In a significant shift for British Columbia’s forestry sector, Interfor has announced its plans to relocate its headquarters from Burnaby to the outskirts of Atlanta, Georgia. This move, revealed in a memo from CEO Ian Fillinger underscores the evolving dynamics within the province’s once-dominant lumber industry.
The decision by Interfor, a foundational business in B.C.’s forest industry, has sparked discussions about the broader challenges facing the sector. Jock Finlayson chief economist for the Independent Contractors and Businesses Association (ICBA) noted that Interfor has gradually reduced its operations in B.C. over time, with most of its assets now located in the United States.
Interfor’s relocation: a symptom of deeper issues
The relocation of Interfor’s headquarters is not an isolated incident but rather a symptom of the broader struggles facing B.C.’s forest products sector. Once the province’s largest goods-producing industry and a major source of export earnings, the sector has faced significant headwinds in recent years.
In May, B.C. Premier David Eby expressed frustration that the federal government’s $1.5-billion relief package for tariff-hit industries did not include support for the province’s softwood lumber industry. Despite assurances from Eby in November that the federal government understood the industry’s importance, recent closures have highlighted the sector’s challenges.
Recent closures and job losses
In December, Domtar closed a pulp mill in Crofton, Vancouver Island resulting in the loss of 350 jobs. More recently, Canfor announced the shutdown of the Northwood Pulp Mill in Prince George affecting 300 more workers. These closures have raised concerns about the future of the forestry industry in B.C.
The erosion of B.C.’s competitive position
Finlayson emphasized that B.C. has lost its competitive edge as a lumber and forest products producing jurisdiction in North America. He attributed this decline to a combination of factors, including the additional U.S. softwood lumber tariffs and the declining fibre supply in the province.
“B.C. has really lost our competitive position as a lumber and forest products producing jurisdiction generally, certainly in the North American context,” Finlayson said. “It’s been underway for probably at least 15 years. It’s really accelerated under the current B.C. government, in my view, because they have not prioritized the maintenance of a commercially successful forest product sector.”
The role of government regulation
Finlayson pointed to the regulatory climate as a significant factor in the industry’s decline. He argued that the B.C. government has created one of the most difficult and costly regulatory environments for logging and wood products manufacturing in North America.
“Where the government’s role has come, I think, is they’ve created what is probably the most difficult and costly regulatory climate for logging and wood products manufacturing, maybe anywhere in the world, but certainly anywhere in North America,” Finlayson added. “We have a lot of trees. We shouldn’t really be that high-cost of a producer, right? When you fly over B.C., we’re not short of fibre, but we’re short of competitively accessible fibre that the government can manage in an efficient manner.”
The future of B.C.’s forestry industry remains uncertain, with the relocation of Interfor serving as a stark reminder of the challenges ahead. As the sector grapples with regulatory hurdles, declining fibre supply, and increased competition, the need for strategic interventions and support becomes ever more apparent.
