As we reflect on the past year, it’s clear that FPInnovations – and the forest sector as a whole – have been navigating through a period of significant change. Global economic pressures, shifting market dynamics, and structural challenges in the Canadian forest industry have tested our resilience and adaptability.

Yet in the face of those challenges, we are energized by the shared sense of purpose and determination that defines FPInnovations. The world around us is shifting rapidly, economic conditions are challenging, and our sector faces significant headwinds. Yet, within every challenge lies opportunity, and our organization’s unwavering dedication positions us to emerge stronger than ever.

FPInnovations is in the midst of a bold transformation – one that is positioning us to be a more focused, agile, and responsive applied research organization. We are adapting, not just to survive in a changing landscape, but to lead innovation and unlock new opportunities for the forest sector in Canada.

This transformation is centred around delivering results in the innovative high-impact areas identified by our members and partners. Our strategic approach to the transformation is built on the role of honest broker which relies on:

• Assessing high-potential technologies and identifying research gaps
• Accelerating industrial research and technology adaptation
• Providing critical technical expertise to our members

While our honest broker role may sometimes lead to tough conversations, it ultimately strengthens the quality of our relationships and the relevance of our work.

Going forward, we will be consolidating our expertise in the fields of automation and digital transformation, modern kraft pulping, sustainable transport, and the development of substitution materials. Those areas represent not only the future of our sector but also the strength of our value proposition. Simply put, we are sharpening our focus on where we can deliver the greatest impact. Our structure, our services, and our operations are evolving and being streamlined to reduce redundancy, aligned with member priorities and reinforced by a renewed commitment to excellence and to scientific and economic rigour.

But the transformation is more than an internal realignment—it sets the stage for a new FPInnovations, one with a culture ready to seize opportunities that make both technical and economic sense.

While the economics of the sector did not decline as steeply as forecasted over the past year, we are under no illusions about the road ahead. Conditions remain challenging and now is not the time for complacency. Thanks to conservative financial planning and effective cost controls, FPInnovations is entering this next phase from a position of stability. But our success will depend on completing our transformation, building the capabilities and culture needed to thrive in a new reality.

Our goal remains steadfast: increase the competitiveness of the forest industry, help diversify and transform the sector, and deliver results that matter – with rigour, speed, and purpose.

We want to express our deepest thanks to our staff, both those continuing with us and those transitioning out. Your professionalism, integrity, and dedication to this sector have been nothing short of inspiring. To our members and government partners, thank you for your continued confidence and support. Your guidance and collaboration are helping shape a stronger FPInnovations and a brighter future for Canada’s forest sector.

Together, we are building the foundation for a new chapter – one defined by innovation, impact, and sustainable growth.