Forest products are important to rural economies and to all Americans. Many forests across the country are overcrowded with smaller trees, increasing the risk of catastrophic wildfire. Making use of wood materials from tree thinning projects helps reduce the risk of damaging fire, improves economic viability of these projects, and contributes to rural economies.
Economic Significance
The U.S. Forest products industry generates $288 billion annually (approximately 4 percent of the total U.S. manufacturing GDP).
Approximately 950,000 people are employed in the U.S forest products industry with a payroll of approximately $50 billion annually. The forest products industry is also among the top 10 manufacturing sector employers in 45 states.
Minnesota Forest Products
Minnesota’s forest products industry is a major economic force, generating over $18 billion in annual gross sales, supporting around 70,000 jobs, and ranking as the state’s 5th largest manufacturing sector, encompassing logging, pulp/paper, engineered wood (OSB), furniture, and more, with significant tax contributions and vast forest resources providing sustainable fiber.
Key Economic Indicators:
- Gross Sales: Over $18 billion annually
- Employment: Supports over 69,000 jobs
- Manufacturing Ranking: 5th largest manufacturing sector in the state
- Tax Revenue: Provides nearly $500 million in state/local tax revenue
Industry Scope:
The industry is diverse, including:
- Primary Products: Pulp, paper, packaging, OSB (Oriented Strand Board).
- Secondary Products: Wood furniture, cabinets, pallets, railroad ties, utility poles, siding.
- Related Activities: Logging, forest management, and bio-energy.
Dominant Sectors:
- Pulp, paper, and engineered wood products (like OSB) are the largest consumers of harvested wood.
- Secondary solid wood products (like furniture, cabinets) and paperboard manufacturing are significant employers and value generators.
Forest Resources:
- Minnesota boasts over 17.5 million acres of forest land, with aspen being the most abundant species.
- Net growth of timber generally exceeds harvest levels, supporting sustainable use.
Would you like to learn more? Minnesota Forest Products Fact Sheet