B.C. forestry company moving head offices to the U.S. amid struggles, tariffs

Interfor, one of British Columbia's largest forestry companies, is relocating its head offices from Burnaby, Canada, to the outskirts of Atlanta, Georgia. The decision, communicated via a memo from CEO Ian Fillinger, signifies a major shift for a company considered foundational to B.C.'s forest industry.

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They have reduced their footprint here kind of incrementally over time.

Jock Finlayson, chief economist for the Independent Contractors and Businesses Association (ICBA), noted that Interfor has been incrementally reducing its presence in B.C. over time. He explained that the majority of the business's assets are now located in the United States, which helps contextualize the headquarters' move.

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Most of the assets of the business are in the United States now, which I think sort of helps to explain the move that they’ve announced this morning.

Finlayson described Interfor's announcement as indicative of the broader challenges facing the forest products sector. Once B.C.'s largest goods-producing industry and primary source of export earnings, the sector has fallen on hard times. This decline is exacerbated by factors such as U.S. softwood lumber tariffs and a diminishing fiber supply within British Columbia.

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B.C. has really lost our competitive position as a lumber and forest products producing jurisdiction generally, certainly in the North American context.

Recent closures, including Domtar's pulp mill in Crofton and Canfor's pulp mill in Prince George, highlight the industry's difficulties, resulting in hundreds of job losses. Finlayson believes B.C. has lost its competitive edge in North America's lumber and forest products market, a trend he feels has accelerated under the current B.C. government due to a lack of prioritization for a commercially viable forest products sector. He suggests the government's role as landlord and regulator, combined with unfavorable conditions, discourages both new investment and current operations. Finlayson warned that Interfor might not be the last major B.C.-based company to relocate its offices.

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And it’s been underway for probably at least 15 years. It’s really accelerated under the current B.C. government, in my view, because they have not prioritized the maintenance of a commercially successful forest product sector.