President & CEO, Coast Forest Products Association
The Coast in Brief – Primary and Secondary Segments Together
100 secondary and remanufacturing companies working in British Columbia’s coast forest industry produced over $1.6 billion worth of sales and employed 3100 people in 2012.* These companies producing value-added goods are an important and integrated part of the supply chain of our industry which includes major primary companies that are members of Coast Forest Products Association. This successful synergy works and needs to be acknowledged – it is not a competition between companies as Mr. Cameron recently mentioned in a Vancouver Sun interview.
The business-to-business relationship between the primary and secondary manufacturing segments of the industry represents a success story. Together these segments are an important part of a commercially-driven, integrated supply chain that effectively and efficiently increases the value of our forest products without relying on government intervention. And they share many of the same challenges. When Coast Forest asked remanufacturing companies to name their top challenges, they cited availability of fibre supply and cost of doing business in BC. These are the same challenges the major forest companies on the coast face as well.
Coast Forest supports Minister Thomson in leading his ministry to look at ways to strengthen the cooperation of the business-to-business relationships between the primary and secondary segments. The Minister is correct by addressing the overall competitiveness of the industry; we can increase access to the fibre supply and reduce our costs. This is a win-win for primary and secondary manufacturers.
*Re-manufacturers – Supply Chain Project Report, Coast Forest Products Association 2012