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

2. 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

3. 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

4. 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 20023 rd in U.S. in lumber production until 2002 100,000+ employees, 25% in primary industry100,000+ employees, 25% in primary industry

7. California’s 2003 timber-processing capacity and utilization (MMCF) preliminary estimate Tree dbhCapacityUtilization < 7”9.40.5 7 – 9.9”57.813.1 > 9.9”495.3357.4 Total562.5371.0 Excluding pulpwood and industrial fuelwood

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

9. Disposition of wood fiber Total = 558 MMCF

10. 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

11. 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

12. Contacting us Internet: www.BBER.umt.edu Email: charles.keegan@business.umt.edu todd.morgan@business.umt.edu Phone: (406) 243-5113

13. Active facilities by sector