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:

charles.keegan@business.umt.echarles.keegan@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"