Economic benefits of the forestry industry in Georgia: 2008 final report

Economic Benefits of the Forestry Industry in Georgia: 2008
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 2009
Copyright 2009 All Rights Reserved Georgia Tech Research Corporation Atlanta, Georgia 30332

Table of Contents
Executive Summary ............................................................................................................ 1 Forestry Dependent Communities .............................................................................. 5
Section 1.............................................................................................................................. 8 Introduction......................................................................................................................... 8 Section 2.............................................................................................................................. 9 Definition of the Forestry Industry in Georgia ................................................................... 9 Section 3............................................................................................................................ 17 Economic Benefits ............................................................................................................ 17
Results....................................................................................................................... 18 Comparison of the Forestry Industry with Other Industry Sectors........................... 23 Section 4............................................................................................................................ 24 Economic Dependence...................................................................................................... 24 What Is Economic Dependence? .............................................................................. 24 Approach................................................................................................................... 24 References......................................................................................................................... 33

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.

This report is the latest in a series that began in 2002, but underwent a significant restructuring in 2003 to reflect the change in industry classification systems (from SIC to NAICS) used by data collection agencies (primarily the Georgia Department of Labor) that provide much of the data used in these analyses.

The forestry industry components, and the level of economic activity represented by them, are shown in Table E-1 for 2008. 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 57,812 in all industry sectors combined, paid an annual compensation of over $3.1 billion, and had estimated total revenue of almost $18.3 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 Economic Activity 2008

Sector

Output

Forestry Management, Logging, and Misc. Forest Products Lumber and Wood Preservation Veneer, Plywood, Reconstituted, and Engineered Wood

$1,698,173,504 $1,732,113,024
$961,215,872

Prefabricated Wood Buildings and Manufactured Housing Pulp and Paper Products Woodworking and Paper Industries Machinery

$426,574,816 $10,855,959,292
$67,305,680

Wooden Furniture and Cabinets Windows and Doors Containers, Showcases, Partitions, and Shelving

$1,058,247,482 $720,966,464 $654,329,040

Custom Architectural and Miscellaneous Wood Products Total

$95,202,311 $18,270,087,485

Employment
5,529 6,477 4,448 2,983 20,816
295 8,235 3,967 4,506
556 57,812

Compensation
$255,378,592 $281,671,680 $210,965,444
$99,465,656 $1,565,335,794
$18,465,906 $330,157,350 $172,845,536 $171,501,616
$25,267,894 $3,131,055,468

Georgia Forestry Commission 2008 Report

Page 1

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 $14.5 million) is over $28.7 billion. This activity employs 128,388 people whose compensation is over $6.5 billion.

Table E-2: Total Benefits by Major Industry Sector 2008

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 $2,245,841,920
$9,670,426 $737,002,560 $201,215,568 $17,863,469,056 $1,442,124,672 $482,971,680 $944,089,920 $379,788,544 $669,709,120 $913,338,816 $658,372,224 $482,664,608 $341,560,672
$52,509,968 $419,467,392
$55,178,140 $324,991,296 $347,570,016 $150,705,584 $28,722,668,524

Employment 10,492 41 922 2,029 55,394 7,410 7,641 6,500 911 2,873 2,941 4,837 2,181 5,262 867 5,056 1,176 5,583 5,166 1,106
128,388

Compensation $407,427,936 $3,263,116 $141,627,456 $86,304,160
$3,086,833,664 $556,886,272 $208,826,240 $325,535,776 $97,847,800 $212,344,224 $84,191,544 $330,928,448 $222,345,216 $156,872,144 $27,720,888 $225,027,040 $25,940,050 $110,053,456 $131,904,096 $72,555,512
$6,514,435,038

Another way to examine the forestry industry in Georgia is to compare it with other manufacturing sectors. Table E-3 lists 2008 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 employment; textiles (dominated by carpet) ranks second in employment and fourth in income. Forestry's second rank in income is very close to first-ranked food processing in income, reflecting forestry's relatively higher average wages.

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 2008 Report

Page 2

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 associated with that activity. 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 $539 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 $206 million for 2008.
Table E-3: Comparison of Georgia Industries 2007

Sector

Employment

Food Processing Forestry Industry Transportation Equipment Textiles Fabricated Metal Products Machinery Chemicals Printing Electrical Equipment and Appliances Computers and Electronic Products Apparel

67,504 57,812 41,247 59,831 29,279 23,275 21,162 19,522 15,295 13,720
4,608

Wages & Salaries
$2,889,643,252 $2,446,122,916 $2,407,986,059 $2,068,017,538 $1,126,303,819 $1,091,119,682 $1,269,687,337
$869,785,674 $929,074,016 $878,435,928 $155,257,134

Table E-4: Fiscal Impact Analysis 2008

Annual State Government Revenues Annual State Government Costs Net Annual Revenues

$538,988,062 $332,950,843 $206,037,219

Table E-5 extracts information from several tables to present a comparison of the overall results obtained in each impact analysis conducted from 2003 through 2008. 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

Georgia Forestry Commission 2008 Report

Page 3

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 2006 to 2007 period, forestry industry employment declined by 5.2 percent and employment from total impacts fell by 5.5 percent. The two sectors which declined the most (in percentage terms) were prefabricated buildings and veneer, plywood, and reconstituted wood products. 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.

Table E-5: Comparison of Results 2003 to 2008
(Dollars in millions not adjusted for inflation; Employment in persons)

Forestry Industry Economic Activity Output Employment Compensation
Output Employment Compensation

2003

2004 2005 2006

2007

2008

$12,679 65,706 $3,007

$14,163 $16,150 $17,760 $18,459

67,633 67,694 67,733

64,192

$3,299 $3,422 $3,513

$3,394

Year to Year Percent Change

11.70% 14.04% 9.97%

3.93%

2.93% 0.09% 0.06%

-5.23%

9.71% 3.71% 2.67%

-3.38%

$18,270 57,812 $3,131
-1.02% -9.94% -7.75%

Total Impacts Output Employment Compensation
Output Employment Compensation

2003
$20,199 136,022
$5,600

2004 2005 2006

2007

$22,729 $25,972 $27,738 $28,547

144,944 154,147 149,347 141,155

$6,276 $6,827 $6,773

$6,696

Year to Year Percent Change

12.53% 14.27% 6.80%

2.92%

6.56% 6.35% -3.11%

-5.49%

12.07% 8.77% -0.79%

-1.13%

2008
$28,723 128,388
$6,514
0.61% -9.04% -2.71%

Fiscal Impact

2003 2004 2005 2006

State Revenues

$514

$546

$591

$580

State Costs

$368

$392

$414

$400

Net Revenues

$147

$155

$176

$180

Source: EII impact assessments and Georgia Department of Labor, Current Employment and Wages.

2007
$566 $373 $193

2008
$539 $333 $206

Georgia Forestry Commission 2008 Report

Page 4

The most recent (2007-2008) period shows significant declines in both employment and compensation, and a small decrease in output for economic activity. The greater decline in employment indicates that more of the employment loss is at the bottom of the income scale. The declines in employment and compensation are also seen in the total impacts, but the output estimate shows a slight increase in 2008 over 2007.
The apparent increase in output (total impacts) given the significant decline in employment and the more moderate decline in compensation, however, deserves additional consideration. It should be noted that in estimating economic activity the core data (Department of Labor CEW statistics) only provide wage and employment information and do not include output measures. These must therefore be estimated and in any estimation there is some margin of error. It is not be surprising, however, to see employment and compensation declines greater than output declines (as seen in the forest industry economic activity results) because firms, logically, would reduce their least productive activities first in a contraction. This explains why the output estimated for economic activity declined less than employment or compensation. It does not explain why output estimates of total impact show growth, albeit small growth.
A more detailed examination of where the output estimates revealed higher than expected estimates of input demands (indirect impacts) in a number of sectors that have nothing to do with the forestry industry. A reorganization of industry sectors in the 2007 Implan data, and the accompanying production functions, make it impossible to identify all of the influences leading to the higher output estimates, but it appears that small changes were made in many places that accumulated to provide these results.
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 2008 Report

Page 5

Figure E-1 Forestry Dependency Based on Employment 2008

Georgia Forestry Commission 2008 Report

Page 6

Figure E-2 Forestry Dependency Based on Income 2008

Georgia Forestry Commission 2008 Report

Page 7

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.
This report is the latest of a series of reports begun with an analysis of the 2002 impacts and continues annually to the present analysis. The 2002 analysis is not comparable to the subsequent analyses, however, because of a significant change in the industry classification systems implemented in the 2003 data set. The 2002 analysis is based on the Standard Industry Classification system (SIC) and the later data sets use the North American Industrial Classification System (NAICS).

Georgia Forestry Commission 2008 Report

Page 8

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 2007 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

Description

113 Forestry and Logging

1131 Timber Tract Operations

11311 Timber Tract Operations

1132 Forest Nurseries and Gathering of Forest Products

11321 Forest Nurseries and Gathering of Forest Products

1133 Logging

11331 Logging

115 Support Activities for Agriculture and Forestry

1153 Support Activities for Forestry

115310 Support Activities for Forestry

321 Wood Product Manufacturing

3211 Sawmills and Wood Preservation

32111 Sawmills and Wood Preservation

321113 Sawmills

321114 Wood Preservation

3212 Veneer, Plywood, and Engineered Wood Product Manufacturing

32121 Veneer, Plywood, and Engineered Wood Product Manufacturing

321211 Hardwood Veneer and Plywood Manufacturing

321212 Softwood Veneer and Plywood Manufacturing

321213 Engineered Wood Member (except Truss) Manufacturing

321214 Truss Manufacturing

321219 Reconstituted Wood Product Manufacturing

3219 Other Wood Product Manufacturing

Georgia Forestry Commission 2008 Report

Page 9

32191 321911 321912 321918
32192 32199 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

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 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

Georgia Forestry Commission 2008 Report

Page 10

33711 Wood Kitchen Cabinet and Countertop Manufacturing 33712 Household and Institutional Furniture Making 337121 Upholstered Household Furniture Manufacturing 337122 Non-Upholstered Wood Household Furniture Manufacturing 337127 Institutional Furniture Manufacturing 337129 Wood Television, Radio, and Sewing Machine Cabinet Manufacturing 337211 Wood Office Furniture Manufacturing 337212 Custom Architectural Woodwork and Millwork Manufacturing 337215 Showcase, Partition, Shelving, and Locker Manufacturing
333 Machinery Manufacturing 3332 Industrial Machinery Manufacturing 33321 Sawmill and Woodworking Machinery Manufacturing 33329 Other Industrial Machinery Manufacturing 333291 Paper Industry Machinery Manufacturing
339 Miscellaneous Manufacturing 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 2008 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 57,812 and these jobs earned annual compensation (total wages and salaries including benefits) of over $3.1 billion from estimated total revenue of almost $18.3 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 20,816 workers followed by wooden furniture and cabinets with 8,235. Several additional segments have employment exceeding 5,000, including wood lumber and wood preservation, veneer and plywood,

Georgia Forestry Commission 2008 Report

Page 11

and logging and nurseries. Compensation, like employment, is dominated by pulp and paper with almost $1.6 billion (about half the total) followed distantly by wood furniture and cabinets at over $330 million and lumber and wood preservation at almost $282 million. The largest outputs are produced by pulp and paper (about $10.9 billion) followed by lumber and logging, (about $1.7 billion, each) and veneer and plywood at almost $1.0 billion.

Table 2-2: Georgia Forestry Industry Economic Activity 2008

Sector
Forestry Management, Logging, and Misc. Forest Products Lumber and Wood Preservation Veneer, Plywood, Reconstituted, and Engineered Wood Prefabricated Wood Buildings and Manufactured Housing Pulp and Paper Products Woodworking and Paper Industries Machinery Wooden Furniture and Cabinets Windows and Doors Containers, Showcases, Partitions, and Shelving Custom Architectural and Miscellaneous Wood Products
Total

Output
$1,698,173,504 $1,732,113,024
$961,215,872 $426,574,816 $10,855,959,292
$67,305,680 $1,058,247,482
$720,966,464 $654,329,040
$95,202,311 $18,270,087,485

Employment
5,529 6,477 4,448 2,983 20,816
295 8,235 3,967 4,506
556 57,812

Compensation
$255,378,592 $281,671,680 $210,965,444
$99,465,656 $1,565,335,794
$18,465,906 $330,157,350 $172,845,536 $171,501,616
$25,267,894 $3,131,055,468

Table 2-3 provides a comparison of the forestry industry activity for 2004 to 2008. Three measures are included in the comparison: output, employment, and compensation. Output (an estimate of the firms revenues) decreased slightly over the 2007-2008 period, but the decline was uneven across industry sectors with some showing an increase.

Overall employment dropped between 2007 and 2008 with the largest number of jobs lost in the lumber and wood preservation sector, probably due to the precipitous decline in housing construction. The pulp and paper sector, which has shown consistent declines over the years shown, was the second largest employment decline. All other sectors also showed employment declines except for window and door employment which showed an unexpected increase.

Changes in employee compensation are generally negative over the most recent period, but with one exception. From 2007 to 2008, the largest declines are in the same sectors as the declines in employment (lumber and wood preservation, and pulp and paper) and the increase was in wooden windows and doors.

Georgia Forestry Commission 2008 Report

Page 12

Table 2-3: Forestry Industry Activity 2004 - 2008 Comparison

(Note: Values not adjusted for inflation)

Output (Millions of Dollars)

Sector

2004

2005 2006 2007

Forestry Management, Logging, and Misc. Forest Products

$1,384 $1,447 $1,846 $1,807

2008
$1,698

Lumber and Wood Preservation

$1,482 $1,811 $2,057 $2,100 $1,732

Veneer, Plywood, Reconstituted, and Engineered Wood

$1,062

$1,290 $1,260 $1,322

$961

Prefabricated Wood Buildings and Manufactured Housing Pulp and Paper Products Woodworking and Paper Industries Machinery Wooden Furniture and Cabinets Windows and Doors Containers, Showcases, Partitions, and Shelving Custom Architectural and Miscellaneous Wood Products
Total

$388 $7,888
$47 $841 $344 $454 $274 $14,163

$561 $8,808
$53 $1,066
$406 $533 $175 $16,150

$596 $9,590
$52 $1,176
$446 $548 $190 $17,760

$523 $10,131
$61 $1,197
$517 $624 $177 $18,459

$427 $10,856
$67 $1,058
$721 $654
$95 $18,270

Forestry Management, Logging, and Misc. Forest Products Lumber and Wood Preservation Veneer, Plywood, Reconstituted, and Engineered Wood Prefabricated Wood Buildings and Manufactured Housing Pulp and Paper Products Woodworking and Paper Industries Machinery Wooden Furniture and Cabinets Windows and Doors Containers, Showcases, Partitions, and Shelving Custom Architectural and Miscellaneous Wood Products
Total

2004
6,005 8,505 6,588 3,494 25,032 292 8,685 2,522 5,031 1,479 67,633

Employment

2005 2006

6,133

6,152

8,839

8,957

7,110

6,963

4,531

4,500

23,150 22,861

319

314

8,867

9,308

2,446

2,598

4,788

4,618

1,511

1,462

67,694 67,733

2007
5,914 8,773 6,004 3,581 21,651 304 8,914 3,043 4,733 1,275 64,192

2008
5,529 6,477 4,448 2,983 20,816 295 8,235 3,967 4,506 556 57,812

(Note: Values not adjusted for inflation)
Forestry Management, Logging, and Misc. Forest Products Lumber and Wood Preservation Veneer, Plywood, Reconstituted, and Engineered Wood Prefabricated Wood Buildings and Manufactured Housing Pulp and Paper Products Woodworking and Paper Industries Machinery Wooden Furniture and Cabinets Windows and Doors Containers, Showcases, Partitions, and Shelving Custom Architectural and Miscellaneous Wood Products
Total

Compensation (Millions of Dollars)

2004

2005 2006 2007 2008

$234

$254

$267

$273

$255

$353

$385

$400

$391

$282

$312

$341

$353

$291

$211

$122

$164

$165

$119

$99

$1,616 $1,595 $1,630 $1,602 $1,565

$18

$20

$18

$19

$18

$302

$323

$343

$341

$330

$104

$104

$100

$115

$173

$181

$169

$175

$191

$172

$57

$66

$61

$53

$25

$3,299 $3,422 $3,513 $3,394 $3,131

Georgia Forestry Commission 2008 Report

Page 13

Figure 2-1 Economic Activity: Output by Sector
(Dollars in Millions)
2008
2007
2006
2005
2004
$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 Forestry Management, Logging, and Misc. Forest Products Lumber and Wood Preservation Veneer, Plywood, Reconstituted, and Engineered Wood Prefabricated Wood Buildings and Manufactured Housing Pulp and Paper Products Woodworking and Paper Industries Machinery Wooden Furniture and Cabinets Windows and Doors Containers, Showcases, Partitions, and Shelving Custom Architectural and Miscellaneous Wood Products

Georgia Forestry Commission 2008 Report

Page 14

Figure 2-2 Forestry Industry Economic Activity:
Employment by Sector
2008

2007

2006

2005

2004 0

10,000 20,000 30,000 40,000 50,000 60,000 70,000
Forestry Management, Logging, and Misc. Forest Products Lumber and Wood Preservation Veneer, Plywood, Reconstituted, and Engineered Wood Prefabricated Wood Buildings and Manufactured Housing Pulp and Paper Products Woodworking and Paper Industries Machinery Wooden Furniture and Cabinets Windows and Doors Containers, Showcases, Partitions, and Shelving Custom Architectural and Miscellaneous Wood Products

80,000

Georgia Forestry Commission 2008 Report

Page 15

Figure 2-3 Forestry Industry Economic Activity: Compensation by Sector (Dollars in Millions)

2008

2007

2006

2005

2004 $0

$1,000

$2,000

$3,000

$4,000 Millions

Forestry Management, Logging, and Misc. Forest Products Lumber and Wood Preservation Veneer, Plywood, Reconstituted, and Engineered Wood Prefabricated Wood Buildings and Manufactured Housing Pulp and Paper Products Woodworking and Paper Industries Machinery Wooden Furniture and Cabinets Windows and Doors Containers, Showcases, Partitions, and Shelving Custom Architectural and Miscellaneous Wood Products

Georgia Forestry Commission 2008 Report

Page 16

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 2008, whereas the wage and salary data available to IMPLAN is from 2007.
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 28 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 2008 Report

Page 17

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 or, more recently CEW (covered employment and wages) data, it has the advantage of being current, allowing an estimate of the economic benefits occurring in 2008. 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 2007 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

Georgia Forestry Commission 2008 Report

Page 18

such as paper and lumber. Logging operations are included primarily 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 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) almost $16.3 billion with this activity supporting 49,236 jobs with an employee compensation of almost $2.8 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 2008

Sector

Output

Employment

Forestry Management, Logging, and Misc. Forest Products

$571,030,080

762

Compensation
$51,292,540

Lumber and Wood Preservation Veneer, Plywood, Reconstituted, and Engineered Wood Prefabricated Wood Buildings and Manufactured Housing Pulp and Paper Products Woodworking and Paper Industries Machinery Wooden Furniture and Cabinets Windows and Doors Containers, Showcases, Partitions, and Shelving Custom Architectural and Miscellaneous Wood Products
Total

$1,229,353,600 $821,142,000 $426,574,816
$10,812,876,360 $28,976,302
$1,035,683,808 $652,086,592 $591,584,672 $87,921,824
$16,257,230,054

4,597 3,887 2,983 20,693
127 8,063 3,588 4,023
513 49,236

$199,914,256 $180,871,284
$99,465,656 $1,559,772,584
$7,949,904 $323,501,496 $156,332,176 $154,540,240
$23,259,319 $2,756,899,455

The largest sector impacts are seen, not surprisingly, in the manufacturing sector, with some $17.9 billion in output, 55,394 employees, and about $3.1 billion in compensation. A distant second is held by agriculture, forestry, fishing and hunting (which includes logging and nurseries), with over $2.2 billion in output, 10,492 employees, and over $407 million in compensation. Together, the economic activity supported by Georgia's forestry industry (including federal payments to landowners of about $14.5 million) totals over $28.7 billion, involving employment of 128,388 people whose compensation is

Georgia Forestry Commission 2008 Report

Page 19

about $6.5 billion. This employment represents about 3.1 percent and 3.0 percent of total Georgia employment, and wages and salaries, respectively.

Table 3-2: Total Benefits by Major Industry Sector 2008

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 $2,245,841,920
$9,670,426 $737,002,560 $201,215,568 $17,863,469,056 $1,442,124,672 $482,971,680 $944,089,920 $379,788,544 $669,709,120 $913,338,816 $658,372,224 $482,664,608 $341,560,672
$52,509,968 $419,467,392
$55,178,140 $324,991,296 $347,570,016 $150,705,584 $28,722,668,524

Employment 10,492 41 922 2,029 55,394 7,410 7,641 6,500 911 2,873 2,941 4,837 2,181 5,262 867 5,056 1,176 5,583 5,166 1,106
128,388

Compensation $407,427,936 $3,263,116 $141,627,456 $86,304,160
$3,086,833,664 $556,886,272 $208,826,240 $325,535,776 $97,847,800 $212,344,224 $84,191,544 $330,928,448 $222,345,216 $156,872,144 $27,720,888 $225,027,040 $25,940,050 $110,053,456 $131,904,096 $72,555,512
$6,514,435,038

Table 3-3 extracts information from several tables to present a comparison of the overall results obtained in each impact analysis conducted from 2003 through 2008. 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 2006 to 2007 period, forestry industry employment declined by 5.2 percent and employment from total impacts fell by 5.5 percent. The two sectors which declined the most (in percentage terms) were prefabricated buildings and veneer, plywood, and

Georgia Forestry Commission 2008 Report

Page 20

reconstituted wood products. 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.
Table 3-3: Comparison of Results 2003 to 2008
(Dollars in millions not adjusted for inflation; Employment in persons)

Forestry Industry Economic Activity Output Employment Compensation
Output Employment Compensation

2003
$12,679 65,706 $3,007

2004 2005 2006 2007 2008
$14,163 $16,150 $17,760 $18,459 $18,270 67,633 67,694 67,733 64,192 57,812 $3,299 $3,422 $3,513 $3,394 $3,131
Year to Year Percent Change
11.70% 14.04% 9.97% 3.93% -1.02% 2.93% 0.09% 0.06% -5.23% -9.94% 9.71% 3.71% 2.67% -3.38% -7.75%

Total Impacts Output Employment Compensation
Output Employment Compensation

2003
$20,199 136,022
$5,600

2004 2005 2006 2007 2008
$22,729 $25,972 $27,738 $28,547 $28,723 144,944 154,147 149,347 141,155 128,388
$6,276 $6,827 $6,773 $6,696 $6,514
Year to Year Percent Change 12.53% 14.27% 6.80% 2.92% 0.61%
6.56% 6.35% -3.11% -5.49% -9.04% 12.07% 8.77% -0.79% -1.13% -2.71%

Fiscal Impact

2003

2004 2005 2006 2007

State Revenues

$514

$546

$591

$580

$566

State Costs

$368

$392

$414

$400

$373

Net Revenues

$147

$155

$176

$180

$193

Source: EII impact assessments and Georgia Department of Labor, Current Employment and Wages.

2008
$539 $333 $206

The annual percent change information in Table 3-3 is presented graphically below for output, employment, and compensation measuring levels of economic activity followed by a similar graph measuring total economic impact. A graph of the fiscal impacts also included in Table 3-3 is provided next. It should be noted that these data are in nominal dollars and have not been adjusted for inflation. If inflation adjustments had been made, it is likely that, for example, the output measures would be showing near zero growth for the last two years, rather than the slightly positive growth the nominal data show.

Georgia Forestry Commission 2008 Report

Page 21

Percent Change

Figure 3-1: Annual Percent Change in Economic Activity
20.00%

15.00%

10.00% 5.00% 0.00% -5.00%

2004

2005

2006

2007

2008

Output Employment Compensation

-10.00%

-15.00%

Figure 3-2: Annual Percent Change in Total Impact
20.00%

15.00%

10.00%

5.00%

0.00% -5.00%

2004

2005

2006

2007

2008

Output Employment Compensation

-10.00%

-15.00%

Percent Chage

Georgia Forestry Commission 2008 Report

Page 22

Nominal Dollars

Figure 3-3 Annual Fiscal Impact
$800,000,000
$600,000,000
$400,000,000
$200,000,000
$0 2003 2004 2005 2006 2007 2008

State Revenues State Costs Net Revenues

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.
Table 3-4: Comparison of Georgia Industries 2008

Sector
Food Processing Forestry Industry Transportation Equipment Textiles Fabricated Metal Products Machinery Chemicals Printing Electrical Equipment and Appliances Computers and Electronic Products Apparel

Employment
67,504 57,812 41,247 59,831 29,279 23,275 21,162 19,522 15,295 13,720
4,608

Wages & Salaries
$2,889,643,252 $2,446,122,916 $2,407,986,059 $2,068,017,538 $1,126,303,819 $1,091,119,682 $1,269,687,337
$869,785,674 $929,074,016 $878,435,928 $155,257,134

Georgia Forestry Commission 2008 Report

Page 23

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 saw mill 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 of 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 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 2008 Report

Page 24

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

Critically Dependent Very Dependent Moderately Dependent Somewhat Dependent Not Dependent

Forestry Employment
> 10% 6% - 9.9% 4% - 5.9% 1.6% - 3.9%
< 1.6%

Forestry Wages & Salaries
> 15% 10% - 14.9%
9.9% - 5% 2% - 4.9%
< 2%

Table 4-2: Distribution of Georgia Counties by Level of Dependence 2008

Number of Counties

Employment

Wages & Salaries

Critically Dependent

18

11

Very Dependent

16

14

Moderately Dependent

13

22

Somewhat Dependent

49

40

Not Dependent

63

72

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 five 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 4-5 (following Figures 4-1 and 4-2) provides county-level detail of forestry dependency, except where those counties do not sufficient numbers of firms to ensure protection of confidentiality. Those counties were combined with larger counties into nine groups, which are listed in Table 4-6.

Georgia Forestry Commission 2008 Report

Page 25

Table 4-3 Forestry Dependency Over Time: Employment

Critically Dependent Very Dependent Moderately Dependent Somewhat Dependent Not Dependent

2004
19 18 20 49 53

Number of Counties

2005

2006

19

22

18

15

20

18

49

50

53

54

2007 20 17 12 48
62

2008 18 16 13 49
63

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

2007 12 21 17 40
69

2008
11 14 22 40 72

Georgia Forestry Commission 2008 Report

Page 26

Figure 4-1 Forestry Dependency Based on Employment 2008

Georgia Forestry Commission 2008 Report

Page 27

Figure 4-2 Forestry Dependency Based on Income 2008

Georgia Forestry Commission 2008 Report

Page 28

Table 4-5: Level and Percent of Forestry in County Economies

Based on Employment and Income: 2008

Level of Forestry:

Percent of Forestry to Total:

County

Employment

Wages and Salaries Employment Wages and Salaries

Appling

323

13,769,597

4.8%

6.1%

Atkinson

511

17,484,888

29.2%

37.4%

Bacon

244

6,862,599

6.3%

7.2%

Baker

-

-

0.0%

0.0%

Baldwin

164

5,690,999

0.8%

1.0%

Banks

59

1,114,622

1.1%

0.9%

Barrow

167

7,924,022

1.0%

1.6%

Bartow

424

16,663,319

1.2%

1.3%

Berrien

136

3,053,037

2.8%

2.4%

Bibb

1,940

91,006,524

2.2%

3.0%

Bleckley

48

1,764,814

1.3%

1.6%

Brantley

194

5,856,183

9.5%

11.5%

Brooks

158

6,128,940

5.7%

8.5%

Bryan

90

3,169,433

1.4%

1.7%

Bulloch

332

10,509,898

1.4%

1.5%

Burke

20

656,956

0.3%

0.3%

Butts

371

10,506,243

6.3%

6.3%

Camden

168

6,544,724

1.1%

1.3%

Carroll

958

42,873,522

2.5%

3.3%

Catoosa

278

13,145,265

1.8%

2.8%

Charlton

405

11,418,955

16.9%

17.6%

Chatham

1,320

79,592,720

1.0%

1.5%

Chattooga

119

3,960,280

1.9%

2.2%

Cherokee

737

24,540,041

1.5%

1.5%

Clarke

487

22,856,167

0.7%

0.9%

Clayton

322

14,928,677

0.3%

0.3%

Clinch

244

8,069,581

9.5%

11.7%

Cobb

2,297

113,361,253

0.7%

0.7%

Coffee

603

16,001,123

3.7%

3.4%

Colquitt

705

18,863,292

4.4%

4.6%

Cook

168

5,388,099

3.3%

4.4%

Dade

29

381,209

0.9%

0.4%

Dawson

18

540,392

0.2%

0.3%

DeKalb

1,893

86,219,948

0.6%

0.6%

Douglas

258

13,247,566

0.6%

1.0%

Early

648

49,923,515

15.3%

31.8%

Echols

38

1,380,229

5.5%

8.8%

Effingham

1,952

92,284,805

19.1%

27.7%

Georgia Forestry Commission 2008 Report

Page 29

Elbert Evans Fannin Fayette Floyd Forsyth Franklin Fulton Gilmer Glynn Gordon Grady Greene Gwinnett Habersham Hall Haralson Harris Hart Henry Houston Jackson Jasper Jeff Davis Jefferson Jenkins Johnson Jones Lamar Lanier Laurens Lowndes Lumpkin Madison Mitchell Monroe Montgomery Morgan Murray Muscogee Newton Oconee Oglethorpe

27 62 47 267 1,326 559 171 2,899 195 794 134 231 149 2,826 160 716 31 70 402 430 295 340 352 547 627 208 170 48 154 89 1,144 1,299 133 173 100 158 158 470 102 410 297 121 18

795,963 3,098,943
983,766 14,009,123 67,534,736 21,959,318
4,669,777 152,166,072
4,133,001 54,921,218
3,450,476 6,048,729 4,700,587 107,073,398 4,224,763 24,388,824
834,563 2,189,435 19,276,161 14,365,654 10,300,302 17,940,765 14,285,419 18,717,337 21,930,883 4,865,487 4,821,560 1,066,684 6,258,771 2,211,118 63,375,595 59,187,861 3,806,745 6,599,987 1,871,754 6,022,765 5,318,168 18,690,596 2,524,871 14,826,358 12,983,597 3,127,933
373,334

Georgia Forestry Commission 2008 Report

0.4% 1.3% 0.8% 0.7% 3.3% 0.9% 2.3% 0.4% 2.2% 2.0% 0.6% 3.5% 2.6% 0.9% 1.1% 0.9% 0.4% 1.7% 6.3% 0.8% 0.5% 1.8% 14.7% 13.1% 11.4% 13.4% 9.0% 1.3% 4.1% 6.1% 5.7% 2.6% 1.9% 4.9% 1.1% 2.4% 8.1% 7.3% 0.9% 0.4% 1.4% 1.3% 1.0%

0.4% 2.5% 0.7% 0.9% 4.8% 0.9% 2.2% 0.3% 1.7% 4.0% 0.5% 3.7% 2.7% 0.8% 1.0% 0.9% 0.3% 2.1% 10.1% 0.9% 0.5% 3.0% 21.4% 16.4% 13.5% 12.2% 10.2% 1.0% 5.7% 5.8% 9.8% 4.0% 1.9% 6.5% 0.9% 2.9% 10.4% 10.2% 0.7% 0.4% 1.7% 1.1% 0.8%
Page 30

Paulding Pickens Pierce Pike Polk Putnam Quitman Richmond Rockdale Screven Spalding Stephens Stewart Sumter Tattnall Thomas Tift Toombs Turner Twiggs Upson Walker Walton Ware Washington Wayne Webster Wheeler White Whitfield Wilkinson Worth Group 1 Group 2 Group 3 Group 4 Group 5 Group 6 Group 7 Group 8 Group 9 Non-County State Total

130 346 408
46 275 765
43 1,889 1,151
129 180 698
29 463 133 775 242 264 174
34 423
25 357 669 106 1,108 262 144 117 582 172
89 101 793 1,555 1,014 233 534 1,971 299 1,091 258 57,812

4,544,093 13,819,729 12,728,717
1,220,653 9,887,661 19,590,020 1,637,891 110,793,533 53,441,448 3,964,491 6,490,946 24,400,402
944,569 12,655,723
4,327,280 21,277,367
8,381,175 10,496,925
5,506,972 1,078,495 11,664,825
670,977 12,597,024 19,896,459
3,564,171 74,402,764
7,913,277 4,680,189 2,467,891 18,616,719 5,121,050 1,965,971 2,604,293 24,984,056 54,374,442 41,133,769 7,465,289 27,595,464 101,888,940 7,414,778 36,510,427 11,786,217 2,446,122,916

Georgia Forestry Commission 2008 Report

0.6% 4.2% 9.7% 1.9% 2.3% 10.9% 10.7% 1.8% 3.6% 3.0% 0.8% 7.0% 2.2% 3.7% 2.3% 3.5% 1.3% 2.2% 7.4% 2.7% 5.5% 0.2% 1.8% 4.3% 1.3% 12.4% 44.0% 9.8% 1.8% 1.0% 5.5% 2.3%

0.8% 5.8% 11.3% 1.8% 2.7% 9.6% 15.7% 2.9% 4.7% 3.8% 0.9% 7.8% 2.5% 3.6% 2.9% 2.9% 1.4% 3.1% 9.8% 2.9% 5.3% 0.2% 2.0% 4.5% 1.5% 24.5% 46.7% 11.9% 1.4% 0.9% 4.3% 1.9%
Page 31

Table 4-6: Counties Included in Each Group

Group 1 Rabun Towns Union

Group 2 Coweta Heard Meriwether Troup

Group 3 Columbia Glascock Hancock
Lincoln McDuffie Taliaferro Warren Wilkes

Group 4 Chattahoochee
Crawford Macon Marion Peach Schley Talbot Taylor

Group 5 Candler Emanuel Treutlen

Group 6 Liberty Long McIntosh

Group 7 Calhoun
Clay Dougherty
Lee Randolph
Terrell

Group 8 Decatur
Miller Seminole

Group 9 Ben Hill
Crisp Dodge Dooly Irwin Pulaski Telfair Wilcox

Georgia Forestry Commission 2008 Report

Page 32

References
Georgia Department of Labor, ES202 Wage and Employment Data: 2008.
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., 2007.

Georgia Forestry Commission 2008 Report

Page 33