Economic Benefits of the Forestry Industry in Georgia: 2010 Final Report Prepared for Georgia Forestry Commission Macon, Georgia Prepared by Community Policy and Research Services Enterprise Innovation Institute Georgia Institute of Technology 760 Spring Street, NW Atlanta, Georgia 30332 Author B. William Riall, Ph.D. October 2011 Copyright 2011 All Rights Reserved Georgia Tech Research Corporation Atlanta, Georgia 30332 Table of Contents Executive Summary ............................................................................................................ 1 Forestry Dependent Communities .............................................................................. 5 Section 1: Introduction........................................................................................................ 8 Section 2: Definition of the Forestry Industry in Georgia ................................................. 9 Section 3: Economic Benefits .......................................................................................... 18 Results....................................................................................................................... 19 Comparison of the Forestry Industry with Other Industry Sectors........................... 24 Section 4: 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 2010. Economic activity is measured by output (similar to sales revenue), employment, and compensation (defined as wages and salaries including benefits). These measures are traditionally used in this type of analysis. Table E-1 shows the forestry industry employed 43,525 in all industry sectors combined, paid an annual compensation of over $2.6 billion, and had estimated total revenue of almost $14.5 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 2010 Sector Output Employment Compensation Forestry Management, Logging, and Misc. Forest Products $901,611,429 5,050 $239,260,315 Lumber and Wood Preservation $1,175,765,179 4,902 $237,566,082 Veneer, Plywood, Reconstituted, and Engineered Wood $667,158,657 3,025 $162,897,921 Prefabricated Wood Buildings and Manufactured Housing $188,563,707 1,409 $44,457,581 Pulp and Paper Products $9,662,711,882 16,939 $1,412,486,022 Woodworking and Paper Industries Machinery $112,815,060 473 $28,127,896 Wooden Furniture, Cabinets, Custom Arch. & Millwork $872,492,396 5,905 $248,575,189 Windows and Doors $390,227,522 2,252 $99,890,060 Containers, Showcases, Partitions, and Shelving $523,979,272 3,470 $151,109,515 Total $14,495,325,105 43,425 $2,624,370,581 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 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 2011 Report Page 1 shown in Table E-2. Total economic activity supported by the forestry industry in Georgia (including the multiplier effect, forestry-related bioenergy firms and federal payments to landowners of about $35.6 million) is almost $23.7 billion. This activity employs 108,112 people whose compensation is almost $5.4 billion. Table E-2: Total Benefits by Major Industry Sector 2010 Sector Agriculture, Forestry, Fishing and Hunting Mining Utilities Output $978,785,060 $13,972,631 $688,580,697 Construction Manufacturing $126,737,224 $14,043,694,978 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 $1,127,560,668 $406,343,900 $769,069,482 $486,694,239 $844,504,877 $1,135,230,714 $635,902,481 $381,254,780 $384,583,681 $87,673,047 $658,104,746 $76,370,972 $294,727,267 $326,935,400 $176,177,531 $23,642,904,375 Employment 6,761 63 859 1,260 39,479 5,711 7,113 5,194 1,358 3,331 3,611 4,740 1,837 6,023 1,264 6,305 1,357 4,881 6,010 954 108,112 Compensation $278,259,485 $4,305,614 $96,866,397 $39,419,713 $2,454,457,304 $428,173,249 $199,174,047 $233,841,151 $103,474,119 $200,363,890 $52,028,267 $250,874,962 $192,806,438 $163,187,087 $46,381,554 $309,103,671 $27,054,889 $100,020,777 $133,888,468 $62,859,951 $5,376,541,034 Another way to examine the forestry industry in Georgia is to compare it with other manufacturing sectors. Table E-3 lists 2010 income and employment totals for each major industry sector sorted by employment. These data show that forestry ranks second in total employment and in total wages and salaries. Food processing ranks first in income and employment, and textiles (mostly carpet) is third in employment, but fifth in wages and salaries. Transportation equipment manufacturing is third in wages and salaries, and fourth in employment, reflecting the relatively higher salaries in this sector. 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 Georgia Forestry Commission 2011 Report Page 2 estimated $448 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 almost $166 million for 2010. Table E-3: Comparison of Georgia Industries 2010 Sector Food Processing Forestry Industry Textiles Transportation Equipment Fabricated Metal Products Machinery Chemicals Printing Electrical Equipment and Appliances Computers and Electronic Products Apparel Employment 53,780 43,425 30,809 29,089 21,348 18,940 18,138 14,103 10,648 9,954 3,422 Wages & Salaries $2,749,794,288 $1,956,747,636 $1,118,973,995 $1,580,765,086 $880,798,789 $965,970,325 $1,194,823,336 $640,717,408 $625,673,868 $840,770,606 $97,791,055 Table E-4: Fiscal Impact Analysis 2010 Annual State Government Revenues $447,793,754 Annual State Government Costs $281,949,751 Net Annual Revenues $165,844,002 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 2010. 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 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. Georgia Forestry Commission 2011 Report Page 3 Table E-5: Comparison of Results 2003 to 2010 (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% 2010 $14,495 43,425 $2,624 -14.26% -10.50% -5.27% 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 2006 2007 2008 $25,972 $27,738 $28,547 $28,723 154,147 149,347 141,155 128,388 $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 2010 $23,643 108,112 $5,377 -5.30% -7.76% -14.64% -13.08% -8.71% -3.32% 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 2009 $472 $314 $158 2010 $448 $282 $166 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 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 (2009-2010) show declines in all measures with the greatest declines seen in forestry activity employment (21percent) followed by activity output and compensation (about 25 and 16 percent, respectively). Total impacts also declined for the forestry industry, though by smaller percentages. Total output declined the most, at 13 percent followed by total employment at about 9 percent, and total compensation at about 3%. 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 Georgia Forestry Commission 2011 Report Page 4 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 came from 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. Also, firms tend to reduce inventory during economic contractions but because output is measured by firm revenues, their revenues are larger than their actual production. As inventories are exhausted, production levels begin to reflect actual market demands, as reflected in the sharp decline (-14 percent) in output for 2009-2010. Total output declined by a lesser amount (-13 percent). Employment declined somewhat less (-10 percent and -9 percent for industry activity and total impacts, respectively) with compensation declining the least. 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 Georgia Forestry Commission 2011 Report Page 5 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. Figure E-1 Forestry Dependency Based on Employment 2010 Georgia Forestry Commission 2011 Report Page 6 Figure E-2 Forestry Dependency Based on Income 2009 Georgia Forestry Commission 2011 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 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 2011 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 2011 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 2011 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. A new industry sector was added in this report. It is not a large sector (for now), but it has the potential to grow significantly. It includes all those firms producing products related to bioenergy that are derived from forest products. Eight firms were identified by GFC personnel that were included in the analysis. Of the eight firms, two were confirmed to be in existing forestry-related sectors, i.e., fuel pellets from forestry wastes, which is included in miscellaneous wood products. Two other firms could not be verified in the Department of Labor data, but their products (wood pellets, and briquettes and fireplace logs) should already include them in the data, perhaps under a different name or as a subsidiary of a larger firm which files its tax forms from a different location. The four remaining firms are in disparate industry sectors, so their impact is included under Miscellaneous Wood Products. The total employment for this sector is 130 persons, with 55 persons employed in sectors not previously included. Georgia Forestry Commission 2011 Report Page 11 The level of economic activity in each forestry industry component is measured by output, employment, and income. Measures for the 2010 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 43,425 and these jobs earned annual compensation (total wages and salaries including benefits) of over $2.6 billion from estimated total revenue of almost $14.5 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 16,939 workers followed by wooden furniture and cabinets with 5,905. Compensation, like employment, is dominated by pulp and paper with slightly over $1.4 billion (about half the total) followed distantly by wood furniture and cabinets at about $249 million and Forestry Management and Logging at almost $240 million. The largest outputs are produced by pulp and paper (about $9.7 billion, or about 2/3 of the total) followed by Lumber and Wood Preservation (almost $1.2 billion) Forestry Management and Logging, (about $902 million) and wooden furniture, cabinets and millwork at almost $873 million. Table 2-2: Georgia Forestry Industry Economic Activity 2010 Sector Output Employment Forestry Management, Logging, and Misc. Forest Products $901,611,429 5,050 Lumber and Wood Preservation $1,175,765,179 4,902 Veneer, Plywood, Reconstituted, and Engineered Wood $667,158,657 3,025 Prefabricated Wood Buildings and Manufactured Housing $188,563,707 1,409 Pulp and Paper Products $9,662,711,882 16,939 Woodworking and Paper Industries Machinery $112,815,060 473 Wooden Furniture, Cabinets, Custom Arch. & Millwork $872,492,396 5,905 Windows and Doors $390,227,522 2,252 Containers, Showcases, Partitions, and Shelving $523,979,272 3,470 Total $14,495,325,105 43,425 Compensation $239,260,315 $237,566,082 $162,897,921 $44,457,581 $1,412,486,022 $28,127,896 $248,575,189 $99,890,060 $151,109,515 $2,624,370,581 Table 2-3 provides a comparison of the forestry industry activity for 2004 to 2010. 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. Georgia Forestry Commission 2011 Report Page 12 For the most recent period, output was down in all sectors except Machinery, which showed a 31 percent increase, (albeit from a very small base) and Veneer, Plywood, Reconstituted and Engineered Wood Products, which shows small gains. The largest absolute decline was in Pulp and Paper, but the greatest percent decline in output was in Forestry Management and Logging. Employment, like output, declined in every sector except Machinery and, Veneer and Plywood . Also, like output, the greatest absolute decline was in Pulp and Paper, but the largest percentage decline (-28 percent) was in Prefab Wooden Buildings and Manufactured Housing. Employee compensation was not quite as dismal as the other parameters in that four sectors showed increases, albeit quite small ones. Machinery showed the largest percentage increase but this was an increase on a very small base. The largest absolute decline was in Pulp and Paper (-$82 million) and the greatest percentage decline was seen in Prefab Wooden Buildings and Manufactured Housing (-33 percent). Georgia Forestry Commission 2011 Report Page 13 Table 2-3: Forestry Industry Activity 2004 - 2010 Comparison Output (Millions of Dollars) Sector 2004 2005 2006 2007 2008 2009 Forestry Management, Logging, and Misc. Forest Products $1,384 $1,447 $1,846 $1,807 $1,698 $1,454 Lumber and Wood Preservation $1,482 $1,811 $2,057 $2,100 $1,732 $1,359 Veneer, Plywood, Reconstituted, and Engineered Wood $1,062 $1,290 $1,260 $1,322 $961 $664 Prefabricated Wood Buildings and Manufactured Housing $388 $561 $596 $523 $427 $252 Pulp and Paper Products $7,888 $8,808 $9,590 $10,131 $10,856 $11,018 Woodworking and Paper Industries Machinery $47 $53 $52 $61 $67 $86 Wooden Furniture, Cabinets, Custom Arch. & Millwork $1,115 $1,241 $1,366 $1,374 $1,153 $996 Windows and Doors $344 $406 $446 $517 $721 $497 Containers, Showcases, Partitions, and Shelving $454 $533 $548 $624 $654 $579 Total $14,163 $16,150 $17,760 $18,459 $18,270 $16,906 2010 $902 $1,176 $667 $189 $9,663 $113 $872 $390 $524 $14,495 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 2004 6,005 8,505 6,588 3,494 25,032 292 10,164 2,522 5,031 67,633 2005 6,133 8,839 7,110 4,531 23,150 319 10,378 2,446 4,788 67,694 Employment 2006 2007 2008 6,152 5,914 5,529 8,957 8,773 6,477 6,963 6,004 4,448 4,500 3,581 2,983 22,861 21,651 20,816 314 304 295 1,770 10,189 8,235 2,598 3,043 3,967 4,618 4,733 4,506 67,733 64,192 57,812 2009 5,119 5,469 3,137 1,949 18,936 300 6,827 2,973 3,809 48,519 2010 5,050 4,902 3,025 1,409 16,939 473 5,905 2,252 3,470 43,425 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 2004 $234 $353 $312 $122 $1,616 $18 $359 $104 $181 $3,299 Compensation (Millions of Dollars) 2005 2006 2007 2008 2009 $254 $267 $273 $255 $238 $385 $400 $391 $282 $250 $341 $353 $291 $211 $158 $164 $165 $119 $99 $66 $1,595 $1,630 $1,602 $1,565 $1,494 $20 $18 $19 $18 $17 $389 $404 $393 $330 $271 $104 $100 $115 $173 $126 $169 $175 $191 $172 $150 $3,422 $3,513 $3,394 $3,131 $2,770 2010 $239 $238 $163 $44 $1,412 $28 $249 $100 $151 $2,624 Georgia Forestry Commission 2011 Report Page 14 Figure 2-1 Forestry Industry Economic Activity: Output by Sector (Dollars in Millions) 2010 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 2011 Report Page 15 Figure 2-2 Forestry Industry Economic Activity: Employment by Sector 2010 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 2011 Report Page 16 Figure 2-3 Forestry Industry Economic Activity: Compensation by Sector (Dollars in Millions) 2010 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 2011 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 2010, whereas the wage and salary data available to IMPLAN is from 2009. 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 2011 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 2010. 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 2010 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 2011 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 in employment and compensation, and about 71 percent of the industry in output . The entire forestry industry (totals in Table 3-1) is estimated to export (to a non-Georgia destination) almost $12.8 billion with this activity supporting 35,661 jobs with an employee compensation of over $2.2 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 2010 Sector Output Employment Compensation Forestry Management, Logging, and Misc. Forest Products $168,586,448 414 $27,180,635 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 $782,404,330 $612,135,875 $187,631,454 $9,185,011,197 $107,329,348 $728,605,435 $506,656,201 $481,280,613 $12,759,640,901 3,262 2,786 1,402 16,238 450 4,976 2,975 3,158 35,661 $158,086,622 $149,287,483 $44,241,211 $1,347,460,507 $26,760,156 $203,665,935 $138,210,489 $139,241,779 $2,234,134,818 The largest sector impacts are seen, not surprisingly, in the manufacturing sector, with some $14 billion in output, 39,479 employees, and about $2.5 billion in compensation. A distant second (in employment) is held by agriculture, forestry, fishing and hunting (which includes logging and nurseries), with almost 6,761 employees. The second largest sector in employee compensation is Health and Social Services, with about $309 million. Together, the economic activity supported by Georgia's forestry industry (including federal payments to landowners of about $35.6 million) totals over $23.6 billion, involving employment of 108,112 people whose compensation is about $5.4 Georgia Forestry Commission 2011 Report Page 20 billion. This employment represents about 2.73 percent and 2.9 percent of total Georgia employment, and wages and salaries, respectively. Table 3-2: Total Benefits by Major Industry Sector 2010 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 $978,785,060 $13,972,631 $688,580,697 $126,737,224 $14,043,694,978 $1,127,560,668 $406,343,900 $769,069,482 $486,694,239 $844,504,877 $1,135,230,714 $635,902,481 $381,254,780 $384,583,681 $87,673,047 $658,104,746 $76,370,972 $294,727,267 $326,935,400 $176,177,531 $23,642,904,375 Employment 6,761 63 859 1,260 39,479 5,711 7,113 5,194 1,358 3,331 3,611 4,740 1,837 6,023 1,264 6,305 1,357 4,881 6,010 954 108,112 Compensation $278,259,485 $4,305,614 $96,866,397 $39,419,713 $2,454,457,304 $428,173,249 $199,174,047 $233,841,151 $103,474,119 $200,363,890 $52,028,267 $250,874,962 $192,806,438 $163,187,087 $46,381,554 $309,103,671 $27,054,889 $100,020,777 $133,888,468 $62,859,951 $5,376,541,034 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 2010. 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 which declined the most (in percentage terms) were prefabricated buildings and veneer, Georgia Forestry Commission 2011 Report Page 21 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 2010 (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% 2010 $14,495 43,425 $2,624 -14.26% -10.50% -5.27% 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 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% 2010 $23,643 108,112 $5,377 -13.08% -8.71% -3.32% 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 2009 $472 $314 $158 2010 $448 $282 $166 Comparing 2009 with 2010, the decline in industry activity accelerates with output declining by about 14 percent. Employment and compensation, however, declined by smaller percentages, compared to the previous year with declines of almost 11 percent and 5.3 percent, respectively. Total impacts did not decline as much in percentage terms in all parameters probably because compensation declined the least, and induced impacts are almost completely dependent on income. In the fiscal impact analysis, both revenues and costs declined, but because the cost decline was slightly larger than the revenue decline, net revenues actually increased slightly. The annual percent change information in Table 3-3 is presented graphically below for output, employment, and compensation measuring levels of economic activity (Figure 31) followed by a similar graph measuring total economic impact (Figure 3-2). A graph of the fiscal impacts also included in Table 3-3 is provided in Figure 3-3. It should be noted Georgia Forestry Commission 2011 Report Page 22 that these data are in nominal dollars and have not been adjusted for inflation. The oddest observation in these graphs is the sharp decline in output, but compensation and 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 and compensation, at least, have bottomed out. Percent Change 20.00% 15.00% 10.00% 5.00% 0.00% -5.00% -10.00% -15.00% -20.00% Figure 3-1 Annual Percent Change in Economic Activity 2004 2005 2006 2007 2008 2009 Year Output Employment Compensation Percent Change 20.00% 15.00% 10.00% 5.00% 0.00% -5.00% -10.00% -15.00% -20.00% Figure 3-1 Annual Percent Change in Economic Activity 2004 2005 2006 2007 2008 2009 Year Output Employment Compensation Georgia Forestry Commission 2011 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 2010 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 in wages and salaries. Table 3-4: Comparison of Georgia Industries 2010 Sector Food Processing Employment 53,780 Wages & Salaries $2,749,794,288 Forestry Industry 43,425 $1,956,747,636 Textiles 30,809 $1,118,973,995 Transportation Equipment 29,089 $1,580,765,086 Fabricated Metal Products 21,348 $880,798,789 Machinery 18,940 $965,970,325 Chemicals 18,138 $1,194,823,336 Printing 14,103 $640,717,408 Electrical Equipment and Appliances 10,648 $625,673,868 Computers and Electronic Products 9,954 $840,770,606 Apparel 3,422 $97,791,055 Georgia Forestry Commission 2011 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 2011 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 2010 Number of Counties Employment Wages & Salaries Critically Dependent 18 11 Very Dependent 16 14 Moderately Dependent 13 22 Somewhat Dependent 49 41 Not Dependent 63 71 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 seven years these statistics have been produced. Generally, the number of counties in each of the dependency categories has remained quite stable. For example, 2010 and 2008 are almost identical. 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 2011 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 2008 22 20 18 15 17 16 18 12 13 50 48 49 54 62 63 2009 14 21 9 42 73 2010 18 16 13 49 63 Table 4-4 Forestry Dependency Over Time: Income Critically Dependent Very Dependent Moderately Dependent Somewhat Dependent Not Dependent 2004 14 17 26 42 60 Number of Counties 2005 2006 2007 2008 2009 14 16 12 11 10 17 13 21 14 11 26 26 17 22 23 42 42 40 40 38 60 62 69 72 77 2010 11 14 22 41 71 Georgia Forestry Commission 2011 Report Page 27 Figure 4-1 Forestry Dependency Based on Employment 2010 Georgia Forestry Commission 2011 Report Page 28 Figure 4-2 Forestry Dependency Based on Income 2010 Georgia Forestry Commission 2011 Report Page 29 Table 4-5: Level and Percent of Forestry in County Economies Based on Employment and Income: 2010 County Appling Atkinson Bacon Baldwin Banks Barrow Bartow Berrien Bibb Bleckley Brantley Brooks Bryan Bulloch Butts Camden Carroll Catoosa Charlton Chatham Chattooga Cherokee Clarke Clayton Clinch Cobb Coffee Colquitt Cook DeKalb Douglas Echols Effingham Elbert Evans Fannin Floyd Forsyth Franklin Fulton Gilmer Glynn Level of Forestry: Employment Wages and Salaries 331 14,150,977 346 11,520,078 67 2,364,276 69 2,421,933 46 1,119,590 124 6,807,257 269 11,747,063 95 2,347,412 1,325 77,544,297 46 1,834,353 166 5,549,501 171 6,076,318 73 2,778,526 266 8,695,238 345 11,366,588 143 5,597,952 848 43,862,509 211 6,791,960 275 8,222,772 1,247 80,509,863 111 3,823,720 237 7,629,356 352 18,153,750 330 15,471,534 120 4,952,023 1,622 79,056,984 314 7,170,168 567 16,639,289 116 4,363,375 1,169 55,052,412 195 11,131,639 56 1,541,063 1,447 89,470,470 23 731,153 35 1,700,109 36 835,248 1,047 62,226,579 260 9,914,631 58 1,777,569 2,176 122,853,943 124 3,074,212 745 58,622,968 Percent of Forestry to Total: Employment Wages and Salaries 5.1% 6.1% 23.5% 25.9% 1.9% 2.6% 0.4% 0.5% 1.0% 0.9% 0.8% 1.4% 0.9% 1.1% 2.4% 2.1% 1.7% 2.7% 1.3% 2.1% 8.3% 10.5% 5.9% 8.1% 1.2% 1.6% 1.2% 1.3% 6.0% 6.7% 1.1% 1.1% 2.4% 3.4% 1.6% 1.6% 13.1% 13.8% 1.0% 1.6% 1.9% 2.2% 0.5% 0.5% 0.5% 0.8% 0.3% 0.4% 4.9% 7.6% 0.6% 0.6% 2.3% 1.8% 3.7% 4.1% 2.6% 3.9% 0.4% 0.4% 0.5% 1.0% 7.1% 8.8% 15.4% 28.0% 0.4% 0.4% 0.8% 1.4% 0.7% 0.6% 2.8% 4.6% 0.5% 0.4% 0.8% 0.9% 0.3% 0.3% 1.6% 1.4% 2.1% 4.6% Georgia Forestry Commission 2011 Report Page 30 Gordon Grady Greene Gwinnett Habersham Hall Haralson Harris Hart Henry Houston Jackson Jasper Jeff Davis Jefferson Jenkins Johnson Jones Lanier Laurens Lowndes Lumpkin Madison Mitchell Monroe Montgomery Morgan Murray Muscogee Newton Oconee Oglethorpe Paulding Pickens Pierce Pike Polk Putnam Quitman Richmond Rockdale Screven Spalding Stephens Sumter Tattnall Thomas 94 165 116 1,995 98 326 57 64 397 230 224 266 270 692 570 19 99 45 93 1,056 696 136 29 29 136 77 461 74 338 185 88 11 181 300 349 33 177 400 33 1,119 991 36 88 584 379 148 498 2,466,014 5,298,704 4,074,447 90,007,996 2,472,748 10,538,864 1,517,672 1,620,514 21,313,724 7,512,195 8,753,635 14,099,498 11,615,262 21,065,322 22,294,611 270,130 2,094,829 1,365,475 2,799,747 45,898,110 19,434,008 3,446,304 731,372 826,273 5,560,355 2,846,821 19,868,293 2,078,246 13,513,588 8,326,721 2,384,486 238,659 7,393,085 14,503,832 11,408,733 1,015,545 7,459,344 11,735,048 1,284,241 56,847,482 47,262,888 1,122,267 2,541,675 19,900,140 10,352,100 3,916,491 15,326,811 Georgia Forestry Commission 2011 Report 0.5% 3.0% 2.2% 0.7% 0.7% 0.5% 0.8% 1.7% 6.6% 0.5% 0.4% 1.5% 13.2% 16.8% 12.0% 1.5% 5.8% 1.3% 6.7% 5.9% 1.5% 2.2% 0.9% 0.4% 2.2% 4.7% 8.1% 0.7% 0.4% 0.9% 1.1% 0.6% 1.0% 4.3% 9.4% 1.6% 1.6% 6.3% 8.1% 1.1% 3.4% 1.1% 0.4% 6.3% 3.5% 2.6% 2.4% 0.4% 3.4% 2.5% 0.7% 0.6% 0.4% 0.7% 1.6% 11.0% 0.5% 0.4% 2.4% 19.8% 18.4% 14.6% 0.9% 4.7% 1.3% 7.6% 7.6% 1.4% 1.8% 0.8% 0.4% 2.7% 6.2% 11.6% 0.6% 0.4% 1.2% 0.9% 0.6% 1.3% 6.6% 10.9% 1.7% 2.2% 6.5% 12.4% 1.5% 4.1% 1.2% 0.4% 6.8% 3.3% 2.5% 2.2% Page 31 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 152 266 148 432 300 482 75 869 143 167 69 452 157 41 141 1,130 1,161 914 211 521 2,036 342 912 23 233 43,425 5,421,571 9,132,816 4,980,330 14,368,445 11,259,220 12,960,238 2,203,783 55,747,024 5,107,771 5,444,080 1,579,480 14,419,332 4,432,621 955,995 4,469,896 47,134,799 41,298,371 39,079,838 7,485,663 27,851,988 130,543,169 9,385,647 29,811,704 654,753 15,835,386 1,957,468,883 0.8% 2.4% 7.7% 6.1% 1.6% 3.2% 1.1% 10.7% 30.7% 12.2% 1.2% 0.8% 5.2% 1.2% 1.0% 2.7% 9.5% 6.8% 1.9% 2.9% 1.0% 19.2% 37.1% 13.5% 1.0% 0.8% 3.6% 1.0% Georgia Forestry Commission 2011 Report Page 32 Table 4-6: Counties Included in Each Group Group 1 Rabun Towns Union Dawson Group 2 Coweta Fayette Heard Lamar Meriwether Troup Group 3 Columbia Glascock Hancock Lincoln McDuffie Taliaferro Warren Wilkes Group 4 Chattahoochee Crawford Macon Marion Peach Schley Stewart Talbot Taylor Group 5 Burke Candler Emanuel Treutlen Group 6 Liberty Long McIntosh Group 7 Calhoun Clay Dougherty Early Lee Randolph Terrell Group 8 Baker Decatur Miller Seminole Group 10 Dade Walker Group 9 Ben Hill Crisp Dodge Dooly Irwin Pulaski Telfair Twiggs Wilcox Georgia Forestry Commission 2011 Report Page 33 References Bureau of Economic Analysis Input-Output Sectors as contained in "IMPLAN Pro: Data Guide," Minnesota IMPLAN Group, Inc., Stillwater, Minn., 2009. Georgia Department of Labor, ES202 Wage and Employment Data: 2010. North American Industrial Classification System (NAICS), http://www.census.gov/epcd/www/naicstab.htm USDA, Conservation Reserve Program, "Monthly Summary December 2010," 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 2011 Report Page 34