FREDERICTON, NB, Oct. 14, 2026 /CNW/ -- The world is changing rapidly, leaving Canadian industries, communities and workers vulnerable. Canada's forest sector is experiencing this first-hand. It continues to face significant pressures, including unjustified U.S. tariffs, climate change and changing consumer and global demands. Our forest sector is a cornerstone of our economy. It supports nearly 200,000 jobs; is the bedrock of 300 rural, remote and Indigenous communities; and contributed $23.5 billion to our GDP in 2024 alone. In response, the Government of Canada is taking action to stand with Canadian industry and workers to adapt, innovate and remain competitive so the sector can not only survive but thrive, for generations to come.
Today, the Honourable Tim Hodgson, Minister of Energy and Natural Resources, announced an investment of up to $50 million for the establishment of the New Brunswick Strategic Innovation Centre in Digital Forestry, an initiative led by the Northern Hardwoods Research Institute in collaboration with ResearchNB.
Canada's forest products industry depends on a reliable supply of wood -- called fibre supply -- to make everything from lumber and paper to packaging and other products. That supply has become increasingly uncertain due to factors such as wildfires and pests, putting mills, jobs and Canadian competitiveness at risk. The new Centre will establish a pilot for digitalizing the forest sector, helping the industry and its stakeholders better identify, track and use fibre resources across the supply chain. By increasing certainty of fibre supply and matching that fibre supply to facilities' specific manufacturing requirements, the initiative would modernize the forest products sector in New Brunswick and create a model for other regions -- attracting investment, reducing costs and improving operational efficiency for businesses. The digital infrastructure will place New Brunswick at the forefront of innovation and support the long-term resilience of Canada's forest industry.
Additionally, Minister Hodgson confirmed that Budget 2026 will contain further details related to the federal forest sector strategy. The strategy will detail Canada's plan for a competitive, sustainable and prosperous forest sector that continues to support communities, create jobs and provide world-class products to customers at home and around the world. The strategy will support projects like the Strategic Innovation Centre in Digital Forestry, positioning the sector to capitalize on transformative opportunities.
Canada's forest sector is a strategic manufacturing sector that provides good jobs, supports communities and contributes to Canada's economic strength. By modernizing the sector, the Government of Canada is taking steps to ensure that our forests remain a source of national strength and prosperity.
Quotes
"New Brunswick is helping lead the future of Canada's forest sector. Through the forthcoming national forest sector strategy, we will create the conditions for more transformative projects like the Strategic Innovation Centre in Digital Forestry to move forward -- projects that modernize the industry, strengthen competitiveness and position Canada's forest sector for long-term success despite an increasingly challenging global environment."
The Honourable Tim Hodgson
Minister of Energy and Natural Resources
"Forestry is New Brunswick's leading economic driver and an industry that impacts and connects every region of our province. I can think of no better home for the new Strategic Innovation Centre in Digital Forestry than right here. We are proud to be a part of this collaboration in partnership with the Northern Hardwoods Research Institute, ResearchNB, the Canadian Forest Service and the entire forest sector. This investment will modernize the forestry sector, accelerating digital technology integration into forest operations, and set the stage for a sector that will be globally recognized for efficiency and sustainability."
The Honourable John Herron
New Brunswick's Minister of Natural Resources
"The forestry industry's importance to New Brunswick's and the country's economy can't be overstated. The Northern Hardwoods Research Institute plays an essential role in the forestry industry, and ResearchNB is a leader in innovative research. Investing in these two proven organizations is essential to addressing challenges, modernizing the forestry industry and building a thriving industry."
The Honourable Jean-Claude D'Amours
New Brunswick's Minister of Post-Secondary Education, Training and Labour
"The New Brunswick forest sector, while at the leading edge of modern forest management, still faces many internal and external challenges. From a major independent analysis conducted in 2024 by the international consulting firm AFRY, it became apparent that a digitalization strategy for the entire sector was instrumental to our transformation and resilience. This investment by our governments is a catalyst for change that will make our Canadian forest sector a world leader once more."
Gaetan Pelletier, Executive Director
Northern Hardwoods Research Institute
"This investment reflects the federal government's confidence in New Brunswick's forestry sector and our province's capacity to deliver when we work together. New Brunswick has the research strength, industry expertise and public infrastructure to fortify our forestry sector leadership into an industry at the cutting edge of innovation globally."
Candice Pollack, Chief Executive Office
ResearchNB
Quick Facts
- Northern Hardwoods Research Institute and ResearchNB's proposed Strategic Innovation Centre in Digital Forestry is valued at approximately $86 million. The Government of Canada's investment of up to $50 million is conditional, subject to project approval and pending final due diligence.
- Since August 2025, the Government of Canada has introduced over $2.6 billion in measures designed to defend and transform Canada's forest sector, including the renewal of NRCan's suite of forest sector transformation programs.
- The upcoming federal strategy will build on the work of the Canadian Forest Sector Transformation Task Force, whose report was released in June 2026, as well as on engagements with provinces, territories, Indigenous partners and stakeholders on the Government of Canada's Draft Action Plan to Transform Canada's Forest Sector.
- In June, the federal government released its Draft Action Plan to Transform Canada's Forest Sector, which was informed by the recommendations of the Canadian Forest Sector Transformation Task Force.
Related Products
- Canada launches Forest Sector Action Plan (June 4, 2026)
- Canada advances forest sector transformation to protect jobs and strengthen communities nationwide (June 3, 2026)
- Government of Canada launches $500 million in support for retooling Canada's forest sector (February 25, 2026)
- Prime Minister Carney announces new measures to transform Canada's softwood lumber industry (August 5, 2025)
Associated Links
- Draft Action Plan to Transform Canada's Forest Sector
- Canadian Forest Sector Transformation Task Force
- Canada's softwood lumber industry
- Support for Canada's Forest Sector Employers and Workers
Follow Natural Resources Canada on LinkedIn
SOURCE Natural Resources Canada
Contacts: Natural Resources Canada, Media Relations, 343-292-6096, [email protected]; Charlotte Power, Office of the Minister of Energy and Natural Resources, [email protected]
Share this article