The Pathways Project: Bio-pathways and Construction Value Pathways
The FPAC Pathways Program is made up of two key transformation initiatives: Bio-pathways and Construction Value Pathways. The initiatives were led by FPAC, in cooperation with FPInnovations, the Canadian Forest Service, and scores of economic and scientific experts.
The first initiative, the Future Bio-pathways Project, was undertaken in two phases from 2009 to 2011 and is a comprehensive investigation of the opportunities to produce a wide range of bio-products from wood fibre.
The second initiative, Construction Value Pathways, was launched in 2012. It identifies the key growth opportunities for the forest products industry in the construction industry now and over the next 10 years. It also provides a lens into what the future may look like for the construction industry in 20, 30 and 40 years. The future of Canada’s forest products industry will be bright if it embraces the idea of diversifying and transforming its products. Product and market diversification, and business model transformation will help the forest products industry earn more market share in the construction sector.
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Living up to the promise of
Canada's forest products industry has overcome enormous challenges over the last decade. To move from surviving to thriving, the industry must internalize the message that innovation and competition will define it from now on. The $8-trillion global construction industry represents a tremendous opportunity for the forest products industry to transform itself and to continue to serve as a primary driver of Canada's economy.
Already, Canada's forest products industry is worth about $57 billion annually to Canada's economy. If Vision 2020 is realized, an additional $20 billion in economic activity could be generated from new innovations and growing markets.
To take full advantage of the trends shaping the construction industry, forest products companies must transform their business models. New technology, products and processes are important, but by themselves they not enough to fully exploit the opportunities that are emerging in the global construction industry.
Canada's forest products industry has three basic paths to choose from to gain market share in the construction sector. Companies can choose to supply commodities, to supply innovative new materials or to supply integrated solutions. Each path represents a break with the status quo. We also recommend that forest products companies strongly consider how they can work with mega-trends, such as the growth of multi-family residential homes in urban areas. No matter what path a company chooses, there must be a shift in corporate culture from surviving to thriving.