Economic Benefits of the Forestry Industry in Georgia: 2006 Final Report Prepared for Georgia Forestry Commission Macon, Georgia Prepared by Community Policy and Research Services Enterprise Innovation Institute 760 Spring Street, NW Atlanta, Georgia 30332 Author B. William Riall, Ph.D. October 2007 Copyright 2007 All Rights Reserved Georgia Tech Research Corporation Atlanta, Georgia 30332 Table of Contents Executive Summary ............................................................................................................ 1 Forestry Dependent Communities .............................................................................. 4 Section 1.............................................................................................................................. 7 Introduction......................................................................................................................... 7 Section 2.............................................................................................................................. 8 Definition of the Forestry Industry in Georgia ................................................................... 8 Section 3............................................................................................................................ 13 Economic Benefits ............................................................................................................ 13 Results....................................................................................................................... 14 Comparison of the Forestry Industry with Other Industry Sectors........................... 17 Section 4............................................................................................................................ 19 Economic Dependence...................................................................................................... 19 What Is Economic Dependence? .............................................................................. 19 Approach................................................................................................................... 19 References......................................................................................................................... 28 Executive Summary 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) quantify the level of economic activity conducted by the components of the forestry industry, (2) estimate economic activity supported in all Georgia sectors by the industry's activities, (3) compare the level of activity in the forestry industry with other industries, and (4) assess the degree of forestry dependence of Georgia's counties. The forestry industry components, and the level of economic activity represented by them, are shown in Table E-1 for 2006. Economic activity is measured by output (similar to sales revenue), employment, and compensation (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 67,733 in all industry sectors combined, paid an annual compensation of over $3.5 billion, and had estimated total revenue of over $17.8 billion. The activities in the sectors 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 resulting from the new resources brought into the state by the forestry industry. Table E-1: Georgia Forestry Industry Direct Economic Activity 2006 Sector Output Forestry Management, Logging, and Misc. Forest Products $1,845,804,352 Lumber and Wood Preservation $2,057,422,972 Veneer, Plywood, Reconstituted, and Engineered Wood $1,259,775,984 Prefabricated Wood Buildings and Manufactured Housing $595,598,848 Pulp and Paper Products $9,589,567,207 Woodworking and Paper Industries Machinery $52,269,742 Wooden Furniture and Cabinets $1,176,198,972 Windows and Doors $445,641,376 Containers, Showcases, Partitions, and Shelving $548,023,952 Custom Architectural and Miscellaneous Wood Products $190,155,372 Total $17,760,458,777 Source: Georgia Department of Labor, Current Employment and Wages. Employment 6,152 8,957 6,963 4,500 22,861 314 9,308 2,598 4,618 1,462 67,733 Compensation $267,437,328 $399,561,280 $352,537,400 $165,216,458 $1,630,396,895 $18,256,298 $342,927,437 $100,483,456 $175,315,696 $60,815,971 $3,512,948,218 The result of the multiplier effect, given by total impacts (which includes the economic activity in Table E-11), is also measured by output, employment, and income and is shown in Table E-2. Total economic activity supported by the forestry industry in Georgia, including the multiplier effect and federal payments to landowners of about 1 The economic activity in Table E-1 contains more than just the direct impacts because some of the interindustry purchasing (indirect impacts) is necessarily contained in the estimates of economic activity. Georgia Forestry Commission Final Report Page 1 $12.3 million, is over $27.7 billion. This activity employs 149,347 people whose compensation is almost $6.8 billion. Another way to examine the forestry industry in Georgia is to compare it with other manufacturing sectors. Table E-3 lists 2006 income and employment totals for each major industry sector sorted by total wages. These data show that forestry ranks second in total income generated, and third in total employment. Food processing ranks first in income and second in employment; textiles (dominated by carpet) ranks first in employment and third in income. Forestry's second rank in income is very close to firstranked food processing in income, reflecting forestry's relatively higher average wages. Of particular importance to Georgia's state government is how the forestry industry affects its annual budget. This is investigated by estimating the revenues associated with the forestry industry's total economic activity and subtracting the costs associated with providing state services to Georgia's households and companies. Revenues include individual and corporate income tax, sales and use taxes, highway taxes, fees, and miscellaneous revenues. Costs include education, public health, safety and welfare, highways, administration, and miscellaneous. Table E-4 provides the fiscal impact estimates based on total impacts. The forestry industry generates an estimated $580 million per year in revenues for the state budget. When the costs of providing services to all employees are deducted from these revenues, net annual state revenues are over $180 million per year. Table E-5 extracts information from several tables to present a comparison of the overall results obtained in each impact analysis conducted from 2003 to 2006. All measures show growth between 2003 and 2004 and between 2004 and 2005. The highest growth rates are in industry output which grew between 10 and 14 percent depending on the year and whether it is being calculated for forestry industry activity or total activity. Compensation also increased for these periods. In the 2003 to 2004 period, forestry industry compensation increased by 9.7 percent and total compensation increased by 12 percent without considering inflation. From 2004 to 2005, the rate of increase was somewhat lower 4 percent for the forestry industry and 9 percent for total impacts. Employment increases are more modest, increasing 3 percent and 7 percent for forestry industry and total impacts, respectively, in the 2003 to 2004 period. Although employment from total impacts grew an estimated 6 percent between 2004 and 2005, forestry industry employment was essentially flat. In the 2005 to 2006 period, forestry industry employment was essentially flat and employment from total impacts fell by 3 percent. The reason for this decline is unclear and seems to be the product of numerous small changes. Productivity increases are apparent in forestry industry sectors (pulp and paper products, for example) as well as sectors stimulated by the multiplier effect which would serve to allow output increases with employment declines. There were also small shifts in which forestry sectors are most active in the Georgia economy (for example, a small decline in veneer and plywood and a small increase in lumber and wood preservation) that may have changed the degree of multiplier effect on the economy as a whole. Georgia Forestry Commission Final Report Page 2 Table E-2: Total Impacts by Major Industry Sector 2006 Sector Agriculture, Forestry, Fishing and Hunting Mining Utilities Construction Manufacturing Wholesale Trade Transportation and Warehousing Retail Trade Information Finance and Insurance Real Estate and Rental Professional, Technical, and Scientific Services Management of Companies Administrative and Waste Services Educational Services Health and Social Services Arts, Entertainment and Recreation Accommodation and Food Services Other Services Government and Non-NAICS Industries Total Output $2,156,272,640 $12,363,923 $554,235,264 $65,916,184 $17,130,132,480 $1,343,019,136 $893,697,280 $623,207,104 $316,053,056 $707,085,440 $479,028,672 $609,954,496 $380,018,944 $243,014,352 $62,797,008 $528,340,128 $77,018,928 $353,691,456 $521,174,560 $676,562,240 $27,737,507,105 Employment 13,603 41 732 696 65,227 7,590 7,804 9,597 973 3,693 2,991 4,438 2,073 4,396 1,236 6,790 1,559 7,110 8,020 777 149,347 Source: Georgia Department of Labor, Current Employment and Wages; IMPLAN Analysis by EII Compensation $424,170,944 $3,647,826 $109,390,720 $28,779,840 $3,458,342,400 $504,649,984 $347,114,048 $246,477,376 $77,954,384 $232,249,792 $96,601,056 $250,190,784 $175,057,440 $118,826,800 $35,349,544 $283,315,904 $32,642,004 $119,486,040 $191,626,176 $36,676,720 $6,772,549,782 Table E-3: Comparison of Georgia Industries 2006 Sector Employment Food Processing 72,099 Forestry Industry 67,743 Textiles 72,190 Transportation Equipment 46,227 Fabricated Metal Products 27,977 Machinery 24,697 Chemicals 21,085 Printing 21,012 Electrical Equipment and Appliances 14,980 Computers and Electronic Products 13,188 Apparel 6,631 Source: Georgia Department of Labor, Current Employment and Wages Wages & Salaries $2,872,175,430 $2,744,945,397 $2,393,142,439 $2,410,259,632 $1,044,358,379 $1,034,231,350 $1,160,012,760 $886,551,366 $837,594,394 $910,811,991 $230,295,940 Table E-4: Fiscal Impact Analysis 2006 Annual State Government Revenues Annual State Government Costs Net Annual Revenues Source: EII fiscal impact model, SFIA $579,916,979 $399,560,260 $180,356,718 Georgia Forestry Commission Final Report Page 3 Table E-5: Comparison of Results 2003 to 2006 Forestry Industry Economic Activity Output Employment Compensation Output Employment Compensation 2003 $12,679,309,984 65,706 $3,007,249,626 2004 $14,162,671,796 67,633 $3,299,211,578 2003-2004 11.70% 2.93% 9.71% 2005 $16,150,427,177 67,694 $3,421,577,066 2004-2005 14.04% 0.09% 3.71% 2006 $17,760,458,777 67,733 $3,512,948,218 2005-2006 9.97% 0.06% 2.67% Total Impacts Output Employment Compensation Output Employment Compensation 2003 $20,199,375,517 136,022 $5,600,491,974 2004 $22,729,379,114 144,944 $6,276,217,393 2003-2004 12.53% 6.56% 12.07% 2005 $25,972,228,986 154,147 $6,826,524,997 2004-2005 14.27% 6.35% 8.77% 2006 $27,737,507,105 149,347 $6,772,549,782 2005-2006 6.80% -3.11% -0.79% Fiscal Impact 2003 2004 2005 State Revenues $514,089,031 $546,361,719 $590,558,427 State Costs $367,579,485 $391,523,592 $414,483,229 Net Revenues $146,509,546 $154,838,126 $176,075,198 Source: EII impact assessments and Georgia Department of Labor, Current Employment and Wages. 2006 $579,916,979 $399,560,260 $180,356,718 Forestry Dependent Communities The economies of Georgia's counties are all dependent upon their ability to bring resources into their areas. There is no clear definition of "dependence" so two measures were developed. The first is based on employment where "critically dependent" counties have more than 10 percent of their total private-sector employment in the forestry industry. "Very dependent" counties have between 6 percent and 10 percent of their employment in forestry industries and "moderately dependent," "somewhat dependent," and "not dependent" have between 4 percent and 5.9 percent, 1.6 percent and 3.9 percent, and less than 1.6 percent of their employment in forestry industries, respectively. Figure E-1 depicts the degree of economic dependence on forestry, as measured by its proportion of total employment. Another measure of dependence is provided by wages and salaries. For this measure, counties are considered "critically dependent" if more than 15 percent of total privatesector wages and salaries are from forestry-related industries. "Very dependent" counties have between 10 percent and 15 percent of their employment in forestry industries and "moderately dependent," "somewhat dependent," and "not dependent" have between 5 percent and 10 percent, 2 percent and 5 percent, and less than 2 percent of their wages and salaries from forestry industries, respectively. Figure E-2 depicts the degree of economic dependence on forestry, as measured by its proportion of total wages and salaries. Georgia Forestry Commission Final Report Page 4 Figure E-1 Forestry Dependency Based on Employment 2006 Georgia Forestry Commission Final Report Page 5 Figure E-2 Forestry Dependency Based on Income 2006 Georgia Forestry Commission Final Report Page 6 SECTION 1 Introduction 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 compensation is defined as wages, salaries (including benefits), and proprietor income. Additional factors considered include how the manufacturing components in the forestry industry compare to other manufacturing sectors, and how the industry affects state government costs and revenues. 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. 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 4 examines how important the forestry components are to the existing industry base in each of Georgia's counties and divides counties into five categories according to their degree of dependence on forestry. Georgia Forestry Commission Final Report Page 7 SECTION 2 Definition of the Forestry Industry in Georgia The forestry industry in Georgia has many diverse components. A general definition 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. The coding North American Industrial Classification System (NAICS) is used to define the components of the forestry industry. The NAICS codes and descriptions comprising the detailed definition appear in Table 2-1. Table 2-1: Forestry Industry Definition Components: NAICS NAICS Code 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 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 Planing Other Millwork (including Flooring) Wood Container and Pallet Manufacturing All Other Wood Product Manufacturing Georgia Forestry Commission Final Report Page 8 321991 321992 321999 322 3221 32211 32212 322121 322122 32213 3222 32221 322211 322212 322213 322214 322215 32222 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 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 Non-folding Sanitary Food Container Manufacturing Paper Bag and Coated and Treated Paper Manufacturing 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 Georgia Forestry Commission Final Report Page 9 3399 Other Miscellaneous Manufacturing 33999 All Other Miscellaneous Manufacturing 339995 Burial Casket Manufacturing Source: North American Industrial Classification System, and Georgia Tech's Enterprise Innovation Institute The organization of industries on this list is hierarchical, that is, the NAICS code digits increase as the level of detail increases. The highest level of detail is the six-digit level. 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 that are 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 used to define the forestry industry. Each component containing only forestry-related industries is indicated by italicized text in the table. Non-forestry-related components have been eliminated. The level of economic activity in each forestry industry component is measured by output, employment, and income. Measures for the 2006 calendar year appear in Table 2-2, which aggregates the numerous categories from Table 2-1 to a more manageable number. This table shows that total employment in all of the forestry industry sectors is 67,733 and these jobs earned annual compensation (total wages and salaries including benefits) of over $3.5 billion from estimated total revenue of almost $17.8 billion. Within the industry, Georgia companies have representatives in each of the sectors and subsectors down to the NAICS six-digit level. Based on this aggregation scheme, the highest employment is seen in pulp and paper with 22,861 workers followed by wooden furniture and cabinets with 9,308. Several additional segments have employment exceeding 5,000, including wood lumber and wood preservation, veneer and plywood, and logging and nurseries. Compensation, like employment, is dominated by pulp and paper with over $1.6 billion (about half the total) followed distantly by lumber and wood preservation (almost $400 million) and veneer and plywood at almost $353 million. The largest outputs are produced by pulp and paper (about $9.6 billion) followed by lumber and logging, (about $2.1 and $1.8 billion, respectively) and veneer and plywood at almost $1.3 billion. Georgia Forestry Commission Final Report Page 10 Table 2-2: Georgia Forestry Industry Economic Activity 2006 Sector Output Forestry Management, Logging, and Misc. Forest Products $1,845,804,352 Lumber and Wood Preservation $2,057,422,972 Veneer, Plywood, Reconstituted, and Engineered Wood $1,259,775,984 Prefabricated Wood Buildings and Manufactured Housing $595,598,848 Pulp and Paper Products $9,589,567,207 Woodworking and Paper Industries Machinery $52,269,742 Wooden Furniture and Cabinets $1,176,198,972 Windows and Doors $445,641,376 Containers, Showcases, Partitions, and Shelving $548,023,952 Custom Architectural and Miscellaneous Wood Products $190,155,372 Total $17,760,458,777 Source: Georgia Department of Labor, Current Employment and Wages, and IMPLAN Employment 6,152 8,957 6,963 4,500 22,861 314 9,308 2,598 4,618 1,462 67,733 Compensation $267,437,328 $399,561,280 $352,537,400 $165,216,458 $1,630,396,895 $18,256,298 $342,927,437 $100,483,456 $175,315,696 $60,815,971 $3,512,948,218 Table 2-3 provides a comparison of the forestry industry activity for 2004, 2005 and 2006. Three measures are included in the comparison: output, employment, and compensation. For the most part, industry sectors showed smooth (though small) increases for each measure throughout the time period. Small output decreases are seen in veneer and plywood, and in woodworking and papermaking machinery for the most recent period, and custom architectural and miscellaneous wood products declined slightly from 2004 to 2005, and then increased slightly from 2005 to 2006. Small decreases in employment are seen between 2005 and 2006 in veneer, prefab buildings, windows and doors, woodworking and papermaking machinery, architectural wood products, and pulp and paper. Windows and doors show a decrease between 2004 and 2005, and an increase between 2005 and 2006 which eclipses the former decline. Only pulp and paper shows a consistent decline. All other sectors show consistent increases, except for those noted above. Changes in employee compensation are generally positive, but with a few exceptions. From 2005 to 2006, only woodworking and paper machinery, windows and doors, and architectural wood products showed small declines. Pulp and paper actually showed an increase, even though the level of employment went down. Containers showed a slight decline between 2004 and 2005, but an increase between 2005 and 2006. Georgia Forestry Commission Final Report Page 11 Table 2-3: Georgia Forestry Industry Economic Activity 2004, 2005, and 2006 Sector 2004 Output 2005 2006 Forestry Management, Logging, and Misc. Forest Products $1,384,113,152 $1,447,089,632 $1,845,804,352 Lumber and Wood Preservation $1,481,513,824 $1,811,062,188 $2,057,422,972 Veneer, Plywood, Reconstituted, and Engineered Wood $1,062,298,144 $1,290,298,688 $1,259,775,984 Prefabricated Wood Buildings and Manufactured Housing $388,201,924 $561,314,328 $595,598,848 Pulp and Paper Products $7,887,861,361 $8,808,187,803 $9,589,567,207 Woodworking and Paper Industries Machinery $46,696,992 $53,197,020 $52,269,742 Wooden Furniture and Cabinets $841,050,860 $1,065,724,056 $1,176,198,972 Windows and Doors $343,669,472 $405,603,168 $445,641,376 Containers, Showcases, Partitions, and Shelving $453,711,824 $532,826,960 $548,023,952 Custom Architectural and Miscellaneous Wood Products $273,554,243 $175,123,334 $190,155,372 Total Sector $14,162,673,800 $16,150,427,177 $17,760,458,777 Employment 2004 2005 2006 Forestry Management, Logging, and Misc. Forest Products 6,005 6,133 6,152 Lumber and Wood Preservation 8,505 8,839 8,957 Veneer, Plywood, Reconstituted, and Engineered Wood 6,588 7,110 6,963 Prefab. Wood Buildings and Manufactured Housing 3,494 4,531 4,500 Pulp and Paper Products 25,032 23,150 22,861 Woodworking and Paper Industries Machinery 292 319 314 Wooden Furniture and Cabinets 8,685 8,867 9,308 Windows and Doors 2,522 2,446 2,598 Containers, Showcases, Partitions, and Shelving 5,031 4,788 4,618 Custom Architectural and Miscellaneous Wood Products 1,479 1,511 1,462 Total Sector 67,633 2004 67,694 Compensation 2005 67,733 2006 Forestry Management, Logging, and Misc. Forest Products $234,098,548 $254,133,792 $267,437,328 Lumber and Wood Preservation $352,721,316 $384,895,901 $399,561,280 Veneer, Plywood, Reconstituted, and Engineered Wood $312,041,524 $340,977,212 $352,537,400 Prefabricated Wood Buildings and Manufactured Housing $121,569,812 $164,212,402 $165,216,458 Pulp and Paper Products $1,616,422,198 $1,594,677,218 $1,630,396,895 Woodworking and Paper Industries Machinery $18,023,702 $20,414,041 $18,256,298 Wooden Furniture and Cabinets $301,810,254 $323,074,793 $342,927,437 Windows and Doors $104,148,424 $104,375,704 $100,483,456 Containers, Showcases, Partitions, and Shelving $180,908,656 $169,143,160 $175,315,696 Custom Architectural and Miscellaneous Wood Products $57,467,145 $65,672,843 $60,815,971 Total $3,299,213,583 $3,421,577,066 $3,512,948,218 Source: Georgia Department of Labor, Current Employment and Wages, and IMPLAN Georgia Forestry Commission Final Report Page 12 SECTION 3 Economic Benefits Economic impact analyses have 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 raise 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 input-output 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 percentages 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 state 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 2005, whereas the wage and salary data available to IMPLAN is from 2004. 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, based on the latest available U.S. Bureau of Labor Statistics compensation cost data for all civilian employment. 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. Georgia Forestry Commission Final Report Page 13 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 2006. It has the drawback, however, of not including single-proprietorships (because they have no employees), and it also does not include employees not covered by unemployment insurance, such as governmental employees. 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 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 forestryindustry 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 iteratively for these estimations, with the resulting estimates called "direct impacts." Direct impacts are measures of the output from, in this case, forestry industries that is exported to entities outside Georgia (these are considered exports even if they only go to Alabama). 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 impacts. Three measures of economic impacts are provided. The first, output, is a measure of how much each industry or sector produced in 2006 roughly equivalent to a measure of sales revenue. The second measure is income, including all household income and employee benefits. The third measure is employment, or number of jobs, in each forestry-related 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 Tables 2-2 and 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 much output from the Forestry Management, Logging, and Misc. Forest Products industry segment because most of it appears to be consumed by the various Georgia wood-using industries such as paper and lumber. Logging operations are included primarily as part of the Georgia Forestry Commission Final Report Page 14 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 largest industry segment by far is "Pulp and Paper", which includes all pulping and paper-making activities representing about half of the total industry. The entire forestry industry (totals in Table 3-1) is estimated to export (to a non-Georgia destination) over $15.5 billion with this activity supporting 58,083 jobs with an employee compensation of over $3.0 billion. Recirculation of dollars brought into Georgia's economy (as measured by the direct impacts) support a higher level of economic activity. 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. Because all industries in Georgia are affected by the forestry industry, Table 3-2 summarizes the impacts by aggregated industry codes (used in the input-output model), which are roughly equivalent to twodigit NAICS codes. Table 3-1: Direct Impacts by Forest Industry Sector 2006 Sector Output Forestry Management, Logging, and Misc. Forest Products $562,864,256 Lumber and Wood Preservation $1,492,851,894 Veneer, Plywood, Reconstituted, and Engineered Wood $1,094,815,888 Prefabricated Wood Buildings and Manufactured Housing $595,598,848 Pulp and Paper Products $9,573,173,831 Woodworking and Paper Industries Machinery $46,167,088 Wooden Furniture and Cabinets $1,071,662,008 Windows and Doors $434,148,768 Containers, Showcases, Partitions, and Shelving $518,849,552 Custom Architectural and Miscellaneous Wood Products $174,355,460 Total $15,564,487,593 Source: Georgia Department of Labor, Current Employment and Wages, and IMPLAN Employment 873 6,654 6,172 4,500 22,818 280 8,540 2,531 4,370 1,345 58,083 Compensation $51,722,372 $298,009,753 $304,380,588 $165,216,458 $1,627,851,797 $16,248,504 $314,514,959 $97,892,096 $166,013,044 $56,265,947 $3,098,115,517 The largest sector impacts are seen, not surprisingly, in the manufacturing sector, with some $17 billion in output, 65,227 employees, and about $3.5 billion in compensation. A distant second is held by forestry, fishing and hunting (which includes logging and nurseries), with almost $2.2 billion in output, 13,603 employees, and over $424 million in compensation. Together, the economic activity supported by Georgia's forestry industry (including federal payments to landowners of about $12.3 million) totals almost $28 billion, involving employment of 149,347 people whose compensation is about $6.8 billion. This employment represents about 3.6 percent and 4.2 percent of total Georgia employment and wages and salaries, respectively. Georgia Forestry Commission Final Report Page 15 Table 3-2: Total Impacts by Major Industry Sector 2006 Sector Output Employment Agriculture, Forestry, Fishing and Hunting Mining Utilities Construction Manufacturing Wholesale Trade Transportation and Warehousing Retail Trade Information Finance and Insurance Real Estate and Rental Professional, Technical, and Scientific Services Management of Companies Administrative and Waste Services Educational Services Health and Social Services Arts, Entertainment and Recreation Accommodation and Food Services Other Services Government and Non-NAICS Industries Total $2,156,272,640 $12,363,923 $554,235,264 $65,916,184 $17,130,132,480 $1,343,019,136 $893,697,280 $623,207,104 $316,053,056 $707,085,440 $479,028,672 $609,954,496 $380,018,944 $243,014,352 $62,797,008 $528,340,128 $77,018,928 $353,691,456 $521,174,560 $676,562,240 $27,737,507,105 13,603 41 732 696 65,227 7,590 7,804 9,597 973 3,693 2,991 4,438 2,073 4,396 1,236 6,790 1,559 7,110 8,020 777 149,347 Source: Georgia Department of Labor, Current Employment and Wages; IMPLAN Analysis by EII Compensation $424,170,944 $3,647,826 $109,390,720 $28,779,840 $3,458,342,400 $504,649,984 $347,114,048 $246,477,376 $77,954,384 $232,249,792 $96,601,056 $250,190,784 $175,057,440 $118,826,800 $35,349,544 $283,315,904 $32,642,004 $119,486,040 $191,626,176 $36,676,720 $6,772,549,782 Table 3-3 provides a comparison between the output, employment and compensation estimates derived in the 2004, 2005 and current study. All sectors showed increases between the 2004 and 2005 estimates, with the largest increases seen in the manufacturing sector. Between 2005 and 2006, however, all sectors declined by small amounts in employment and income, except for transportation, communications and public utilities (TCPU), and retail and wholesale trade, which showed slight increases. All sectors (except mining) did show increases in output between 2005 and 2006. Georgia Forestry Commission Final Report Page 16 Table 3-3: Total Impacts by Major Sector, Comparison of 2004, 2005 and 2006 Sector 2004 Output 2005 2006 Agriculture, Forestry, Fishing and Hunting $1,543,749,376 $1,784,738,944 $2,156,272,640 Mining $10,116,655 $9,394,378 $12,363,923 Construction $75,519,600 $99,402,200 $65,916,184 Manufacturing $13,735,080,960 $15,910,316,032 $17,130,132,480 Transportation, Communication, Utilities $1,315,964,544 $1,386,277,568 $1,447,932,544 Retail and Wholesale Trade $1,744,596,096 $1,878,141,504 $1,966,226,240 Finance, Insurance, Real Estate $1,116,676,320 $1,172,346,080 $1,186,114,112 Services $3,183,728,832 $3,731,612,280 $3,772,548,982 Total Sector $22,729,379,114 2004 $25,972,228,986 Employment 2005 $27,737,507,105 2006 Agriculture, Forestry, Fishing and Hunting 11,485 14,232 13,603 Mining 45 38 41 Construction 932 1,080 696 Manufacturing 65,308 65,910 65,227 Transportation, Communication, Utilities 7,922 8,717 8,536 Retail and Wholesale Trade 17,792 19,300 17,187 Finance, Insurance, Real Estate 6,130 6,702 6,684 Services 35,329 38,167 37,373 Total Sector 144,944 2004 154,147 Compensation 2005 149,347 2006 Agriculture, Forestry, Fishing and Hunting $338,932,384 $434,053,728 $424,170,944 Mining $3,208,737 $2,995,445 $3,647,826 Construction $35,359,572 $42,347,132 $28,779,840 Manufacturing $3,260,418,560 $3,407,663,872 $3,458,342,400 Transportation, Communication, Utilities $411,695,640 $446,305,832 $456,504,768 Retail and Wholesale Trade $728,154,016 $823,291,008 $751,127,360 Finance, Insurance, Real Estate $292,130,984 $328,468,368 $328,850,848 Services $1,206,317,500 $1,341,399,612 $1,321,125,796 Total $6,276,217,393 $6,826,524,997 $6,772,549,782 Source: Georgia Department of Labor, Current Employment and Wages; IMPLAN Analysis by EII Note: Contains revised values for 2004 and 2005 to correct sector aggregation errors in IMPLAN reports. Comparison of the Forestry Industry with Other Industry Sectors It is difficult to appreciate the significance of the impacts generated by the forestry industry without some basis of comparison. This comparison is provided in Table 3-4, which shows that the forestry industry is the third largest industry sector in Georgia, (behind food processing and textiles) in employment and the second largest in wages and salaries. Georgia Forestry Commission Final Report Page 17 Table 3-4: Comparison of Georgia Industries 2006 Sector Employment Wages & Salaries Food Processing 72,099 $2,872,175,430 Forestry Industry 67,743 $2,744,945,397 Textiles 72,190 $2,393,142,439 Transportation Equipment 46,227 $2,410,259,632 Fabricated Metal Products 27,977 $1,044,358,379 Machinery 24,697 $1,034,231,350 Chemicals 21,085 $1,160,012,760 Printing 21,012 $886,551,366 Electrical Equipment and Appliances 14,980 $837,594,394 Computers and Electronic Products 13,188 $910,811,991 Apparel 6,631 $230,295,940 Source: Georgia Department of Labor, Current Employment and Wages Georgia Forestry Commission Final Report Page 18 SECTION 4 Economic Dependence What Is Economic Dependence? Economies are interwoven in a complex web. In general, however, a local economy's economic health depends on the inflow and outflow of resources. Economic base theory calls those sectors within an economy that are responsible for bringing resources in "basic" or "traded" sectors. The resources that are brought in are then (at least partially) recirculated within the local economy to support the "non-basic" sectors. For example, a sawmill will generally sell its products to builders or lumber supply houses outside the local economy. The revenue it receives from these sales is then used to purchase logs from, perhaps, a local logging firm, and it also pays wages to its employees who spend their wages in local restaurants, grocery stores, and the like. As the basic sector grows or declines, so does the non-basic sector. Forestry industry components are very much part of Georgia's basic industry sector, with products sold worldwide. As such, it is one of the key sources of funds flowing into many local Georgia economies. Where the local economy has many sources of such flows, the growth or decline of any specific sector, such as forestry, may not have significant effects. However, in those communities where forestry is a large proportion of the local basic industry, all economic support activities, such as retail, are likewise generally dependent. Approach There is no clear delineation between economic dependence and non-dependence, and there are many possible facets that can be examined to depict the spectrum that describes the degree of dependence. This analysis examines the proportion of the county-level employment and income (as defined by wages and salaries) indicated by the ES202 data that is attributable directly to forestry industries. Multiplier effects are difficult to distribute to individual counties, and were therefore not included in the definition of forestry-related industries. This exclusion serves to underestimate the true proportion of the county economy supported by forestry. The ranges of county employment attributable to forestry-related industries used to define the degree of dependence is provided in Table 4-1, which also provided the definitions used to define dependence according to the percentage of income (wages and salaries) attributable to forestry-related industries. These ranges were developed judgmentally, and are intended to define "dependence" in a very general sense. Applying these criteria to Georgia's counties results in a distribution of counties as depicted in Table 4-2 for employment and income. While most (103 using employment and 101 using income) counties are considered either not, or somewhat, dependent on forestry industries, the remaining counties, concentrated in south Georgia, owe significant proportions of their livelihood to forestry. Georgia Forestry Commission Final Report Page 19 Figure 4-1 depicts the degree of forestry-related dependence based on employment and Figure 4-2 depicts the degree of dependence based on income. Table 4-3 provides the percentages of forestry to county employment and wages and salaries used to assign the degree of dependence. Table 4-1: Definitions of Levels of Dependence Forestry Employment Forestry Wages & Salaries Critically Dependent > 10% > 15% Very Dependent 6% - 9.9% 10% - 14.9% Moderately Dependent 4% - 5.9% 9.9% - 5% Somewhat Dependent 1.6% - 3.9% 2% - 4.9% Not Dependent < 1.6% < 2% Source: EII estimates using Georgia Department of Labor, Current Employment and Wages data. Table 4-2: Distribution of Georgia Counties by Level of Dependence Number of Counties Employment Wages & Salaries Critically Dependent 22 16 Very Dependent 15 13 Moderately Dependent 18 26 Somewhat Dependent 50 42 Not Dependent 54 62 Total 159 159 Source: EII estimates using Georgia Department of Labor, Current Employment and Wages data. Tables 4-3 and 4-4 show how overall dependency has changed (for dependency based on employment and income, respectively) over the three years these statistics have been produced. Generally, the number of counties in each of the dependency categories has remained quite stable. The year 2006, however, shows an increase in those counties considered critically dependent largely at the expense of counties considered very dependent. Table 4-3 Forestry Dependency Over Time: Employment Critically Dependent Very Dependent Moderately Dependent Somewhat Dependent Not Dependent Number of Counties 2004 2005 2006 19 19 22 18 18 15 20 20 18 49 49 50 53 53 54 Georgia Forestry Commission Final Report Page 20 Table 4-4 Forestry Dependency Over Time: Income Critically Dependent Very Dependent Moderately Dependent Somewhat Dependent Not Dependent Number of Counties 2004 2005 2006 14 14 16 17 17 13 26 26 26 42 42 42 60 60 62 Georgia Forestry Commission Final Report Page 21 Figure 4-1 Forestry Dependency Based on Employment 2006 Georgia Forestry Commission Final Report Page 22 Figure 4-2 Forestry Dependency Based on Income Georgia Forestry Commission Final Report Page 23 Table 4-3: Level and Percent of Forestry in County Economies County Appling Atkinson Bacon Baker Baldwin Banks Barrow Bartow Ben Hill Berrien Bibb Bleckley Brantley Brooks Bryan Bulloch Burke Butts Calhoun Camden Candler Carroll Catoosa Charlton Chatham Chattahoochee Chattooga Cherokee Clarke Clay Clayton Clinch Cobb Coffee Colquitt Columbia Cook Coweta Crawford Crisp Dade Dawson Decatur DeKalb* 2006 Employment 378 610 302 14 314 59 169 511 433 110 1,682 45 198 266 100 354 36 504 13 276 31 993 318 458 1,529 1 156 694 558 17 432 235 2,770 703 832 405 324 123 37 261 18 35 302 2,150 2006 Wages and Salaries $14,490,009 $21,301,250 $9,771,414 $335,579 $6,072,398 $1,560,602 $7,328,245 $15,803,207 $12,828,002 $2,918,813 $90,202,165 $1,391,302 $5,943,327 $9,041,310 $3,309,942 $10,536,657 $826,817 $15,097,197 $249,219 $9,189,547 $804,974 $46,434,905 $8,988,543 $13,874,867 $89,774,097 $21,840 $4,623,907 $20,450,663 $21,203,327 $354,408 $17,057,632 $7,720,808 $105,521,843 $22,540,579 $18,737,077 $12,917,355 $9,321,100 $4,301,638 $1,217,768 $7,448,916 $385,945 $1,164,479 $8,245,540 $99,114,242 Percent of State Totals Wages and Employment Salaries 5.70% 6.90% 32.00% 43.70% 8.20% 11.20% 2.60% 2.60% 1.60% 1.10% 1.50% 1.50% 1.10% 1.60% 1.50% 1.40% 5.00% 5.70% 2.20% 2.20% 2.00% 3.10% 1.30% 1.40% 9.20% 11.70% 8.50% 12.50% 1.70% 2.10% 1.50% 1.70% 0.60% 0.40% 7.70% 8.30% 0.90% 0.70% 1.80% 2.00% 1.00% 1.10% 2.70% 4.00% 2.00% 2.00% 18.50% 22.00% 1.10% 1.90% 0.10% 0.10% 2.40% 2.60% 1.50% 1.40% 0.90% 1.00% 2.70% 1.60% 0.40% 0.40% 9.30% 11.80% 0.90% 0.80% 4.00% 4.90% 5.10% 4.80% 1.50% 1.60% 6.60% 8.50% 0.40% 0.50% 2.70% 3.50% 2.90% 3.30% 0.50% 0.40% 0.50% 0.70% 2.90% 3.20% 0.80% 0.80% Georgia Forestry Commission Final Report Page 24 Dodge Dooly Dougherty Douglas Early Echols Effingham Elbert Emanuel Evans Fannin Fayette Floyd Forsyth Franklin Fulton Gilmer Glascock Glynn Gordon Grady Greene Gwinnett Habersham Hall Hancock Haralson Harris Hart Heard Henry Houston Irwin Jackson Jasper Jeff Davis Jefferson Jenkins Johnson Jones Lamar Lanier Laurens Lee Liberty Lincoln Long Lowndes Lumpkin McDuffie 102 137 1,499 113 797 24 1,667 40 207 170 48 481 1,898 766 207 3,638 269 43 990 135 220 148 3,264 286 1,048 6 21 104 372 33 482 301 219 505 694 557 675 423 235 63 178 83 1,276 128 413 156 12 1,629 111 374 $2,731,044 $6,465,462 $95,848,256 $3,959,061 $59,037,353 $632,357 $99,303,448 $1,263,929 $6,656,501 $6,741,745 $1,112,487 $26,388,564 $87,310,082 $28,655,125 $5,575,999 $182,136,053 $6,978,342 $1,030,004 $68,857,565 $2,613,469 $5,799,553 $4,545,020 $116,640,735 $6,955,389 $33,783,853 $179,404 $526,873 $3,589,447 $15,996,182 $1,092,199 $14,907,174 $14,625,789 $4,386,276 $26,429,041 $24,946,196 $17,962,990 $24,187,521 $10,162,969 $6,010,621 $1,488,827 $7,544,137 $2,124,841 $57,990,561 $3,654,360 $21,103,871 $5,027,222 $378,865 $66,029,429 $2,174,476 $19,399,658 1.50% 4.00% 2.90% 0.30% 16.80% 3.20% 18.40% 0.60% 2.70% 3.60% 0.90% 1.20% 4.40% 1.50% 2.60% 0.50% 3.00% 7.20% 2.50% 0.60% 3.30% 2.80% 1.00% 2.00% 1.50% 0.40% 0.30% 2.50% 5.40% 1.30% 1.00% 0.50% 8.30% 2.60% 25.70% 11.90% 12.10% 15.90% 11.30% 1.80% 4.90% 5.70% 6.30% 2.60% 2.40% 10.30% 1.30% 3.20% 1.70% 4.70% 1.70% 7.40% 5.70% 0.40% 35.20% 4.60% 33.60% 0.70% 3.40% 5.60% 0.80% 1.90% 6.00% 1.50% 2.50% 0.40% 3.10% 6.20% 5.30% 0.40% 3.60% 2.80% 0.80% 1.70% 1.40% 0.60% 0.20% 3.80% 8.30% 1.50% 1.00% 0.70% 7.00% 4.50% 33.50% 14.80% 15.50% 15.60% 11.40% 1.70% 7.30% 6.20% 9.40% 2.90% 4.00% 14.10% 1.80% 5.00% 1.10% 9.00% Georgia Forestry Commission Final Report Page 25 McIntosh Macon Madison Marion Meriwether Miller Mitchell Monroe Montgomery Morgan Murray Muscogee Newton Oconee Oglethorpe Paulding Peach Pickens Pierce Pike Polk Pulaski Putnam Quitman Rabun Randolph Richmond Rockdale Schley Screven Seminole Spalding Stephens Stewart Sumter Talbot Taliaferro Tattnall Taylor Telfair Terrell Thomas Tift Toombs Towns Treutlen Troup Turner Twiggs Union 4 417 325 618 4 76 187 169 486 121 630 395 165 21 219 10 339 420 46 301 89 1,079 45 51 228 2,036 1,332 245 170 6 264 689 32 645 58 6 178 41 99 26 1,411 333 235 11 7 368 247 41 20 $81,814 $23,243,469 $12,929,579 $21,476,470 $69,230 $1,773,182 $6,729,658 $5,695,819 $20,198,697 $3,151,351 $20,545,319 $0 $15,672,520 $5,585,648 $442,871 $7,586,499 $286,410 $14,486,199 $12,826,261 $1,250,639 $10,910,501 $4,675,434 $33,511,771 $1,846,157 $1,359,575 $7,166,642 $115,229,834 $59,246,609 $6,883,131 $4,570,219 $106,513 $9,870,469 $21,104,827 $1,145,084 $14,775,465 $1,299,363 $349,224 $4,335,997 $521,782 $2,236,491 $507,477 $35,715,655 $11,087,561 $8,459,233 $230,961 $237,658 $10,529,052 $6,948,217 $1,190,620 $507,880 0.20% 11.10% 8.60% 36.20% 0.10% 4.30% 2.10% 2.90% 26.00% 1.80% 4.90% 0.00% 1.80% 2.00% 1.20% 1.10% 0.10% 4.60% 10.00% 1.80% 2.50% 2.70% 15.00% 9.60% 0.90% 10.20% 2.00% 3.30% 17.00% 4.30% 0.20% 1.10% 6.90% 2.90% 5.00% 7.10% 2.50% 3.10% 2.20% 2.10% 1.10% 5.80% 1.60% 2.00% 0.30% 0.60% 1.20% 9.20% 3.30% 0.30% 0.20% 21.10% 12.40% 53.90% 0.10% 4.20% 3.30% 3.30% 41.80% 1.70% 5.50% 0.00% 2.10% 2.30% 1.10% 1.40% 0.10% 6.80% 12.30% 1.90% 3.20% 5.10% 16.50% 17.20% 0.90% 12.90% 3.40% 4.30% 16.10% 4.50% 0.20% 1.40% 7.60% 4.50% 4.30% 5.90% 7.10% 3.20% 1.00% 2.30% 0.90% 5.00% 1.90% 2.80% 0.30% 0.90% 1.00% 11.70% 2.70% 0.30% Georgia Forestry Commission Final Report Page 26 Upson Walker Walton Ware Warren Washington Wayne Webster Wheeler White Whitfield Wilcox Wilkes Wilkinson State Total 342 26 354 782 297 94 1,193 258 159 177 812 43 435 190 67,110 $11,479,235 $765,707 $13,076,713 $22,454,749 $10,048,728 $3,023,960 $78,168,468 $7,942,321 $4,968,602 $3,504,586 $22,821,326 $825,838 $10,767,690 $4,881,711 $2,718,684,451 Source: Georgia Department of Labor, Current Employment and Wages 4.30% 0.20% 1.70% 5.00% 21.30% 1.20% 13.10% 47.40% 10.60% 2.60% 1.30% 3.30% 12.20% 6.40% 5.50% 0.20% 2.10% 5.50% 29.00% 1.20% 27.90% 55.60% 13.00% 2.10% 1.10% 2.80% 11.90% 4.70% Georgia Forestry Commission Final Report Page 27 References Georgia Department of Labor, ES202 Wage and Employment Data: 2006. U.S. Bureau of the Census, "Census of Manufacturers 2002," http://www.census.gov/epcd/ec97/ga/GA000.HTM U.S. Department of Labor, Bureau of Labor Statistics, "Employer Costs for Employee Compensation," http://data.bls.gov/cgi-bin/surveymost North American Industrial Classification System (NAICS), http://www.census.gov/epcd/www/naicstab.htm Bureau of Economic Analysis Input-Output Sectors as contained in "IMPLAN Pro: Data Guide," Minnesota IMPLAN Group, Inc., Stillwater, Minn., 1997. Georgia Forestry Commission Final Report Page 28