oregon forest industry: a look at utilization charles e. keegan western forest economists may 8,...
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Oregon Forest Oregon Forest Industry: A look Industry: A look at Utilization at Utilization
Charles E. KeeganCharles E. KeeganWestern Forest Western Forest
EconomistsEconomistsMay 8, 2007May 8, 2007
On-Going Forest Industry AnalysisOn-Going Forest Industry Analysis
University of Montana's Bureau of Business and Economic Research and the USDA, Forest Inventory and Analysis Program in the Rocky Mountain and Pacific Northwest Research stations co-operate to...
Collect, compile, and report detailed information on the operations of the primary forest products industry in the Western States
Periodic Census of a Periodic Census of a state’s industrystate’s industry
Data Collected– Timber input (source, log size, etc.) – Product output– Residue (volume & use)– Production capacity (shift &
annual)– Employment– Market area & wholesale value
– Describe industry condition, capabilities, and trends
– Provide timber product removals and utilization of harvested timber
– Primary product recovery and mill residue output and use
– Track wood fiber from forest to wholesale marketplace
– Relate key economic variables
Outputs Outputs
Oregon’s Forest Oregon’s Forest IndustryIndustry
• 250 facilities
• $7 billion in sales annually
• #1 in U.S. in softwood lumber and structural panel production
• Harvest over 4 billion board feet (Scribner)
Oregon Timber Harvest by Oregon Timber Harvest by Ownership 1962-2005Ownership 1962-2005
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
1962
1965
1968
1971
1974
1977
1980
1983
1986
1989
1992
1995
1998
2001
2004
Tim
ber
Harv
est
(m
illion b
oard
feet
Scr
ibner)
Other public
NIPF and Tribal
Industry
State
Federal
Oregon’s Timber Harvest Oregon’s Timber Harvest by Product Type, 2003by Product Type, 2003
71%
2%
7%
20%
Saw logs Veneer logs Chipped logs Other timber products
Total = 997 MMCF
Sawmills 706 MMCF
Other primary products 11
MMCF
Raw material for pulp, paper, and board products
473 MMCF
Finished dry lumber and other
sawn products 354 MMCF
Total Harvest 997 MMCFa
Residue for energy
6 MMCF
Plywood and veneer plants 201 MMCF
Finished plywood and veneer 115
MMCF
Residue to pulp mills and board plants 331 MMCF
Residue to pulp mills and board plants
66 MMCF
Unutilized residue 1 MMCF
Lumber shrinkage 9 MMCF
a Excluding bark
b Other manufacturers include log furniture manufacturers; house log/log home manufacturers; post, pole, piling, and utility pole; and cedar products manufacturers.
Residue for miscellaneous
uses 5 MMCF Residue for
energy 11 MMCF
Residue for miscellaneous
uses 3 MMCF
Pulp mills and board plants
73 MMCF
Other manufacturersb
17 MMCF
Residue for miscellaneous
uses 9 MMCF
Residue to pulp mills and board plants
3 MMCF
Oregon’s Disposition of Oregon’s Disposition of Wood Fiber, 2003Wood Fiber, 2003
32%
42%
10%
5%
11%
Lumber Veneer / plywood Paper / boardFuel Other products
Total = 1,140 MMCF
Sawmill SectorSawmill Sector
126 sawmills operating in 2003– Annual Lumber production 7
billion board lumber tally – #1 softwood lumber producing
state.
Oregon’s Softwood Lumber Oregon’s Softwood Lumber Production, 1972-2005Production, 1972-2005
0
1
2
3
4
5
6
7
8
9
10
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
Bill
ion b
oard
feet
lum
ber
tally
Oregon’s Lumber Overrun 1968-2003Oregon’s Lumber Overrun 1968-2003
1.0
1.5
2.0
2.5
1968 1972 1976 1982 1985 1988 1994 1998 2003
board
feet
of lu
mber
per
board
foot
Scr
ibner
Residue type
1967*1974-1994*
2003
Coarse .58 .54 .44
Sawdust .30 .22 .16
Planer shavings
.22 .21 .10
Bark .29 .26 .20
Total 1.38 1.23 .90
Changes in Oregon sawmill residue factors
(dry tons per MBF lumber tally)
*Source: 1967 OSU study updated by James Howard in 1974
Volume of sawlogs Volume of sawlogs processed by small end processed by small end
diameter, 2003diameter, 2003
0
400
800
1200
1600
2000
< 7 inches 7-10 inches 10-24inches
>24 inches
mill
ion
bo
ard
fee
t S
crib
ner
14%
31%
48%
7%
0
1000
2000
Mill
ion
Cu
bic
Fee
t
Capacity1986
Use Capacity1996
Use Capacity2005
Use
70%
75%
86%
36% capacity decline
Oregon Timber-processing Capacity and Timber Use
+ 24%
Contacting UsContacting Us
Email: Email:
[email protected]@business.umt.edu du
Internet: Internet:
www.BBER.umt.eduwww.BBER.umt.edu
Forest Industry Forest Industry EmploymentEmployment
Approximately 65,700 employees – 43,300 (66%) in primary industry
Labor income of $3.3 billion annually– $2.3 billion in primary industry
Above-average wages and benefits
Other SectorsOther Sectors
23 pulp and board facilities operating– 12 pulp and paper– 11 board
25 house log / log home manufacturers
12 post, pole, piling, and utility pole plants
9 chipping facilities
Oregon’s Product Sales Oregon’s Product Sales Value by Sector, 2003Value by Sector, 2003
$394
$1,773
$2,271$2,285
$0
$500
$1,000
$1,500
$2,000
$2,500
Lumber Pulp andboard
Plywood andveneer
Other sectors
Millions
of U
.S. dollar
s (2
003)
Total capacity: Total capacity: 1,104 MMCF1,104 MMCF(excluding pulpwood & (excluding pulpwood & fuelwood)fuelwood)
Oregon’s Timber-processing Oregon’s Timber-processing Capacity by Tree Size, 2003Capacity by Tree Size, 2003
< 7"2%
> 10"78%
7-10"20%
Oregon’s Timber Harvest Oregon’s Timber Harvest by Resource Area 1962-by Resource Area 1962-
20052005
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,0001962
1965
1968
1971
1974
1977
1980
1983
1986
1989
1992
1995
1998
2001
2004
Tim
ber
Harv
est
(m
illion b
oard
feet
Scr
ibner)
Southwest
Northwest
Central
Blue Mountains
Oregon’s Sawmill Oregon’s Sawmill Production and Capacity Production and Capacity by Mill Size Class, 2003by Mill Size Class, 2003
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Capacity Production
Million b
oar
d fee
t, lum
ber
tal
ly
<10 MMBF
10-50 MMBF
50-100 MMBF
>100 MMBF
33
33
11
1122
22 60
60
Oregon’s Timber Oregon’s Timber Harvest, 2003Harvest, 2003
4,055 MMBF (Scribner) in 2003– Ownership– Resource area & county– Species– Product type
Oregon’s Mill Receipts by Oregon’s Mill Receipts by Product Type, 2003Product Type, 2003
74%
21%
4%
1%
Sawlogs Veneers logs Chipped logs Other timber products
Total = 4,299 MMBF
Destination of Oregon’s Primary Destination of Oregon’s Primary Wood Products and Mill Wood Products and Mill
Residues, 2003Residues, 20032%
30%
6%
7%
10%
42%
3%
OregonFar WestRockiesNorth CentralNortheastSouthOther
Plywood and Veneer Plywood and Veneer SectorSector
33 plywood facilities operating in 2003
– 13 veneer and layup facilities– 11 veneer only facilities– 9 layup only facilities
Softwood plywood production in 2003 was 3,214 MMSF 3/8”
#1 structural panel producing state.
Oregon’s Softwood Plywood Oregon’s Softwood Plywood Production, 1972-2005Production, 1972-2005
0
1
2
3
4
5
6
7
8
9
101972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
Bill
ion
squa
re fee
t 3/
8"