Majesty the Queen in Right of Canada as represented by and Social Development Canada, 2015, all rights reserved