Federal Minister of Energy and Natural Resources Tim Hodgson announced an investment of up to $50 million to support the establishment of the $86-million New Brunswick Strategic Innovation Centre in Digital Forestry.
The centre, led by the Northern Hardwoods Research Institute in collaboration with ResearchNB and the Canadian Forest Service, aims to enhance the tracking and use of fibre resources across the supply chain.
The federal government recognizes that supply has become increasingly uncertain, putting mills and jobs at risk.
“From a major independent analysis conducted in 2024 by international consulting firm AFRY, it became apparent a digitalization strategy for the entire sector was instrumental to our transformation and resilience,” said Gaetan Pelletier, executive director of the Northern Hardwoods Research Institute.
By increasing certainty of fibre supply and matching it to facilities’ specific manufacturing requirements, the pilot initiative is intended not only to modernize the forest products sector in New Brunswick, but also to create a model for other regions, reducing costs, improving operational efficiency and attracting investment.
Hodgson explained the next federal budget will contain further details about its forest sector strategy.
Meanwhile, the investment of up to $50 million for the centre is conditional, subject to project approval and pending final due diligence.
“Through the forthcoming strategy,” he said, “we will create the conditions for more transformative projects that position Canada’s forest sector for long-term success, despite an increasingly challenging global environment.”
Hodgson said this could be done by creating a digital twin of woodlots, which would then allow forestry companies to game plan how to harvest that lumber.
“Whether it's the initial decision on harvesting which trees go to which facility, how much of the tree is gonna end up in each type of product,” said Hodgson.
“They can do that all with AI and dramatically reduce the cost and improve the yields in the forest.”
Gaetan Pelletier, the executive director of the Northern Hardwoods Research Institute, said one concrete example of how digitalizing the sector would lead to savings is making how lumber is transported more efficient.
He said 40 per cent of lumber trucks travelling with an empty load, which could be solved through digitalization.
“To reduce this 40 per cent, what we call empty miles, by digitalization, by optimization, by centralizing the dispatch of those 200, 300 trucks in New Brunswick, we could save annually $25 million,” said Pelletier.
The push to overhaul the forestry sector using artificial intelligence comes at a time of increased anxiety over the future of technology and how it may impact jobs in the province.
This is especially true when it comes to the forestry industry, which is a major employer in the province.
