Integration in the forest industry of British Columbia

Peter Robinson
1971
Integration in the forest industry of British Columbia is a complex phenomenon. Its history is almost as long as that of the industry itself. The industry is multi-faceted, with many spheres of concern and activity, and the process of integration has necessarily been a highly differentiated one. Characteristically, it has developed at different rates and to different degrees in and between each of the various sectors of activity. This thesis will examine the growth of integration in the forest
more » ... ndustry of British Columbia and will inquire into the fundamental factors of influence in the development of this phenomenon. The terminology applied to the various types of integration is reasonably standard and self explanatory. However, for the sake of clarity and since the industry is a complex one, it is appropriate to discuss the precise application of these terms in this thesis. There are four basic components of the British Columbia forest industry—forestry, harvesting, conversion, and marketing. Only the first of these functions remains substantially outside the private domain, and in consequence of this, timber control is generally treated as a function in itself. Within each of these sectors one finds the process of horizontal integration whereby like entities become amalgamated. This is generally referred to as concentration or as consolidation. In the conversion or manufacturing sector, activity is sufficiently differentiated by output that four major product groups may be identified—lumber, shingles, plywood, and wood pulp. Integration between these sectors is vertical integration. Integration between any of the four functions in the industry (e.g. logging, conversion, etc.) is referred to as vertical integration. It involves the inclusion of two or more industry functions within a single corporate structure. Not all integration is corporate however, and various forms of cooperative integration are prevalent throughout the industry. This is an extremely important aspect of [...]
doi:10.14288/1.0102453 fatcat:kys6kjdmqbcdlepatqljpymvye