Forestry sector large contributor to Northern economy.

Forestry is one of North Bay's most important local industries and the entire Blue Sky Region benefits from it. Forestry is the primary productive engine of the Blue Sky economy, and since it is based on a renewable resource that is being managed to ensure sustainability, jobs and job growth are ensured for the future.

The Blue Sky Economic Partnership (BSEP) recently completed an economic impact study on the forestry sector. BSEP is a public/private-sector initiative based on a sectoral approach to economic development. Its partners include private-sector clusters, one of which is the forestry sector, chaired by leaders in their particular field. The partnership also includes Almaguin 2000 Development Agency, Economic Partners/Sudbury East-West Nipissing, Mattawa and Area Forestry Committee for Economic Development, Nipissing East Community Opportunities, North Bay Economic Development Commission, the Municipality of West Nipissing, and the Municipality of Temagami.

The local forestry industry directly employs almost 2,300 people. Through additional indirect and induced employment, another 2,200 jobs are supported by this industry, which means that the forest industry in the Blue Sky Region is responsible for approximately 4,500 direct, indirect and induced jobs. This represents one in 10 of all local jobs. When one also considers in excess of 200 enterprises supply products and services to the forest industry and employ roughly 5,000 people, it means that nearly 9,500 people in the Blue Sky Region rely on the forest industry for their livelihood.

Beyond the numbers of direct and indirect jobs created by an industry, it is important to look at average salaries. The average full-time employment income in North Bay is calculated at about $33,000 annually. While some jobs in the forestry sector are also at this level, a study by Price Waterhouse placed the 1995 annual average compensation in the primary forest products industry at $44,467 before benefits and $60,976 with benefits.

According to Statistics Canada, the highest industry salaries are in the mining, quarrying and oil well industries. But the logging and forest industry is in second place, nearly double the average earnings of the retail sector.

Forestry sector employees contribute nearly $32 million annually to the local retail and service sectors, and of the $324 million spent annually by the forestry sector on goods and services, $50 million is spent within the Blue Sky Region. While these figures represent the large companies involved in the forest industry, it is important not to forget the impact of the numerous small independent logging contractors and wood lot owners active in the region.