‘We must take action to pivot, grow, modernize and diversify so we can protect the industry we have built and catalyze its growth for the long term,’ Natural Resources Minister Tim Hodgson said about the forestry sector. / ISTOCK PHOTO

A new forestry action plan will help ensure the sector remains a key contributor to Canada's economy while adapting to changing global conditions and creating new opportunities for workers and communities, says Natural Resources Minister Tim Hodgson.

“Mills are closing, Canadians are losing jobs and communities are suffering, due to tariff pressures, market changes and more. We must take action to pivot, grow, modernize and diversify so we can protect the industry we have built and catalyze its growth for the long term,” Hodgson said in a press release announcing the plan. “Today’s Action Plan builds on the work of the Canadian Forest Sector Transformation Task Force and provides a clear path forward for the concrete measures Team Canada will take to build a strong, prosperous, sovereign Canada for all.”

The strategy focuses on four priority areas: securing a competitive and predictable supply of wood fibre; supporting innovation and modernization investments; expanding domestic and international markets and helping workers and communities through skills development and transition measures.

Federal, provincial and territorial governments discussed implementation of the plan during this year's meeting of the Canadian Council of Forest Ministers. Governments agreed to work together in the coming months to align policies and investments, reduce barriers and advance transformation efforts. The work is expected to culminate in a formal Forest Sector Strategy for Canada by the end of 2026.

Canada's forest sector supports nearly 200,000 workers, including more than 11,000 Indigenous workers, and contributes more than $20 billion annually to GDP.

Jobs and Families Minister Patty Hajdu said workers and communities remain central to the industry's future.

“Canada’s forest sector relies on the people, families and communities who build it. At a time of real challenge, this Action Plan will empower workers with the skills they need to thrive while supporting good jobs and helping communities adapt. By investing in skills and innovation, we are building a stronger, more inclusive economy where the forest sector continues to create opportunity today and shape a sustainable future for generations to come.”

In response, the Forest Products Association of Canada (FPAC) said the plan shows the government is “moving from ‘advice to action’ and the need for a coordinated federal-provincial approach to bring stability, improve competitiveness and attract more investment to Canadian forestry.”

Now it’s time to implement, said Derek Nighbor, President and CEO of FPAC.

"The Forest Sector Transformation Task Force has provided federal and provincial decision-makers with a thoughtful playbook. The 200,000 employees in our sector want to see that the federal government has their backs and is committed to real change to protect and grow jobs and investments into Canada’s forest industry. Today’s announcement has been well received,” Nighbor said. "This is the most robust federal government response we’ve seen in years to the core issues holding our industry back.”