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MFL Legislative Study. Wisconsin’s Forest Industry August 18, 2010 Terry Mace Forest Product Specialist WI DNR Division of Forestry. Wisconsin Forest Industry 2008. Number of Companies 1,538 Number of Employees 65,694 Total Payroll $3,059,383,000
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MFL Legislative Study Wisconsin’s Forest Industry August 18, 2010 Terry Mace Forest Product Specialist WI DNR Division of Forestry
Wisconsin Forest Industry 2008 • Number of Companies 1,538 • Number of Employees 65,694 • Total Payroll $3,059,383,000 • Value of Shipments $20,141,041,000 source: Roger Nacker, WEDI
Forest Industry 2008 Paper Industry 2008 • Value of Shipments $14,255,225 • Number of employees 34,900 Sawmills, Veneer, other 2008 • Value of Shipments $4,184,217 • Number of employees 21,887 Furniture est. • Value of Shipments $1,701,599 • Number of employees 8,899
Forest Industry 2003 Sawlogs 561 million bf Veneer 36 million bf Pulpwood 3.1 million cords Estimate for 2008 Sawlogs 280 million bf Veneer 18 million bf Pulpwood 2.2 million cords (2006)
Forest Industry (Source: Allison Hellman, Vern Everson, & Terry Mace, WI DNR Division of Forestry)
Energy Markets (Source: Allison Hellman, Vern Everson, & Terry Mace, WI DNR Division of Forestry)
Demand vs. Available Resource (Source: Allison Hellman, Vern Everson, & Terry Mace, WI DNR Division of Forestry)
Traditional Products (Source: Reading & Whipple 2003)
Lumber production has declined by 50% in Wisconsin during the recession but the Sawtimber sold from tax law lands has only declined by 12% from 2006.
Pulpwood demand in Wisconsin has declined during the recession by 1/3 while the cordwood sold from tax law land has declined by 1% from 2006
Markets Dynamics • Timber is not a crop that must be sold every year. Many landowner will not sell their timber during downturns in the market due to the reduced value. • The industry still needs a supply during these times to survive. The mandatory practices on lands in Tax law programs appear to be supporting the industry during the recession.
IMPLAN Analysis • The stumpage value $38 million • Total Value of Output $69 million • Jobs created 300 • 25% of Stumpage Value $9 million • Total Value of Output $17million • Jobs 75 Due to substitution the impact were not carried throughout the total economy
IMPLAN • If substitution was not possible for the industry the impacts would be about $4 billion for the timber harvested to the state as impacts moved through the economy and 13,000 jobs.
Contact Information Terry Mace Forest Utilization and Marketing Specialist Wisconsin DNR, Division of Forestry USDA-FPL Room 130 One Gifford Pinchot Drive Madison, WI 53726-2398 Phone (608) 231-9333 FAX (608) 231-9592 Email terry.mace@Wisconsin.gov