Georgia's forest products industries : a fact book

ADELE KUSHNER
ADELE KUSHNER was Research Associate and Instructor in Business Administration at Georgia State University prior .to assuming her present position as Program Analyst in the Finance Department of Fulton County. She has completed all the requirements except the dissertation for the D.B.A. at Georgia State University.

ROBERT H. ELROD
ROBERT H. ELROD, Assistant Professor of Quantitative Methods at Georgia State University, holds a Ph.D. from Clemson University.

KEMAL M. EL SHESHAI
KEMAL M. EL SHESHAI is Assistant Professor of Quantitative Methods at Georgia State University. He holds his Ph.D. Degree from Indiana University.

AUTHORS

C E O I I Cl A ' S
PO S T
. PRODUCTS

INDUSTRIES

AFACTBOOK

ADELE KUSHNER


ROBERT H. ELROD

KEMAL M. EL SHESHAI

A cooperative project between the Georgia Forest Research Council and the Bureau of Business and Economic Research, School of Business Administration, Georgia State University
-i-

CONTENTS

Preface. .

1

Summary.

3

Section 1-The Industry in Georgia.

5

Section 2-lndustry Trends in Georgia and the Region

.19

Section 3-Productivity Comparisons by States

.31

Section 4-lnterindustry Relationships

.37

- ii -

PREFACE
This report is a summary of two reports prepared for the Georgia Forest Research Council, Economic Analysis of Changes in Georgia's Forest Industries, by Adele Kushner, and Interindustry Study of Forestry Sectors for the Georgia Economy, by Robert H. Elrod, Kemal M. EI Sheshai, and William A. Schaffer.
The report is divided into four parts: 1. The Industries in Georgia; 2. Industry Trends in Georgia and the Region; 3. Productivity Comparisons; 4. Interindustry Relationships.
The first three parts come from the first-named report; the fourth part from the last-named.
-1-

SUMMARY
The forest products industries in Georgia (lumber, furniture and fixtures, and paper) are flourishing -- they employed 56,400 Georgians in 1971 and paid out $299 million in wages, to rank third of all the major industries. These forest industries are just as important to urban areas as to the state as a whole in providing jobs.
All three sectors are improving their productivity, as measured by value added. Between 1958 and 1969 value added per employee in lumber and wood products rose from $3,610 to $9,060; in furniture and fixtures it rose from $4,660 to $9,120; in the paper industry it rose from $13,600 to $21,420.
The three sectors are changing at different rates: the furniture and fixtures sector is expanding fastest but in total contribution paper and allied products rank first, lumber products second, furniture and fixtures third, gum and wood chemicals fourth.
In relation to the South Atlantic region, Georgia's share of employment in lumber and wood products fell, her share of furniture and fixtures rose, while her share of paper and allied products rose very slightly.
The future looks good in the two biggest parts of the industry -. paper, which uses pulpwood, and housing construction, which uses lumber and sawmill products (and indirectly, furniture). Demand for housing has been climbing rapidly across the nation and recently reached 2,300,000 housing starts, almost half of them multifamily units. Mobile home shipments in 1971 were just short of 500,000 units.
In Georgia, the outlook for new construction is even better -- population is growing faster, personal income is increasing faster, and household formation rates are higher than the U.S. rates.
The use of paper goes hand in hand with the general economy -- disposable income for consumer use of paper, industrial production for paper packaging, and construction for some paper and board products. So the outlook for the paper industry is also good -- an expected rise of 5% a year to 1975.
The forest products industries interact with other industries of the Georgia economy creating new jobs and income for our residents. In 1970, total sales by the forest products industries was almost two billion dollars ($1.9 billion).
The growing demand for forestry products generates more jobs for Georgians. For instance, for every person hired in the paper mills sector, an additional 6.75 persons must be hired in other sectors of the Georgia economy. In pulp mills, one person hired requires an additional three persons in the other sectors.
-3-

This growth also generates more income for Georgians. Every dollar spent by consumers on wood partitions and fixtures generates 78 cents of income for Georgians. A dollar spent by consumers on wooden containers generates 74 cents of income within the state.
The total output of the Georgia economy is also affected by growth in the forest products industries. For instance, a dollar spent by consumers in Georgia for hardwood flooring will yield a total output in Georgia worth over $2.20. For every dollar's worth of paper mills products sent out of the state, a total output of $1.78 will result in Georgia.
The interindustry study revealed that total sales by forestry sectors amounted to $1,913.948 million in 1970. These sales can be broken down as follows:

To intermediate forestry sectors To local intermediate sectors other
than forestry To local final users Exports
Total

millions of $
416.688
331.649 45.542
1,120.069 1,913.948

%
21.77
17.33 2.38
58.52 100.00

To produce and deliver these sales, the forestry sectors made the following purchases and payments in 1970:

Purchases from intermediate forestry sectors
Purchases from local intermediate sectors other than forestry
Imports Wages, salaries & dividends Taxes (local, state & federal) Retained earnings

millions of $
416.688
323.079 502.987 434.494 120.679 116.021

%
21.77
16.88 26.28 22.70
6.31 6.06

Total

1,913.948

100.00

The beneficial role played by the forest products industries within the total Georgia economy in the future will depend on how well our timber resource can be managed and more and better tree growth encouraged.

-4-

THE INDUSTRY IN GEORGIA

FIGURE 1:
FIGURE 2: FIGURE 3: FIGURE 4: FIGURE 5: FIGURE 6:
FIGURE 7: FIGURE 8: FIGURE 9: FIGURE 10: FIGURE 11: FIGURE 12: FIGURE 13:

Pine Usage in the Forest Products Industries
Sources of Pulpwood Produced in Georgia
Employment in the Forest Products Industries in Georgia, 1958-1969
Payrolls in the Forest Products Industries in Georgia, 1958-1969
Value Added by Manufacture in the Forest Products Industries in Georgia, 1958-1969
Distribution of Manufacturing Payroll of Insured Firms by Standard Metropolitan Statistical Areas in Georgia, First Quarter, 1971
Employment in Georgia's Five Largest Industries 1958, 1963, 1967, 1969, 1971
Shares of Georgia Manufacturing Employment
Payroll of Georgia's Five Largest Industries 1958, 1963, 1967, 1969
Shares of Georgia Manufacturing Payrolls
Value Added by Manufacture in Georgia's Five Largest Industries, 1958, 1963, 1967, 1969
Shares of Georgia Value Added by Manufacture
Value Added Per Job, Leading Industries in Georgia, 1967 and 1969

-5 -

FIGURE 1 . PINE USAGE IN THE FOREST PRODUCTS INDUSTRIES
In 1970 Georgia's wood-using industries processed 1.5 billion board feet of round timber (excluding pulpwood). 74 percent of this was pine.
MILLION BOARD FEET 1,200

1,100 1,000
900 800

/
~~/ ~/

TOTAL PINE USED BY GEORGIA'S WOOD-USHJG IhiDUSTRIES PINE USED BY SAWr..'ILLS

700

600

500

400

300

200

100

~

/-

t PINE USED BY VENEER & PLYWOOD PLANTS
Plr~E USED BY TREATING PLMJTS

~

Source: Georgia Forestry Commission

1961

1964

1967

1970

6

FIGURE 2 - SOURCES OF PULPWOOD PRODUCED IN GEORGIA
Independent owners still supply the bulk of Georgia's pulpwood but company forests are increasing their share, and recently chips from wood residues have become an important source.

Source: Southern Forest Institute, Inc.

r-----r---.--.---,-----,----r---r---8
J----7
......~~. .- 6 r - - - 5 ooetxil:
(J
o2
...J ...J
~
.:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........:........ ........: 1 - - - - 3
:............:...............:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:............:...............:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:............:...............:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:............:............:............:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:.........:...............:............:::::t-----2
...:..................:..........:..........:.........:..........:..........:..........:...........:..........:,.........:..........:..........:..........:..........:..........:..........:...........:........~ :.........:...............:........:..........:...........:..........:..........:..........:...........:..........:.........":........'":........t:"........":..........:...........:..........:...........:...........:............:..............:..............:F........:........:........:.........:...........:...........:...........:..........~ :........:........:........:.~ .......:........:........:........~ :.........:........:.......-....:...~ .......:.......:.......:.......~ :.......:.......:.......:~ .......:.......:.......:.......:+ .......:.......:........:- :::1- --O --
1956 1958 1960 1962 1964 1966 1968 1970
-7-

FIGURE 3 - EMPLOYMENT IN THE FOREST PRODUCTS INDUSTRIES IN GEORGIA, 1958 - 1969
As employment in lumbering declines, paper and furniture needs expand to take up the slack caused by automation.

EMPLOYEES 50,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - -

40,000 --~ ',':

30,000 ----I',;..',: 20,000--10,000---

t:::::~ GUM & WOOD CHEMICALS ~ WOOD FURNITURE
U;?l PAPER & ALLIED PRODUCTS
I:::::!:iiii!!:] LUMBER & WOOD PRODUCTS

0--1958

1963

1967
- 8-

1969
Source U. S. Dept. of Commerce, Bureau of the Census

FIGURE 4 - PAYROLLS IN THE FOREST PRODUCTS INDUSTRIES IN GEORGIA, 1958 - 1969
All forest products payrolls are growing but furniture manufacturers show the greatest percentage growth. Figures for gum and wood chemicals were unavailable for 1969. PAYROLLS ($ MILLION)
300 -----------------------,'7"'::.-r,....,.,r---
250 -------------~t..F:7Z"1'Zi1__-.,I..L_Y

200 -----------;~~~,_r_II:

150 ---~~ffrr--i 100 - - - - L : . .<"J....--~::.,

50---

0--1958

1963

1967

1969

. 9

I:::::: :1 GUM & WOOD CHEMICALS
~ WOOD FURNITURE (:;;:)j PAPER & ALLIED PRODUCTS [i!j LUMBER & WOOD PRODUCTS
Source: U. S. Dept. of Commerce, Bureau of the Census

FIGURE 5 - VALUE ADDED BY MANUFACTURE IN THE FOREST PRODUCTS INDUSTRIES IN GEORGIA, 1958 - 1969

This productivity measure shows the tremendous growth of the paper industry (up 125% in 11 years) and the rapid development of wood furniture and fixtures (up 276% in 11 years). No figures were available for gum and wood chemicals in 1969.
Value added is the difference between final sales prices and the cost of the raw materials going into the product. It includes payroll, most overhead, rent, depreciation expense, interest, profit and taxes.

VALUE ADDED BY MFG

1$ MILLION)

800

_

700 ----------------+-1/

600 - - - - - - - - - - - f - - 4 ' : ;

500

-J.I:::::::: :1-+-+----1

400 -----+ff-l.

300

200

[::::::::1 GUM & WOOO CHEMICALS

~ WOOD FURNITURE

o

PAPER & ALLIED PRODUCTS



LUMBER & WOOD PRODUCTS

100

o
1958

1963

1967

1969

Source: U. S. Dept. of Commerce, Bureau of the Census

- 10 -

FIGURE 6 . DISTRIBUTION OF MANUFACTURING PAYROLL OF INSURED FIRMS BY STANDARD METROPOLITAN STATISTICAL AREAS* IN GEORGIA, FIRST QUARTER, 1971
In Georgia's urban areas, over one dollar in every eight earned in manufacturing firms went to an employee in a wood-based industry -- sawmills, paper mills, box manufacturers, envelope manufacturers, lumber suppliers, furniture makers, etc.

*Atlanta, Augusta, Albany, Chattanooga, Columbus, Macon, Savannah
. 11 -

Source: Georgia Dept. of Labor

FIGURE 7 - EMPLOYMENT IN GEORGIA'S FIVE LARGEST INDUSTRIES, 1958, 1963, 1967, 1969, 1971
The forest products industries are Georgia's third largest employer, providing 56,400 jobs in 1971.

/~ 120

'N~.

-~Iii Ii

100

~<:1 III
en M en

Ii

II

80

i

I

I

60

~II
~il

II

40
ii

I



20

Ii

)
- - - -- co M ,... en
eIInI (egn e(ng(egn
o
TEXTILE MILL PRODUCTS

r!l III
'Lifm0 ""
/~
~
r..:
III

/
-;-
ai
M

"

_r-t-- r-

I<-:1-

cD

-- - IIII

~

oj:;'"
~~

~

I

f\\
~;'i

-~
-<:1

Oi
<:1

~~

Ii i

"\~
~~ti ~~
~ J'\1<:1
A~ M
i r-(g <i N
I

~

APPAREL

FOREST PRODUCTS

FOOD

TRANSPORTATION EQUIPMENT

Source: U. S. Dept. of Commerce, Bureau of the Census and Georgia Dept. of Labor

- 12 -

FIGURE 8 - SHARES OF GEORGIA MANUFACTURING EMPLOYMENT
As Georgia diversifies and becomes more manufacturing-oriented, and all manufacturing employment grows, forest products still provide over 12% of all manufacturing jobs, or one job out of eight.

1958: 314,000

1963: 354,100

1967: 423,100
FOREST PRODUCTS
11.5%

1969: 453,800

TRANSP. EQUIP. 10.4%
1971 : 454,700

Source: U. S. Dept. of Commerce, Bureau of the Census and Georgia Dept. of Labor
-13 -

FIGURE 9 - PAYROLL OF GEORGIA'S FIVE LARGEST INDUSTRIES, 1958, 1963, 1967, 1969
Payrolls of the forest products industries in Georgia have shown vigorous and consistent growth. Ranking as the state's third largest industry, payrolls were almost $300 million in 1969.

600 500 400 300

100 COM
......LtlIP
alal

TEXTILE MILL PRODUCTS

TRANSPORTATION EQUIPMENT

FOREST PRODUCTS

APPAREL

FOOD

Source: U. S. Dept. of Commerce, Bureau of the Census

-14 -

FIGURE 10 . SHARES OF GEORGIA MANUFACTURING PAYROLL
The forest products industries accounted for 11 % of Georgia's manufacturing payrolls in 1969. As employment gains are concentrated in the higher wage segments, prospects are good for further payroll gains.

1958: $1,075,000,000
FOREST PRODUCTS 14.4%

1963: $1,505,600,000

1967: $2,231,200,000

1969: $2,718,900,000

APPAREL 10.5%
/
I
!

l-

I

\ \

TRANSP. EQUIP. 16.6%

29.0%

FOOD 9.0%
TRANSP. EQUIP. 18.4%

TEXTILE MILL PRODUCTS 22.3%
OTHER 29.3%

15 -

Source: U. S. Dept. of Commerce, Bureau of the Census

FIGURE 11 - VALUE ADDED BY MANUFACTURE IN GEORGIA'S FIVE LARGEST INDUSTRIES, 1958, 1963, 1967, 1969
The forest products industries surpassed transportation equipment to rank second among Georgia industries in 1969 in value added contribution. Amounting to $733 million, value added includes payroll, most overhead, rent, depreciation expense, interest, profit and taxes.

.. 1200 _~7 0 ~

1000
'0"
a> a>

800
l-
600 -"!
;'";;
L
'"co< 400 ''""
200

I

......

(j

//1
I-;;; I
/~
'm
0
I!)
'"
/
f;::-
0
in

/ fa;
~I!
fa;
I ..I ''"" .tc;;-
I!)

'<;
tci
M'"

I

f;= tci
I!) N

"''''V .... a>
'" M
~I!) '~" ~ ~

I ,/

TEXTILE MILL PRODUCTS

FOREST PRODUCTS

TRANSPORTATION EQUIPMENT

n
.-~ ;;
.-- '" ,'.".:
I!) I!)
'0 co< ''""
..I!)
'M"
FOOD

rf\
1\ \f;~D

M
\~

.--

N

.--

M
N

M

r;;;
ui ~

APPAREL
Source: U. S. Dept. of Commerce, Bureau of the Census

-16 -

FIGURE 12 - SHARES OF GEORGIA VALUE ADDED BY MANUFACTURE
While the forest products share of value added by manufacture fell from 17.4% in 1958 to 13.5% in 1969, it doubled in monetary contribution over the same period because of the industry's healthy expansion.
1963: $3,254,000,000
1958: $2,102,300,000

1967: $4,683,600,000
TEXTILE MILL PRODUCTS 21.2%

1969: $5,413,400,000

FOREST PRODUCTS 13.5%
APPAREL 9.1%

TEXTILE MILL PRODUCTS 22.3%

TRANSP. EQUIP. 15.8%

OTHER 31.3%
Source: U. S. Dept. of Commerce, Bureau of the Census - 17-

FIGURE 13 - VALUE ADDED PER JOB, LEADING INDUSTRIES IN GEORGIA, 1967 and 1969
Because of investment in technology and high worker productivity. forest products industries in 1969 had the largest value added per job among Georgia's leading industries -- $14,900.

TRANSPORTATION EQUIPMENT FOOD PRODUCTS
TEXTILE MILL
APPAREL
o

$4,000

$8.000

$12,000

$16,000

Source: U. S. Dept. of Commerce, Bureau of the Census - 18 -

INDUSTRY TRENDS IN GEORGIA AND THE REGION

FIGURE 14: FIGURE 15: FIGURE 16: FIGURE 17:
FIGURE 18: FIGURE 19: FIGURE 20:
FIGURE 21: FIGURE 22: FIGURE 23:

Pulpwood Production in Leading Southern States
EMPLOYMENT TRENDS
Employment in Lumber and Wood Products Firms, 1958-1969
Employment in Wood Furniture and Fixtures Firms, 1958-1969
Employment in Paper and Allied Products Firms, 1958-1969
PAYROLLS TRENDS
Payrolls in Lumber and Wood Products Firms, 1958-1969
Payrolls in Wood Furniture and Fixtures Firms, 1958-1969
Payrolls in Paper and Allied Products Firms, 1958-1969
VALUE ADDED BY MANUFACTURE TRENDS
Value Added by Manufacture in Lumber and Wood Products Firms, 1958-1969
Value Added by Manufacture in Wood Furniture and Fixtures Firms, 1958-1969
Value Added by Manufacture in Paper and Allied Products Firms, 1958-1969

- 19-

FIGURE 14 - PULPWOOD PRODUCTION IN LEADING SOUTHERN STATES
Georgia has led the south in pulpwood production each year since 1947, and has been the nation's top producer for the past 7 years.

MILLION CORDS 7.5 7.0 6.5 6.0 5.5 5.0 4 .~ 4. 0 3.5 3. 0 2.5 2.0 1.5

GEORGI A
/'

//

/
/)

ALABAMA

/
//
1//

,/

MISSISSI PPI

I
/
1//

/ /

NORTH CAROLINA

iLI~~r////// .~

LOUISIANA
//
...~ FLORIDA SOUTH CAROLINA

iii ..~

.' ./
/"'

/-:2 7 ~ .,..",,//

...",'"
;...'~

/

v""""" ~ NC

;...-.-.

Fla
sc

.-'

La

1.0
o.5
0 1958 1960 1962 1964 1966 1968 1970
- 20

Source: Southern Forest Institute, Inc.

FIGURE 15 - EMPLOYMENT IN LUMBER AND WOOD PRODUCTS FIRMS, 1958-1969
(RATIO SCALE) Georgia's rapid decline in lumber employment is attributable to mechanization, plant mergers, and improved productivity.

EMPLOYMENT (THOUSANDS)
1,000 900 800 70 600
500
400

'----

...... UNITED STATES

300
r---___r-- __
0.--- ...... SOUTH
200

100 90 80 70 60 5
40
30
.
2

-- ~-

~--

SOUTH ATLANTIC

-- '----

1"-----

........ '-..,
GEORGIA

0

1958

1963

1967 1969

Source: U. S. Dept. of Commerce, Bureau of the Census

- 21 -

FIGURE 16 - EMPLOYMENT IN WOOD FURNITURE AND FIXTURES FIRMS, 1958-1969
( RATIO SCALE) Georgia's small furniture and fixtures industry outstripped the rest of the nation and offers bright prospects for continued growth, after reaching an employment increase of 92 percent between 1958 and 1969.

EMPLOYMENT (THOUSANDS)

500 400

30
..-----~-- ~- UNITED STATES

200

-_ ~--~- SOUTH ......

100 9 80
70

-- ~

---

~-

souTH ATLANTIC

6

5

40

30

20

0

9

8 GEORGIA
7
//

5 4

----- ---- .........
~

2

1

1958

1963

1967 1969

Source: U. S. Dept. of Commerce, Bureau of the Census

22 -

FIGURE 17 - EMPLOYMENT IN PAPER AND ALLIED PRODUCTS FIRMS, 1958-1969
( RATIO SCALE) Georgia's paper industry started off well but after 1963 fell slightly behind the region in growth rate. Texas, Alabama, Mississippi and Kentucky paper industries began a period of rapid growth.

EMPLOYMENT (THOUSANDS)

1,000 900

800

700

600

...----

500

400

300

- - .--- UNITED STATES

200

-- ~--- V

,.----' SOUTH

100 90 80
70

---- --- .--- SOUTH ATLANTIC

60

50

40

30

20

--- -- V---

~-

.--- GEORGIA

10

1958

1963

1967 1969

Source: U. S. Dept. of Commerce, Bureau of the Census

- 23 -

FIGURE 18 - PAYROLLS IN LUMBER AND WOOD PRODUCTS FIRMS, '1958-1969
(RATIO SCALE) Payroll gains in Georgia's lumber industry have been limited by rapid declines in employment. Employee wage level was about average with the South, $4,370 in 1969.

PAYROLLS ($ MILLION) 7.000 6.000 5.000 4.000
3.00
2.000

-----'...---.-- ./ UNITEDSTATES ......

1.00 900 8 00 700
600

-- -- - SOUTH .-'

500

4nn 300

. / SOUTH ATLANTIC
.-- .....-----'......
.....--

200

00

90 80 70
60

,....

--

GEO RGIA

5

40

30

20

10

Source: U. S. Dept. of Commerce, Bureau of the Census

1958

1963

1967 1969

- 24-

.
FIGURE 19 - PAYROLLS IN WOOD FURNITURE AND FIXTURES FIRMS, 1958-1969
( RATIO SCALE) Wood furniture and fixture industry payrolls rose over 200% in Georgia in eleven years, far surpassing the region and the nation. Average pay rose from $3,105 to $5,164, about even with the region but below U.S. levels.

PAYROLLS ($ MILLION) 4,000 3,000

2,0

1,000 900 80
700

--...

-

.--' ,...---

/ / UNITED STATES

souTH

,,/'

600

/"/

500 400 300

...-- ..... /

. / / souTH ATLANTIC

........... ...... ...,.'/ /

...--...-- ...............

200

00 90 80 70
60
50

40

GEORGIA

/

3

l,/

2

--- V ..........

.-/ V .....

10

Source: U. S. Dept. of Commerce, Bureau of the Census

1958

1963

1967 1969

- 25 -

FIGURE 20 - PAYROLLS IN PAPER AND ALLIED PRODUCTS FIRMS, 1958-1969
( RATIO SCALE) Georgia's payrolls and employment in this industry grew faster than the region over the eleven years shown, but after 1963 some other states began to expand faster, particularly Alabama, Kentucky, South Carolina, Tennessee and Texas. Georgia wage rates are about the industry average -- $7,850 per year.

PAYROLLS ($ MILLION)

10,000 9.000 8.000
7.0on
6.000 5.0
4.000
3.0,nn

UNITED STATES
-----' ....-'V V
~

2.000

1.000 900 800 700 600 500
4
300

-- -'
~
_...-'
v~

SOUTH
...---/
,/
,~

........... ---

. / SOUTH ATLANTIC
V

200

GEORGIA

V"'"

...........

......,.. ...V""""'"

00 90

~

80

L.--""

70

60

50

40

30

20

10

1958

1963

1967 1969

Source: U. S. Dept. of Commerce, Bureau of the Census

26 -

FIGURE 21 - VALUE ADDED BY MANUFACTURE IN LUMBER AND WOOD PRODUCT FIRMS,

1958-1969

( RATIO SCALE)

Georgia's productivity continues to rise, but not as rapidly as throughout the region or the nation. In value added per dollar of wages paid, however, Georgia ranks high. Value added per employee rose dramatically from $3,610 in 1958 to $9,060 in 1969.
VALUE ADDED ($ MILLION)

111.1100

9.000

8,000

7,000

UNITED STATES

6,000 5.000 4,000

-- ----- V ...
...--

3.000

2.000

V""""" SOUTH

1,000 900

--- ...---- V--............ .......

800 700 600 500
400

-- V
.......
V...- ----

SOUTH ATLANTIC

300

200

100

....

-- V ...... GEORGIA V--

90

80

70

60

50

40

30

20

Source: U. S. Dept. of Commerce, Bureau of the Census

10

1958

1963

1967 1969

- 27 -

FIGURE 22 - VALUE ADDED BY MANUFACTURE IN WOOD FURNITURE AND FIXTURES FIRMS,

1958-1969

(RATIO SCALE)

Georgia is pacesetting productivity increases in this young industry. Value added per employee rose from $4,660 to $9,120 in eleven years, closely approaching the U.S. average of $10,170 and the South Atlantic average of $10,100.

VALUE ADDED ($ MILLION)

5,000 4,000 3,000
2,000
1,000 900 800 700 600 500 400 300

V
.........................
V ........

v/ UNITED STATES
.... /
V / SOUTH

//

./

./

./'

_/
.... /

V"

V
./

//

./
/'

SOUTH ATLANTIC

V"

200

100 90
80

70

GEORGIA

60

50

/

1/

40

.//

30

V

~/

20

".....,.." ----

Source: U. S. Dept. of Commerce, Bureau of the Census
10

1958

1963

1967 1969

- 28-

FIGURE 23 . VALUE ADDED BY MANUFACTURE IN PAPER AND ALLIED PRODUCTS FIRMS,

1958-1969

(RATIO SCALE)

Georgia maintained its position as top producer of paper and related products in the South, with value added reaching $514 million in 1969, rising from $228 million in 1958. Value added per employee exceeded $21,000, far above the U.S. average of $17,000.

VALUE ADDED ($ MILLION)

30,000

20,000

10,000 9,000 8,000 7,000 6,000 5,000 4,000
3,000
2,000
1,000 900 800 700 600 500 400
300
200

....- ......-- /
.---- ---
r--

..-----' UNITED STATES

/ / SOUTH

~/

,./'

,....-" V ........

,.........-/ SOUTH ATLANTIC

,...-....-...-...-/

-" _/
.-'

. - ...............
v'"

V../

,.........-
..--'

GEORGIA

Source: U. S. Dept. of Commerce, Bureau of the Census
100

1958

1963

1967 1969

29

- 30-

PRODUCTIVITY COMPARISONS BY STATES

FIGURE 24: FIGURE 25: FIGURE 26: FIGURE 27:

Lumber Wages and Productivity, 1969 Lumber Employment and Value Added, 1958 and 1969 Paper Industry Wages and Productivity, 1969 Paper Employment and Value Added, 1958 and 1969

- 31 -

FIGURE 24 . LUMBER WAGES AND PRODUCTIVITY, 1969
Higher wages in the lumber industry correlate with production per employee, but not with production per wage dollar. High investment in machinery also improves value added per employee. Although Georgia's wage scale was among the lowest, its value added and value of shipments per worker were in line with other southern states and some northern states.

AVERAGE ANNUAL WAGE

GA.

ALA. ARK.

LA.

$8,000

r,IISS. N.C.

TEXAS VA.

CAL.

N.Y. ORE.

PA. WASH. WIS.

$7,000

$6,000 - - - - - - - - - - - - - - - - - - - - - - - -

$5,000 - - - - - - - - - -

$4,000

$3,000

$2,000

$1,000

o
$5,000

$1 0,000 ---------=='----'==---L,;,,;}---L;.;r----~.;,,;,;.)r____I.

$15,000 ---------------------------~~r__----'--:....----------

$20,000 VALUE ADDED PER EMPLOYEE

Source: U. S. Dept. of Commerce, Bureau of the Census
32

FIGURE 25 - LUMBER EMPLOYMENT AND VALUE ADDED, 1958 and 1969
The states of the Far West are still the giants of the lumber industry, while Mississippi and Virginia lead the South in value added. Georgia's value added continues to grow despite declining employment in lumber and wood products firms, so that productivity per employee is rising.
I GA.

ALA ARK.

'////. 1:'\.'1

FLA. LA.
MISS.

V////I\: IIIIIIIIIIII!lIII
'/'///""-'1

N.C. S.C. TENN.

I
IIIIIIIIIII
I
V///A\."l II 11_

TEXAS VA.
CALIF.
I
N.Y.

--
I

ORE. PA.
WASH.

~ 11-

WIS.

I

80

60

40

20

EMPLOYMENT (THOUSANOS)

o 200 400 600 800 1,000 1,200 Source: U. S. Dept. of Commerce, Bureau of the Census
VALUE ADDED ($ MILLIONS)
- 33 -

FIGURE 26 - PAPER INDUSTRY WAGES AND PRODUCTIVITY, 1969
There is a good relationship between wage scale and value added per employee in the paper industry, and productivity is also good in the South on a per wage dollar basis. Georgia's wage scale is moderate while value added per employee is one of the highest.

AVERAGE ANNUAL WAGE

GA.

ALA. FLA.

LA.

N.C.

CAL.

ILL. MASS. MICH. N.J.

N.Y.

OHIO

PA.

WIS.

$10,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

$8,000=.,....---

$6,000 $4,000

$2,000

$5,000 $10,000 $15,000 $20,000
$25,000 -------==---------------------------------------
VALUE ADDED PER EMPLOYEE
Source: U. S. Dept. of Commerce, Bureau of the Census
34

FIGURE 27 . PAPER EMPLOYMENT AND VALUE ADDED, 1958 and 1969

Georgia holds top position in size and productivity in the South's paper industry, with strength in pulp and paper mills. The leaders of the more mature northern industry are stronger in converted paper products, paperboard containers and boxes.

GA.

0.", I
V/1958'

I

1969

ALA.

r77- ~

FLA.

V/ ",,'I

LA. N.C. TENN.

I V///: "",-,
~
111111
f7-i ~

TEXAS

Ii?: ~

CALIF.

l"" r: "////

,,-,

II

ILL.

""",,-,

I

MASS.

IIIIII

"""",'1

I

r.1ICH.

T'-.""''-'

N.J.

"""",,'\j

N.Y. OHIO

v.,/

l"""" '0-..""" -0..""~
,," " ",,'I

PA.

"""""" 0.."""'\l

WIS.

""" "",-,
11111

80

60

40

20

o

EMPLOYr,1ENT (THOUSANDS)

II

200

400

600

800 1,000

VALUE AODED ($ MILLlOfJS)

Source: U. S. Dept. of Commerce, Bureau of the Census

35

36

INTER INDUSTRY RELATIONSHIPS

FIGURE 28: FIGURE 29: FIGURE 30:
FIGURE 31:
FIGURE 32:

Total Sales Generated by Forestry Sectors in 1970
Total Sales of Goods by Major Sectors in Georgia, 1970
Final Demand for Forestry Products in 1970 and Projected 1973
Employment, Income and Output Generated in Georgia per One Million Dollars of Final Sales by Forestry Sectors
Georgia Employment Generated by Forestry Sectors

-37-

SPECIAL
... PRODUCTS til
SAWMILLS

WOOD PARTITIONS &

FIXTURES

N

HARDWOOD DIMENSION

...,

& FLOORING

'"

WOODEN CONTAINERS

PREFABRICATED WOOD PRODUCTS
INOOD PRODUCTS NOT ELSEWHERE CLASSIFIED \"iOOD PRESERVING
MILLWORK

.,
po
'"
.,
co
'"
ww
'"
I~
I:

VENEER & PLYWOOD

w

00

UPHOLSTERED HOUSEHOLD FURNITURE

WOOD HOUSEHOLD FURNITURE

PAPER & BOARD MILLS

LOGGING CAMPS

Ie
I~ I~ I~ I~

PULP MILLS

PAPER PRODUCTS EXC. CONTAINERS

SAWMILLS & PLANING MILLS

PAPER MILLS PAPERBOARD CONTAINERS PAPERBOARD MILLS

I~
ciioi
'"

."

G)

C

til
11l

t~il

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:~:J

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FIGURE 29 - TOTAL SALES OF GOODS BY MAJOR SECTORS IN GEORGIA, 1970
(In Millions of Dollars)

SECTOR
1. Agricu Iture, forestry, and fisheries 2. Mining 3. Contract construction 4. Forestry related industries 5. Manufacturing other than forestry 6. Transportation and communication 7. Wholesale and retail trade 8. Finance, insurance, and real estate 9. Services 10. Government & nonclassified establishments

SALES
1,497 197
2,520 1,914 13,330 2,608 4,820 4,247 4,194
731
36,058

%OFTOTAL
4.15 0.54 6.99 5.31 36.97 7.23 13.37 11.78 11.63 2.03
100.00

39 -

FIGURE 30 - FINAL DEMAND* FOR FORESTRY PRODUCTS IN 1970 AND PROJECTED 1973
The demand for forestry products is expected to continue to grow. Final demand* for forestry products in 1970 totaled to $1,165,500,000. By 1973 it was expected to grow to $1,321,700,000. This chart represents the increase in final demand from 1970 to 1973 for each of the 19 forestry sectors of the Georgia economy. *Personal consumption expenditure, government consumption, exports out of Georgia, and investment.
248.1
1973
~ ~
28.7
-40-

FIGURE 31 - EMPLOYMENT, INCOME AI'\D OUTPUT GENERATED IN GEORGIA PER ONE MILLION DOLLARS OF FINAL SALES BY FORESTRY SECTORS
The special products sawmills industry generates the most total output per one million dollars of final sales of all the forestry sectors. Wood partitions and fixtures generates the most income, and logging camps and contractors generates the most employment. One million dollars of final sales by the logging camps and contractors sector, as an example, will generate employment for 116 workers, income in the state of $670,000, and total output in the Georgia economy of $1,730,000.

Employment 100 80 60 40 20

Income and Output (in thousands of dollars) 600 800 1000 1200 1400 1600 1800 2000 2200

o Employment
~OutPut
- 41 -

FIGURE 32 - GEORGIA EMPLOYMENT GENERATED BY FORESTRY SECTORS
Required employment in Georgia for each 100 men required in each of the forestry related sectors. For example, 675 men will be hired in Georgia for each 100 men hired in the paper mills sector.

7.00

...6-7-5--

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~228 189

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