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Total revenue from all logging activities in Canada increased 16.3% (+$1.7 billion) from 2020 to $11.9 billion in 2021, as Statistics Canada reported. The logging industry consists of two sub-industries: logging (except contract) and contract logging. Overall, total revenue was split almost equally between the two sub-industries, logging (except contract) contributed 52% ($6.2 billion), while contract logging contributed 48% ($5.7 billion).
Photo: Statistics Canada
Revenue from logging activities, which excludes revenues from sources other than logging, such as secondary business activities, was up 13.6% (+$1.3 billion) from 2020, reaching $10.9 billion in 2021. This increase in revenues was driven by a 25.8% increase in the average annual prices of logs, pulpwood and other forestry products, as measured by the Raw Materials Price Index.
Expenses increase less than revenue
Total expenses from logging activities increased in 2021, up 13.2% (+$1.3 billion) from 2020 to $11.2 billion, less than the increase in total revenue. As a result, for every dollar earned in total revenue for both types of loggers, total expenses represented 94 cents in 2021. This was less than in 2020, when contract loggers had spent 97 cents for every dollar earned on expenses, while loggers (except contract) spent 96 cents.
The cost of materials and supplies increased 16.8% (+$751.1 million) in 2021, reaching $5.2 billion for all logging activities. Materials and supplies accounted for 59% of total expenses for loggers (except contract), while they represented 34% for contract loggers. The cost of materials and supplies is made up of purchases of raw materials and components, repairs and maintenance, payments to subcontractors and stumpage fees.
In 2021, total salaries and wages for the logging industry increased 9.1% (+$153.4 million) to $1.8 billion. Contract loggers’ share of total salaries and wages was 68% ($1.2 billion), compared with 32% ($589.3 million) for loggers (except contract). For every dollar of expenses, contract loggers spent more on salaries and wages, at 23 cents, than loggers (except contract) at 10 cents. This difference can be partly explained by the fact that loggers (except contract) are logging on an own-account basis and hire subcontractors, which results in some of the salary and wage expenses being classified under subcontract fees.
British Columbia and Quebec revenues rebound
In 2021, the top five provinces, which made up 97% of total revenue from logging activities, mainly saw increases. The most notable increases in revenues from logging activities were recorded in British Columbia (+$1.1 billion; +24.6%), Quebec (+$207.3 million; +10.0%) and New Brunswick (+$86.8 million: +13.4%). Two provinces experienced a decrease, Ontario (-$41.6 million; -4.0%) and Alberta (-$36.8 million; -3.1%).