Overview of the Canadian value-added wood products sector and the competitive factors that contribute to its success

Abstract

In recent years, there has been considerable interest in the secondary wood manufacturing sector across Canada. Strengthening and facilitating the secondary wood manufacturing or the value-added sector is seen as the next step to creating a more sustainable economy across Canada. This research considered a large sample of secondary wood manufacturers across Canada and has provided standardized information for the entire sector. To evaluate the competitive position of the Canadian secondary wood manufacturers, two steps were undertaken. First, factors that have determined success in other sectors were identified. Second, the sector’s current business environments and the factors that contribute to its success were evaluated. The data that contributed to this research was based on a mail survey that was sent to all secondary wood manufacturers across Canada. The data indicated that the majority of businesses in this sector are small to medium enterprises (SMEs) and have common concerns that effect SMEs. Problems obtaining financing for expansion, market research, expanding to new markets, and upgrading employees’ skills are examples. There are also opportunities for increasing efficiencies through lean manufacturing and optimizing supply chains, but these types of initiatives will require education and training. Using logistic regression, we found that being a member of an industry association greatly increased the likelihood of a business being profitable. Thus, industry associations could be an effective conduit for the required training and education.