Annual Report
2019-2020

To state the obvious, 2019-2020 was a year unlike any other.

The year started off strong with the launch of a new business model that enabled FPInnovations to improve alignment with our members’ needs and expectations as well as the economic reality at the time. We also increased visibility and oversight of our research programs through newly designed Strategic and Tactical Advisory Committee (STAC) and Research Information Sharing and Feedback (RISF) events, which is another step of our rigorous pursuit of full transparency. These steps were well received by members and have led to new and improved levels of engagement.

Unexpected turn of events: A cyberattack

At the end of July of 2019, FPInnovations was hit with a new variant of the RYUK ransomware. The intent of the attack was to encrypt our network and demand a ransom. Our network and much of our IT fleet was affected, which led to a complete rebuild of the IT infrastructure and the successful implementation of new robust cyber security measures. While the impact of the cyberattack was felt across the organization and some projects were halted, many continued to advance and were a testament of the resiliency and new-found agility of FPInnovations employees.

By October of 2019, the bulk of the cyberattack was behind us, all projects were well-underway, and steps were taken to ensure that our commitment to our members and other stakeholders would be delivered as promised. In hindsight, the cyberattack helped FPInnovations develop increasingly lean processes as systems were being rebuilt with flexibility and efficiency in mind. This prepared a path forward for more transparency on project timelines and spending. In fact, members will have the opportunity to view our new approaches to project management and information sharing with the launch of an exclusive member portal later this year.

… and then, there was COVID-19

When the COVID-19 pandemic hit Canada in March, we were impacted, like many. Once again, we had to re-invent how we do business. Our first priority was the safety of FPInnovations employees and their families. To ensure our people’s safety as well as remain operational and support our members and partners, we quickly adapted our processes for the new realities of working from home and of social distancing in labs. The lessons learned and systems developed during the cyberattack just a few months previous helped us quickly adapt to a new reality.

Time was of the essence, and FPInnovations needed to act fast and help the forest sector contribute to the well-being of Canadians during the COVID-19 crisis. FPInnovations researchers therefore focused on producing high-performance filtration membranes to be used in making masks for the general population rapidly. FPInnovations employees once again proved how quickly they were able to switch gears, and in a very short time frame, produce results in a field that had never before been considered.

Key technical highlights of the year

Over the last year, our research and business development teams focused strongly on projects that would transform the forest sector. Here are some of our key technical highlights of the year:

• Development of an advanced pavement modeling allowing for more efficient use of wide-base steer axle tires
• Exclusive global licensing agreement for FPDat II and FPTrak with Lim Geomatics expanding commercial reach
• Delivery of a series of comprehensive Life Cycle Analysis confirming the environmental benefits of wood in construction
• Entire update of the Canadian CLT manual to reflect the latest data and scientific knowledge and harmonized with the latest design provisions.
• Commissioning of a fully operational TMP-Bio plant in Thunder Bay, Ontario, accelerating the development of lignin and sugar-based products.
• Commercialization of NIR species separation technology in sawmills allowing for increased productivity, improved efficiency, and overall flexibility
• Development of SawSense performance monitoring system for circular blades that is commercially available providing real-time feedback of saw performance and enabling mills to monitor the effect of varying sawing parameters
• Redesign and commissioning of spinneret to make custom fibres from cellulose opening the door to the development of new types of cellulose high absorbency hygienic products

Thanks to our employees

Even though we faced two major crises this year, we completed the year in the black, and while revenues were lower than forecast, the budgeted net operating margin was nearly reached. This is a significant achievement given the obstacles faced, and for that we thank FPInnovations’ employees for their dedication and resilience. They adapted quickly to unprecedented challenges and designed new ways to work to ensure delivery of projects and fulfil our commitment to the sector.

Looking ahead

In the coming year, expect to see significant advancements in the areas of the bioeconomy, composites, wood construction, transport, and digitalization of the sector as we work with a broad range of stakeholders, some traditional and some not, to fulfil our mission of increasing the competitiveness of the sector and creating new markets. The agility and flexibility shown by employees over the past year is testament to their capacity to respond to those ever-increasing challenges and much, much more.

Here’s to a new and exciting chapter!