Statement on the impacts of rail strikes on NB’s forest sector

Rail disruption will have crippling impacts to an already challenged forest sector in New Brunswick, and across Canada. Prolonged stoppages of rail service will have devastating impacts on many critical sectors in New Brunswick, driving up prices and exacerbating affordability challenges, and jeopardizing the livelihoods of thousands of New Brunswick workers. The disruption will almost immediately impact more than 26,000 jobs in New Brunswick’s forest sector and its associated value chain companies, and quickly accelerate into a shortage of building and construction materials that will impact another 29,000 jobs in the construction industry, including skilled construction trades. These direct impacts will have a trickle-down effect for the entire economy of the province.

The forest sector – like many other sectors – already faces a challenging economic reality with increased fuel and electricity costs, inflation, and a recently announced more than doubling of US tariffs on softwood lumber, all of which are placing pressure on one of our major industries and forcing curtailments across the country. With cost of production rising significantly and amplified transportation challenges, the 182 established businesses engaged in wood products manufacturing in NB will likely begin to experience impacts on production within a week of rail disruption, including the ability to send products to market and receive essential materials for continued operation. This will lead to the real possibility of complete or additional partial mill shutdowns and employee furloughing that will disproportionately impact the dozens of rural communities in the province that rely on these businesses and the consumer spending they enable. Not to mention the livelihoods of families.

Extended rail curtailment will also imperil the benefits the forest sector brings for the province and its citizens. Currently, over $4 billion in total revenue is realized from manufactured forest products and goods, $2.8 billion of which is exported annually making it the second largest exporter next to oil and gas in NB. This results in a $1.2 billion contribution to the real GDP of the province. Disruption means not only shutdowns and impacts to jobs but a significant loss of provincial tax revenue that supports our essential services like healthcare, infrastructure, policing, and education. 

Kim Allen, Executive Director

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