Yes, clearly that would help the industry, even if just to reduce Canada's dependence on the primary wood processing industry in the U.S. and to protect against American protectionism. Investing in secondary processing would certainly be a way to guard against that dependence.
In 2006, when the government refunded a large chunk of the softwood lumber deposits to companies, a wave of major investment swept the country. That money is currently frozen at the border and isn't available for investment, even though the industry is badly in need of that investment. That is the case in Quebec, but the story is probably the same all over Canada. The industry needs that money. In the current climate, the conditions are hardly conducive to investment.