Canada’s logging industry generated $12.4 billion in total revenue in 2024, up $49.2 million or 0.4% from the previous year, according to Statistics Canada.
The increase follows a 0.3% decline in 2023. Revenue in 2024 was split almost equally between the logging (except contract) industry at 50.6% and the contract logging industry at 49.4%.
Revenue from logging activities, which excludes revenue from other sources such as secondary business activities, rose 0.7% to $11.4 billion in 2024.
Expenses decline despite wage increases
Expenses from logging activities declined $60.6 million to $11.7 billion in 2024, marking the second consecutive annual decrease. Total expenses still represented 95 cents for every dollar of total revenue, a ratio unchanged since 2022.
The cost of materials and supplies for all logging activities decreased 1.3% to $6 billion in 2024, accounting for 62.5% of total expenses for loggers (except contract) and 39.1% for contract loggers. The cost of energy, water utility and vehicle fuel for logging activities edged down 3.3% or $33.6 million.
Salaries and wages grow amid sector challenges
Salaries and wages for the logging industry increased 1.7% to $1.8 billion in 2024. Contract loggers’ share of total salaries and wages was 68.5%, compared with 31.5% for loggers (except contract).
This difference reflects the fact that loggers (except contract) operate on an own-account basis and hire subcontractors, resulting in part of their labour costs being recorded as subcontract fees. For every dollar of total expenses, contract loggers spent 21 cents on salaries and wages, while loggers (except contract) spent nine cents.
British Columbia drives national growth
In 2024, the top five logging provinces accounted for 96.7% of Canada’s revenue from logging activities. British Columbia recorded a notable increase in revenue, rising $293.5 million to $5.4 billion.
Four of the top five provinces saw revenue declines. Quebec fell $80.2 million to $2.6 billion, New Brunswick dropped $52.5 million to $677.7 million, Ontario declined $44.2 million to $1.1 billion and Alberta decreased $15.8 million to $1.2 billion.
Two distinct industry structures
The logging industry comprises two Canadian industries: logging (except contract) and contract logging. Businesses specialized in logging (except contract) own the rights to harvest timber, with the largest share of revenues coming from logging operations on an own-account basis.
The largest proportion of revenues for contract loggers comes from logging services provided on a fee or contract basis. The cost of materials and supplies includes purchases of raw materials and components, repairs and maintenance, payments to subcontractors, and stumpage fees.
