NC State Extension Publications

 

  • North Carolina has about 18.1 million acres of timberland, which supports a vibrant forest product industry throughout the state.
  • In 2016, the forest sector in North Carolina had a total economic contribution of $32.7 billion in industry output to the state’s economy, supporting about 150,000 full- and part-time jobs with a payroll of $7.8 billion.
  • The wood-based industry is the top employer among manufacturing sectors in the state.
  • Every job created in the forest sector resulted in another 1.1 jobs in North Carolina.
  • On average, every dollar generated in the forest sector contributed an additional 51 cents to the rest of the North Carolina economy.
  • The forest sector in North Carolina contributed about $894.1 million to state and local taxes and $878.8 million to federal taxes.
  • Forest products firms exported about $1.4 billion worth of forest products to foreign countries.

 

In 2016, the NC forest sector contributed $32.7 billion, supporting 150,000 jobs.


Table 1. Economic contribution of the North Carolina Forest Sector in 20161.

Employment2

(jobs)

Labor Income3

(million $)

Value Added4

(million $)

Industry Output5

(million $)

Direct Contribution6

Forestry operations

389

21.10

21.35

36.18

Logging

5,782

295.12

301.08

530.77

Primary solid wood mills7

8,231

456.44

766.81

2,764.70

Secondary solid wood mills8

39,807

1,839.49

2,472.09

7,617.32

Primary paper and paperboard mills

4,212

417.81

769.08

3,284.11

Secondary paper and paperboard mills

12,543

881.48

1,450.20

6,087.40

Total

70,964

3,911.44

5,780.61

20,320.49

Total Contribution9

Forestry

544

27.77

33.63

57.58

Logging

8,279

406.99

504.31

881.10

Primary solid wood products

18,716

989.00

1,688.96

4,406.27

Secondary solid wood products

73,217

3,493.18

5,336.38

12,912.22

Primary paper and paperboard products

16,707

1,056.04

1,876.52

5,313.62

Secondary paper and paperboard products

32,394

1,880.81

3,160.66

9,169.63

Total

149,856

7,853.78

12,600.46

32,740.43

1 Economic contribution numbers, based on multi-industry contribution analysis, are reported in 2016 dollars. The method of internal adjustments to the IMPLAN software (IMPLAN 2018) was used. More details about the contribution analysis method can be found at: Multi-Industry Contribution Analysis In IMPLAN Pro.

IMPLAN sectors included: 15, 16, 19 (partial), 134, 135, 136, 137, 138, 139, 140, 141, 142, 144, 145, 146, 147, 148, 149, 150, 151, 152, 153, 368, 369, 370, 373, 374.

2 Employment includes both full- and part-time jobs.
3 Labor income includes all forms of employment income, including employee compensation (wages and benefits) and proprietor income.
4 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 less 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/consumers as a result of an activity.
7 Primary mills consume wood in a round or log form before producing a value added product, such as sawmills and pulp mills.
8 Secondary mills use wood-based products to produce value added products, such as furniture and paper mills.
9 Total contribution is the sum of direct, indirect, and induced contribution effects generated by the sector.


This work is supported by Renewable Resources Extension Act funding from the USDA National Institute of Food and Agriculture.

Authors

Assistant Professor and Extension Specialist, Forest Economics
Forestry & Environmental Resources
Associate Dean of Extension, Department Extension Leader & Professor
Forestry & Environmental Resources

Publication date: Aug. 1, 2018
AG-844

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