FPAC Foresees 'Brutal' Quarters Ahead for Canadian Forestry Sector

SEATTLE (Scrap Monster): The Forest Products Association of Canada (FPAC) has painted a grim picture of the Canadian forestry sector.

According to Derek Nighbor, President and CEO, FPAC, the next couple of financial quarters are likely to remain ‘brutal’ for many industry players. This is mainly on account of the drop in lumber prices, regional economic impacts due to the pandemic and the economic burden caused by softwood lumber duties on Canadian companies.

Speaking before the House of Commons Standing Committee on Finance, he urged federal support to help the struggling forestry companies to survive through the rest of the year. Significant cash flow supports are required to keep the businesses operating through the next two to three quarters, he noted.

At the same time, he expressed optimistic outlook on the long-term future of the country’s forest sector. The sector had been in a state of recovery prior to the pandemic. Post this crisis, wood will likely emerge as an environment-friendly construction material. Also, the appeals through the trade tribunals may lead to refunding of softwood lumber duties to Canadian companies. The industry and the government should work together to quickly turn the sector to recovery and growth in 2021, he added.

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