Comparing the forest industry to a bad horror movie, the Conference Board of Canada said Wednesday that if 2007 was bad, 2008 is shaping up to be no better.
The Canadian industry is expected to lose $750 million this year with only a modest return to profitability in 2009, the board states in its Canadian Industrial Outlook report on the forestry sector.
The industry's troubles stem from the collapse of the U.S. housing market and the high Canadian dollar. On top of that, the mountain pine beetle infestation in B.C. is now impacting timber supplies by killing the equivalent of 15 years of harvests, which will limit production for the next decade.