There are approximately 500 value added wood product manufacturers in Alberta, concentrated around major urban areas. Aggregated by business type, the major wood products groups produced in Alberta by the industry include but are not limited to:
- Structural and engineered wood products such as trusses, glulam, I-Joists, CLT and others
- Prefabricated wood buildings, modular and panelized systems
- Particle board and fibreboard
- Containers and pallets
- Millwork and architectural woodwork such as countertops, flooring, panelling, moulding, doors, and windows, as well as furniture, cabinets, and stairs
- Siding, shakes, shingles
- Remanufactured products
- Reclaimed, repurposed, recycled products
Value added wood manufacturing refers to the process of converting wood-based primary products, such as such as lumber, chips, or panels, into transformed semi-finished or finished goods.
This industry plays a significant role in the economy of Alberta. However, over the past 15 years, sales of value added wood products have stagnated. The recovery of this sector is closely linked to the performance of the larger economy in which it operates. To ensure the growth and success of the Alberta value added wood products industry, it is important to prevent market erosion and develop new market opportunities.
In one recent study, market diversification was identified as a priority business expansion strategy by 34% of respondents, who saw regional, domestic and international opportunities. Financing and management challenges were identified by 16% of the respondents.
Source: FEA 2022
In 2021, Alberta’s wood product manufacturing companies invested almost $250 million in capital projects aimed at improving efficiency, adding new product lines, monetizing residual streams, enhancing health and safety, and reducing costs.
The Alberta Value-Added Wood Products Program was created to support the sector by helping to identify new market opportunities and develop strategies and tactics to successfully achieve market growth. The program is funded by the Government of Alberta and managed by the Alberta Forest Products Association and the Alberta Wood WORKS! Program, and guided by a multi-stakeholder program steering committee.
The Alberta Value-Added Wood Products Business Development Program has two key goals:
- Support small/medium Alberta businesses with new product market entry by providing assistance in market analysis and market development planning.
- Research key market opportunities, innovative new wood products/systems and examine approaches to offset risks associated with getting new products to market.
Achieving these goals is expected to have a positive impact on Alberta’s economic stimulus plans, particularly in terms of generating new markets and products, creating job opportunities, and enhancing revenues for Alberta businesses. These goals are intended to help offset declining revenue and jobs within the industry and provide solutions to expand market share for Alberta’s value added wood sector products.
The Business Development Program represents a unique opportunity for value added wood companies and their partners to receive support for research and business planning, information sharing, and the exploration of new market opportunities, wood product or system applications, and products. This initiative is expected to result in the following outcomes:
- Increased domestic demand for and use of Alberta’s wood products. The grants offered under this program will address gaps in business development support and will be used to assist eligible companies to expand and develop their operations.
- Over the past decade, Alberta’s value added wood product industry has experienced a decline in revenue. The grants will support education, communication and business planning activities which will benefit the industry as well as increase domestic demand for forest products produced in Alberta.
- The grants are anticipated to lead to an increase in employment opportunities within the valued added manufacturing sector. This will benefit the provincial economy and provide new job opportunities for the workforce in Alberta
