In a significant shift for British Columbia’s forestry landscape, Interfor Corporation, one of the province’s largest companies in the sector, has announced plans to relocate its headquarters from Burnaby to the suburbs of Atlanta, Georgia. This decision, conveyed through a memo from CEO Ian Fillinger, underscores the ongoing difficulties faced by the forestry industry in B.C. and highlights a trend of diminishing local operations.
A Historic Move
Interfor’s move marks a pivotal moment in the province’s forestry narrative. As noted by Jock Finlayson, chief economist for the Independent Contractors and Businesses Association (ICBA) — the largest construction industry association in Canada — Interfor has been a bedrock of B.C.’s forest industry for decades. “They have reduced their footprint here kind of incrementally over time,” Finlayson remarked. “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.”
This relocation is not merely a logistical change; it signals a broader trend of decline within B.C.’s forestry sector, which was once the province’s largest goods-producing industry and its primary source of export revenues.
The Deteriorating Landscape of B.C.’s Forestry Industry
The current state of B.C.’s forestry sector has been concerning, with recent announcements of mill closures exacerbating the situation. In December, Domtar shut down its pulp mill in Crofton, resulting in the loss of 350 jobs. Similarly, Canfor recently declared the closure of its Northwood Pulp Mill in Prince George, which will eliminate an additional 300 jobs. These developments reflect a troubling pattern, as companies continue to scale back operations amid increasing regulatory challenges and market difficulties.
In a previous statement, B.C. Premier David Eby expressed frustration that the federal government’s $1.5 billion relief package for tariff-affected industries failed to address the needs of the softwood lumber sector. He has asserted the importance of the logging industry to both large and small communities across the province, indicating a recognition of the sector’s vital role in the local economy.
Regulatory Challenges and Competitive Disadvantages
Finlayson argues that B.C.’s competitive standing in the forestry sector has steadily eroded over the past 15 years, a trend that has accelerated under the current provincial government. He critiques the existing regulatory framework, asserting that it has created a challenging environment for both new investments and current operations. “B.C. has really lost our competitive position as a lumber and forest products producing jurisdiction generally, certainly in the North American context,” he stated.
The chief economist further emphasised that the government controls much of the province’s forest resources, which are primarily on Crown land. This oversight has led to conditions perceived as unfavourable for industry growth, ultimately driving companies like Interfor to seek more advantageous locations.
A Future in Flux
As the forestry sector grapples with these challenges, Finlayson warns that Interfor may not be the last major company to consider relocating. The combination of escalating softwood lumber tariffs and a diminishing fibre supply in B.C. continues to jeopardise the viability of local operations. “We have a lot of trees. We shouldn’t really be that high-cost of a producer,” he argued. “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.”
Why it Matters
The relocation of Interfor’s headquarters is a stark reminder of the turbulent times facing B.C.’s forestry industry. This decision not only reflects the company’s strategic shift towards more favourable conditions in the United States but also highlights the broader struggles of an industry that once thrived in the province. As more companies reconsider their operations in light of regulatory hurdles and market pressures, the implications for local economies and communities could be profound, signalling a potential shift in the future of forestry in British Columbia.