British Columbia is expanding the BC Timber Sales Value-Added Manufacturing Program by creating a new dedicated category that will secure fibre for custom cutters and processors across the province, giving businesses that lack sawmilling facilities access to timber, the Ministry of Forests, Government of British Columbia announced.
The program was launched in January 2023 with a dedication of 10% of BC Timber Sales timber supply to small and medium-sized secondary manufacturers producing high-value products. The minister doubled the program’s available timber supply to 20% in 2025. The program is restricted to value-added wood manufacturers who have limited or no forest tenure and who own or lease their facility, and the new category will allow custom cutters and processors to join and access timber.
Custom cutters and processors do not operate their own sawmilling facilities and partner with multiple manufacturing sites to produce specialty customer-specific lumber products, including Japanese temple components, windows and doors. Around 30 to 40 custom cutters and processors in B.C. would qualify for the new category. The custom cutter and processor sector directly employs an estimated 250 people and uses 0.8 million m3 of wood each year, or about 17.7 thousand logging truck loads, while indirectly supporting additional jobs through marine towing, trucking, rail and port services.
The broader value-added wood-manufacturing sector contributed more than $1.3 billion to B.C.’s gross domestic product in 2024 and has used 1.5 million m3 of wood through the Value-Added Manufacturing Program since its launch in 2023. There are 82 registered participants in the program.
Industry representatives welcomed the expansion. The expansion will provide stability for small businesses in the forest industry, help companies adapt to changing markets and keep more value and jobs in the province. Companies such as Sundher Group manufacture products from coastal species, including hemlock, Douglas fir and western red and yellow cedars, for domestic and export markets.
Expanding the program supports the Make More in BC agenda by improving fibre access, predictability and stability, supporting local manufacturing, and encouraging more B.C. logs to be processed into high-value products within the province.