The Economic Impact of Forest Products Manufacturing in Georgia 
 
35.0 
 
250,000 
 
Billion Dollars Employment 
 
30.0 
 
1.800.GATREES 
 
gatrees.org 
 
25.0 
 
200,000 
 
20.0 
 
150,000 
 
Forestry is the 
 
15.0 
 
2nd largest 
 
100,000 
 
10.0 
 
Georgia industry 
 
50,000 
 
5.0 
 
Total impacts 
 
0.0 2001 
 
2002 
 
2003 
 
2004 
 
2005 
 
Output 
 
Income 
 
Employment 
 
0 2006 
 
The forest industry in Georgia in 2006, including the multiplier effects to other parts of the economy were: $27.7 billion in output, 149,347 jobs, and $6.8 billion in compensation to employees and proprietors (+7%, -1%, and -3% over 2005 levels respectively). Trends in these indicators are reflected in the chart above. 
 
Direct Impacts 
 
Georgia's forest industry in 2006 had an output of $17.8 billion, employed 67,733 persons, and paid $3.5 billion dollars in compensation. The output and compensation levels were 10% and 3% higher, respectively, than 2005 levels without considering the affect of inflation. However, employment remained stable. Changes in specific forest industry sectors from 2005 to 2006 are reflected below: 
 
Sector 
Logging and nurseries Lumber and wood preservation Veneer, plywood, and engineered wood Manufactured housing and prefab buildings Pulp and paper products Wooden furniture and cabinets Windows and doors Overall 
 
Output 28% 14% -2% 6% 9% 10% 10% 10% 
 
Changes 2005 to 2006 
 
Employment 
 
Compensation 
 
0% 
 
5% 
 
1% 
 
4% 
 
-2% 
 
4% 
 
-1% 
 
1% 
 
-1% 
 
2% 
 
5% 
 
6% 
 
6% 
 
-4% 
 
0% 
 
3% 
 
 Page 2 
 
The pulp and paper sector of the forest industry continues to dominate the industry by producing 54% of the industry output. The relative impacts of the remaining sectors are shown in the chart below. Although the pulp and paper industry output as a whole seems to be recovering from the recession period earlier in this decade, the employment levels continue to decline. This may be an indication of individual U. S. companies developing strategies to become more competitive with other internationalbased companies. The opportunity for these companies to add new products, such as biofuels, to their production lines could spawn new investments followed by increased overall economic impact in the coming decade. 
 
Output of Specific Forest Manufacturing Sectors 
 
Logging and nurseries 
 
3% 1% 
 
10% 
 
7% 
 
0% 
 
12% 
 
7% 
 
Lumber and wood preservation 
Veneer, plywood, and engineered wood Manufactured housing and prefab buildings Pulp and paper products 
Machines - woodworking and paper 
 
3% 
 
Wooden furniture and cabinets 
 
Windows and doors 
 
54% 
 
Containers, showcases, shelving 
 
Custom architectural and misc. 
 
Industry Ranking 
 
The forest industry ranks 2nd in Georgia behind food processing, when considering compensation to employees and proprietors. The forest industry has total compensation within 4% of the food processing level. Forestry ranks third behind textiles and food processing when considering number of employees. 
 
Other Forest Industry Facts 
 Forestry activities result in $580 million in taxes and other payments to Georgia's state budget. 
 Harvesting 6400 tons of wood each year creates one job in the harvesting and nursery sector of the industry. 
 Georgia has 12 pulp mills, 9 engineered-wood products mills, 140 sawmills/pole mills, and over 1200 other industries that provide secondary processing to Georgia's wood products. 
 
Reference Riall, Bill; Various reports on the economic impact of the forest industry, 2001-2006; Enterprise Innovation Institute, Georgia Institute of Technology; 2007