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Construction Value Pathways Executive Summary From surviving to thriving - Canada’s forest products industry in the 21 st century February 2013

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Page 1: Construction Value Pathways - Home - FPAC · 2015-08-27 · The Construction Value Pathways Voice of the Construction Industry report is based on a series of interviews with 30 market

Construction Value PathwaysExecutive Summary

From surviving to thriving - Canada’s forest products industry in the 21st century

February 2013

Page 2: Construction Value Pathways - Home - FPAC · 2015-08-27 · The Construction Value Pathways Voice of the Construction Industry report is based on a series of interviews with 30 market
Page 3: Construction Value Pathways - Home - FPAC · 2015-08-27 · The Construction Value Pathways Voice of the Construction Industry report is based on a series of interviews with 30 market

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Introduction VISION 2020: 21ST CENTURY FORESTRY

Canada’s forest products industry has overcome enormous challenges over the last decade. The tough lessons learned when mills were closed and jobs were shed hammered home the message that innovation and competition will define the industry from now on. That message has prompted the Forest Products Association of Canada (FPAC) to help guide a new industry-led Vision 2020, which outlines where the forest products industry sees itself by the year 2020. Through its accompanying goals, the vision will challenge companies, governments and other partners to find innovative ways to ensure the sector reaches its potential and makes its maximum contribution to the Canadian economy.

Canada’s forest products industry is already on its way to achieving Vision 2020. It has become green, innovative and open to the world. By 2020, the industry expects to have hired at least 60,000 new recruits. It has committed to reducing its already shrinking environmental footprint by a further 35%. And Canada’s forest products industry expects to generate an additional $20 billion in economic activity from new innovations and growing markets.

To deliver on these aggressive goals, Canada’s forest products companies will have to adapt and, in some cases, even transform their business models.

THE PATHWAYS PROJECT: BIO-PATHWAYS AND CONSTRUCTION VALUE PATHWAYS

The FPAC Pathways Program is made up of two key transformation initiatives: Bio-pathways and Construction Value Pathways. The initiatives were led by FPAC, in cooperation with FPInnovations, the Canadian Forest Service, and scores of economic and scientific experts.

The first initiative, the Future Bio-pathways Project, is a comprehensive investigation of the opportunities to produce a wide range of bio-products from wood fibre. The first phase of this study, released in February 2010, examined the economic, social and environmental benefits of integrating these new bio-technologies into the traditional forest products industry.

In particular, it considered how this approach will boost employment and strengthen Canada’s economy and rural communities. The second phase of the Bio-pathways study, released in 2011, examined the global market potential of emerging bio-energy, bio-chemical and bio-products. It also explored new approaches to managing value and building partnerships in this critical area. The potential market sizes are staggering.

The second initiative, Construction Value Pathways, was launched in 2012. It identifies the key growth opportunities for the forest products industry in the construction industry now and over the next 10 years. It also provides a lens into what the future may look like for the construction industry in 20, 30 and 40 years. The future of Canada’s forest products industry will be bright if it embraces the idea of diversifying and transforming its products. Product and market diversification, and business model transformation will help the forest products industry earn more market share in the construction sector.

Earth Sciences Building - University of British Columbia (UBC)

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A changing global construction industryThe construction industry is moving towards a more integrated, global model. The global construction industry is an $8-trillion industry.

Seventy percent of Canada’s lumber is supplied to residential construction in Canada and abroad. This number is higher if non-residential construction is included. While wood still plays a central role in the construction industry, the global construction industry is changing across all markets.

The established markets of residential construction in North America and Europe are mature and, for the most part, have only modest growth potential. In 2001, the United States was the biggest market for residential construction and China was seventh. By 2012, the U.S. had slipped to second place and China had become the largest. Dramatic growth is being seen across other emerging geographic markets. But this growth is different from what was experienced in North America: it features different building cultures and different drivers.

DEMOGRAPHIC SHIFTS

The most obvious change over the last decade is the rising demand for multi-residential buildings, fuelled by three main sources. The first is the rise of more affluent consumers in Asia. They are demanding new housing, but their cities don’t have enough space for single-family homes to meet demand. The second driver is the growing trend toward densification in North American cities. The third driver is the rising number of single-person households. For example, in Canada there are now more single-person households than there are households with couples and children.

Even mature markets are seeing shifts within their construction industries. Renovating and retrofitting is becoming more important in the construction industry. This trend is especially apparent in European and North American urban cores where commercial and industrial buildings are being converted into dwellings and older housing stock is being upgraded.

SUSTAINABILITY

There is a growing trend for the construction industry to focus on performance first and then decide which materials are the best fit for a project. Sustainability is a key driver of this trend. Building codes and public attitudes are shifting toward an approach based on the full life cycle cost of the building materials. The environmental footprint of a building from construction, through its life can be a key differentiator in the sales process. Sustainability is also helping spur renovation and retrofitting as owners upgrade properties to meet new environmental standards and expectations.

THREE PATHS TO SEIZING OPPORTUNITY

Canada’s forest products industry has three basic paths to choose from to gain market share in the construction sector. Companies can choose to supply commodities more broadly, innovative building materials or integrated solutions. These three paths can be combined to some extent or viewed as stepping stones as a company’s business model evolves and becomes more focused on adding value over time. Each path represents a break with the status quo.

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Perspectives from market leadersThe Construction Value Pathways Voice of the Construction Industry report is based on a series of interviews with 30 market leaders in the construction industry in North America, Europe and Asia. These market leaders are experts from key stakeholder groups: architects, designers, builders, engineers, academia, value-added manufacturing and industry associations.

Canada’s forest products industry is well positioned to capitalize on key growth opportunities in the construction industry, according to the market leaders who were interviewed.

FUNDAMENTAL CHANGES IN THE INDUSTRY

No matter the jurisdiction, no matter the expert interviewed, everyone pointed to a growing global population and changing demographics as fundamentally driving change in the construction sector.

The biggest trends seen across jurisdictions are the demographic shift towards re-urbanization, densification and energy efficiency. This demographic shift is being driven by overpopulation, a shortage of land for development, transportation pressures and the desire to conserve natural resources.

The trends seen today in condominium markets are a sign of things to come. The North American construction industry is building roughly the same volume of housing, but the mix is changing significantly. As one builder put it “our bread and butter of single-family homes is declining with a move to densification and an increasing need for integrated urban planning.”

Many believe that in the next 10 years, the bulk of the density will occur in four-, six- and eight-storey multi-family buildings. Demonstration projects of tall buildings using wood, together with recent work such as the study by Michael Green Architecture and Equilibrium Consulting, The Case for Tall Wood Buildings: How Mass Timber Offers a Safe, Economical, and Environmentally Friendly Alternative for Tall Building Structures, is a potential game-changer that could help create opportunities for wood construction over the medium and long term.

Upgrading and renovating

One of the biggest tasks facing the global construction industry in the decades to come will be upgrading existing building stock — both housing and commercial stock. Most renovations will be about retrofitting homes and buildings to deal with environmental regulations

Source: Forestry Innovation Investment

The Case for Tall Wood Buildings, Source: Michael Green Architecture

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linked to things like energy efficiency, air quality and water conservation. In the United Kingdom alone, “fuel poverty” affects nearly five million people. More than 80% of the current building stock will likely still be around in 2050, so renovation will be key to competing with new carbon-zero homes and buildings.

The rise of design-build

For many owners and construction industry professionals today, design-build is the preferred way to deliver projects. It’s a project delivery approach in which the design and construction services are contracted by a single entity. A study from the U.S. Construction Industry Institute showed that design-build projects are delivered faster, and at lower cost, than either design-bid-build or construction management at-risk projects. The good news is there is huge potential for improvement in the wood industry as the move is made from on-site construction to prefab automation, which includes computerized engineering.

Canada’s forest products industry is already making strides in design-build. Architects at Equilibrium used prefabricated structural wood products for a 157,000-square-foot building that houses UBC’s departments of statistics, earth and ocean sciences, and mathematics, as well as the office of the dean of science.

GREEN DESIGN AND CONSTRUCTION

Acceptance of green building techniques has grown significantly in the last 10 years. Market leaders reported that when people look at the carbon content of materials, they see that wood plays favourably. Many building materials based on hydrocarbons will be targeted for substitution over the next 20 years. Steel and concrete could also be replaced by wood-based alternatives and other renewable bio-products in certain applications.

Challenges have been laid down by governments to build more sustainable buildings for less. This is true for housing and other types of buildings, like schools. For example, the U.K.’s Code for Sustainable Homes has been adopted for all housing. The code has become a central statutory instrument to assess the sustainability of buildings.

There is a strong business case for green design and construction when a more holistic, longer-term view of real building costs is incorporated. Builders and designers need to be reassured that green design and construction can be cost-effective, is technically proven and can rely on readily available materials offered by at least two suppliers.

BARRIERS TO INCREASING FOREST PRODUCT MARKET SHAREAccording to market leaders in the construction industry, the primary concern for the forest products industry should be to overcome perceptions related to durability and fire resistance and basic barriers put up by code requirements. There is a strong need to continue to work to reduce code impediments. National, sub-national and local building code systems are of primary relevance, with increasing attention being paid to the International Green Construction Code.

The forest products industry must react quickly to the forces of supply and demand. Many developers want to source supplies with local materials. Interviewees said it would be useful if market sectors were to condense their product information into a single database that could act as a timber products bank. They also urged the wood industry to provide them with more ready-made solutions, design possibilities, and seamless costing and delivery tools.

Source: Forestry Innovation Investment

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Wood’s carbon footprint and related environmental factors are important reasons for its popularity. But in reality, price is always the most important factor. Therefore, new products and systems must demonstrate their advantages in economic terms.

NEW PRODUCTS AND BUILDING SOLUTIONS

Prefabricating building units in factories and assembling them efficiently at work sites based on different variations of the design-build model is expected to dominate thinking around new construction systems.

It is important to remember that products that have become transformational may not be high-tech. Using simple products or materials in completely new and innovative ways holds a great deal of promise. It is also, of course, unlikely that a single new product will change the industry completely. However, cross-laminated timber (CLT) has the potential to begin changing the building industry over the next few years by opening new doors for other timber products. We are already seeing an increase in the use of mass timber in non-residential applications.

Innovation in design is central to the adoption of new technology. There are many excellent examples of commercial and housing projects that are using wood in new ways. Some designers are referring to wood as a “new high-tech material.” Twenty years ago, glulam spans were predominately in industrial buildings. Now this product is used in massive spans in big high-end projects like recreation and educational buildings.

Current innovations worldwide have triggered a race to create taller wood buildings. The nine-storey Stadthaus building in London illustrated how tall wood buildings can be a competitive system in the marketplace.

There are also hybrid building solutions that combine different elements into a hybrid whole and show new ways of organizing space.

Hybrid buildings offer up-to-date answers to our way of living, working and entertaining.

WORKFORCE TRAINING AND EDUCATION

Finally, market leaders noted that the demographics of tradespeople, especially in the developed world, are leading to skill shortages, which in turn are driving changes in the nature of building materials. Prefabrication, automation and new technology will likely help offset some of the decline in the number of skilled workers. Materials producers who provide in-house training and education may put themselves in an advantageous position. Builders need easy access to product information and experts on site.

Source: Forestry Innovation Investment

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Opportunities for transformationThe construction industry is changing, and companies are reacting to these changes aggressively. The $8-trillion global construction industry offers a range of transformative opportunities for the Canadian forest products industry across each of its three segments: residential construction (36%), non-residential infrastructure construction (33%), and non-residential structure construction (31%).

THE FUTURE OF THE CONSTRUCTION INDUSTRY

The established residential construction markets in North America and Europe are mature and, for the most part, have only modest growth potential. Global diversification is key for the forest products sector to reach its full growth potential. Consider that in 2001, the United States was the biggest market for residential construction and China was seventh. By 2012, the U.S. had slipped to second place and China had become the largest. Dramatic changes are also being seen across other emerging geographic markets and in more traditional markets.

The established residential construction markets in North America and Europe are mature and, for the most part, have only modest growth potential. Global diversification is key for the forest products sector to reach its full growth potential. Consider that in 2001, the United States was the biggest market for residential construction and China was seventh. By 2012, the U.S. had slipped to second place and China had become the largest. Dramatic changes are also being seen across other emerging geographic markets and in more traditional markets.

The most obvious change over the last decade is the rising demand for multi-family residential buildings, fuelled by three main sources. The first is the rise of more affluent consumers in Asia. They are demanding new housing, but their cities don’t have enough space for single-family homes to meet demand. The second driver is the growing trend toward densification in North American cities. The third driver is the rising number of single-person households. For example, in Canada there are now more single-person households than there are households with couples and children.

Mature markets are also seeing another shift within their construction industries. Renovating and retrofitting is becoming more important. This trend is especially apparent in European and North American urban cores where housing and commercial stock is being upgraded to meet modern energy, water and air regulations.

The non-residential and infrastructure segments also offer opportunities. But new products, systems and practices are needed to expand the opportunity to build with wood. The forest sector needs to broaden its focus beyond residential construction to realize this growth opportunity.

Taking advantage of these trends means the forest products sector needs to supply new products, systems and services focused on integrating wood products seamlessly into construction projects. Building code changes are also critical for wood products to reach new markets such as multi-storey, high rise and industrial buildings.

TRANSFORMATION WITHIN THE CONSTRUCTION INDUSTRYAs in any sector of the economy, transformation and evolution has been occurring every day in the construction industry. Examples of this can be seen throughout the industry. A typical example is the transition of SNC-Lavalin from being an engineering company to one that now operates infrastructure projects like the SkyTrain in British Columbia. Developers are transitioning from simply building an apartment tower to offering property management and after-construction care.

PRODUCTS AND SYSTEMS OF THE FUTURE Innovation comes from three different sources: development of new products, development or adoption of new technologies, and development of new business practices. While the forest products industry has a long tradition in the latter two types of innovation, construction markets will increasingly reward the development of new products.

FPInnovations has performed a comprehensive search of innovative building materials manufactured at least in part with wood. These materials were further evaluated then grouped into five categories:

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Multi-functional panels: wall panels combining several functions including sheathing, thermal insulation, water barrier, and in some case structural capacity

Next-generation engineered wood products: engineered wood products with a lower ratio of cost or weight to elasticity

Fibre-based insulation: insulation products based on wood fiber, either from a dry stream (MDF, for instance) or wet stream (pulp and paper)

Hybrid building solutions: introducing wood-based solutions into steel and concrete structures (floor decks, partitions, roof systems, etc.)

Exterior applications: next generation of durable, low-maintenance products that can withstand the test of time

PRODUCT INNOVATION SNAPSHOTS

Next-generation cross-laminated timber

Cross-laminated timber (CLT) was developed in Switzerland in the early 1990s. It allows for increased dimensional stability and strength in framing systems. CLT is made of multiple layers of wood, with each layer oriented crosswise to the next. It is used for long spans in floors, walls or roofs. CLT can be prefinished, which reduces labour on-site. Next generation CLT panels will be made with lighter materials, integrated with more advanced interlocking systems and better insulating alternatives, making them much higher-value-added and even more multifunctional.

Parklex Facade

Parklex Facade is a high-density stratified timber panel manufactured from kraft paper and treated with resins under high pressure and temperature. It is finished with natural timber veneers that are highly resistant to UV radiation and weather. Each type of Parklex is subjected to a different production process, depending on its final application (e.g., interior versus exterior).Parklex has distributors on all five continents. This allows the company to work more closely with its clients and to offer them better service. Parklex’s precise approach to project planning means fewer cuts on-site and almost no waste. Inventory that is left over is taken back and sold on secondary markets.

Source: Parklex (www.parklex.com)

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Business models and product adoptionTo take advantage of the trends shaping the construction industry, forest products companies must transform their business model. New technology, products and processes on their own are not enough for successful transformation.

Canada’s forest products industry has overcome enormous challenges over the last decade. To move from surviving to thriving, the industry must internalize the message that innovation and competition will define it from now on. The construction industry represents a tremendous opportunity for the forest products industry to transform itself and to continue to serve as a primary driver of Canada’s economy.

BUSINESS ADAPTATION AND HARD AND SOFT TRANSFORMATION

Forest products companies may need to change at the level of corporate culture, governance, business models and marketing. Transforming in ways that capitalize on construction industry trends is about broadening the conversation from a singular focus on technology — the “hard” side of transformation — to include all the essential factors to successfully transform a business, such as the “soft” efforts.

MARKET RESPONSE OPTIONS

Canada’s forest products industry has three basic paths to choose from to gain market share in the construction sector. Companies can choose to supply commodities, innovative building materials or integrated solutions. These three paths can be combined to some extent or viewed as stepping stones as a company’s business model evolves and becomes more focused on adding value over time. Each path represents a break with the status quo.

Commodity supplier

Choosing the commodity supplier path does not mean settling for the status quo, although product volumes are still at the commodity scale and consistent with the

production scale of existing forest industry operations.Successful companies who compete as commodity suppliers have:

» a broader perspective on geographic and segment markets

» strong regional market knowledge that rejects a “one size fits all” mindset and instead allows for diversification on a market-by-market basis

» the ability to combine sales, marketing and logistics that extends to delivering complementary commodities either directly or through partnerships

» commodity product specifications that meet the needs of precision building and individual market demands

» a commitment to manufacturing excellence

Innovative materials

New building materials are carving out market share in the construction industry. The forest products industry has an opportunity to gain market share if it can deliver the innovative materials builders and designers are looking for. The prefabrication market, for example, offers enormous opportunities.

To become a true innovator, companies must become skilled at moving from concept, through to trials, code compliance and implementation. The step from producting lumber or panels to producing building materials is not without its challenges, but has held good promise for those who have taken it. The final piece of the puzzle for innovators is to build a sales and marketing team designed to introduce new products.

Integrated solutions

This is the highest level of value-added and the most challenging. Successful companies that follow this path are capable of delivering installed solutions directly to a builder. These companies integrate their sales and marketing teams with builders, developers and designers. To make it to this level and be successful requires top-notch project management that allows for just-in-time delivery. Companies must also be capable of managing the whole life cycle of a product, from installation to call-backs.

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BUSINESS MODEL IMPLICATIONS

The forest products industry of the future will have multiple market segments with myriad business models. The type of product or system being sold will play a dominant role in determining how the supply chain and sales and marketing operate. The future will likely feature an explosion in custom solutions. These made-to-order solutions will require much greater interaction among supply chain players.

PRODUCT ADOPTION ISSUESFPAC and our sister associations recognize the important role we can play in helping industry with code compliance. Non-compliance closes the door to market acceptance, so everything must be done to ensure a growing range of forest products meet building codes. Looking out to the 2020 revision of the National Building Code of Canada, the Canadian Wood Council has set an objective of securing code compliance of wooden tall buildings, up to 30 storeys.

Market leaders in the construction industry raised perceptions of wood inferiority related to durability and fire. Forest products must also be cost-competitive.The way to address durability is through proper design and testing to establish performance standards.

The best way to eliminate fears related to fire is by educating the public, fire officials and designers about how wood can be just as safe as any other building material. The industry should also be clear about the competitive cost advantages of forest products, and highlight their green attributes over competing materials.

Source: Forestry Innovation Investment

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Conclusion: living up to the promise of Vision 2020 Canada’s forest products industry has overcome enormous challenges over the last decade. To move from surviving to thriving, the industry must internalize the message that innovation and competition will define it from now on. The $8-trillion global construction industry represents a tremendous opportunity for the forest products industry to transform itself and to continue to serve as a primary driver of Canada’s economy.

Already, Canada’s forest products industry is worth about $57 billion annually to Canada’s economy. If Vision 2020 is realized, an additional $20 billion in economic activity could be generated from new innovations and growing markets.

To take full advantage of the trends shaping the construction industry, forest products companies must transform their business models. New technology, products and processes are important, but by themselves they not enough to fully exploit the opportunities that are emerging in the global construction industry.

Canada’s forest products industry has three basic paths to choose from to gain market share in the construction

sector. Companies can choose to supply commodities, to supply innovative new materials or to supply integrated solutions. Each path represents a break with the status quo. We also recommend that forest products companies strongly consider how they can work with mega-trends, such as the growth of multi-family residential homes in urban areas. No matter what path a company chooses, there must be a shift in corporate culture from surviving to thriving.

INDUSTRY–GOVERNMENT PARTNERSHIPS TO DELIVER 21ST CENTURY ECONOMIC GROWTHThe forest products industry is working hard to transform itself, but we recognize that our partnership with government has been critical to our success. We need to maintain the industry–government partnership that has so fundamentally helped the Canadian forest products sector reinvent itself as a dynamic player in the global marketplace of the 21st century. Other jurisdictions are investing more in the forest products sector. Strong industry–government partnerships are an important factor in remaining globally competitive.

Industry and government have a vested interest in continuing to build on today’s supportive policy framework. Government policies and partnerships with industry are accelerating the industry’s transformation — a transformation that is helping to drive our economic recovery and sustain jobs in rural Canada.

Source: Forestry Innovation Investment

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Public policy can play a leading role in four main areas to help the forest products industry and the wider Canadian economy: building code changes, demonstration projects, market development, and innovation and transformation.

Building code changes

The light timber frame system is recognized in codes and standards for buildings of up to four storeys high in Canada. Code changes to allow buildings to move beyond this height are critical for transforming Canada’s forest products industry. Building code acceptance at home also supports the adoption of similar code provisions abroad. It is important that Canada be able to demonstrate the viability of tall wood buildings domestically to support its efforts in foreign markets. Our market leader interviews indicated that if governments make changes to building codes to permit taller buildings, there would be uptake from the construction industry.

In Canada, new national building codes, which start in 2015, and new green building policies have changed how governments look at buildings. There are definite signs of a growing appetite for clean technology. Because of its smaller carbon footprint, the forest products industry is well positioned to exploit the rise of green buildings.

Support for demonstration projects

Demonstration projects can encourage the construction industry to choose wood. Government support helps facilitate demonstration projects. This support can be financial and technical. Leveraging government research and scientific capabilities should be an important area of focus for the forest products industry.

Many of the most innovative forest products that have entered the market have been a result of targeted promotion and small-scale trials. Demonstration projects can show by doing.

Market development support, export and domestic

The federal government has played an instrumental role in promoting the use of Canadian forest products at home and abroad. But some key programs have wound down. Sustained funding for market development is necessary if Canada wants to compete against forest products industries in other countries, most of which receive significant government support.

The Expanding Market Opportunities Program and the earlier Canada Wood Export Program have played a key role in expanding Canada’s exports of wood products. Continued support from the federal government via programs like these is critical to the industry realizing its growth potential and delivering more jobs to Canadians.

FPAC also recommends that the government implement low carbon building materials policies. Before soliciting bids for the construction, maintenance or repair of public works and federal properties, the government should give preference to construction proposals that promote the use of materials with a low environmental impact. Taking greenhouse gas emissions and other life-cycle impacts into account during the bidding process is a central component of low carbon building materials policies.

Support to innovation and transformation

Government support for accelerated innovation and transformation in the forest industry has been quite successful in recent years.

The Investing in Forest Industry Transformation (IFIT) program was a remarkable success. The $100 million program was oversubscribed by six times. The proposed projects are highly transformative and moved

Shanghai Reroofing Demonstration ProjectCanada Wood Group

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the sector towards capturing new markets estimated to reach $200 billion per year. The program closed in March 2011.

The Next Phase of Canada’s Economic Action Plan in June 2011 included a $25.5-million investment that was recently announced for the Transformative Technologies Research Program. This program is a key part of FPInnovations’ research. It brings together governments, industry and academia to conduct research along the forest value chain. The objective is to come up with innovative products and to increase investment in a higher-value-added forest sector.

The Construction Value Pathways reinforces the need for continued support. Renewed and longer term support will facilitate the forest industry’s transformation and create jobs for Canadians.

A STRONGER FOREST PRODUCTS INDUSTRY MEANS A STRONGER CANADIAN ECONOMY

Together with the opportunities identified through Construction Value Pathways, government support for building code changes, demonstration projects, market development, and innovation and transformation will help Canada’s forest products industry capitalize on the key growth opportunities in the global construction industry. This will result in not only a thriving forest products industry but also a stronger economy for all Canadians.

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AcknowledgementsFPAC would like to thank all those who contributed to this project, in particular the staff of FPInnovations, the Canadian Forest Service, and Jonathan Westeinde of Windmill Development Group. It would have been impossible to complete this work without access to the knowledge and expertise provided by such excellent collaborators.

ABOUT FPACThe Forest Products Association of Canada (FPAC) is the voice of Canada’s wood, pulp and paper producers nationally and internationally in government, trade, and environmental affairs. Canada’s forest products industry is a $57 billion dollar a year industry that represents 12% of Canada’s manufacturing GDP. The industry is one of Canada’s largest employers, operating in 200 forest-dependent communities from coast to coast, and directly employing 230,000 Canadians across the country.

FPAC represents the largest Canadian producers of forest products, and all FPAC members are signatories of the historic Canadian Boreal Forest Agreement. Our members are responsible for 66% of certified forest lands in Canada. Third-party certification of member companies’ forest practices is a condition of membership in the Association — a world first.fpac.ca

ABOUT FPINNOVATIONS FPInnovations is among the world’s largest private, non-profit research centres working in forest research. The organization helps the Canadian forest industry to develop path-breaking solutions based on the unique attributes of Canada’s forest resources, favouring a sustainable development approach and taking full advantage of the industry’s considerable scientific, technological and commercial capital.

Based on the principle of collaborative research, the FPInnovations business model combines strategic research alliances, products and services, along with licensing and joint venture agreements when taking the needs of members and customers into consideration.FPInnovations.ca

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