As housing markets slowed down amidst easing inflation in 2023, the forest sector in North Carolina had a total economic value of about $40.5 billion in 2023, which was down by about 5% from the record high in 2022.
- In 2023, the forest sector in North Carolina—including forestry and logging operations, sawmills, furniture mills, and pulp and paper industries—directly contributed $25.1 billion in industry output, which was nearly 2% of the statewide economic output. The forest sector directly employed about 69,692 people with a payroll of $4.8 billion and a value-added (gross state) product of $7.6 billion.
- Including direct, indirect, and induced effects, the forest sector in North Carolina had a total contribution of $40.5 billion in industry output to the North Carolina economy, supporting about 143,619 full-time and part-time jobs with a payroll of about $9.8 billion.
- Compared to 2022, total economic output in 2023 was down 4.8%, and total employment dropped 5.3% (8,081 fewer jobs). Solid wood product industries lost about 5,900 jobs in 2023, compared to 2022.
- The total value-added production (equivalent to the gross domestic product) was down less than 1% to $16.2 billion. This decline occurred predominantly in forest, logging, and solid wood products industries.
- The forest sector in 2023 remained the top among manufacturing sectors in North Carolina, supporting about 3,300 more jobs than the food manufacturing sector in the state.
- Every job created in the forest sector resulted in another 1.06 jobs in North Carolina through economic multipliers.
- On average, every dollar invested in the forest sector contributed an additional 61 cents to the rest of the North Carolina economy.
- The forest sector in North Carolina directly generated about $59.1 million in county taxes, $219.9 million in state taxes, and $1.1 billion in federal taxes. Compared to 2022, the total tax collection from the forest sector dropped by 4%.
- International exports from the North Carolina forest sector totaled about $1.73 billion, up 0.4% from 2022.
Photo by Robert Bardon
| Contribution | Industry Operation | Employment[2] (jobs) |
Labor Income[3] (million $) |
Gross State Product[4] (million $) |
Industry Output[5] (million $) |
|---|---|---|---|---|---|
| Direct Contribution[6] | Forestry operations | 408 | 21.20 | 32.24 | 35.54 |
| Logging | 4,654 | 232.11 | 262.74 | 281.81 | |
| Primary solid wood mills[7] | 5,999 | 430.31 | 881.40 | 3,099.16 | |
| Secondary solid wood mills[8] | 41,451 | 2,538.27 | 3,891.68 | 11,081.64 | |
| Primary paper and paperboard mills | 4,415 | 521.63 | 889.54 | 3,567.17 | |
| Secondary paper and paperboard mills | 12,765 | 1,078.08 | 1,597.04 | 7,045.92 | |
| Total | 69,692 | 4,822 | 7,555 | 25,111 | |
| Total Contribution[9] | Forestry operations | 500 | 26.59 | 42.46 | 52.38 |
| Logging | 5,685 | 291.70 | 375.41 | 467.01 | |
| Primary solid wood mills | 15,120 | 1,053.57 | 1,956.01 | 5,002.38 | |
| Secondary solid wood mills | 74,450 | 4,747.84 | 7,720.68 | 17,902.05 | |
| Primary paper and paperboard mills | 15,204 | 1,282.11 | 2,206.19 | 5,918.87 | |
| Secondary paper and paperboard mills | 32,660 | 2,423.62 | 3,916.99 | 11,150.74 | |
| Total | 143,619 | 9,825 | 16,218 | 40,493 | |
| Change in Total Contribution from 2022 | Forestry operations | -50.3% | -53.5% | -44.0% | -53.5% |
| Logging | -14.9% | -3.1% | -20.7% | -42.7% | |
| Primary solid wood mills | -3.3% | -1.8% | -5.7% | -5.5% | |
| Secondary solid wood mills | -6.7% | -5.4% | -1.7% | -4.9% | |
| Primary paper and paperboard mills | -0.2% | 5.0% | 5.7% | -2.1% | |
| Secondary paper and paperboard mills | -2.1% | -0.4% | 2.8% | -2.7% | |
| Total | -5.3% | -2.8% | -1.0% | -4.8% |
[1] Economic contribution numbers, based on multi-industry contribution analysis, are reported in 2023 dollars. The industry contribution analysis approach from IMPLAN Online (2023 model) was employed, and the IMPLAN sectors included 15, 16, 19 (partial), 124, 125, 126, 127, 128, 129, 130, 131, 132, 134, 135, 136, 137, 138, 139, 140, 142, 143, 348, 349, 350, 353, 354, and 356. ↲
[2] Employment includes both full-time and part-time jobs. ↲
[3] Labor income includes all forms of employment income, including employee compensation (wages and benefits) and proprietor income. ↲
[4] Gross State Product (value added) is the difference between industry output and the cost of intermediate inputs. It consists of compensation of employees, taxes on production and imports (minus subsidies), and gross operating surplus. ↲
[5] Industry output is the total annual value of production by industry. ↲
[6] Direct contribution is a series of production changes or expenditures made by producers and consumers as a result of an activity. ↲
[7] Primary mills, such as sawmills and pulp mills, consume wood in a round or log form before producing a value-added product. ↲
[8] Secondary mills, such as furniture and paper mills, use wood-based products to produce value-added products. ↲
[9] Total contribution is the sum of direct, indirect, and induced contribution effects generated by the sector. ↲
Acknowledgments
The U.S. Department of Agriculture’s National Institute of Food and Agriculture provided funds for this work via the Renewable Resources Extension Act (RREA), Project Award No. 7009029.
Publication date: May 27, 2025
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