Canada’s forestry sector faces a turning point – What should come next?

October 21, 2026

The decline stands in contrast to global production trends. Worldwide softwood lumber production increased by 6%, while pulp production grew by 22% over the same period. 

Pelletier argues that the contraction threatens approximately 200,000 direct jobs and $23.5 billion in GDP, underscoring the need for the sector to adapt to changing economic conditions. 

The proposed solution is not to abandon industrial forestry, but to modernize it. Pelletier points to improved technology, more efficient operations, stronger silviculture practices and better coordination across the sector as important elements of its future. 

These priorities also feature in a proposed national Forest Sector Strategy for 2026-2050, which emphasizes stable access to cost-competitive fibre, large-scale modernization, greater use of wood in construction, and support for forestry workers and communities. 

But the question of what comes next extends beyond how Canada can rebuild its traditional forest industry. It also raises questions about how the value of forests is understood and which economic activities should shape their future. 

What does a forestry transition look like in Nova Scotia?

Nova Scotia has already made significant public investment intended to help its forestry sector adapt. Since the closure of Northern Pulp in 2020, the province has introduced funding programs for forestry innovation, harvesting equipment, private woodlot management and Crown land management. 

As we explored in our article, “We were promised a forestry transition. . . So where did the money go,” these investments reflect a complicated transition. Some support ecological forestry, restoration and more selective harvesting, while others continue to support the roads, contractor, equipment and markets that underpin the traditional forest-products industry. 

The distinction matters. Modernizing industrial forestry and building a broader forest economy are not necessarily the same thing. 

Nova Scotia’s forestry transition has largely been discussed in terms of how the existing industry can continue operating under changing economic and ecological conditions. But the province’s forests support livelihoods and businesses that extend beyond timber production. 

Maple syrup producers, tourism operators, recreation businesses, wellness businesses, artists, small-scale woodlot owners, Indigenous communities and conservation-related organizations all contribute to the relationships between forests and local economies.

These activities may not fit neatly into conventional measures of forestry’s economic contribution, but they are part of the province’s forest economy. But because the province refuses to acknowledge these industries are part of the forest economy, their collective economic value has not yet been realized. 

This does not mean abandoning forestry workers or eliminating the forest-products industry. It means expanding the conversation about forest value and considering how public investment, forest management and economic development can support a wider range of businesses and communities. 

A broader approach would also raise new questions about how success is measured. Alongside timber production, employment and industrial output, the province could consider how much economic value healthy forests generate for local communities, who benefits from forest management decisions, and what opportunities are available when forests remain healthy and diverse. 

The national forestry sector’s call for transformation highlights the need to rethink how the industry operates. For Nova Scotia, it also offers a chance to consider whether transformation should extend beyond the traditional industry to the wider economy that forests already support. 

The Rooted Economy is not an economy Nova Scotia needs to invent. It is already here, in the businesses, livelihoods and communities connected to healthy forests. The challenge is to make that value more visible, connect the people who contribute to it, and help it grow.