Kurt Niquidet, Head of Agro-food Trade and Markets Division at OECD Trade and Agriculture and former Vice-President and Chief Economist, BC Council of Forest Industries

Forestry still shapes B.C.

New economic report shows the sector’s reach extends deep into urban life, even as downturn pressures rural communities.

Kurt Niquidet grew up in Williams Lake, a place shaped by forestry. When he speaks about it, it’s from the perspective of someone who knows.

“I grew up in Williams Lake and really a forestry-dependent community,” he says.

Kurt Niquidet’s career bridges policy, academia and central banking. He’s currently Head of Agro-food Trade and Markets Division at OECD Trade and Agriculture, a new role he’s taken on after 7 years as Vice-President and Chief Economist for the BC Council of Forest Industries. He holds a PhD in natural resource economics and policy from the University of Groningen and has worked at the Bank of Canada and the University of British Columbia. He also serves as an adjunct professor at UBC’s Faculty of Forestry and has published widely on B.C. forest policy.

Now, he is applying that perspective to new data on the sector’s reach across British Columbia. His latest report, Rooted in BC: Economic Impact of Forestry, tracks forestry’s economic footprint across the province.

The findings challenge a common assumption. Forestry is not just a rural story.

“One thing that always surprises me is just how much impact the forest sector has on the Lower Mainland,” he says.

About a quarter of forestry-related jobs are based in the Lower Mainland. These include manufacturing, transportation, and professional services. Accountants, logistics workers, and financial analysts all play a role.

The result is a sector that quietly supports urban economies, even as its identity remains tied to resource towns.

The downturn hits harder than headlines suggest

The report also captures a more difficult trend. Forestry’s footprint is shrinking.

In regions like the Cariboo, the stakes are high. Niquidet notes that forestry can account for roughly a quarter of all jobs when indirect effects are included.

When the sector slows, the impact spreads quickly.

“It’s the loss of the direct jobs, but then there’s also the loss of the sort of indirect jobs,” he says.

The effects ripple through local economies. Restaurants lose customers. Small businesses struggle. Municipal revenues decline, especially in towns reliant on a single mill.

The latest data, based on 2024, shows lower numbers than in 2022. That reflects more than market cycles. It points to deeper structural pressures, including U.S. tariffs and market constraints.

Sustainability is a balance, not a trade-off

Forestry often sits at the centre of debates about sustainability. Niquidet pushes back on the idea that economic activity and environmental goals must conflict.

“I think they can be complementary,” he says.

He frames sustainability as a balance of three pillars: environmental, social, and economic. British Columbia has led on environmental standards, he adds, but must avoid tipping too far.

Too rigid a system risks weakening economic outcomes and community stability. The challenge is to find a workable balance across the landscape.

That balance matters not only for forests, but for the people and communities tied to them.

A path forward through certainty

For Niquidet, the path ahead centres on clarity and confidence.

He argues for a more defined “working forest” model, where parts of the land base are managed with a clear focus on timber production. This could improve fibre supply and reduce costs for mills.

Right now, he says, the system tries to do everything at once.

“It feels like we’re trying to manage for everything, everywhere.”

Greater certainty could attract investment, support processing facilities, and stabilize output. It could also help reverse the decline seen in recent years.

The stakes are significant. Forestry still contributes billions to provincial GDP, government revenues, and employment.

Niquidet’s message remains grounded in lived experience. Forestry is an economic engine that shapes communities across British Columbia, from small towns to the largest cities.

Ian Biana writes for the Resource Works Accelerate team and can be reached at [email protected].

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