Canada & B.C.
Apple Valley Residences, Kelowna, B.C., photo courtesy WoodWORKS!BC
Market overview
Generally the Canadian market has fared better than the U.S. despite the economic downturn in 2008/09. Housing starts dipped by nearly 62,000 in 2009, with activity down in all provinces except Prince Edward Island. In 2010 housing construction began to rebound, gaining back nearly 41,000 starts across Canada. The strongest gain relative to 2009 was in B.C. with an increase of 10,402 starts, and Ontario with an increase of 10,063 starts.
Building permits were up 4 percent nationally in May 2011, with B.C. building permits increasing by 7.9 percent over the last year. In B.C. the total value of building permits increased by 33 percent. Non-residential commercial construction increased in value in 2010 showing growth of over $1.5 billion in value compared to 2009. The production of sawn lumber rebounded in 2010 with an increase of 8 million cubic metres nationally but has still not returned to pre-crisis levels.
Canada’s unemployment rate was down slightly at 7.4 percent in June 2011. Canada’s exports remained high but were dampened by an appreciating dollar against the U.S. currency, averaging $1.03 in 2010. Manufacturing sales from the wood products sector were estimated to be up $2.1 billion from 2009.
Market strategy
A bright spot on the horizon for 2010-11 was the domestic housing market as starts in B.C. and most of Canada remained strong in 2010. Value-added producers continued to benefit from support for the Business Innovation Program to enhance their competitiveness and innovative capacity. Structural lumber, western red cedar and other products found good domestic markets in the residential and non-residential construction sectors.
Non-residential construction continued to be a major focus 2010-11. Conversion of major projects to wood use from other materials is a key platform of the strategy for the domestic market and U.S. markets through the Wood First program and a Canada-U.S. committee of trade associations that is targeting the non-residential market.
Select accomplishments 2010/11
- Over 50 technology transfer, product development and business development projects were completed under the Business Innovation Program.
- Over $4.6 million in additional sales of value added products were achieved through advertising and promotional activity.
- Over 95 new six-storey wood frame construction projects were initiated.
- At least 37 communities across B.C. passed Wood First resolutions by the end of 2010/11.
Activities in 2011/12
In 2011-12 FII is increasing its focus on implementing the Wood First Policy and undertake research to support the use of wood in commercial and other occupancy classes of buildings in B.C. Working with the Wood Enterprise Coalition, FII is supporting research into building codes, and fire prevention during the construction phase.
The Business Innovation Program continues to support value added wood manufacturers to build their competitiveness and innovation to succeed in B.C. and in key export markets. The focus is shifting to more product development and technical assistance to generate solid benefits for participating companies.
FII continues to partner with Natural Resources Canada to support non-residential construction via the WoodWORKS! BC program. Achieving greater penetration of six-storey and other multi-unit construction across the province will be a priority. Promotion of tools such as the Wood Use Matrix developed by the Wood Enterprise Coalition will assist city managers, designers and engineers to identify optimal applications for wood in public projects
FII is also working across government to ensure procurement policies support a Wood First approach and will be involved in direct delivery of some Wood First activities.
Wood First
The Wood First Act of September 2009 fosters the use of wood in provincially-funded buildings. Following introduction of the Act, FII provided substantial funding to a new Wood Enterprise Coalition (WEC), a partnership of the Canadian Wood Council (through its WoodWORKS! BC program), FPInnovations, and BC Wood Specialties Group. The role of the WEC is to:
- Advance Wood First demonstration and pilot projects.
- Increase public communication around the benefits of using wood.
- Develop a Wood First education and training strategy, including support for the planned Wood Innovation and Design Centre in Prince George.
- Support implementation of Wood First policies and construction.
- Support commercialization of new wood products.
In the summer of 2011, FII assumed responsibility for the Province’s full suite of Wood First initiatives.
For more information on FII’s involvement in the B.C. Government’s Wood First initiative, click here
Business Innovation Program
FII provides funding for the Business Innovation Program, an initiative to build the capacity of British Columbia’s value-added wood industry by helping companies to strengthen their business practices, develop new products and designs, improve technology and its uptake by businesses, and enhance marketing activities.
By focusing on these “success factors”, the program, operated in partnership by B.C. Wood, FPInnovations – Forintek Division, and UBC – Centre for Advanced Wood Processing, is assisting British Columbia’s value-added industry become more globally competitive.
For more information on the Business Innovation Program, click here
