California’s Forest Products Industry Charles E. Keegan III Todd A. Morgan March 18, 2004 Sacramento, CA

Who we are & what we do Research branch of The University of Montana School of Business Administration Regional economic analysis Survey research Industry analysis  Forest industry research

Forest industry research Census state’s industry Track wood fiber from forest to wholesale marketplace Provide timber product removals Describe industry condition, capabilities, and trends Relate key economic variables

California’s forest industry Facilities: sawmills, pulp & paper, veneer, reconstituted board, pilings/posts/poles, bioenergy, cedar products, decorative barkFacilities: sawmills, pulp & paper, veneer, reconstituted board, pilings/posts/poles, bioenergy, cedar products, decorative bark Over $2 billion in sales annuallyOver $2 billion in sales annually 3 rd in U.S. in lumber production until rd in U.S. in lumber production until ,000+ employees, 25% in primary industry100,000+ employees, 25% in primary industry

California’s 2003 timber-processing capacity and utilization (MMCF) preliminary estimate Tree dbhCapacityUtilization < 7” – 9.9” > 9.9” Total Excluding pulpwood and industrial fuelwood

Timber harvest by product Total = 558 MMCF 81% 1% 7% 11%

Disposition of wood fiber Total = 558 MMCF

Percent of harvest processed in-area Coastal 94% 4% to Northern Interior Northern Interior 79% 16% to Oregon Sacramento 77% 17% to Northern Interior San Joaquin 89% 11% to Sacramento Southern California no harvest, no mills

California report Industry structure Industry structure Timber harvest & utilization Timber harvest & utilization Milling capacity Milling capacity Forest industry employment Forest industry employment Residue disposition Residue disposition Products markets Products markets Industry leaders’ outlook Industry leaders’ outlook

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