Table of Contents Executive Summary ............................................................................................................ 1 Forestry Dependent Communities .............................................................................. 5 Section 1.............................................................................................................................. 9 Introduction......................................................................................................................... 9 Section 2............................................................................................................................ 10 Definition of the Forestry Industry in Georgia ................................................................. 10 Section 3............................................................................................................................ 18 Economic Benefits ............................................................................................................ 18 Results....................................................................................................................... 19 Comparison of the Forestry Industry with Other Industry Sectors........................... 24 Section 4............................................................................................................................ 25 Economic Dependence...................................................................................................... 25 What Is Economic Dependence? .............................................................................. 25 Approach................................................................................................................... 25 References......................................................................................................................... 34 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 2009. 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 48,519 in all industry sectors combined, paid an annual compensation of almost $2.8 billion, and had estimated total revenue of over $16.9 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 2009 Sector Output Employment Compensation Forestry Management, Logging, and Misc. Forest Products Lumber and Wood Preservation Veneer, Plywood, Reconstituted, and Engineered Wood Prefabricated Wood Buildings and Manufactured Housing $1,454,449,184 $1,359,252,480 $664,289,032 $251,605,408 5,119 5,469 3,137 1,949 $237,826,360 $249,873,104 $158,370,342 $66,110,338 Pulp and Paper Products Woodworking and Paper Industries Machinery Wooden Furniture, Cabinets, Custom Arch. & Millwork $11,017,916,784 $86,010,384 $996,312,851 18,936 300 6,827 $1,494,075,270 $17,121,898 $270,507,879 Windows and Doors Containers, Showcases, Partitions, and Shelving Total $497,071,008 $578,698,352 $16,905,605,483 2,973 3,809 48,519 $126,073,024 $150,362,912 $2,770,321,127 Georgia Forestry Commission 2010 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 $35.6 million) is almost $27.2 billion. This activity employs 118,423 people whose compensation is almost $5.6 billion. Table E-2: Total Benefits by Major Industry Sector 2009 Sector Output Agriculture, Forestry, Fishing and Hunting $1,916,024,141 Mining $16,197,021 Utilities $719,483,426 Construction $133,736,698 Manufacturing $15,980,706,206 Wholesale Trade $1,246,651,008 Retail Trade $568,951,748 Transportation and Warehousing $736,962,540 Information $655,479,444 Finance and Insurance $833,480,480 Real Estate and Rental $1,202,576,143 Professional, Technical, and Scientific Services $745,474,219 Management of Companies $426,079,328 Administrative and Waste Services $399,487,841 Educational Services $71,844,990 Health and Social Services $595,473,757 Arts, Entertainment and Recreation $95,396,343 Accommodation and Food Services $319,021,916 Other Services $363,078,404 Government and Non-NAICS Industries $173,453,062 Total $27,199,558,714 Employment 9,924 66 809 1,353 44,668 6,113 8,268 5,033 1,352 3,437 3,815 4,815 1,806 6,366 1,148 6,301 1,300 5,397 5,534 919 118,423 Compensation $359,608,981 $4,629,613 $84,645,811 $51,429,593 $2,605,892,302 $439,009,440 $210,639,060 $229,912,275 $98,673,904 $224,707,933 $58,697,422 $250,629,826 $173,316,512 $164,681,686 $34,719,702 $269,210,357 $25,025,330 $96,867,379 $124,060,317 $54,583,773 $5,560,941,216 Another way to examine the forestry industry in Georgia is to compare it with other manufacturing sectors. Table E-3 lists 2009 income and employment totals for each major industry sector sorted by employment. These data show that forestry ranks second in total employment, and third in total wages and salaries. Food processing ranks first in income and employment and transportation equipment manufacturing ranks second in income and third in employment. Forestry's second rank in employment 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 2010 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 $472 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 $158 million for 2009. Table E-3: Comparison of Georgia Industries 2009 Sector Employment Wages & Salaries Food Processing Forestry Industry Transportation Equipment Textiles Fabricated Metal Products Machinery Chemicals Printing Electrical Equipment and Appliances Computers and Electronic Products Apparel 64,648 48,519 36,520 20,726 23,434 20,406 19,448 17,292 12,851 12,649 3,813 $2,718,559,504 $2,163,680,341 $2,250,421,107 $1,471,733,948 $1,094,925,756 $828,603,263 $1,280,151,545 $389,942,397 $786,471,785 $813,888,148 $124,869,966 Table E-4: Fiscal Impact Analysis 2009 Annual State Government Revenues $471,809,062 Annual State Government Costs $313,707,467 Net Annual Revenues $158,101,595 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 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 Georgia Forestry Commission 2010 Report Page 3 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 2009 (Dollars in millions; Employment in persons) Forestry Industry Economic Activity Output Employment Compensation 2003 $12,679 65,706 $3,007 2004 $14,163 67,633 $3,299 Output Employment Compensation 11.70% 2.93% 9.71% 2005 2006 2007 2008 $16,150 $17,760 $18,459 $18,270 67,694 67,733 64,192 57,812 $3,422 $3,513 $3,394 $3,131 Year to Year Percent Change 14.04% 9.97% 3.93% -1.02% 0.09% 0.06% -5.23% -9.94% 3.71% 2.67% -3.38% -7.75% 2009 $16,906 48,519 $2,770 -7.47% -16.07% -11.52% Total Impacts Output Employment Compensation Output Employment Compensation 2003 $20,199 136,022 $5,600 2004 $22,729 144,944 $6,276 12.53% 6.56% 12.07% 2005 $25,972 154,147 2006 $27,738 149,347 2007 $28,547 141,155 2008 $28,723 128,388 $6,827 $6,773 $6,696 $6,514 Year to Year Percent Change 14.27% 6.80% 2.92% 0.61% 6.35% -3.11% -5.49% -9.04% 8.77% -0.79% -1.13% -2.71% 2009 $27,200 118,423 $5,561 -5.30% -7.76% -14.64% 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: EI2 impact assessments and Georgia Department of Labor, Current Employment and Wages. 2007 $566 $373 $193 2008 $539 $333 $206 2009 $472 $314 $158 The 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 Georgia Forestry Commission 2010 Report Page 4 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 most recent observations (2007-2008) show declines in all measures with the greatest declines seen in forestry activity employment and total employment, and total compensation (all about 16 percent), with significant declines in forestry compensation (11.5 percent) and somewhat lesser declines in direct output (7.5 percent) and total output (4.7 percent) The apparent increase in 2008 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 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 for 2008 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. The 2008-2009 comparison continues the trend that has employment and compensation declines exceeding output declines. This is not unusual to see in economic contractions where, paradoxically, labor productivity actually increases during recessions. The standard explanation for this is that only the most productive labor paired with the best machines are retained during a contraction. 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 Georgia Forestry Commission 2010 Report Page 5 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 2010 Report Page 6 Figure E-1 Forestry Dependency Based on Employment 2009 Georgia Forestry Commission 2010 Report Page 7 Figure E-2 Forestry Dependency Based on Income 2009 Georgia Forestry Commission 2010 Report Page 8 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 employee compensation where economic output is defined as business revenues and employee compensation is defined as wages, salaries including benefits. 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 2010 Report Page 9 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 2010 Report Page 10 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 2010 Report Page 11 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 2009 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 48,519 and these jobs earned annual compensation (total wages and salaries including benefits) of almost $2.8 billion from estimated total revenue of over $16.9 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 18,936 workers followed by wooden furniture and cabinets with 6,827. Several additional segments have employment exceeding 5,000, including wood lumber and wood preservation, and logging and Georgia Forestry Commission 2010 Report Page 12 nurseries. Compensation, like employment, is dominated by pulp and paper with almost $1.5 billion (about half the total) followed distantly by wood furniture and cabinets at about $271 million and lumber and wood preservation at almost $250 million. The largest outputs are produced by pulp and paper (about $11 billion) followed by lumber and logging, (about $1.5 billion, each) and wooden furniture, cabinets and millwork at almost $1.0 billion. Table 2-2: Georgia Forestry Industry Economic Activity 2009 Sector Output Employment Compensation 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, Cabinets, Custom Arch. & Millwork Windows and Doors Containers, Showcases, Partitions, and Shelving Total $1,454,449,184 $1,359,252,480 $664,289,032 $251,605,408 $11,017,916,784 $86,010,384 $996,312,851 $497,071,008 $578,698,352 $16,905,605,483 5,119 5,469 3,137 1,949 18,936 300 6,827 2,973 3,809 48,519 $237,826,360 $249,873,104 $158,370,342 $66,110,338 $1,494,075,270 $17,121,898 $270,507,879 $126,073,024 $150,362,912 $2,770,321,127 Table 2-3 provides a comparison of the forestry industry activity for 2004 to 2009. 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. Another potential impact is the payment from the federal government to pulping operations for the use of black liquor (a residue of the pulping process comprised primarily of lignin) as an alternative fuel source. It is reported that a total of about $6.5 billion was paid, with International Paper (a firm with several Georgia plants) receiving about $2.06 billion. It cannot be said, however, how much of these resources benefited Georgia firms. Georgia Forestry Commission 2010 Report Page 13 Figure 2-1 Forestry Industry Economic Activity: Output by Sector (Dollars in Millions) 2009 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, Cabinets, Custom Arch. & Millwork Windows and Doors Containers, Showcases, Partitions, and Shelving Georgia Forestry Commission 2010 Report Page 15 Figure 2-2 Forestry Industry Economic Activity: Employment by Sector 2009 2008 2007 2006 2005 2004 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 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, Cabinets, Custom Arch. & Millwork Windows and Doors Containers, Showcases, Partitions, and Shelving Georgia Forestry Commission 2010 Report Page 16 Figure 2-3 Forestry Industry Economic Activity: Compensation by Sector (Dollars in Millions) 2009 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, Cabinets, Custom Arch. & Millwork Windows and Doors Containers, Showcases, Partitions, and Shelving Georgia Forestry Commission 2010 Report Page 17 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 2010 Report Page 18 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 2009. 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 some 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 2009 roughly equivalent to a measure of sales revenue. The second measure is compensation, 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 2010 Report Page 19 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 $14.5 billion with this activity supporting 40,089 jobs with an employee compensation of almost $2.4 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 2009 Sector Output Employment Forestry Management, Logging, and Misc. Forest Products $187,147,456 301 Lumber and Wood Preservation $898,215,168 3,614 Veneer, Plywood, Reconstituted, and Engineered Wood $598,698,640 2,867 Prefabricated Wood Buildings and Manufactured Housing $250,436,416 1,940 Pulp and Paper Products $10,448,603,096 18,067 Woodworking and Paper Industries Machinery $80,276,360 280 Wooden Furniture, Cabinets, Custom Arch. & Millwork $811,448,260 5,882 Windows and Doors $635,076,257 3,638 Containers, Showcases, Partitions, and Shelving $538,091,728 3,500 Total $14,447,993,381 40,089 Compensation $20,948,698 $165,120,032 $143,542,358 $65,802,280 $1,418,981,146 $15,980,439 $228,407,976 $156,392,088 $139,850,584 $2,355,025,601 The largest sector impacts are seen, not surprisingly, in the manufacturing sector, with some $16 billion in output, 44,668 employees, and about $2.6 billion in compensation. A distant second is held by agriculture, forestry, fishing and hunting (which includes logging and nurseries), with almost $1.9 billion in output, 9,924 employees, and almost $360 million in compensation. Together, the economic activity supported by Georgia's forestry industry (including federal payments to landowners of about $35.6 million) totals almost $27.2 billion, involving employment of 118,423 people whose compensation is about $5.6 billion. This employment represents about 3 percent and 2.7 percent of total Georgia employment, and wages and salaries, respectively. Georgia Forestry Commission 2010 Report Page 20 Table 3-2: Total Benefits by Major Industry Sector 2009 Sector Agriculture, Forestry, Fishing and Hunting Mining Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation and Warehousing 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 $1,916,024,141 $16,197,021 $719,483,426 $133,736,698 $15,980,706,206 $1,246,651,008 $568,951,748 $736,962,540 $655,479,444 $833,480,480 $1,202,576,143 $745,474,219 $426,079,328 $399,487,841 $71,844,990 $595,473,757 $95,396,343 $319,021,916 $363,078,404 $173,453,062 $27,199,558,714 Employment 9,924 66 809 1,353 44,668 6,113 8,268 5,033 1,352 3,437 3,815 4,815 1,806 6,366 1,148 6,301 1,300 5,397 5,534 919 118,423 Compensation $359,608,981 $4,629,613 $84,645,811 $51,429,593 $2,605,892,302 $439,009,440 $210,639,060 $229,912,275 $98,673,904 $224,707,933 $58,697,422 $250,629,826 $173,316,512 $164,681,686 $34,719,702 $269,210,357 $25,025,330 $96,867,379 $124,060,317 $54,583,773 $5,560,941,216 Source: Georgia Tech's Enterprise Innovation Institute 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 2008 to 2009 period, forestry industry output declined by 7.5 percent and employment from total impacts fell by 16 and 11.5 percent, respectively. The two sectors Georgia Forestry Commission 2010 Report Page 21 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 3-3: Comparison of Results 2003 to 2009 (Dollars in millions; Employment in persons) Forestry Industry Economic Activity Output Employment Compensation Output Employment Compensation 2003 $12,679 65,706 $3,007 2004 $14,163 67,633 $3,299 11.70% 2.93% 9.71% 2005 2006 2007 2008 $16,150 $17,760 $18,459 $18,270 67,694 67,733 64,192 57,812 $3,422 $3,513 $3,394 $3,131 Year to Year Percent Change 14.04% 9.97% 3.93% -1.02% 0.09% 0.06% -5.23% -9.94% 3.71% 2.67% -3.38% -7.75% 2009 $16,906 48,519 $2,770 -7.47% -16.07% -11.52% Total Impacts Output Employment Compensation Output Employment Compensation 2003 $20,199 136,022 2004 $22,729 144,944 2005 $25,972 154,147 2006 $27,738 149,347 2007 $28,547 141,155 2008 $28,723 128,388 $5,600 $6,276 $6,827 $6,773 $6,696 $6,514 12.53% 6.56% 12.07% Year to Year Percent Change 14.27% 6.80% 2.92% 0.61% 6.35% -3.11% -5.49% -9.04% 8.77% -0.79% -1.13% -2.71% 2009 $27,200 118,423 $5,561 -5.30% -7.76% -14.64% 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: EI2 impact assessments and Georgia Department of Labor, Current Employment and Wages. 2008 $539 $333 $206 2009 $472 $314 $158 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. The most odd observation in these graphs is the sharp decline in compensation with employment declining at a lesser rate than last year. If there is a silver lining anywhere in these numbers, it is the possibility that employment, at least, has bottomed out. Georgia Forestry Commission 2010 Report Page 22 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 2009 Output Employment Compensation -10.00% -15.00% -20.00% Year Percent Change Figure 3-2 Annual Percent Change in Total 20.00% Impact 15.00% 10.00% 5.00% 0.00% -5.00% -10.00% 2004 2005 2006 2007 2008 2009 Output Employment Compensation -15.00% -20.00% Year Georgia Forestry Commission 2010 Report Page 23 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 2009 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 second largest industry sector in Georgia, (behind food processing) in employment and the third largest in wages and salaries. Table 3-4: Comparison of Georgia Industries 2009 Sector Employment Food Processing Forestry Industry Transportation Equipment Textiles Fabricated Metal Products Machinery Chemicals Printing Electrical Equipment and Appliances Computers and Electronic Products Apparel 64,648 48,519 36,520 20,726 23,434 20,406 19,448 17,292 12,851 12,649 3,813 Wages & Salaries $2,718,559,504 $2,163,680,341 $2,250,421,107 $1,471,733,948 $1,094,925,756 $828,603,263 $1,280,151,545 $389,942,397 $786,471,785 $813,888,148 $124,869,966 Georgia Forestry Commission 2010 Report Page 24 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 2010 Report Page 25 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 2009 Number of Counties Employment Wages & Salaries Critically Dependent 14 10 Very Dependent 21 11 Moderately Dependent 9 23 Somewhat Dependent 42 38 Not Dependent 73 77 Total 159 159 Source: EI2 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 ten groups, which are listed in Table 4-6. Georgia Forestry Commission 2010 Report Page 26 Table 4-3 Forestry Dependency Over Time: Employment Critically Dependent Very Dependent Moderately Dependent Somewhat Dependent Not Dependent 2004 19 18 20 49 53 2005 19 18 20 49 53 Number of Counties 2006 2007 22 20 15 17 18 12 50 48 54 62 2008 18 16 13 49 63 2009 14 21 9 42 73 Table 4-4 Forestry Dependency Over Time: Income Critically Dependent Very Dependent Moderately Dependent Somewhat Dependent Not Dependent 2004 14 17 26 42 60 2005 14 17 26 42 60 Number of Counties 2006 2007 16 12 13 21 26 17 42 40 62 69 2008 11 14 22 40 72 2009 10 11 23 38 77 Georgia Forestry Commission 2010 Report Page 27 Figure 4-1 Forestry Dependency Based on Employment 2009 Georgia Forestry Commission 2010 Report Page 28 Figure 4-2 Forestry Dependency Based on Income 2009 Georgia Forestry Commission 2010 Report Page 29 Table 4-5: Level and Percent of Forestry in County Economies Based on Employment and Income: 2009 County Appling Atkinson Bacon Baldwin Banks Barrow Bartow Berrien Bibb Bleckley Brantley Brooks Bryan Bulloch Burke Butts Camden Carroll Catoosa Charlton Chatham Chattooga Cherokee Clarke Clayton Clinch Cobb Coffee Colquitt Cook DeKalb Douglas Early Echols Effingham Elbert Evans Level of Forestry: Employment Wages and Salaries 339 13,922,035 406 13,207,730 125 3,966,728 87 3,172,059 38 846,831 125 7,037,582 323 12,854,089 99 2,412,056 1,505 86,665,247 46 1,716,091 170 5,164,963 172 5,804,636 80 3,028,673 282 8,834,448 20 623,570 352 11,025,579 158 6,269,131 806 42,916,671 313 11,555,680 280 8,001,767 1,243 77,668,025 107 3,032,879 567 18,569,757 373 18,338,500 313 15,630,945 233 7,214,379 1,940 95,626,466 432 12,444,632 544 15,846,746 137 4,629,922 1,718 79,714,959 215 12,555,947 574 44,625,174 39 1,423,588 1,484 89,511,518 24 701,804 33 1,756,369 Percent of Forestry to Total: Employment Wages and Salaries 5.2% 6.1% 26.5% 31.3% 3.5% 4.4% 0.5% 0.6% 0.8% 0.7% 0.8% 1.5% 1.0% 1.1% 2.3% 2.2% 1.9% 3.0% 1.3% 2.0% 9.0% 10.6% 6.2% 8.0% 1.3% 1.7% 1.2% 1.3% 0.3% 0.3% 6.4% 6.8% 1.1% 1.3% 2.2% 3.3% 2.2% 2.7% 13.1% 13.0% 0.9% 1.6% 1.8% 1.8% 1.2% 1.2% 0.6% 0.8% 0.3% 0.4% 9.5% 11.2% 0.6% 0.7% 3.0% 2.9% 3.6% 3.9% 3.0% 4.1% 0.6% 0.6% 0.6% 1.1% 14.2% 30.4% 5.7% 9.0% 15.4% 27.5% 0.4% 0.4% 0.8% 1.5% Georgia Forestry Commission 2010 Report Page 30 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 Paulding Pickens 37 234 1,094 423 125 2,699 124 785 103 191 122 2,168 125 417 65 61 361 249 217 238 303 546 562 105 117 48 104 88 1,032 1,111 121 35 44 147 139 450 78 379 231 92 14 229 306 779,611 12,312,121 59,842,421 12,703,205 3,286,564 139,949,036 2,933,091 55,997,209 2,811,873 5,608,682 4,058,892 93,397,949 3,110,942 13,400,373 1,801,974 2,014,900 17,560,492 7,748,382 7,531,103 13,065,279 11,729,444 17,720,381 19,594,625 2,249,612 3,269,931 1,369,797 4,914,197 2,364,204 48,976,387 48,491,226 3,609,298 835,724 1,018,419 5,341,593 4,146,860 18,967,036 2,075,277 15,166,108 10,402,433 2,528,805 327,643 9,251,781 13,365,913 Georgia Forestry Commission 2010 Report 0.7% 0.6% 2.8% 0.8% 1.8% 0.4% 1.5% 2.1% 0.5% 3.4% 2.3% 0.7% 0.9% 0.6% 0.9% 1.6% 6.1% 0.5% 0.4% 1.4% 14.0% 12.2% 11.3% 7.8% 6.6% 1.4% 2.8% 6.1% 5.2% 2.3% 2.0% 1.1% 0.5% 2.4% 8.1% 7.2% 0.7% 0.4% 1.1% 1.1% 0.8% 1.2% 4.2% 0.5% 0.9% 4.4% 0.6% 1.7% 0.3% 1.3% 4.3% 0.5% 3.6% 2.5% 0.7% 0.8% 0.5% 0.8% 2.0% 10.0% 0.5% 0.3% 2.4% 19.6% 16.4% 12.7% 6.5% 7.3% 1.4% 4.7% 6.5% 7.9% 3.4% 1.9% 0.9% 0.5% 2.7% 9.2% 11.2% 0.6% 0.4% 1.4% 0.9% 0.8% 1.6% 6.1% Page 31 Pierce Pike Polk Putnam Quitman Richmond Rockdale Screven Spalding Stephens Stewart Sumter Tattnall Thomas Tift Toombs Turner Upson 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 Group 10 Non-County State Total 371 36 185 492 38 1,878 1,036 62 89 614 23 388 123 547 159 283 140 360 281 601 85 1,038 159 153 80 529 156 58 78 674 1,253 903 180 507 1,643 293 871 33 303 48,519 11,425,622 1,009,442 7,477,763 13,694,833 1,477,507 115,120,724 48,637,184 1,657,927 2,152,278 20,085,572 825,617 10,737,348 3,906,365 14,964,803 5,745,987 9,863,997 4,621,807 11,463,942 10,414,815 17,371,638 2,957,376 67,914,058 4,479,119 4,823,026 1,787,983 17,561,177 4,842,394 1,214,026 1,839,280 22,601,797 42,112,526 38,954,606 6,259,078 26,131,055 97,368,402 7,808,417 29,248,906 881,124 16,292,851 2,163,680,341 9.7% 1.6% 1.6% 7.3% 9.7% 1.8% 3.5% 1.8% 0.4% 6.3% 1.8% 3.3% 2.2% 2.6% 0.9% 2.4% 6.9% 4.8% 1.6% 4.2% 1.2% 12.5% 33.8% 11.2% 1.3% 1.0% 5.4% 1.7% Georgia Forestry Commission 2010 Report 11.0% 1.6% 2.2% 7.2% 14.6% 3.0% 4.4% 1.8% 0.3% 6.7% 2.2% 3.3% 2.6% 2.2% 1.0% 3.0% 8.8% 5.1% 1.7% 4.0% 1.4% 23.7% 35.7% 12.5% 1.1% 0.9% 4.2% 1.2% Page 32 Table 4-6: Counties Included in Each Group Group 1 Rabun Towns Union Dawson 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 10 Dade Walker Group 8 Baker Decatur Miller Seminole Group 9 Ben Hill Crisp Dodge Dooly Irwin Pulaski Telfair Wilcox Twiggs Georgia Forestry Commission 2010 Report Page 33 References Bureau of Economic Analysis Input-Output Sectors as contained in "IMPLAN Pro: Data Guide," Minnesota IMPLAN Group, Inc., Stillwater, Minn., 2007. Georgia Department of Labor, ES202 Wage and Employment Data: 2009. Koehler, Mathew, "Black Liquor Scorecard: Pulp and Paper Companies Take $6.5 Billion from U.S. Taxpayers in 2009," NewWest.Net, March 17, 2010 http://www.newwest.net/main/article/black_liquor_scorecard_pulp_amp_paper_compani es_take_65_billion_from_us_tax/ North American Industrial Classification System (NAICS), http://www.census.gov/epcd/www/naicstab.htm USDA, Conservation Reserve Program, "Monthly Summary December 2009," http://www.fsa.usda.gov/FSA/webapp?area=home&subject=copr&topic=rns-css USDA, Biomass Crop Assistance Program,"BCAP CHST Summary Report," http://www.fsa.usda.gov/Internet/FSA_File/bcap_chst_summary_report.pdf U.S. Department of Labor, Bureau of Labor Statistics, "Employer Costs for Employee Compensation," http://data.bls.gov/cgi-bin/surveymost Georgia Forestry Commission 2010 Report Page 34