A 45 per cent tariff on softwood exports and a regulatory regime that has choked off access to fibre — its primary cost driver — are bearing down on British Columbia’s timber industry, with the sector’s peak body warning that the supply chain is now in a full-scale crisis. That is according to Kurt Niquidet, vice-president and chief economist at the Council of Forest Industries (COFI), who spoke to CBC British Columbia ahead of COFI’s convention in Vancouver this week.
“The sector really has been in crisis…there’s really been two major challenges,” Niquidet said, identifying the US duty burden and domestic red tape as the twin forces squeezing mills, with years of friction over fibre access now compounded by Washington’s tariff regime.
Wood Central understands that BC’s Premier, forest minister, and interim leader of the official opposition are all scheduled to address delegates at the convention, a sign that the province’s political establishment has been forced to engage with an industry under siege. Niquidet said there is acknowledgement from the government that more needs to be done, but warned the pace of response remains inadequate:
“We feel like this needs to happen faster…”
Cutting permits and the cost of operating in British Columbia dominate the industry’s short-term regulatory concerns, while longer-term priorities centre on greater land-use certainty and more predictable access to the fibre supply that drives mill economics. The federal government has already filled the breach, stepping up last year with a substantial support package for the sector — including loan guarantees — in response to the softwood lumber dispute with Washington.
Market diversification is on the industry’s agenda, though Niquidet was frank that movement will take time: “In the short term, there’s limited opportunities there, but it’s something we should be pursuing as well.” And beyond the trade front, BC’s mills are also betting on product innovation — with mass timber construction, where wood substitutes for concrete and steel in large-scale buildings, and bioenergy and bioproduct applications drawing on mill residuals, both identified as areas where the sector is actively repositioning.
“This is a very resilient industry…we’ve been through downturns before…” Niquidet said, insisting BC’s forest workers will find new commercial pathways despite the current squeeze.
The economic footprint of BC’s forest sector reaches well beyond the province’s interior: the industry supports approximately 95,000 jobs province-wide, with roughly a quarter of those positions located in the Lower Mainland alone, spanning direct production, transportation, financial services, and supply chain roles. COFI’s annual convention runs in Vancouver through this week, with the province’s Premier, forest minister, and interim opposition leader all on the programme to address the industry.
