Sustaining Forest Economy - Forest Sector Contribution
Contents
Jobs and Oregon’s Forest Sector
Oregon’s Abundant and Renewable Forests
Oregon’s Working Forests
Oregon: We’re Great at Forestry and Forest Products!
Rural Livelihood
Revenues to County Government
Wood Use in Our Daily Lives
What Oregon Forest Products Go to America
Nearly half the state of Oregon is forested—a total of 30 million acres of forestland.
The forest sector remains a resilient and vital contributor to the state’s economy,
especially in rural communities surrounded by forests. Read more about the forest
sector’s economic contributions to Oregon’s economy in this report: The 2012 Forest
Report.
Timber remains an economic cornerstone in rural Oregon, where wood products companies
are often the largest employer in town. In some counties, the forest sector represents
20% of the economic base. Oregon’s “forest sector”—the forest landowners, loggers,
managers, forestry professionals, transportation vendors, manufacturers, and distributors—is
always a perennial top-2 or top-3 traded good sector of the state economy. That
means that forest products are the second or third most valuable manufactured good
that’s sold out-of-state (competing with high tech and agriculture).
Jobs and Oregon’s Forest Sector
According to 2012 data, forest products and forestry services directly employ more
than 76,000 people in Oregon, and another 37,000 workers supply and service the
forest industry. These jobs are particularly critical to rural communities where
wood product manufacturing can account for more than 50% of all manufacturing jobs.
The sector pays family-wages that sustain the rural communities where most forest
industry workers make their livelihood. The average wage in the forest sector is
$43,023, markedly above the statewide average.
- More than 76,000 Oregon jobswage in the forest sector is $43,023, markedly above
the statewide average.
- More than 76,000 Oregon jobs
- 5.3% of all jobs in Oregon
- Average wage of $43,023
One of every 20 jobs in the state depends on the forest sector and the active management
of forests. The growing and harvest of trees, along with their conversion into forest
products makes up 7% of Oregon’s economic base — $12.7 billion. That makes forest
products one of Oregon’s largest traded good sectors (2nd or 3rd largest), exporting
products to other states and countries.
About 11 forest sector jobs are created or retained for every 1 million board feet
of timber harvested, roughly equal to the volume from about 40 acres of mature trees.
Oregon has 30 million acres of forestland.
The future outlook for Oregon’s forest sector is bright. The Great Recession, between
2007 and 2012, reduced U.S. forest product consumption, there’s good news ahead
for Oregon’s forest industry. It appears the worst is over. Given improving market
conditions and a dependable timber supply, Oregon’s forest sector is poised to rebound.
The sector can create thousands of new, well-paying forest sector jobs as the domestic
economy accelerates and global appetite for wood products rebounds.
Oregon’s Abundant and Renewable Forests
Forests cover about half of Oregon and are fundamental to the livelihood of many
Oregonians. Forests remain Oregon’s most abundant natural resource and they are
a crucial part of the state’s economy. Statewide the 30 million acres of forestland
are among America’s best and most productive commercial tree-growing land. Forests—and
their renewable growth—are a competitive asset for Oregon’s economy, and these forests
have helped assure that the state’s forest sector has remained a nation leading
producer of structural wood products for more than a half century.
And, the outlook for future prosperity and increased future Oregon forest production
are extremely bright! Oregon’s forest industry for two decades has harvested significantly
less timber volume than has been growing in Oregon’s vast forestlands. Oregon’s
private forestlands are growing more than ever before, and private forest harvest
volumes remain below annual growth volume. Public forestlands harvest just a fraction
of their annual growth. Oregon forests now have an abundant inventory of available
mature timber volume, as well as continuous productive forest growth maturing in
the coming years.
The total acreage of Oregon’s forestland has remained virtually unchanged since
1953. Yet during the same time period, timber harvesting has produced more than
400 billion board feet of timber volume. To put this number in perspective, Oregon’s
forests since 1953 have provided enough timber to frame 25 million homes* without
a reduction in either forest area or the forest volume growing on the forestland
statewide. Oregon forests today have a comparable or greater volume of timber growing
than the forest volume existing in 1953. Now that’s what you call renewable forests
and sustainability!
Today, more than 76 percent of Oregon’s timber harvest production comes from forestlands
that are owned by private companies, small private families, and native tribes.
As active forest managers, these forest owners are leaders in sustainable forest
management practices. To accelerate growth and improve yield per acre, today’s professional
forest managers optimize methods of reforestation, harvest technology, thinning,
damage prevention, and while protecting natural resources.
The remaining 18-24 percent of Oregon’s timber harvest production comes from public
forestlands that are owned by the federal government, state forests, county forests,
and miscellaneous owners. It is surprising that this 24% of statewide harvest on
public forests comes from a majority (64%) of the total forestlands in Oregon. Historically
low harvest and management of public forests increasingly results in overcrowded
and unhealthy public forests that are subject to wildfires, pests and disease. Oregon’s
forest managers and policymakers are today challenged with escalating public forest
dilemmas surrounding catastrophic losses and unsustainable policies that hinder
professional management to address the mounting losses—especially on federal forests.
As the country’s economy and housing starts have declined, Oregon’s annual timber
harvest lagged during the recession (2007-12). Harvest levels from combined private
and public forests now total nearly 4 billion board feet per year — which is only
about half of the new growth being added to Oregon forests each year. Harvest on
state and private forestland has remained stable yet below sustainable levels, harvesting
somewhat less than annual forest growth. On the other hand, federal forestland harvest
has declined by more than 90% over the last two decades, due to escalating legal
gridlock surrounding conflicting federal laws, policies, plans and court rulings.
* Building an average 2,000-square-foot home consumes 15,800 board feet of framing
lumber, not including many other forest products in the home
Oregon’s Working Forests
A working forest is a forest owned and responsibly-managed over the long-term to
provide benefits to the forest owner, the environment, and to society. Working forests—which
are generally privately-owned or multiple-use public forests—are intentionally managed
for the long-term to provide continuous economic and social values to various stakeholders,
including essential goods and services, family-wage jobs, economic support to communities
and the nation, and returns to the forest landowners. While economic and social
values are foremost in working forests, environmental protection remains an important
value to protect and foster.
Active management of working forests produces a rich suite of environmental, economic
and social benefits—many benefits that are not produced so well from reserved forests
or multiple-use forests. Keeping working forests as part of the forest landscape
will continue only through the economic incentive of robust forest product markets
and effective public policy. Government forest policies should encourage the perpetuation
and active management of working forests—because these working forests provide important
diversity of management styles, income and biodiversity that is essential to healthy
forests and a healthy rural forest economy.
Working forests (private forests and public multiple-use forests) are a critical
part of our nation’s natural resource infrastructure because they are fundamental
to a strong economy, and they are an economic and social engine in rural communities
and within resource-based economies. Working forests create a clean and healthy
environment, where wood product output, recreational uses, and diverse fish & wildlife
habitat can all remain abundant and coexist quite well. More than half of America’s
freshwater supply, 53 percent, originates on forestlands—most of those are working
forests and multiple-use forestlands (both private and public forests).
Working forests help achieve national objectives for addressing climate change,
and working forests are a new domestic source of low-carbon renewable biomass energy.
Across America, the forest industry generates 80% of all renewable biomass energy,
making it the nation’s largest industrial renewable energy producer.
The US forest products industry, and private working forests, is among the top 10
manufacturing employers in 48 states; in Oregon the forest sector is perennially
a top-2 or top-3 traded good sector of the economy.
Oregon: We’re Great at Forestry and Forest Products!
Oregon forestlands are some of the most productive in the world. The state’s mild
climate, deep soils and abundant rainfall make it one of the best places to grow
trees. Surrounding these productive forests, over the past century Oregon’s forest
sector has emerged to become a nation-leading manufacturer and producer of forest
products. A strong business, community and government atmosphere has helped support
both forestry and timber milling alike.
Oregonians and their economy are rewarded by the following forest sector advantages:
- Public support for the economic, environmental and social contributions of a stable
and sustainable forest sector
- Solid science backing from educational and research institutions, such as Oregon
St. University College of Forestry and USDA Pacific NW Research Station
- Strong forest laws that ensure landowners employ sound forest management practices
while protecting the environment
- Productive forestlands and abundant forests growing far more volume than is harvested,
increasing the amount of future harvest opportunity
- Nation-leading forest product manufacturing industry that’s state-of-the-art and
competitive to serve markets
- Superior forest management, harvesting and construction operations, regarded nationwide
- Effective transportation and distribution systems that successfully trade forest
products
- Location—situated on the Pacific Rim with ready access to deliver forest products
to both global and domestic markets
- Innovation in technology and operations that continuously improves for future markets
in products, manufacturing, harvesting, forestry, and distribution.
As a result of forest sector advancements, by internationally recognized standards
of sustainability, Oregon is a world leader in timber production, wood product manufacturing,
and sustainable forestry. A new economic assessment of Oregon’s forest and wood
products manufacturing sector is available at: TheForestReport.org
Rural Livelihood
In much of rural Oregon, timber remains an economic cornerstone, particularly in
the rural communities near forestlands. In counties such as Clatsop, Douglas, and
Lake, the forest sector contributes 20% to 30% of each county’s economic output—
and 12% to 18% of all jobs.
Rural communities have grown, tended, logged and protected nearby forests for well
over a century. The forest management—and forest product manufacturing—culture is
thoroughly woven into the fabric of over a hundred Oregon communities. The forest
sector today remains one of Oregon’s top traded goods that fuels the state’s quality
of life, its commerce and society. Even cities such as Eugene-Springfield derives
vital contributions to its civic, education, business, employment, manufacturing
and cultural communities—because the forest sector is a major component for the
city’s residents, employment, commerce and government—either directly, indirectly,
or induced.
Community stability and growth occurs in communities, which are located near Oregon
forests actively managed for either timber production or multiple uses. Working
forests in America have proven to sustainably support strong communities, vibrant
societies, rewarding values, rising commerce, expanding workforce, and population
growth. Where actively managed productive forests are near a community, there exist
many important societal advantages.
Because of the recession (2007-12), fewer of these jobs exist than in the past,
especially in Eastern Oregon communities. However, the recession is only partially
explains impacts to eastside forest communities. Timber mills need a dependable
flow of logs, and the decline of federal forest management in the past decade has
reduced that flow to a trickle. In Eastern Oregon, the federal government owns more
than two-thirds of all forestlands, yet supplied only about one-third of the harvest
in 2011, which represented just 7% of federal forest growth. This lack of supply
has resulted in 49 fewer Oregon primary wood manufacturing facilities than existed
statewide in 2003. The impact of declining federal forest harvest, especially in
Eastern Oregon, has severely harmed community stability, employment, commerce, and
government.
Revenues to County Government
The forest sector provides about 5 percent of annual state and local government
revenue. Taxes paid to state and local governments peaked at $375 million in 2005,
and fell to $242 million in 2010 as harvest levels fell and forest sector profits
dried up. Several county governments also receive revenue from state forest timber
sales. In 2005, 15 counties received $58 million, but by 2011 that amount had dropped
to $38 million. Common School Forest Lands include 120,000 acres and generated $8.7
million in revenue in 2011, and $19 million in 2005.
Much of the land within Oregon's rural counties is federal forestland, managed by
the US Forest Service and the Bureau of Land Management. Allocated to schools/roads/public
safety, county governments receive 25% of the revenue generated from USFS timber
sales, and 50% of timber sale revenues generated from BLM forests. Beginning in
the early 1990s, decreased timber sales from federal forests cause a sharp decline
in timber sale revenue paid to county governments. To stabilize county payments,
Congress passed legislation to replace the lost timber sale revenues; this replacement
entitlement from the US Treasury paid counties a declining fraction of the payments
formerly made directly from federal timber sale revenue. Future reauthorization
by Congress of the replacement entitlement payment is now doubtful beyond 2013.
To deal with the revenue loss, counties with federal forestlands have been forced
to dramatically reduce budgets, cut county services and school programs, and seek
tax increases from local property owners. Some rural Oregon counties with federal
forestlands are facing insolvency. The obvious solution would be to increase federal
timber harvest, so that county governments having federal forests could experience
increased revenue generated from USFS and BLM timber sales.
Wood Use in Our Daily Lives
America’s use of wood and paper has economic importance, well beyond the forest
trees, environmental, or societal values of forests. No matter where you are this
very moment, chances are there’s a product made with wood right within your reach.
Every American uses the equivalent of one tree, 100-foot tall, every year, in their
consumption of wood and paper products. Wood fiber is a practical and valued part
of our way of life in America.
Perhaps it’s surprising, but wood and paper products make up 47 percent of all raw
materials used in manufacturing in the United States, and that’s a good thing. Wood
is renewable, beautiful and durable, and its production compared to most other materials
takes significantly less energy consumption and has less impact on the environment.
Plus, when Oregon trees grow they take carbon out of the air, and release oxygen
into the sky, thereby helping to reduce the carbon dioxide in the atmosphere and
cleansing the air. Keeping Oregon’s working forests healthy and fast-growing enhances
this air-cleansing effect of trees.
Because of its renewable and sustainable growth and harvest from Oregon forests,
wood is a “green,” superior material. Oregon-grown wood comes from trees harvested,
manufactured, and sold to all 50 states and many nations around the globe. Materials
such as steel, concrete, glass, or petroleum-based products, which consume large
amounts of energy to produce, cannot compare to the “green” qualities of wood. Furthermore,
Oregon wood is an attractive appearing product sought for architectural building
applications, cabinets, paneling, windows and doors. Oregon is America’s leading
producer of structural softwood, softwood plywood and engineered structural wood.
What Oregon Forest Products Go to America
Wood products make up 47% of all raw materials used in manufacturing in the United
States. Nearly 100% of a harvested log can be used to make wood and other products
we use every day. The following wood products are grown and made in Oregon:
*Softwood Structural Lumber: Dimensional lumber,
beams, joists
*Engineered Structural Softwood: Laminated veneer
lumber, glu-lam, I-joists, engineered wood
*Plywood and Paneling: Softwood & hardwood veneer
or other laminated panel products
Millwork: Variety of softwood & hardwood lumber for
products such as doors, windows, cabinets, furniture, siding, flooring, moldings
and fencing.
Posts, Poles and Timbers: Utility poles, fence posts,
pilings, treated timbers, cross-arms, and railroad ties.
Pulp and Paper Products: Packaging, printing paper,
newsprint, tissue, toweling, absorbents, adhesives, fluff pulp and cellulose prod
as rayon, cellophane, food additives and pharmaceuticals.
Reconstituted Wood Products: Such as particleboard,
hardboard, fiberboard and heating pellets, made from wood residues.
Biomass Energy: Burning wood waste to generate electricity
and heat for manufacturing.
Landscape Products:
*Oregon leads the nation in: Softwood lumber production; softwood plywood production;
engineered wood product development