Strengthening Canada’s Forest Products Sector: A New Paradigm for Competitiveness

The Government of Canada has recently taken a significant step towards bolstering the country’s forest products sector by announcing the formation of a new task force. This initiative aims to enhance the competitiveness of a sector that is vital to Canada’s economy, offering durable solutions to both immediate challenges and long-term growth opportunities. The announcement was made by Tim Hodgson, Minister of Energy and Natural Resources, during an update on ongoing federal support measures for the forest sector.

A Commitment to Economic Resilience

Hodgson emphasized the importance of the forest sector as a pillar of the Canadian economy. His remarks underscored a dual focus: immediate assistance for companies grappling with current challenges and a strategic vision for sustainable competitiveness in the future. "By supporting innovation, expanding markets, and prioritizing Canadian materials, we are building Canada Strong,” he stated, encapsulating the strategic direction that the government aims to pursue.

The Canadian Forest Sector Transformation Task Force

Scheduled to begin its consultations in early 2026, the Canadian Forest Sector Transformation Task Force focuses on restructuring the forest sector for enduring success. This initiative will serve as a platform for input from various stakeholders, including industry professionals, provinces and territories, Indigenous communities, and labor groups.

The task force will be co-led by Ken Kalesnikoff from Kalesnikoff Mass Timber and Frédéric Verreault from les Chantiers Chibougamau. Within just 90 days, the task force intends to gather insights on best practices for expanding the use of mass timber and modular construction systems, diversifying product lines, identifying new markets, and improving productivity. Additional task force members will be announced in the upcoming weeks, further broadening the engagement and insights from different sectors.

Federal Programs: Enabling Innovation and Growth

To complement the task force’s efforts, the Government of Canada has also launched a new Natural Resources Canada website designed to assist businesses in navigating federal programs aimed at supporting the forest products sector. This resource is critical for companies looking to leverage government initiatives to foster innovation and growth.

Green Construction through Wood (GCWood) Program

One of the highlights of this federal support system is the GCWood program, which aims to promote wood-based solutions and construction systems. This initiative has already committed over $8.5 million in funding to the Canadian Wood Council for three impactful projects.

Projects Funded by GCWood

1. Proficiency in Wood Construction: The first project will enhance the use of wood as a construction material by providing technical support, training, and networking opportunities for industry professionals.

2. Educational Offerings: The second project aims to increase educational programs related to wood construction to improve the understanding and acceptance of wood as a primary building material within post-secondary institutions and the construction industry.

3. Performance-based Building Codes: The final project focuses on accelerating the adoption of performance-based building codes that will facilitate the increased use of low-carbon materials, including mass timber, in line with the upcoming 2025 and 2030 editions of the National Building Code.

Rick Jeffery, CEO of the Canadian Wood Council, praised the government’s initiative, emphasizing the importance of GCWood investments in strengthening Canada’s forestry and construction sectors.

Addressing Challenges in Mass Timber Construction

In addition to the council’s initiatives, the GCWood program has funded a range of projects aimed at overcoming barriers facing the mass timber construction industry. For instance, the Climate Smart Buildings Alliance (CSBA) will receive $272,000 to assess potential solutions for insurance challenges linked to mass timber projects. Historically high insurance costs, driven by limited claims data, have been a significant hindrance to growth in this sector.

Executive Director David Messer of CSBA noted that addressing these root causes will facilitate broader adoption of mass timber solutions, providing significant economic benefits while minimizing environmental impacts.

Costing and Practical Implications of Mass Timber

Sustainable Buildings Canada is also receiving funding for a mass timber costing guide. This project aims to demystify the costs associated with mass timber construction, supporting better decision-making for stakeholders involved in design, engineering, and construction. Adam Jones, director of operations for Sustainable Buildings Canada, remarked on the critical need for transparency regarding the costs and practical implications of mass timber.

Conclusion

The initiatives outlined by the Government of Canada mark a decisive moment for the forest products sector, positioning it for future growth while addressing present challenges. From the establishment of the Canadian Forest Sector Transformation Task Force to the financial backing of innovative programs like GCWood, these efforts reflect a nuanced understanding of the industry’s complexities and a commitment to sustainable progress. As the task force moves forward and more funding initiatives spin out into active projects, the potential for a robust, resilient forest products sector in Canada looks promising — paving the way for economic growth, job creation, and environmental sustainability.