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68 A d o b e S t o c k / K l e t r B C B U S I N E S S . C A J U LY/A U G U S T 2 0 24 couple of years. High inflation and mort- gage rates especially dampened demand for new home construction as well as reno- vation and repair spending. The Vancou- ver-based company predicts that, over the medium and longer terms, an aging hous- ing stock and stabilization of inflation and interest rates should stimulate renovation and repair spending. WESTERN FOREST PRODUCTS Revenue change: -29% Net income: -$70.1 million Net income change: NA More of the same here, as Vancouver-based Western Forest Products pointed squarely at macroeconomic conditions as the blame for its drop in both revenue and net income. Weaker demand and lower product prices were the name of the game for WFP, but the company remains "cautiously optimistic," according to its annual report. It sees con- sumers adjusting to higher rates along with the potential for rate cuts in North America as factors in boosting construction activity. INTERFOR CORP. Revenue change: -27.7% Net income: -$266.8 million Net income change: NA Even though it was the Burnaby company's third-highest revenue year on record, Inter- for wasn't immune from being decimated by the industry-wide slump and still posted a massive net income loss. The company shuttered operations at its sawmill in Philomath, Oregon, while also implement- ing temporary production cuts in British Columbia due to the impact of high log costs and challenging market conditions. Interfor isn't optimistic on the sector's out- look in the short term, but it does predict that the shortage of housing available in North America bodes well for the mid and long terms. CANFOR CORP. Revenue change: -26.9% Net income: -$348.5 million Net income change: NA Yep, sorry. Another Metro Vancouver- headquartered lumber producer in the revenue fallers column. Affordability con- straints and high global lumber inventory levels were the culprits for Canfor, which saw particular struggles with its B.C. oper- ations. The company permanently closed both the pulp line at its Prince George facil- ity and its Chetwynd sawmill while tempo- rarily closing its Houston sawmill. "Our British Columbia operations continued to face ongoing challenges associated with a lack of economically viable fibre in B.C.," said Canfor president and CEO Don Kayne in a release. CANACCORD GENUITY GROUP Revenue change: -26.2% Net income: -$55.47 million Net income change: NA Financial services firm Canaccord had a tough year against the backdrop of geo- political uncertainty, high inflation and rate increases. There was also an ugly failed takeover bid led by the company's chair and chief executive in June that led to board members resigning. For now, the company and the management group have entered into an agreement that includes a two-year standstill. Turmoil is rare for one of Canada's longest-standing private invest- ment firms. Let's see what the next two years hold. OLYMPIC INDUSTRIES ULC Revenue change: -25.9% Net income: NP Net income change: NA And we're back with another forestry sector company! North Vancouver-based Olympic Industries is a full-service softwood lumber provider that's been around since 1972. While Olympic is a private company, it's safe to say that it's been affected by the same market factors that the other lumber producers on the list are dealing with. TAIGA BUILDING PRODUCTS Revenue change: -23.4% Net income: -$61.3 million Net income change: NA In the immortal words of DJ Khaled, "another one." Taiga is a wholesale build- ing materials supplier and as such has been subject to many of the same conditions as the forestry companies on the list. Indeed, the Burnaby company's report plainly lists lower selling prices, lower commodity prices and decreased gross margins as the main catalysts for the revenue drop. INTERNATIONAL PETROLEUM CORP. Revenue change: -22% Net income: $233.4 million Net income change: -46.9& The Vancouver-based oil company saw a record level of production in 2023, but that still meant a loss of revenue because of 2022's exceptionally high oil prices. IPC expects strong oil and gas demand to con- tinue in 2024. It also sees potential mar- ket and transportation disruptions due to geopolitical tensions potentially playing in its favour. IF AN INDUSTRY FALLS... It was a rough year for the forestry industry, as macroeconomic conditions like high interest rates and lower product prices meant a big drop in revenues across the sector

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