Interfor, one of British Columbia’s prominent forestry companies, has announced its decision to relocate its head office from Burnaby to the Atlanta suburbs in Georgia. The transition, confirmed in a memo from CEO Ian Fillinger, underscores the ongoing challenges facing the province’s forestry sector, which has historically been a cornerstone of its economy.
A Historical Perspective on Interfor’s Move
Jock Finlayson, chief economist for the Independent Contractors and Businesses Association (ICBA), highlighted the importance of Interfor within B.C.’s forest industry. He noted that the company has been gradually reducing its operational footprint in the province over the years. “Most of the assets of the business are in the United States now, which I think sort of helps to explain the move that they’ve announced this morning,” Finlayson stated.
This announcement comes as a stark reminder of the difficulties plaguing the forest products sector. Once considered B.C.’s largest goods-producing industry and a primary source of export revenue, the sector has experienced significant declines in recent years.
The Broader Impact on B.C.’s Forestry Sector
The challenges for the forestry industry are not isolated to Interfor. In May, Premier David Eby expressed his frustration that the federal government’s $1.5 billion aid package for industries affected by tariffs did not include support for the softwood lumber sector. He emphasised the critical role of the logging industry in sustaining both urban and rural communities across the province.
Recent closures have further highlighted the fragility of the sector, with Domtar shutting down a pulp mill in Crofton, resulting in 350 job losses, and Canfor announcing the closure of its Northwood Pulp Mill in Prince George, which will eliminate another 300 jobs. These closures amplify fears of a diminishing industry that has historically provided livelihoods for many British Columbians.
Regulatory Challenges and Competitive Disadvantages
Finlayson pointed out that B.C. has gradually lost its competitive edge in lumber production, particularly in the North American market. “B.C. has really lost our competitive position as a lumber and forest products producing jurisdiction generally,” he remarked. He attributed much of this decline to the current provincial government’s failure to prioritise a commercially viable forestry sector, a trend that has been ongoing for at least 15 years but has intensified under recent administrations.
The province’s logging and wood product manufacturing regulations have become increasingly onerous, making it challenging for both new and existing businesses to thrive. Finlayson noted that the government’s management of Crown land—where most forest resources are located—has not facilitated a conducive environment for investment, citing a regulatory climate that is among the most challenging in North America.
Looking Ahead: Potential Industry Consequences
With Interfor’s move, there are concerns that it may not be the last major company to relocate its operations away from B.C. The combination of increasing U.S. softwood lumber tariffs and dwindling fibre supply in the province are contributing factors that could drive further exits. “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,” Finlayson added.
This exodus raises significant questions about the future of the province’s forestry industry and the potential long-term consequences for workers and communities that rely on it.
Why it Matters
Interfor’s relocation is more than a corporate shift; it signifies a pivotal moment for British Columbia’s forestry sector, which has been a vital part of the province’s identity and economy. The ongoing decline of this industry not only threatens thousands of jobs but also raises concerns about the sustainability of rural communities that depend on forestry. As the regulatory landscape continues to evolve and external pressures mount, the repercussions of this move could reverberate throughout the province, necessitating urgent action from policymakers to address the challenges faced by this once-thriving sector.
