The forest sector is a significant contributor to the Ontario
economy. The economic importance of forestry to northern
communities is well known. Less well known is the sizeable
economic contribution the forest industry makes to communities
throughout southern Ontario and to the entire provincial
economy.
The Ontario forest sector manufactures $19 billion in total sales
annually, and contributes $8.5 billion to the Province's balance of
trade. The forest industry is second only to the automotive
industry in Ontario in the value of its export shipments.
Moreover, the forest sector pays $2.3 billion in taxes annually, $800
million of which goes directly to the provincial government and $160
million to municipalities. $240 million in stumpage fees are also
paid by the forest companies directly to the provincial
government.
Numerous communities and individuals throughout Ontario depend on and
are supported by the forest sector. The forest sector pays
approximately $ 4.8 billion salaries and benefits to direct employees
every year, with an average salary of $68,000. It is estimated
that 85,000 people are directly employed, and 190,000 indirectly
employed in the forest sector throughout Ontario; a significant
proportion of which are located in southern Ontario.
While difficult to quantify, numerous companies also supply equipment
used throughout all aspects of the forest products production
process. Companies manufacture equipment and chemicals used in
capital intensive pulp and paper, and wood product mills.
Moreover, numerous southern Ontario companies manufacture the heavy
machinery used to build roads, harvest timber, and transport
products. The transportation industry is also heavily involved in
transporting end products from producers to end consumers.
