In a significant shift for British Columbia’s forestry sector, Interfor Corporation, one of the province’s largest forestry firms, has announced its decision to relocate its headquarters from Burnaby, B.C., to the outskirts of Atlanta, Georgia. This move marks a pivotal moment for a company that has been a cornerstone of the region’s forest industry for decades, reflecting the ongoing challenges faced by the sector.
A Shift in Focus
The announcement, revealed through a memo from Chief Executive Ian Fillinger, comes at a time when the forestry industry in B.C. is grappling with numerous difficulties. Jock Finlayson, Chief Economist for the Independent Contractors and Businesses Association (ICBA), noted that Interfor’s gradual reduction of its presence in B.C. over the years is indicative of a broader trend affecting the forest products industry.
Finlayson stated, “Most of the assets of the business are in the United States now, which I believe helps to explain the move that they’ve announced this morning.” His comments underscore how the company’s operational focus has shifted south of the border, aligning with a growing sentiment that the B.C. forest products sector is experiencing significant decline.
The Broader Context
Interfor’s relocation is emblematic of the struggles within the forestry industry in British Columbia, which was once the province’s leading goods-producing sector and a major contributor to export revenues. Recent years have seen increasing turmoil, with Premier David Eby expressing frustration in May over the lack of federal support for the softwood lumber industry, which has faced tariffs and other challenges.
In December, Domtar’s closure of a pulp mill in Crofton on Vancouver Island resulted in the loss of 350 jobs, while Canfor recently announced the shutdown of its Northwood Pulp Mill in Prince George, affecting another 300 workers. These developments highlight a concerning trend of job losses and company downsizing within the region.
Declining Competitiveness
Finlayson pointed out that B.C. has lost its competitive edge in the lumber and forest products market, particularly within the North American context. He attributes this decline to a combination of factors, including stringent regulations and the lack of investment-friendly conditions established by the provincial government.
“The conditions that they’ve established for the industry are very unfavourable for both new investment and even current operations,” Finlayson remarked. With the majority of the province’s forest resources located on Crown land, the government plays a significant role as both landlord and regulator, which has contributed to the industry’s challenges.
Regulatory Hurdles and Future Implications
The regulatory landscape in British Columbia has been described by Finlayson as one of the most challenging for logging and wood products manufacturing, not only in Canada but globally. Despite the province’s abundant timber resources, the accessibility of fibre remains a significant hurdle. This inefficient management of forest resources may further deter potential investment and exacerbate operational difficulties for existing companies.
Finlayson warns that Interfor’s move may not be an isolated incident. The combined pressures of increasing softwood lumber tariffs and shrinking fibre supplies could prompt other major firms in the province to consider similar relocations in pursuit of more favourable business environments.
Why it Matters
The relocation of Interfor’s headquarters signifies not just a loss for British Columbia but a red flag for the entire forestry sector. It highlights the urgent need for policy reforms that prioritise the sustainability and competitiveness of this vital industry. As the province grapples with the consequences of regulatory challenges and market pressures, the future of forestry in B.C. hangs in the balance, underscoring the importance of finding a balanced approach that supports both economic growth and environmental stewardship.
