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ECONOMIC CONTRIBUTIONS OF THE FOREST INDUSTRY
AND FOREST-BASED RECREATION IN FLORIDA IN 2016
PRESENTATION TO THE FLORIDA F...
Study Purpose
• Estimate economic
contributions of the Florida
forest industry in 2016
• Estimate economic
contributions f...
Scope of the Florida Forest Industry
• 17.16 million acres of forest
land
̶ 50% of state land area
• 1,843 business establ...
Data Sources
• USDA, Forest Service
– Forest Inventory and Analysis (2015)
– Timber Product Output (2013)
– National Fores...
Forest Land in Florida
Source: Brenner et al. report to Florida Forest Service (2016)
Data Source: USDA-FIA 2015
Florida Forest Types (2015)
Longleaf / slash
pine
33%
Loblolly /
shortleaf
pine
11%
Oak /
pine
...
Florida Forest Ownership
Source: Brenner et al. (2016) Data Source: USDA-FIA (2015 data)
Private
64%
Federal
Government
16...
Florida Timber Removals (2014)
Product
Removals
(green
tons)
Average
Price
($/ton)
Value
(M$)
Pine Sawtimber 4,891,170 25....
Florida Forest Planting
• Over 450 million tree seedlings were planted
during 2010 to 2015 (Florida Forest Service)
• In 2...
Forest Industry Sectors
Industry Group Sector
Forestry Production
Timber tracts
Logging
Support activities for forestry (p...
0
5
10
15
20
25
30
35
40
45
50
ThousandsJobs
Lumber and wood
merchant wholesalers
Converted paper product
manufacturing
Pu...
Florida Forest Industry Exports
Data Source: Census Bureau, USA Trade Online
Economic Contribution Analysis
• IMPLAN© regional economic
impact analysis and social
accounting software provides
estimat...
Summary of Florida Forest Industry Economic
Contributions, 2016
Industry Group
Employment
(Fulltime,
Part-time
Jobs)
Labor...
Forestry Production;
16,594; 13%
Primary Wood
Product Manuf.;
18,549; 15%
Secondary Wood
Product Manuf.;
7,101; 6%
Primary...
Value Added (GDP) Contributions by Florida Forest
Industry Groups (Million dollars)
Forestry
Production;
1,074; 10%
Primar...
Data Source: Authors’ calculations with IMPLAN©
Regional Multiplier Effects for Florida Forest Industry
Economic Contribut...
Employment Contributions in Florida Counties
(Fulltime and Part-time jobs)
Legend
tl_2016_us_county selection
Emp_Share
0....
Value Added (GDP) Contributions in Florida Counties
(Million dollars)
Legend
tl_2016_us_county selection
Emp_Share
0.00040...
Profile of Forest Industry Employment Contributions
in Top 10 Florida Counties
0
2,000
4,000
6,000
8,000
10,000
12,000
Ful...
Forest Industry Dependence: Contributions as a
Share of Florida County Workforce
Legend
tl_2016_us_county selection
Emp_Sh...
Forest Industry Dependence: Contributions
as a Share of Florida County GDP
0% – 5%
5% – 15%
15% – 30%
30% – 55%
55% – 100%...
Employment Contributions Florida Economic Regions
0
5,000
10,000
15,000
20,000
25,000
30,000
Fulltime,Part-timeJobs
Biomas...
Contributions in Urban vs. Rural Florida Counties
9: Rural less than 2,500 urban population, not adjacent to a metro
8: Ru...
Forest-Based Recreation in Florida (2015)
Source: UF/IFAS
Data Source: FFS, FWC, USDA-Forest Service
Data Source: Authors’...
Economic Contributions of Recreational Expenditures
by Nonresident Visitors to Florida Public Forest Lands (2015)
Source: ...
Ecosystem Services of Forests
• Provisioning services: the provision of
food, water, raw materials, fuel, and
genetic, med...
Ecosystem Service Values of Florida Forests
• Benefit transfer method
• Ecosystem service values estimated for one
locatio...
Corresponding Author
Contact Information:
Alan W. Hodges
awhodges@ufl.edu
(352) 294-7674
Christa D. Court
ccourt@ufl.edu
(...
Connect. Explore. Engage.
/fred.ifas.ufl
@UF_IFAS_FRED
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Economic Contributions of the Florida Forest Industry and Forest-based Recreation in 2016

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View the full report at http://fred.ifas.ufl.edu/economicimpactanalysis/publications/2016-Forest-industry-and-forest-recreation/
This study analyzed the economic contributions of the forest industry and forest-based recreation activities to the state of Florida in 2016, updating a previous study sponsored by the Florida Forestry Association (Hodges et al., 2005). Total economic contributions of the forest industry were estimated using data on direct employment in 32 industry sectors, including specific sectors for forestry production (timber tracts, logging, forestry support activities), primary wood products manufacturing (sawmills, wood preservation, plywood/veneer, engineered wood, reconstituted wood, other), secondary wood products manufacturing (cut stock, millwork, wood containers, windows/doors, pallets), primary paper products manufacturing (pulp, paper, paperboard mills), converted paper products manufacturing (paperboard containers, bags, stationary, sanitary tissue, towels), forest chemical products manufacturing (turpentine, rosin, tall oil fatty acids, fragrances and flavorings), allied manufacturing of sawmill/woodworking/paper machinery, wholesale trade in lumber and wood products (lumber and wood brokers, distributors), and biomass electric power generation. Total economic contributions associated with forest-based recreation activities were estimated using data on recreational spending by nonresident visitors to Florida’s 3 National Forests, 37 State Forests, and 54 Wildlife Management Areas.

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Economic Contributions of the Florida Forest Industry and Forest-based Recreation in 2016

  1. 1. ECONOMIC CONTRIBUTIONS OF THE FOREST INDUSTRY AND FOREST-BASED RECREATION IN FLORIDA IN 2016 PRESENTATION TO THE FLORIDA FORESTRY ASSOCIATION AUGUST 31, 2017 Alan W. Hodges, PhD, Extension Scientist Christa D. Court, PhD, Assistant Scientist Mohammad Rahmani, PhD, Economic Analyst Sources: UF/IFAS, Rayonier Advanced Materials
  2. 2. Study Purpose • Estimate economic contributions of the Florida forest industry in 2016 • Estimate economic contributions for Florida regions and counties • Evaluate community dependence on the forest industry • Evaluate forest-based recreation • Compile estimates of ecosystem service values for Florida forests Source: UF/IFAS Source: Florida Forest Service, Ricky Jones
  3. 3. Scope of the Florida Forest Industry • 17.16 million acres of forest land ̶ 50% of state land area • 1,843 business establishments • 78 primary wood-using mills • 363 secondary wood and paper product manufacturers • Allied industries ̶ Forest chemical manufacturing ̶ Sawmill, woodworking, paper machinery manufacturing ̶ Wholesale trade in lumber and wood ̶ Biomass electric power generation Source: UF/IFAS Wood mills and wood/paper product manufacturers, 2016 Mills Manufacturers Data Source: Forest Product Network
  4. 4. Data Sources • USDA, Forest Service – Forest Inventory and Analysis (2015) – Timber Product Output (2013) – National Forest visitation • Florida Department of Agricultural and Consumer Services, Florida Forest Service – Timber removals (2014) – State Forest visitation and expenditures • Florida Department of Revenue – County Property Appraiser Records • Florida Fish and Wildlife Conservation Commission – Wildlife management area visitation Source: UF/IFAS • Bureau of Labor Statistics ̶ Quarterly Census of Employment and Wages • U.S. Department of Commerce, Census Bureau ̶ USA Trade Online, port-level exports of forest products • Forest2Market ̶ Average timber stumpage prices in Florida • Forest Product Network ̶ Primary Forest Products Locator ̶ Secondary Forest Products Locator • IMPLAN regional input-output and social accounting software ̶ Captures multiplier effects of industry activities in all economic sectors
  5. 5. Forest Land in Florida Source: Brenner et al. report to Florida Forest Service (2016)
  6. 6. Data Source: USDA-FIA 2015 Florida Forest Types (2015) Longleaf / slash pine 33% Loblolly / shortleaf pine 11% Oak / pine 9% Oak / hickory 16% Oak / gum / cypress 22% Tropical hardwoods 4% Other 5%
  7. 7. Florida Forest Ownership Source: Brenner et al. (2016) Data Source: USDA-FIA (2015 data) Private 64% Federal Government 16% State Government 17% County, Municipal, and Local Government 3% Ownership Timberland Reserved Forestland Other Forestland Total - - - - - - - - - - - - - - Acres - - - - - - - - - - - - - National Forest 1,107,573 54,083 9,571 1,171,227 National Park Service 729,502 729,502 Fish and Wildlife Service 184,785 184,785 Department of Defense 520,956 24,527 545,483 Other federal 39,207 39,207 State 2,411,775 448,218 38,166 2,898,158 County and Municipal 336,622 175,665 37,729 550,017 Other local government 3,377 5,971 9,348 Private 10,856,821 171,848 11,028,669 Total 15,276,332 1,592,253 287,811 17,156,396
  8. 8. Florida Timber Removals (2014) Product Removals (green tons) Average Price ($/ton) Value (M$) Pine Sawtimber 4,891,170 25.35 126.63 Pine Pulpwood 9,871,902 15.56 173.35 Mixed Hardwood Sawtimber 248,093 21.86 5.77 Hardwood Pulpwood 1,323,109 8.94 10.72 Total 16,334,227 316.47 Private 285.28 Federal Government 10.19 State/Local Government 21.00 Note: Price for pine sawtimber is an average of sawtimber and chip-n-saw. Data Sources: Brenner et al, 2016 (timber removals); Forest2Market (prices). ± 0 80 160 240 32040 Miles Legend tl_2016_us_county selection Emp_Share 0.000400 - 0.035500 0.035501 - 0.100700 0.100701 - 0.249200 0.249201 - 0.433900 0.433901 - 0.997600 Net annual growth of 31.32 million tons on timberlands is 1.92 times timber removals
  9. 9. Florida Forest Planting • Over 450 million tree seedlings were planted during 2010 to 2015 (Florida Forest Service) • In 2015, 1.65 million acres of Florida forestlands were timber stands 0-5 years of age suggesting an average of 330,000 acres are regenerated annually (USDA-FIA). Source: UF/IFAS Source: Jarek Nowak, FDACS-Florida Forest Service
  10. 10. Forest Industry Sectors Industry Group Sector Forestry Production Timber tracts Logging Support activities for forestry (private and public) Statel-local and federal government timber sales Primary Wood Product Manufacturing Sawmills Wood preservation Veneer and plywood manufacturing Engineered wood member and truss manufacturing Reconstituted wood product manufacturing Secondary Wood Product Manufacturing Wood windows and door manufacturing Cut stock, resawing lumber, and planing Other millwork, including flooring Wood container and pallet manufacturing All other miscellaneous wood product manufacturing Primary Paper Product Manufacturing Pulp mills Paper mills Paperboard mills Converted Paper Product Manufacturing Paperboard container manufacturing Paper bag and coated and treated paper manufacturing Stationery product manufacturing Sanitary paper product manufacturing All other converted paper product manufacturing Forest chemicals production Sawmill, Woodworking and Paper Machinery Manufacturing Lumber and Wood Merchant Wholesalers Biomass Electric Power Generation
  11. 11. 0 5 10 15 20 25 30 35 40 45 50 ThousandsJobs Lumber and wood merchant wholesalers Converted paper product manufacturing Pulp, paper, and paperboard mills Other wood product manufacturing Plywood and engineered wood product mfg. Sawmills and wood preservation Forestry and logging Florida Forest Industry Employment, 2001-16 Data Source: Bureau of Labor Statistics, QCEW
  12. 12. Florida Forest Industry Exports Data Source: Census Bureau, USA Trade Online
  13. 13. Economic Contribution Analysis • IMPLAN© regional economic impact analysis and social accounting software provides estimates of… – Employment (fulltime, part-time jobs) – Labor income (wages, salaries, benefits, proprietor earnings) – Value added (GDP) – Industry output (sales revenues) – Federal and State/Local Taxes Economic Multipliers • Direct: Activity in a specific industry • Indirect: Inter-industry transactions through of supply chain spending • Induced: Employee household and government spending resulting from direct and indirect contributions
  14. 14. Summary of Florida Forest Industry Economic Contributions, 2016 Industry Group Employment (Fulltime, Part-time Jobs) Labor Income (wages, salaries) Value Added (GDP) Industry Output (Revenue) State- Local Taxes Federal Taxes - - - - - - - - - - - - - - - Million Dollars - - - - - - - - - - - - - - - Forestry Production 16,594 758 1,074 1,769 60.6 176.5 Primary Wood Product Manuf. 18,549 907 1,355 3,445 98.0 224.0 Secondary Wood Product Manufacturing 7,101 324 468 1,239 19.2 78.0 Primary Paper Product Manuf. 37,355 2,031 3,477 7,685 258.1 533.6 Converted Paper Product Manufacturing 20,615 1,169 2,129 5,582 132.3 316.4 Forest Chemical Product Manufacturing 9,178 479 807 2,570 78 144 Sawmill, Woodworking and Paper Machinery Manufacturing 343 19 28 58 1.9 4.5 Wholesale Trade Lumber and Wood 14,255 874 1,569 2,558 214.6 239.2 Biomass Electric Power 114 16 50 139 17.9 5.7 Total Industrial Activity 124,104 6,576 10,957 25,045 880 1,722 Data Source: Authors’ calculations with IMPLAN© Tradeflows model for Florida
  15. 15. Forestry Production; 16,594; 13% Primary Wood Product Manuf.; 18,549; 15% Secondary Wood Product Manuf.; 7,101; 6% Primary Paper Product Manuf.; 37,355; 30% Converted Paper Product Manuf.; 20,615; 17% Forest Chemical Manuf.; 9,178; 7% Allied Manuf.; 343; 0% Wholesale Trade Lumber and Wood; 14,255; 12% Biomass Electric Power; 114; 0% Florida Forest Industry Employment Contributions (Fulltime, Part-time Jobs) Employment Contributions by Florida Forest Industry Groups (Fulltime and part-time jobs) Data Source: Authors’ calculations with IMPLAN©
  16. 16. Value Added (GDP) Contributions by Florida Forest Industry Groups (Million dollars) Forestry Production; 1,074; 10% Primary Wood Product Manuf.; 1,355; 12% Secondary Wood Product Manuf.; 468; 4% Primary Paper Product Manuf.; 3,477; 32% Converted Paper Product Manuf.; 2,129; 20% Forest Chemical Manuf.; 807; 7% Allied Manuf.; 28; 0% Wholesale Trade Lumber and Wood; 1,569; 14% Biomass Electric Power; 50; 1% Florida Forest Industry GDP Contributions (Million Dollars) Data Source: Authors’ calculations with IMPLAN©
  17. 17. Data Source: Authors’ calculations with IMPLAN© Regional Multiplier Effects for Florida Forest Industry Economic Contributions, 2016 Multiplier Effect Employment (Fulltime, Part-time Jobs) Labor Income (M$) Value Added (M$) Industry Output (M$) State- Local Taxes (M$) Federal Taxes (M$) Direct 36,055 2,256 3,826 12,554 308.6 608.9 Indirect 19,659 1,055 1,694 3,251 154.8 267.7 Induced 68,391 3,265 5,438 9,240 417.1 845.4 Total 124,104 6,576 10,957 25,045 880.4 1,722.1
  18. 18. Employment Contributions in Florida Counties (Fulltime and Part-time jobs) Legend tl_2016_us_county selection Emp_Share 0.000400 - 0.035500 0.035501 - 0.100700 0.100701 - 0.249200 0.249201 - 0.433900 0.433901 - 0.997600 0 – 700 701 – 1,500 1,501 – 3,000 3,001 – 6,000 6,001 – 12,000 Data Source: Authors’ calculations with IMPLAN©
  19. 19. Value Added (GDP) Contributions in Florida Counties (Million dollars) Legend tl_2016_us_county selection Emp_Share 0.000400 - 0.035500 0.035501 - 0.100700 0.100701 - 0.249200 0.249201 - 0.433900 0.433901 - 0.997600 0 – 60 60 – 150 150 – 300 300 – 550 550 – 1,150 Data Source: Authors’ calculations with IMPLAN©
  20. 20. Profile of Forest Industry Employment Contributions in Top 10 Florida Counties 0 2,000 4,000 6,000 8,000 10,000 12,000 Fulltime,Part-timeJobs Biomass Electric Power Wholesale Trade Lumber and Wood Allied Manuf. Forest Chemical Manuf. Converted Paper Products Manuf. Primary Paper Products Manuf. Secondary Wood Products Manuf. Primary Wood Products Manuf. Forestry Production
  21. 21. Forest Industry Dependence: Contributions as a Share of Florida County Workforce Legend tl_2016_us_county selection Emp_Share 0.000400 - 0.035500 0.035501 - 0.100700 0.100701 - 0.249200 0.249201 - 0.433900 0.433901 - 0.997600 0.0% – 5% 5% – 15% 15% – 30% 30% – 55% 55% – 100% Data Source: Authors’ calculations with IMPLAN©
  22. 22. Forest Industry Dependence: Contributions as a Share of Florida County GDP 0% – 5% 5% – 15% 15% – 30% 30% – 55% 55% – 100% Legend tl_2016_us_county selection Emp_Share 0.000400 - 0.035500 0.035501 - 0.100700 0.100701 - 0.249200 0.249201 - 0.433900 0.433901 - 0.997600 Data Source: Authors’ calculations with IMPLAN©
  23. 23. Employment Contributions Florida Economic Regions 0 5,000 10,000 15,000 20,000 25,000 30,000 Fulltime,Part-timeJobs Biomass Electric Power Wholesale Trade Lumber and Wood Allied Manuf. Forest Chemical Manuf. Converted Paper Products Manuf. Primary Paper Products Manuf. Secondary Wood Products Manuf. Primary Wood Products Manuf. Forestry Production Data Source: Authors’ calculations with IMPLAN©
  24. 24. Contributions in Urban vs. Rural Florida Counties 9: Rural less than 2,500 urban population, not adjacent to a metro 8: Rural less than 2,500 urban population, adjacent to a metro area 6: Urban population of 2,500 to 19,999, adjacent to a metro 4: Urban population of 20,000 or more, adjacent to a metro area 3: In metro areas of fewer than 250,000 population 2: In metro areas of 250,000 to 1 million population 1: In metro areas of 1 million population or more Urban-Rural Continuum Classification Number Counties Employment (Jobs) Output (M$) Value Added (M$) Labor Income (M$) 1 16 58,580 12,369 5,455 3,194 2 19 28,633 5,689 2,408 1,480 3 9 11,376 2,230 977 594 Total Metro 44 98,589 20,288 8,840 5,268 4 5 4,964 1,149 457 266 6 16 18,608 3,248 1,506 944 8 1 1,635 322 133 83 9 1 309 38 21 14 Total Non-Metro 23 25,515 4,757 2,117 1,307 Total All Areas 67 124,104 25,045 10,957 6,576 Legend tl_2016_us_county selection Urb_Rur_Co 8.000001 - 9.000000 6.000001 - 8.000000 4.000001 - 6.000000 3.000001 - 4.000000 2.000001 - 3.000000 1.000001 - 2.000000 1.000000 Urban-rural continuum classification Data Source: USDA-Economic Research Service
  25. 25. Forest-Based Recreation in Florida (2015) Source: UF/IFAS Data Source: FFS, FWC, USDA-Forest Service Data Source: Authors’ calculations based on expenditure profile of domestic auto visitors in 2015 Florida Visitor Study (VISIT FLORIDA) Public Land (Managing Agency) Acres Visitor-days State Forests (Florida Forest Service) 1,069,041 2,083,753 State Wildlife Management Areas (Florida Fish and Wildlife Conservation Commission) 1,432,604 2,741,533 National Forests (USDA-Forest Service) 1,197,292 2,104,000 Total 3,698,937 6,929,286 Expense Category Expense per person-day Expanded Amount (Million $) Florida Residents Non- residents Total All Visitors Lodging $44.70 $99.22 $99.22 Food & Beverage $33.00 $155.42 $73.25 $228.67 Transportation $18.10 $85.24 $40.18 $125.42 Entertainment & Recreation $18.60 $87.60 $41.29 $128.89 Shopping $17.30 $81.48 $38.40 $119.88 Other Expenses $3.70 $17.43 $8.21 $25.64 Total $135.40 $427.16 $300.56 $727.71
  26. 26. Economic Contributions of Recreational Expenditures by Nonresident Visitors to Florida Public Forest Lands (2015) Source: UF/IFAS Multiplier Effect Employment Labor Income Value Added Industry Output State-Local Taxes Federal Taxes Jobs - - - - - - - - - - - - - - Million Dollars - - - - - - - - - - - - - - Direct 3,355 97 148 240 20.4 24.9 Indirect 630 30 53 96 4.2 7.9 Induced 3,833 183 305 516 23.2 47.4 Total 7,818 311 505 851 47.8 80.3 Data Source: Authors calculations with IMPLAN©
  27. 27. Ecosystem Services of Forests • Provisioning services: the provision of food, water, raw materials, fuel, and genetic, medicinal and ornamental resources • Regulating services: climate regulation, regulation of water flows and quality, regulation of gases, carbon sequestration, waste treatment, and erosion control • Cultural services: such as recreation, aesthetics, education, inspiration, spiritual experience, sense of place, and cognitive development • Supporting services: Refugia, biological control, nursery services, soil formation, nutrition cycling, and pollination Source: UF/IFASSource: Millenium Ecosystem Assessment, et al.
  28. 28. Ecosystem Service Values of Florida Forests • Benefit transfer method • Ecosystem service values estimated for one location are used to estimate the value of similar services in another location. • Accuracy depends on the quality of the original valuation study and the degree of similarity between the locations. • Aggregate ecosystem service value of Florida forests ranges from $24.7 to $32.2 billion per year Ecosystem Service Category Average Value ($/acre/year) Aggregate Value ($M per year) Provisioning 332 5,704 Regulating 266 4,559 Habitat 384 6,581 Cultural 456 7,824 Total 1,438 24,669 Ecosystem Service Category Average Value ($/acre/year) Aggregate Value ($M per year) Gas and Climate Regulation 37 639 Water Regulation and Supply 1,015 17,418 Pollination 170 2,922 Habitat/Refugia 102 1,752 Aesthetic and Non-use 559 9,593 Total 1,884 32,323 Values estimated using global averages Values estimated using regional averages Data Source: de Groot et al. (2012) and authors calculations; Values in 2016 dollars Data Source: Moore et al. (2011) data for Georgia and authors calculationsSource: UF/IFAS
  29. 29. Corresponding Author Contact Information: Alan W. Hodges awhodges@ufl.edu (352) 294-7674 Christa D. Court ccourt@ufl.edu (352) 294-7675 http://www.fred.ifas.ufl.edu/ economicimpactanalysis/
  30. 30. Connect. Explore. Engage. /fred.ifas.ufl @UF_IFAS_FRED

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