Economic Impact 2007

Transcription

1 Economic Impact 2007 Alabama private Personal income $72 billion, GDP $140 billion Sector Forestry and logging Income $211 million, GDP $704 million Paper Income $1,218 million, GDP 2,668 million Wood products Income $866 million, GDP $1,607 million 3.2% of income, 3.5% of GDP 1

2 Is Forest Industry Important? GDP Mining $2,873 million Ag $1,700 million All manufacturing $28,262 million Motor Vehicles $3,103 million At $5 Billion GDP Forestry major part of manufacturing Bigger than most other single industries Economic Effects Direct Wages and Salary Indirect Purchases of inputs Induced Owners and employees spend wages Multiplier The size of the impact relative to the direct effects Actual effect about twice the direct payment. py 2

3 Who is your public? Landowners Neighbors Drivers sharing the road with trucks Neighbors to the jobsite Community Those who see your job Interaction with the public View of logging jobs Sharing the road with log trucks Involvement in the community Appreciate what logging does Appreciate what loggers do 3

4 View of Logging Jobs Affects people p that know or care the least about logging People like scenes that fit with their concept of natural surroundings Do not fit Soil disturbance Stumps, piled debris Trash Standing dead trees Uniformity Clear cutting Aesthetics Management Reduce Clearcutting? Think about the public s view of the unnatural aspects of the harvest? Implement practical aesthetics guidelines 4

5 Log Trucks All trucks represent all loggers Public can t separate the trucker from the logger Issues with trucks Driver behavior Traffic Debris and dust Perceived safety Professional appearance Trucking Activism Be compliant with FMCSA Be proactive in driver training Training sponsored by Alabama Loggers Council Improve appearance of the fleet Avoid traffic conflicts when possible School zones dismissal/arrival, bus traffic 5

6 What do Loggers do for Communities Create income for landowners Produce raw materials for industry Directly create jobs Support local businesses through purchase of products and services Pay taxes Stay involved with the community What does logging pay for? Purchases contribute sales tax Labor contributes income tax and sales tax on their purchases Purchases support sales of many other businesses Insurance Equipment q p dealer/repairs Fuel and oil sales Independent truckers Cut and Haul Rate Tons Item % $/10,000 tons $15/ton 10,000 Labor 29 $43,500 Insurance 3 $4,500 Equipment 14 $21,000 purchase Contract Services 28 $42,000 Supplies 23 $34,500 and service 6

7 Community Activism How important is the industry to sustainability of this community through the: Economy People Environment Does the community know? Do elected representatives know? Speak Up, Volunteer Environmental activities at school Charitable events Public hearings and meetings Boards and Commissions Elected representatives Industry Councils/Organizations Alabama Loggers Council, Forest Resources Association, American Loggers Council 7

8 Interest Groups are Critical Success of Environmental groups due in part to claims that they represent large groups, have large budgets Interest groups critical to Coordinate response Provide background and educational materials Provide access to elected representatives Lobbying or education Networking with appropriate professionals Want to do More? FRA Loggers Guide to Activism 8

9 Major Forestry Issues Demand for wood products Ownership of forests Bioenergy markets Environmental services Forest Product Demand Major wood using countries have aging populations US, Canada, Europe Emerging economies: China, India, Brazil Use less wood per capita Expanding forest plantations Technologies and efficiencies to control cost decrease the amount of wood needed 9

10 Ownership of Forests Major redistribution of land from FP companies to investors Unknown how investors will behave over time in response to land values and income from forestry Large transition of land to heirs looming, Will they know what to do? Will they care about forests? Primary ownership group will be recreationists with different expectations for income and harvesting Bioenergy Markets Most current projects have relatively small footprint Don t effect local supply Future power/liquid fuel projects could be the size of large sawmills or small pulp mills. Many in power business don t understand wood procurement: costs underestimated and poor locations Regulations and incentives for power production may distort wood value for energy Forest products contribute more GDP per unit of wood than power or liquid fuel Hope for other value added products from biorefinery concept 10

11 Environmental Services Explore policies to pay landowners for benefits the forest give to the public Carbon: Lease of property/trees to sequester carbon. Water: Water consumers pay for specific practices that affect water quality and quantity Wetlands banking: Owners paid as part of mitigation for development Others: Open space, habitat Limited current market for these 11