Economic benefits of the forestry industry in Georgia: 2001

Economic Benefits of the Forestry Industry in Georgia: 2001
Prepared for: Georgia Forestry Commission
Prepared by: B. William Riall, Ph.D.
Research Services Economic Development Institute Georgia Institute of Technology
October 2002
Copyright 2002 Georgia Tech Research Corporation
Centennial Research Building Atlanta, Georgia 30332

Table of Contents
Executive Summary ....................................................................................................... 1 Section 1 Introduction ..................................................................................................................... 6 Section 2 Definition of the Georgia's Forestry Industry.................................................................. 8 Section 3 Economic Benefits ........................................................................................................... 15 References ........................................................................................................................ 21

Executive Summary

Executive Summary 2
Georgia's forestry industry has many components, which interact with all other sectors of the economy in complex ways. The purpose of this analysis is to: (1) define boundaries of the forestry industry by listing those components, (2) quantify the level of economic activity conducted by them, and (3) estimate economic activity supported in all Georgia sectors by the industry's activities.
There are several industry classification systems used in the data sources needed for this analysis; groups were formed to encompass, to the extent possible, the same components in each system. Those groups, and the level of economic activity represented by them, are shown in Table E-1 for 2001. Economic activity is measured by output (similar to sales revenue), employment, and income (defined as wages and salaries including benefits plus proprietor income). These measures are traditionally used in this type of analysis.
Table E-1 shows the forestry industry employed 77,266 in all forestry industry sectors combined, paid an annual income of over $3.6 billion, and supported total sales revenue of over $19.5 billion.
The activities in the sectors shown in Table E-1 bring dollars into the state, which recirculate in a process called the "multiplier effect." The recirculation touches all major industry sectors as goods and services are bought and sold to meet increased demands by businesses and households. The result of the multiplier effect, given by total impacts (which includes the direct impacts), is also measured by output, employment, and income (Table E-2).
Economic activity, including the multiplier effect, supported by the forestry industry in Georgia is almost $30.5 billion. This activity employs 204,065 people whose income is almost $7.7 billion.

Executive Summary 3

Table E-1 Georgia Forestry Industry Economic Activity: 2001

Sector
Forest Products (Greenhouses & Nursuries) Logging Camps and Logging Contractors Sawmills and Wood Preservation Millwork Veneer and Plywood Engineered Wood Containers Mobile Homes Prefabricated Wood Buildings Pulp Mills Paper Mills, Except Building Paper Paperboard Mills Paperboard Containers and Boxes Bags Stationery Other Converted Paper Wood Kitchen Cabinets Woodworking Machinery Paper Industries Machinery Household Furniture Mattresses and Bedsprings Office Furniture Burial Caskets and Vaults

Output Employment

$274,653,024 $950,030,080 $2,348,375,296 $882,288,512 $1,031,417,792 $703,288,256 $466,563,040 $930,612,096
$81,591,752 $929,370,112 $2,056,720,768 $1,613,578,880 $1,951,888,896 $1,301,681,280 $431,200,928 $2,113,644,800 $319,743,744
$38,392,980 $15,454,385 $273,165,344 $336,644,192 $452,982,912 $18,736,500

1,898 5,258 7,689 5,037 5,105 3,442 3,149 5,461 627 2,119 5,465 3,791 7,992 3,786 1,735 4,468 3,018 240 108 2,527 1,563 2,695
93

Income
$89,615,368 $157,755,760 $313,189,888 $174,317,328 $373,540,480 $139,954,944 $79,615,280 $167,524,496 $14,299,701 $172,273,936 $405,871,104 $273,955,840 $411,236,736 $171,214,736 $74,938,984 $263,835,216 $85,710,184 $11,896,424
$7,079,120 $64,588,244 $71,981,440 $98,470,472
$2,813,828

Total

$19,522,025,569 77,266 $3,625,679,508

Source: Georgia Department of Labor ES202 data files for 2001, and Georgia Tech's Economic Development Institute

Executive Summary 4

Table E-2 Total Benefits by Major Industry Sector

Sector
Agriculture Mining Construction Manufacturing Transportation and Public Utilities Wholesale and Retail Trade Finance, Insurance, and Real Estate Services Government Other

Output Employment

$356,398,720 $14,044,199 $310,115,776 $20,457,463,808 $2,094,322,816 $2,836,742,144 $1,619,370,752 $2,562,641,152 $208,323,392 $12,969,080

3,670 77
4,875 81,270 14,806 42,260 8,681 45,062 1,956 1,408

Total

$30,472,391,839 204,065

Source: Georgia Tech's Economic Development Institute

Income
$121,064,880 $3,706,434
$164,600,112 $3,786,980,864
$634,078,784 $1,198,292,736
$332,911,744 $1,336,142,592
$82,499,856 $12,969,080
$7,673,247,082

Section 1 Introduction

Section 1Introduction 6
Georgia's forestry industry contains many components and supports a significant proportion of the state's economic activity. This analysis quantifies that activity in terms of economic output, employment, and household income where economic output is defined as business revenues and household income is defined as wages, salaries (including benefits), and proprietor income.
The first step in this process is to define the limits of what constitutes the "forestry industry." This is not as simple a task as it may appear because the borders of one industry overlap those of other industries, and also because we are now in a transition period from the Standard Industrial Classification (SIC) system to the North American Industrial Classification System (NAICS). Because some of the information on which this analysis is based uses one system and other data use another, the industry definition must be consistent between systems. How this was done and its results appear in Section 2, which also contains estimates of how much economic activity is occurring in each component of the forestry industry.
After the industry was defined and activities quantified, the total economic activity supported by the forestry industry was estimated. Total activity is generally referred to as the "multiplier effect." This effect occurs whenever dollars are brought into the state's economy and recirculated before leaking out. Section 3 explains the methodology used to estimate total economic activity and provides perspective on how important these activities are in the overall Georgia economy.

Section 2 Definition of the Forestry
Industry in Georgia

Section 2Definition of the Forestry Industry in Georgia 8
The forestry industry in Georgia has many diverse components. Complicating that situation are the multiple frameworks in which a definition of the forestry industry must be used to estimate its impact. These frameworks include the North American Industrial Classification System (NAICS), the Standard Industrial Classification (SIC) system, and the industry classification system used by the Federal Bureau of Economic Analysis (BEA) input-output model. This definition is used in each of these systems as consistently as data allow.
A general definition of the forestry industry would include all service and manufacturing activity related to the growth, harvesting, and use of forest materials that would not exist in Georgia without the presence of extensive forests or forest industries. For example, the papermaking industry would be a part of the forestry industry definition, but retail sales of that paper would not. States without commercial forests still sell paper within their borders.
Therefore, the forestry industry definition used in this analysis includes these broad sectors: forestry, logging, wood products (such as dimension lumber), paper products, manufactured housing, furniture, other miscellaneous wood products, and woodworking and papermaking machinery. Since future updates will rely on the NAICS system, the detailed industry definition will follow that system. The NAICS codes and descriptions comprising the detailed definition are provided in Table 2-1.
The organization of the industries on this list is similar to the SIC system in that the number of digits of the NAICS codes increases as the level of detail increases. The highest level of detail practicable is the six-digit level, which is roughly equivalent to the 4-digit level in the older SIC system. In some cases, however, the six-digit industry is the same as the five-digit industry, so these duplications are not presented in Table 2-1. For example, industry 11311 (timber tract operations) does not break down into smaller components, so the six-digit industry (which would be 113110) is omitted because it's redundant.
In some cases, the higher-level NAICS industries contain components not a part of the forestry industry. For example, metal furniture is included in NAICS 3371, but is not included at the six-digit level. Each component containing only forestry-related industries are indicated by italicized text in the table. Non-forestry-related components have been eliminated.

Section 2Definition of the Forestry Industry in Georgia 9

Table 2-1 Forestry Industry Definition Components: NAICS

NAICS 113 1131 11311 1132 11321 1133 11331 321 3211 32111 321113 321114 3212 32121 321211 321212 321213 321214 321219 3219 32191 321911 321912 321918 32192 32199 321991 321992 321999 322 3221 32211 32212 322121 322122 32213 3222 32221 322211 322212 322213 322214 322215 32222

Description Forestry and Logging Timber Tract Operations Timber Tract Operations Forest Nurseries and Gathering of Forest Products Forest Nurseries and Gathering of Forest Products Logging Logging Wood Product Manufacturing Sawmills and Wood Preservation Sawmills and Wood Preservation Sawmills Wood Preservation Veneer, Plywood, and Engineered Wood Product Manufacturing Veneer, Plywood, and Engineered Wood Product Manufacturing Hardwood Veneer and Plywood Manufacturing Softwood Veneer and Plywood Manufacturing Engineered Wood Member (except Truss) Manufacturing Truss Manufacturing Reconstituted Wood Product Manufacturing Other Wood Product Manufacturing Millwork Wood Window and Door Manufacturing Cut Stock, Resawing Lumber, and Plnning Other Millwork (including Flooring) Wood Container and Pallet Manufacturing All Other Wood Product Manufacturing Mobile Homes Prefabricated Wood Building Manufacturing All Other Miscellaneous Wood Product Manufacturing Paper Manufacturing Pulp, Paper, and Paperboard Mills Pulp Mills Paper Mills Paper (except Newsprint) Mills Newsprint Mills Paperboard Mills Converted Paper Product Manufacturing Paperboard Container Manufacturing Corrugated and Solid Fiber Box Manufacturing Folding Paperboard Box Manufacturing Setup Paperboard Box Manufacturing Fiber Can, Tube, Drum, and Similar Products Manufacturing Nonfolding Sanitary Food Container Manufacturing Paper Bag and Coated and Treated Paper Manufacturing

Section 2Definition of the Forestry Industry in Georgia 10

322221
322222 322223 322224 322225 322226 32223 322231 322232 322233 32229 322291 322299 33321 333291 337 3371
33711 33712 337121 337122 337127 337129 337211 337212 337215 333 3332 33321 33329 333291 339 3399 33999 339995

Coated and Laminated Packaging Paper and Plastics Film Manufacturing Coated and Laminated Paper Manufacturing Plastics, Foil, and Coated Paper Bag Manufacturing Uncoated Paper and Multiwall Bag Manufacturing Laminated with Foil for Flexible Packaging Surface-Coated Paperboard Manufacturing Stationery Product Manufacturing Die-Cut Paper and Paperboard Office Supplies Manufacturing Envelope Manufacturing Stationery, Tablet, and Related Product Manufacturing Other Converted Paper Product Manufacturing Sanitary Paper Product Manufacturing All Other Converted Paper Product Manufacturing Sawmill and Woodworking Machinery Manufacturing Paper Industry Machinery Manufacturing Furniture & Related Product Manufacturing Household and Institutional Furniture and Kitchen Cabinet Manufacturing Wood Kitchen Cabinet and Countertop Manufacturing Household and Institutional Furniture Making Upholstered Household Furniture Manufacturing Non-upholstered Wood Household Furniture Manufacturing Institutional Furniture Manufacturing Wood Television, Radio, and Sewing Machine Cabinet Manufacturing Wood Office Furniture Manufacturing Custom Architectural Woodwork and Millwork Manufacturing Showcase, Partition, Shelving, and Locker Manufacturing Machinery Manufacturing Industrial Machinery Manufacturing Sawmill and Woodworking Machinery Manufacturing Other Industrial Machinery Manufacturing Paper Industry Machinery Manufacturing Miscellaneous Manufacturing Other Miscellaneous Manufacturing All Other Miscellaneous Manufacturing Burial Casket Manufacturing

Source: North American Industrial Classification System, and Georgia Tech's Economic Development Institute

Section 2Definition of the Forestry Industry in Georgia 11
Unfortunately, the data bases needed to estimate the impact of this industry are not all available in NAICS codes. Only one major data source (the 1997 Census of Manufacturers) is available using NAICS codes. The others are either in SIC codes or use the BEA input-output model industry definitions. The mapping from one system to another is generally straightforward within major industry groups, although there are also many instances where categories are split. Groupings of industries, however, can reduce this problem; a group of NAICS industries is equivalent to a group of SIC industries, although the individual components of each do not always match. This grouping showing the SICs used to represent each NAICS group is provided in Table 2-2. A bold line separates each group. Where possible, the SIC industry is next to the NAICS industry closest in definition. For example, SIC 2421 is placed next to NAICS 321113 (Sawmills), although SIC 2421 also includes NAICS 337212 (custom architectural woodwork & millwork manufacturing.).
The level of economic activity in each group in Table 2-2 is measured by output, employment, and income. Measures for the 2001 calendar year appear in Table 2-3. This table shows that total employment in all of the forestry industry sectors is 77,266 and these jobs earned annual total wages and salaries (including benefits) of over $3.6 billion from total sales revenue of over $19.5 billion.
Within the industry, the only sector not represented by Georgia companies is wood television and radio cabinets an industry segment that is a holdover from the days when radios and TVs typically came in wooden cases. The highest employment is seen in paperboard containers and boxes, and sawmills and wood preserving with almost 8,000 each. Many segments have employment exceeding 5,000, including paper mills, mobile homes, millwork, and logging. The greatest payrolls come from paperboard containers and boxes, and paper mills. The largest revenues are produced by sawmills and wood preservation, with other converted paper and paper mills following closely behind. All three industries have outputs in excess of $2 billion.

Section 2Definition of the Forestry Industry in Georgia 12

Table 2-2 Mapping of NAICS into SIC Categories
Forestry Industries Groupings

NAICS

NAICS Description

SIC(s)

SIC Description

113 1133 337212 321113 321114 321211 321212 321213 321214 321219 321911
321912 321918 32192 321999
321991 321992 32211 322121 322122 32213 322211 322212 322213 322214 322215
322221 322222 322223 322224 322225 322226 322231 322232 322233 322291 322299 33321

Forestry and logging Logging Custom architectural woodwork & millwork mfg Sawmills Wood preservation Hardwood veneer & plywood mfg Softwood veneer & plywood mfg Engineered wood member (exc truss) mfg Truss mfg Reconstituted wood product mfg Wood window & door mfg
Cut stock, resawing lumber & planning Other millwork (including flooring) Wood container & pallet mfg All other miscellaneous wood product mfg
Manufactured home (mobile home) mfg Prefabricated wood building mfg Pulp mills Paper (except newsprint) mills Newsprint mills Paperboard mills Corrugated & solid fiber box mfg Folding paperboard box mfg Setup paperboard box mfg Fiber can, tube, drum & similar products mfg Non-folding sanitary food container mfg
Coated & lamnd pkg paper & plastics film mfg Coated & laminated paper mfg Plastics, foil, & coated paper bag mfg Uncoated paper & multiwall bag mfg Laminated with Foil for Flexible Packaging Surface-coated paperboard mfg Die-cut paper & paperboard office supply mfg Envelope mfg Stationery, tablet & related product mfg Sanitary paper product mfg All other converted paper product mfg Sawmill and Woodworking Machinery Mfg.

0811; 0813; 0851 2411
2421 2491 2435 2436
2439 2493 2431
2426 2429 2448 2499 2441 2449 2451 2452 2610 2620
2630 2650
2671 2674 2672
2675 2677 2678 2676 2679 3553

Forest Products Logging Camps Contractors
Sawmills and Planning Mills Wood Preserving Hardwood Veneer and Plywood Softwood Veneer and Plywood
Structural Wood Members NEC Reconstituted Wood Products Millwork Hardwood Dimension and Flooring Mills Spcl Product Sawmills Wood Pallets and Skids Wood Products, NEC Wood Boxes Wood Containers, NEC Mobile Homes Prefabricated Wood Buildings Pulp Mills Paper Mills
Paperboard Mills Paperboard Containers and Boxes
Paper Coated and Laminated Packaging Paper Bags Paper Coated and Laminated, NEC
Die-Cut Paper and Board Envelopes Stationery Products Sanitary Paper Products Converted Paper Products, NEC Woodworking Machinery

Section 2Definition of the Forestry Industry in Georgia 13

333291 33711 337121 337122 337127 337129 337211 337215 339995

Paper Industry Machinery Mfg. Wood kitchen cabinet & countertop mfg Upholstered household furniture mfg Non-upholstered wood household furniture mfg Institutional furniture mfg Wood TV, radio, sewing machine cabinet mfg Wood office furniture mfg Showcase, partition, shelving & locker mfg Burial Casket Manufacturing

Source: Georgia Tech's Economic Development Institute

3554 2434 2512 2511 2515 2517 2521 2541 3995

Paper Industries Machinery Wood Kitchen Cabinets Upholstered Household Furniture Wood Household Furniture Mattresses and Boxsprings (part) Wood TV and Radio Cabinets Wood Office Furniture Wood Partitions and Fixtures Burial Caskets and Vaults

Table 2-3 Georgia Forestry Industry Economic Activity: 2001

Sector
Forest Products (Greenhouses and Nursuries) Logging Camps and Logging Contractors Sawmills & Wood Preservation. Millwork Veneer and Plywood Engineered Wood Containers Mobile Homes Prefabricated Wood Buildings Pulp Mills Paper Mills, Except Building Paper Paperboard Mills Paperboard Containers and Boxes Bags Stationery Other Converted Paper Wood Kitchen Cabinets Woodworking Machinery Paper Industries Machinery Household Furniture Mattresses and Bedsprings Office Furniture Burial Caskets and Vaults

Output Employment

$274,653,024 $950,030,080 $2,348,375,296 $882,288,512 $1,031,417,792 $703,288,256 $466,563,040 $930,612,096
$81,591,752 $929,370,112 $2,056,720,768 $1,613,578,880 $1,951,888,896 $1,301,681,280 $431,200,928 $2,113,644,800 $319,743,744
$38,392,980 $15,454,385 $273,165,344 $336,644,192 $452,982,912 $18,736,500

1,898 5,258 7,689 5,037 5,105 3,442 3,149 5,461 627 2,119 5,465 3,791 7,992 3,786 1,735 4,468 3,018 240 108 2,527 1,563 2,695
93

Income
$89,615,368 $157,755,760 $313,189,888 $174,317,328 $373,540,480 $139,954,944 $79,615,280 $167,524,496 $14,299,701 $172,273,936 $405,871,104 $273,955,840 $411,236,736 $171,214,736 $74,938,984 $263,835,216 $85,710,184 $11,896,424
$7,079,120 $64,588,244 $71,981,440 $98,470,472
$2,813,828

Total

$19,522,025,569 77,266 $3,625,679,508

Source: Georgia Department of Labor ES202 data files for 2001, and Georgia Tech's Economic Development Institute

Section 3 Economic Benefits

Section 3Economic Benefits 15
Methodology
Economic impact analysis has used basically the same methods for over 40 years. The tools, although greatly improved in quality and ease of use, are also similar to those in long-time use.
The conceptual basis for estimating economic benefits of an industry is that resources brought into Georgia's economy by the industry raises the level of economic activity. This additional economic activity, commonly called the multiplier effect, supports increased employment, income, and business revenues. These increases are estimated from an inputoutput model (I/O).
The purpose of an I/O model is to estimate the flows of resources among various economic sectors by using the "recipes" followed by producers. These recipes provide the type and amount of goods and services purchased during production, which are produced by other firms. For example, a pulp mill purchases wood from a logger. The logger, in turn, purchases equipment and fuel from firms, that, in turn, purchase their raw materials from still other firms. Combined with estimates of what percentage of these items are supplied by Georgia firms, the recipes can be used to estimate how much of each item is purchased from Georgia firms and how much is purchased from outside Georgia.
Purchases from sources outside the Georgia economy are known as "leakage," which puts the brakes on the multiplier effect; the higher the leakage, the lower the multiplier effect.
The I/O model used in this analysis is called IMPLAN, devised by the Minnesota IMPLAN Group. It is a nationally recognized model that uses Georgia data to tailor its estimates to the Georgia economy. Still, the model must be modified somewhat to account for differences in specific industry sectors revealed by more current data. For example, the wage and salary data used in this analysis is from 2001, whereas the wage and salary data available to IMPLAN is from 1998.
One area of uncertainty that persists, however, is the level of benefits provided to workers in each of the forestry industry sectors. The available wage and salary information does not include benefits, but the I/O model bases its analysis on wages and salaries that include benefits. An average of 25 percent was assumed for this analysis.

Section 3Economic Benefits 16
The analytical process includes three steps after the industry sectors are defined, as described in the previous section. The first step is to quantify employment, income, and output associated with each of the defined sectors. Several data sources are used to accomplish this.
The best source for employment and wages is the employment security data collected and maintained by the Georgia Department of Labor. Commonly called ES202 data, it has the advantage of being current, allowing an estimate of the economic benefits occurring in 2001, but it suffers from incomplete coverage because only firms with employees are included. Firms that are family-owned and operated, for example, would not be included. This undercount of employees is not significant in the most important industry sectors with the exception of logging, where it appears the ES202 count was significantly low. The I/O model was used to provide an alternative estimate for this sector.
Output levels are more difficult to estimate because the most recent information was produced from 1997 data reported in the Census of Manufacturers. Estimates of output per employee from that source were converted to current dollars and multiplied by current estimates of employment to estimate current output.
The second task is to divide the forestry industry output into two categories, (1) output that is sold to another Georgia firm and (2) output sold outside the state. Another way to look at this is to recall that the multiplier effect starts from dollars being brought into the Georgia economy. Output not sold to another Georgia firm is, by definition, bringing in resources from outside the Georgia economy, and it is these "exports" that fuel the multiplier effect. Forestry industry output used as an input to another Georgia forestry-industry firm is already accounted for in the multiplier effect; counting it again would result in double-counting and would imply a level of production from the input-supplying industry higher than actually observed. For example, if the multiplier effect is calculated for the paper industry, it will include some of the activities of Georgia logging operations. If the entire output from logging was then added to the multiplier effect for paper, it would double-count the logging output that went to the paper industry. The I/O model is used for these estimations, with the resulting estimates called "direct impacts."
Direct impacts are measures of the output from, in this case, forestry industries that are exported to entities outside Georgia. These are considered exports even if they only go to Alabama.

Section 3Economic Benefits 17
The third step is to use the I/O model to estimate total impacts, which are divided into three components. The first is the direct impacts (the value of resources brought into the state); the second is indirect impacts (impacts from recirculation of resources resulting from forestry industry purchases from other industries; and the third is induced impacts, which result from activities in the household sector. Adding direct, indirect, and induced impacts yields total benefits.
Three measures of economic benefits are provided. The first, output, is a measure of how much each industry or sector produced in 2001 - roughly equivalent to a measure of sales revenue. The second measure is income including all household income and employee benefits. The last measure is employment provided by the firms in each industry.
Results
Table 3-1 provides estimates of direct impacts for each of the forestry industry sectors contained in the industry's definition. These differ from the level of economic activity shown in Table 2-3 because Table 3-1 eliminates production consumed by another sector. This eliminates the double counting of production in the multiplier effect of the consuming industry sector. For example, Table 3-1 does not contain output from the logging industry because all of it seems to be consumed by the various Georgia wood-using industries such as paper and millwork. Logging operations are included as part of the multiplier effect by these consuming industries, not as a direct impact separate from them.
Another way to interpret Table 3-1 is to consider the direct impacts to be estimates of the exports of forestry-related industries. This exporting (to anyone outside Georgia) brings resources into the state to support the increase in economic activity estimated by the multiplier effect.
The highest output is achieved by the "Other Converted Paper" sector, which includes sanitary paper and products from pressed pulp such as paper plates and egg cartons. The greatest employment is in the "Paperboard and Containers" sector with about 7,265 employees. The highest payroll, however, is in the "Paper Mill" sector, with over $400 million in salaries, wages, and benefits. Together, the forestry industry exports almost $17 billion with this activity supporting 64,392 jobs with a payroll of over $3 billion.

Section 3Economic Benefits 18
As dollars brought into Georgia's economy (as measured by the direct impacts) recirculate, a higher level of economic activity is supported. This higher level is estimated by applying the IMPLAN input-output model to the direct impacts provided in Table 3-1. The results of this analysis are presented in Table 3-2. Since all industries in Georgia are affected by the forestry industry, Table 3-2 summarizes the benefits by one-digit SIC sector.

Table 3-1 Direct Impacts by Forest Industry Sector
(Dollars)

Sector
Forest Prod (Greenhouses and Nurseries) Sawmills & Wood Preservation Millwork Wood Kitchen Cabinets Veneer and Plywood Engineered Wood Containers Mobile Homes Prefabricated Wood Buildings Household Furniture Mattresses and Bedsprings Office Furniture Pulp Mills Paper Mills, Except Building Paper Paperboard Mills Paperboard Containers and Boxes Bags Stationery Other Converted Paper Woodworking Machinery Paper Industries Machinery Burial Caskets and Vaults

Output
$207,509,184 $1,243,670,784
$826,061,696 $306,500,544 $824,528,128 $575,176,192 $428,929,824 $930,441,664
$81,331,488 $247,762,144 $318,121,216 $445,587,264 $927,615,808 $2,053,710,080 $1,610,599,424 $1,774,333,440 $1,297,555,456 $430,952,384 $2,111,752,576
$35,513,508 $10,446,019 $18,736,500

Emp
1,434 4,072 4,716 2,893 4,081 2,815 2,895 5,460 625 2,292 1,477 2,651 2,115 5,457 3,784 7,265 3,774 1,734 4,464 222
73 93

Income
$67,707,288 $165,861,536 $163,208,368
$82,160,224 $298,612,864 $114,460,536
$73,193,472 $167,493,808
$14,254,087 $58,581,816 $68,020,848 $96,862,792 $171,948,752 $405,276,960 $273,449,984 $373,828,192 $170,672,048 $74,895,792 $263,599,008 $11,004,193
$4,784,960 $2,813,828

Total

$16,706,835,323 64,392 $3,122,691,356

Source: Georgia Department of Labor ES202 data files for 2001, and Georgia Tech's Economic Development Institute

Section 3Economic Benefits 19
The largest sector benefits are seen, not surprisingly, in the manufacturing sector, with over $20 billion in output, 81,270 employees, and almost $4 billion in household income. A distant second is held by the services sector, with over $2.5 billion in output, 45,062 employees, and more than $1.3 billion in income. Together, the economic activity supported by Georgia's forestry industry totals almost $30.5 billion, involving employment of 204,065 people whose income reaches almost $7.7 billion. This employment represents about 5 percent of total Georgia employment and 7 percent of household income when compared to 2001 ES202 totals.

Table 3-2 Total Benefits by Major Industry Sector

Sector
Agriculture Mining Construction Manufacturing Transportation and Public Utilities Wholesale and Retail Trade Finance, Insurance and Real Estate Services Government Other

Output Employment

$356,398,720 $14,044,199 $310,115,776 $20,457,463,808 $2,094,322,816 $2,836,742,144 $1,619,370,752 $2,562,641,152 $208,323,392 $12,969,080

3,670 77
4,875 81,270 14,806 42,260 8,681 45,062 1,956 1,408

Total

$30,472,391,839 204,065

Source: Georgia Tech's Economic Development Institute

Income
$121,064,880 $3,706,434
$164,600,112 $3,786,980,864
$634,078,784 $1,198,292,736
$332,911,744 $1,336,142,592
$82,499,856 $12,969,080
$7,673,247,082

References

References 21
Georgia Department of Labor, ES202 Wage and Employment Data: 2001.
US Department of the Census, "Census of Manufacturers 1997" http://www.census.gov/epcd/ec97/ga/GA000.HTM
North American Industrial Classification System (NAICS), http://www.census.gov/epcd/www/naicstab.htm
US Office of Management and Budget, "Standard Industrial Classification System Manual," 1987.
Bureau of Economic Analysis Input-Output Sectors as contained in "IMPLAN Pro: Data Guide", Minnesota IMPLAN Goup, Inc., Stillwater, MN, 1997.