The Bugwood Network

Forest & Paper Industry

U.S.

  • The U.S. forest and paper industry is the world's largest by far, and among the most competitive of basic industries in the U.S.
  • The forest industry competes aggressively in a global market, generating a large portion of our net growth from foreign trade.  Industry's unit labor costs are lower than Sweden's, Finland's and Canada's  our major competitors.
  • The U.S. forest and paper industry represents 8% of total U.S. manufacturing output, generating annual sales of about $240 billion.
  • The forest and paper industry employs 1.6 million Americans, or 1.2% of the U.S. workforce, with an annual payroll of $46 billion, ranking among the top 10 manufacturing employers in 46 states.
  • The paper industry is the most capital intensive in the nation, spending $130,000 per employee in plant and equipment  over twice the average of other U.S. manufacturing industries.  A new greenfield pulp/paper mill can easily cost upwards of $1 billion to plan, permit, site and construct.
  • The environmental operating costs of producing a ton of pulp, paper and paperboard rose from just $4 in 1970 to $22 in 1992 and is still climbing.  Even adjusting for inflation, industry is spending about twice as much per unit of production today as twenty years ago.
  • The forest industry ranges from stateofthe art paper mills to small familyowned sawmills, small family logging operations, and some 7 million individual woodlot owners.
  • For every job created in the U.S. that is directly forest-related, another two jobs are created that are indirectly related.  Such jobs are in transportation, distribution, and sales of forest products, and add another 3.8 million jobs to the U.S. economy.
  • In the U.S. in 1992, the total value of major agricultural crops and timber harvested was $111 billion.
  • In the U.S. in 1992, timber harvested totaled almost $24 billion, or over 21% of the total value of agricultural crops and timber.
  • In 1992, timber products composed the largest portion of total agricultural crop value in the U.S.  Valued at $23.8 billion, roundwood forest products topped corn ($19.7 billion) and soybeans ($16.7 billion) as the leading agricultural commodity.
  • Nationally, timber is the single highest-valued crop produced in the U.S., exceeding even corn and wheat.
  • Residential construction stimulates the economy directly by generating jobs, wages and tax revenues and indirectly as the demand for goods and services created by the construction of new homes "ripples" through the economy.
  • Impact of SingleFamily Home Construction: The construction of 1,000 singlefamily homes generates 2,448 fulltime jobs in construction and constructionrelated industries; $75.5 million in wages; and $37 million in combined federal, state and local revenues and fees.
  • Impact of Multifamily Home Construction: The construction of 1,000 multifamily housing units generates 1,030 fulltime jobs in construction and constructionrelated industries; $32 million in wages; and $15.8 million in combined federal, state and local tax revenues and fees.
  • Essential oils from forest trees are at the core of the $10 billion U.S. food flavoring and cosmetic industry.
  • Essential oils from forest trees are used in a host of everyday products such as chewing gum, cosmetics, confections, soft drinks, dentifrice products, soaps, fragrances, detergents, disinfectants, medicines, shoe polish, insect repellents, and many others.
  • Market sales for briquette charcoal totaled $434 million in 1987.
  • There are some 700 commercial applications for activated charcoal.  One ounce has a surface area equivalent to 6 football fields.

South

  • The impact of forestry and forest products industries on the Southern economy in 1994 was in excess of $90 billion.
  • In each of the 13 Southern states, composed of Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, and Virginia, the forest industry ranks in the top 10 among manufacturing industries in employment and payroll income.
  • The South's forest products manufacturing firms directly employ more than 660,000 people, generating an annual payroll in excess of $14.5 billion.
  • In 1993 there were 102 pulpmills operating in the U.S. South.
  • In the U.S. Southeast, composed of Alabama, Georgia, North Carolina, South Carolina, and Virginia, the forest industry in 1992 included more than 1,144 primary and 7,056 secondary manufacturers of wood products, provided jobs to nearly 350,000 employees, and had an annual payroll in excess of $6.7 billion.
  • In the U.S. Southeast, from 1969 to 1992, the number of primary wood product manufacturers has dropped by more than half, while receipts have increased more than 68%.
  • In the U.S. Southeast, from 1989 to 1992, the total number of sawmills declined from 975 to 910, while total volume of sawlogs received at sawmills increased 6% to 1.5 billion cubic feet, or 41% of total wood received.
  • In the U.S. Southeast from 1989 to 1992, the volume of softwood sawlogs received increased 12% to 1.2 billion cubic feet, while volume of hardwood sawlogs decreased 11% to 311 million cubic feet.
  • In the U.S. Southeast, yellow pine accounted for 96% of sawlog volumes in 1992.
  • In the U.S. Southeast, the number of pulpmills remained constant, at 48, from 1989 to 1992, while the number of veneer mills dropped from 80 to 71, composite mills remained constant at 11, and the number of other forest product industrial mills rose from 96 to 104.
  • In the U.S. Southeast, of forest industry wood  residues (coarse wood 40%, bark 31%, sawdust 22%, and shavings 7%) totaling 1.3 billion cubic feet in 1992, 48% was used for industrial fuel, 32% for fiber products, 6% for particleboard/panels, 2% for sawn products, 11% for miscellaneous products, and only 1% of wood residues was not used.

Georgia

  • In the manufacturing sector of the Georgia economy, forest industry ranks number one in employment, output, and value added.
  • In relation to all manufacturing in Georgia, forest industries in 1990 employed 23% of the workforce.  This is one of almost every four manufacturing workers, the number one employer in manufacturing.
  • Of 305,256 manufacturing workers in Georgia, forest industry (wood and paper processing) employs 69,292 workers directly.
  • With a type 2 employment multiplier of 2.5443 in Georgia, the wood and paper processing sector directly and indirectly employs 176,300 workers in a total Georgia economy employing 3.7 million workers.
  • In Georgia, one in every five forest products manufacturing jobs is located in the Metropolitan Atlanta Area.
  • In Georgia, forestry related employment is almost 2 percent of total Georgia employment.  In the U.S. forestry related employment is 1.2 percent of total U.S. employment.
  • In Georgia, forestry related earnings are 2.4 percent of total state earnings.  In the U.S. forestry related earnings are 1.4 percent of total U.S. earnings.
  • In relation to all manufacturing in Georgia, forest industries in 1990 produced 24% of output.  This is $1 of almost each $4 of output added to the Georgia economy by manufacturing.  Wood and paper processing is the number one output producing manufacturing sector in the Georgia economy.
  • Of total Georgia manufacturing output of $45 billion, forest industry (wood and paper processing sector) produced $11 billion directly in 1992, or 24%.
  • With a type 2 output multiplier of 1.7092 in Georgia, the wood and paper processing sector directly and indirectly produced almost $19 billion in output in a total Georgia economy with $243 billion in output in 1990.
  • In relation to all manufacturing in Georgia, forest industries in 1990 earned a value-added performance of 22% of the group's total.  This is $1 of each $4.50 of value added to the Georgia economy by manufacturing.  Wood and paper processing is the number one earning value added manufacturing sector in the Georgia economy.
  • Of $16 billion manufacturing value added in Georgia, forest industry (wood and paper processing) earned $3.5 billion in value added directly.
  • With a type 2 value-added multiplier of 2.2335 in Georgia, the wood and paper processing sector directly and indirectly earns $8 billion in value added in a total Georgia economy with $136 billion in value added.
  • In Georgia in 1994, the total value of major agricultural crops and timber harvested was $2.9 billion.
  • In Georgia in 1994, timber harvested totaled almost 30% of the total value of agricultural crops and timber.
  • Timber is the highest valued crop in Georgia, followed by peanuts, cotton, and vegetables.
  • In Georgia, there are over 1,600 wood using industries.
  • For every dollar Georgia forest landowners receive, $15 is generated in the state's economy.
  • In Georgia, in 1994, $13,854,467 was collected in county ad valorem taxes from timber at harvest or at sale for harvest.
  • Georgia's 13 pulp/paper mills produce more pulp and/or paper than any other state, and they are served by as many as 190 pulpwood yards.
  • In 1993, Georgia had four particleboard plants, four oriented strandboard (OSB) plants, and 16 facilities producing veneer and/or plywood.  Two mills produce laminated veneer lumber (LVL), one makes laminated beams (GLULAM) and one produces parallel strand lumber (ParallamTM).
  • So far as solid/sawn lumber is concerned, Georgia has 164 sawmills listed, although a good many are very small operations with fewer than 10 employees.
  • In Georgia, approximately half the Southern pine lumber produced in the state is treated with preservatives, and there are 48 companies listed that apply preservatives to wood. 
  • Georgia has 12 companies listed as producing untreated posts and/or poles, which are also treated with preservatives, and nine manfacturers produce log homes.
  • Georgia manages its "waste" wood wisely.  So far as products formerly considered "waste" is concerned, 18 mills produce bark products, six make shavings for animal bedding or litter, three still produce pine "gum" products and 24 list firewood as a product.
  • In Georgia, other manufacturers provide specialized support services that add value to primary products, such as 22 lumber resawers/remanufacturers, eight custom kiln dryers and 26 planer mills.
  • In Georgia, many companies process wood into more nearly finished products.  Some of which include nine log home manufacturers, 92 box and pallet producers, 24 that produce wood flooring, seven making wood fencing, and 53 fabricating wooden roof and floor trusses.
  • The largest category of wood using industries in Georgia consists of the cabinet and millwork manufacturers.  There are 654 of them listed in the survey, along with another 106 listed as manufacturing furniture and furniture parts.
  • There are wood-using manufacturing plants in Georgia whose products may be considered unique or unusual.  For instance, seven businesses are indicated as manufacturing boats or boat accessories, three make brooms, one makes car bodies, five create truck beds/bodies, one produces buggies and one builds caskets.  Another business manufactures excelsior products, another one builds hand trucks, one other makes saddle parts, yet another fabricates handles of various sorts, 29 make wooden signs, five make playground equipment, one puts together overhead doors and two others make artificial limbs.  Finally, nine plants are involved in the manufacture of mobile homes or parts of them, and 42 are listed as making modular-prefab homes or campers.
The University of Georgia

The Entomology and Forest Resources Digital Information Work Group
College of Agricultural and Environmental Sciences/Warnell School of Forest Resources
The University of Georgia  -  Tifton, GA USA

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Last updated on Wednesday, March 19, 2003 at 03:18 PM
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