Oregon forest sector poised to rebound
October 10, 2012
PORTLAND, Ore. – Oregon’s forest sector remains a resilient
and vital contributor to Oregon’s economy, according to a comprehensive economic
study published today by the Oregon Forest Resources Institute. The sector could
create thousands of new rural jobs, given the right market conditions and a
dependable supply of raw material.
Even as the nation
emerges from the Great Recession, one in 20 Oregon jobs depends on active
management of forests and the manufacturing of forest products – some 76,000
people. Total annual sector wages were $5.2 billion in Oregon in 2011,
according to the study. An additional 37,000 Oregonians are at work supplying
and servicing the sector.
The sector’s
overall impact on the state’s economy last year was $12.7
billion – nearly 7 percent of the state’s economic base. That wealth was
brought to the state as the sector supplied lumber and finished products, such
as doors and windows, to a flagging U.S. housing sector that peaked at 2.3
million housing starts in 2006 and plummeted to 478,000 in 2009.
“The U.S.
housing market has not rebounded as quickly as it typically does after
recession,” said Tom Potiowsky, director of the Northwest Economic Research
Center at Portland State University, and a member of the team that collaborated
on the report. “But housing starts nationally are on the rise, and this is a
good sign for Oregon – especially our rural areas.”
The report
sounds a note of caution, calling for a high-level review of federal forest
policies that have reduced harvest from public lands to record lows. This lack
of harvest, combined with a century of fire suppression, has created unnatural
conditions in the federal forests. They are ripe for insect infestation and catastrophic
fire. If the federal forest health crisis is not addressed, Oregon could
experience more mill closures, as well as the kind of wildfire disasters seen
in other Western states, the report states.
“The report recommends solutions that balance the
economic benefits of sustainable timber harvest with the dividends of healthy
forest ecosystems,” said Paul Barnum, OFRI executive director. “It points out
that Oregon's policies and laws are doing a good job of protecting the forest
resource. Finally, it notes that through collaborative efforts, we can act to
improve the health of federal forests in Oregon. This is especially good news
for our state's rural, natural resource-based economies,” Barnum said.
According to
the report, the number of forested acres in Oregon has remained nearly constant
over the past 30 years. The report states the Oregon Forest Practices Act,
which regulates logging on private land, is effective. It also says that the
state’s unique system of land use laws and comprehensive planning practices
have successfully steered development away from forestland. Across all
ownerships, standing timber volume is about the same as it was in 1953, and
trend data shows that timber volume is increasing.
“The 2012 Forest Report – An Economic Assessment of
Oregon’s Forest and Wood Products Manufacturing Sector” updates a similar study
by OFRI in 2004. The current report provides a snapshot of the forest sector’s
status and capacity. It examines the sector’s supply and demand factors, as
well as its operating environment. The report makes five recommendations:
·
Reshape federal policies
for federally managed forests – Current policies evolved from controversy and
litigation, not sound forestry. Without a stable, dependable supply of public
timber, more mills will close and forest health will continue to decline.
·
Pursue markets overseas – A consortium of state
and industry leaders could create momentum for finished wood products that
would benefit the sector throughout the state.
·
Defend Oregon’s Forest
Practices Act – The Oregon’s Forest Practices Act works. It keeps forests healthy and
timber flowing, which encourages private forest ownership and stewardship.
Changes to regulations should be based on science and local conditions, not on political
compromise.
·
Keep the forest sector a
priority –
The forest sector can continue being a significant part of Oregon’s economy,
especially in rural areas. Keeping it a state priority encourages investment in
mills and other infrastructure.
·
Develop “ecosystem
services”
– State leaders can address how to monetize ecosystem services such as wetland
mitigation banks, biodiversity, cold water production and carbon sequestration.
At nearly
200 pages, The 2012 Forest Report is the most exhaustive look at the forest
sector in nearly a decade. A summary of the report is available at TheForestReport.org, and the full report can
be downloaded from the website.
A dozen
researchers from five firms collaborated on The 2012 Forest Report. The Portland-based
consultancy Mason, Bruce & Girard led the effort with help
from Forest Econ, Inc., Moscow, Idaho; The Northwest Economic Research Center, Portland State University; the Department of Forest Engineering, Resources and Management,
College of Forestry, Oregon State University; and the Beck Group, also in Portland.
OFRI was
created in 1991 by the Oregon Legislature to improve public understanding of
the state’s forest resources and encourage environmentally sound forest
management through landowner education. It is governed by a 13-member board of
directors and funded by a dedicated tax on timber harvest.
Contact: Dave Kvamme – 503-805-0857
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