Values of lumber, pulp and paper, and panelboard manufactured by Alberta Forest Products Association members totaled approximately $696 million for 3Q 2014, the agency announced March 6. The value of production was up $26 million, or 3.9 per cent, from the same period last year.
In 2012 and 2013, Alberta’s forest industry averaged growth rates of 9 per cent and 14 per cent respectively. Growth in the first three quarters of 2014 averaged 7 per cent. 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.
Alberta Forest Products
“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.
AFPA-member companies produced 884 million board feet of lumber in 3Q 2014 with a value of $342 million. Part of this production came from the secondary manufacturing sector. Compared to 3Q 2013, production volume increased by 29 million board feet, or 3.4 per cent, and values climbed by $52 million, or 18 per cent. From 2Q 2014, production was up 12 million board feet, or 1.4 per cent, and values increased $24 million, or 7 per cent.
AFPA-member panelboard operators produced 264 million square feet of 7/16 inch equivalent product in 3Q 2014 valued at $85 million. Production decreased from 3Q 2013 by 14 million square feet, or 4.9 per cent, but stronger prices caused values to increase by $2 million, 2 per cent. Compared to 2Q 2014, production decreased by 26 million square feet, 8.8 per cent, and values declined $6 million, or 6.6 per cent.
The AFPA’s pulp and paper sector production for the 3rd quarter of 2014 was 339,900 ADMT valued at $268 million. Production was up 49,000 ADMT, or 12.6 per cent, from the same period in 2013, but values declined by $28 million, or 9.4 per cent. Compared to 2Q 2014, production was down 51,400 ADMT, or 13.1 per cent, and values decreased by $50 million, or 15.8 per cent.