The Four Corners Timber Harvest and Forest Products Industry, 2007

Transcription

1 United Sttes Deprtment of Agriculture Forest Service Rocky Mountin Reserch Sttion Resource Bulletin RMRS-RB-13 The Four Corners Timber Hrvest nd Forest Products Industry, 2007 June 2012 Steven W. Hyes, Todd A. Morgn, Erik C. Berg, Jen M. Dniels nd Mike T. Thompson

2 Hyes, Steven W.; Morgn, Todd A.; Berg, Erik C.; Dniels, Jen M.; Thompson, Mike T The Four Corners timber hrvest nd forest products industry, Resour. Bull. RMRS-RB-13. Fort Collins, CO: U.S. Deprtment of Agriculture, Forest Service, Rocky Mountin Reserch Sttion. 61 p. Abstrct This report trces the flow of timber hrvested in the Four Corners Sttes (Arizon, Colordo, New Mexico, nd Uth) during clendr yer 2007, describes the composition nd opertions of the region s primry forest products industry, nd quntifies volumes nd uses of wood fiber. Historicl wood products industry chnges re discussed, s well s trends in timber hrvest, production, nd sles of primry wood products. Keywords: forest economics, lumber production, mill residue, primry forest products, timber products Authors Steven W. Hyes is Reserch Forester, Todd A. Morgn is Director of Forest Industry Reserch, nd Erik C. Berg is Reserch Forester, Bureu of Business nd Economic Reserch, The University of Montn, Missoul, Montn. Jen M. Dniels is Reserch Forester, U.S. Deprtment of Agriculture, Forest Service, Pcific Northwest Reserch Sttion, Forestry Sciences Lbortory, Portlnd, Oregon. Mike T. Thompson is Forester, U.S. Deprtment of Agriculture, Forest Service, Rocky Mountin Reserch Sttion, Forestry Sciences Lbortory, Ogden, Uth. Cover: Mp of Four Corners fcilities, You my order dditionl copies of this publiction by sending your miling informtion in lbel form through one of the following medi. Plese specify the publiction title nd series number. Fort Collins Service Center Telephone (970) FAX (970) E-mil rschneider@fs.fed.us Web site Miling ddress Publictions Distribution Rocky Mountin Reserch Sttion 240 West Prospect Rod Fort Collins, CO 80526

3 Reserch Highlights During clendr yer 2007, more thn million bord feet (MMBF) of timber ws hrvested from Arizon, Colordo, New Mexico, nd Uth. Most (55.9 percent) of the hrvested volume cme from tribl nd nonindustril privte timberlnds, while 40.9 percent cme from Ntionl Forests. Ponderos pine ws the leding species hrvested for timber in the Four Corners Sttes during 2007, ccounting for 34.7 percent of the totl. Lodgepole pine ccounted for 24.1 percent, followed by spruces nd Dougls-fir t 12.9 nd 9.1 percent, respectively. During 2007, the Four Corners were net importers of timber, with less thn 1 percent (983 MBF) of the regionl hrvest imported for processing from other Sttes. Mills in the Four Corners imported totl of 12.5 MMBF during 2007, while totl exports by Four Corners mills were slightly less thn 11.6 MMBF. Timber-processing cpcity (i.e., the volume of timber tht could be used by existing timber processors if demnd for products were firm nd sufficient rw mteril were vilble) in the Four Corners during 2007 ws pproximtely 351 MMBF, Scribner. Thus, pproximtely 60 percent of timber-processing cpcity in the region ws utilized in This report identified 132 primry timber processing fcilities ctive during 2007 in the Four Corners. These fcilities included 62 swmills, 35 log home or house log mnufcturers, 15 log furniture producers, 6 post nd pole fcilities, 6 vig nd ltill producers, nd 8 other fcilities. During 2007, production of lumber nd other swn products exceeded 234 MMBF lumber tlly. Lumber production in Arizon ws 55 MMBF, Colordo ws 116 MMBF, New Mexico ws bout 40 MMBF, nd Uth s lumber production ws nerly 23 MMBF. Four Corners timber processors produced 259,853 bone dry units (BDU) of residue during 2007, of which just 9,843 BDU (4 percent) went unused. Swmills generted 233,315 BDU 90 percent of ll mill residues in the region. The Four Corners primry wood product sles vlue (f.o.b. the producing mill), including mill residues, totled nerly $197 million during A little over $135 million (69 percent) of sles were within the Four Corners Sttes, nd 44 percent ($86 million) of ll sles were lumber nd other swn products.

4 Contents Reserch Highlights...i Introduction...1 Four Corners Regionl Summry...1 Historic Overview...2 Timber Hrvest...2 Timber Flow nd Mill Receipts...3 Forest Products Industry Composition nd Opertions...5 Mill Residue: Quntity, Types, nd Use...6 Forest Products Sles nd Employment...7 Arizon...8 Timber Hrvest, Flow, nd Use...8 Forest Industry Sectors...15 Cpcity nd Utiliztion...19 Mill Residue Volumes, Types, nd Uses...19 Primry Forest Products Mrkets nd Sles...20 Colordo...21 Timber Hrvest, Flow, nd Use...22 Forest Industry Sectors...27 Cpcity nd Utiliztion...32 Mill Residue Volumes, Types, nd Uses...33 Primry Forest Products Mrkets nd Sles...33 New Mexico...35 Timber Hrvest, Flow, nd Use...35 Forest Industry Sectors...41 Cpcity nd Utiliztion...45 Mill Residue Volumes, Types, nd Uses...45 Primry Forest Products Mrkets nd Sles...46 Uth...47 Timber Hrvest, Flow, nd Use...47 Forest Industry Sectors...52 Cpcity nd Utiliztion...57 Mill Residue Volumes, Types, nd Uses...57 Primry Forest Products Mrkets nd Sles...59 References...60

5 Introduction Four Corners Regionl Summry This report detils timber hrvest nd describes the composition nd opertions of the primry forest products industry in the Four Corners Sttes (i.e., Arizon, Colordo, New Mexico, nd Uth) during clendr yer The report focuses on trends nd chnges in timber hrvest levels in the forest products industry since the 1990s. For historicl perspective, some discussion is offered of industry chnges throughout the lst hlf of the 20th century. Timber used in the direct mnufcture of products is the focus of this report. Products directly mnufctured from timber re referred to s primry products nd include lumber, posts nd poles, house logs, log furniture, vigs nd ltills. Reconstituted products mde from chipping or grinding timber, s well s products from mill residue (i.e., brk, swdust, log ends, chips, nd plner shvings) generted in the production of primry products, re lso included. These reconstituted primry products include excelsior, wood pellets, brk products, nd fuelwood. Derivtive, or secondry products (e.g., window frmes, doors, trusses, nd furniture) mde from primry products re not included in this report. The mjor source of dt for this report ws census of primry forest products fcilities in Arizon, Colordo, New Mexico, nd Uth nd mills in djcent Sttes tht received timber from the Four Corners Sttes during clendr yer Firms were identified through telephone directories, internet queries, directories of the forest products industries (Lockwood-Post 2008; Rndom Lengths 2008), nd with the ssistnce of Stte forestry gencies nd the mills themselves. Firms cooperting in the Four Corners census, including out-of-stte mills, processed virtully ll of the commercil timber hrvested from Arizon, Colordo, New Mexico, nd Uth in This report is the direct result of coopertive effort between The University of Montn s Bureu of Business nd Economic Reserch (BBER) nd the USDA Forest Service, Interior West Forest Inventory nd Anlysis (IW-FIA) Progrm. Together, BBER nd Forest Service reserch sttions hve been conducting periodic mill censuses in the Rocky Mountins for over 30 yers. The Forest Industries Dt Collection System (FIDACS) ws developed by BBER nd IW-FIA to collect, compile nd mke vilble Stte- nd county-level informtion on the opertions of the forest products industry nd the timber it uses. The FIDACS uses written questionnire or phone interview of forest products mnufcturers to collect the following informtion for ech fcility for given clendr yer: production cpcity nd employment; volume of rw mteril received by county nd ownership; species of timber received; finished product volumes, types, sles vlues, nd mrket loctions; nd utiliztion nd mrketing of mnufcturing residue. Informtion collected through the FIDACS is processed, nlyzed, nd stored t the BBER in Missoul, Montn. Additionl informtion is vilble by request; however, individul firm-level dt re confidentil nd will not be relesed. This chpter discusses the Four Corners s whole, providing historicl overview, s well s informtion on the forest products industry nd timber hrvest in It presents ownership nd species composition of hrvested timber, types of timber products hrvested nd processed, s well s movement of timber within the Four Corners nd between the region nd other Sttes. Timber-processing nd USDA Forest Service Resour. Bull. RMRS-RB

6 production cpcities, utiliztion of mill residues, nd forest products sles nd employment re lso discussed t the regionl level. Historic Overview Following World Wr II, with strong housing mrkets nd public policy encourging timber production on Ntionl Forests, timber hrvest for industril products in the Four Corners Sttes incresed from bout 700 million bord feet (MMBF, Scribner log scle) nnully during the erly 1950s to pek of pproximtely 1,000 MMBF in the lte 1960s. During the 1970s nd 1980s, hrvest volumes dropped somewht with hrvest during the lte 1980s verging bout 850 MMBF nnully. Timber hrvest from the region declined drmticlly during the 1990s, cused lrgely by decreses in the hrvest from Ntionl Forests. Ntionl Forest timber hrvests in Arizon, Colordo, New Mexico, nd Uth followed the course of most Western Sttes, declining due to thretened nd endngered species, ppels nd litigtion directed t Federl timber sles, nd lower Federl budget levels. In Arizon nd New Mexico, the listing of the Mexicn spotted owl hd profound downwrd impct on Ntionl Forest timber hrvest levels. The Mexicn spotted owl ws listed s thretened by the United Sttes Fish nd Wildlife Service in Mrch of In August of 1995, Federl judge enjoined the logging of new timber sles on Ntionl Forests in Arizon nd New Mexico pending development of recovery pln for the owl (Silver nd others v. Thoms nd others 1995). Between 1990 nd 1996, hrvest from Arizon Ntionl Forests dropped from 300 MMBF nnully to bout 28 MMBF, nd hrvest from New Mexico Ntionl Forests fell from bout 125 MMBF to less thn 20 MMBF nnully. Most of the mteril hrvested during the period ws for fuelwood, not industril timber products. The lifting of the injunction in December 1996 resulted in increses in Ntionl Forest timber offerings in 1997 nd The cut from Arizon Ntionl Forests incresed to bout 61 MMBF in 1997 nd 63 MMBF in 1998; the cut from New Mexico Ntionl Forests incresed slightly to 23 MMBF in 1997 nd 30 MMBF in Declines in Ntionl Forest timber offerings hve negtively impcted both Colordo s nd Uth s industry s well, leding to substntilly lower totl hrvest. Though not s shrp nor brupt s in Arizon nd New Mexico, reductions in Ntionl Forest timber hrvest hve significntly ccelerted closures nd hve yielded very low levels of cpcity utiliztion t swmills the lrgest timber processing sector in the two Sttes nd plyed prt in the closure of the two oriented strnd bord (OSB) opertions in Colordo. The ctul number of timber processors in the two Sttes decresed from pproximtely 182 fcilities during 2002 to 91fcilities in Decreses in fcilities occurred in ll sectors but most conspicuously in the log home nd log furniture industries, where Colordo rnked second behind Montn in 2002, with Uth fourth in vlue of output from log home plnts in the Western United Sttes. Timber Hrvest Hrvest volumes presented in this report for clendr yer 2007 cme from the FIDACS census of Four Corners nd out-of-stte mills receiving timber hrvested from the region. When vilble, similr timber hrvest chrcteriztions for the individul Sttes (Arizon, Colordo, New Mexico, nd Uth) were used 2 USDA Forest Service Resour. Bull. RMRS-RB

7 Tble 4C-1: Four Corners timber hrvest by ownership clss, 2002 nd 2007 (source: Morgn nd others 2006). Ownership clss MBF Scribner Percentge of hrvest MBF Scribner Percentge of hrvest Privte nd tribl timberlnd 234, , Tribl 134, , Privte 99, , Public timberlnd 89, , Ntionl Forest 84, , Other public 4, , All owners 323, , Timber Flow nd Mill Receipts for comprison. Periodic Stte-level reports (Wilson nd Spencer 1967; Setzer nd Wilson 1970; Setzer 1971,b; Green nd Setzer 1974; Setzer nd Brrett 1977; Setzer nd Shupe 1977; Setzer nd Throssell 1977,b; McLin 1985; McLin 1988; McLin 1989; Keegn nd others 1995; Keegn nd others 2001,b; Morgn nd others 2006) provided the bulk of historic timber hrvest informtion. Published timber hrvest reports for recent yers were not vilble, with the exception of Bureu of Lnd Mngement (BLM) forest products offerings nd USDA Forest Service nnul cut nd sold reports. Smll differences my exist between the numbers reported here nd those in BLM nd Forest Service reports. These differences re due to vrying reporting units nd conversion fctors, rounding error, scling discrepncies between sellers nd buyers, nd other reporting vritions. During clendr yer 2007, more thn MMBF of timber ws hrvested from Arizon, Colordo, New Mexico, nd Uth. This hrvest volume represents less thn 0.1 percent of the pproximtely billion bord feet of swtimber inventory on nonreserved timberlnds in the four Sttes (U.S. Deprtment of Agriculture, FIDO 2009). Timber hrvested from Four Corners timberlnd nd mnufctured into wood products cme from three brod ownership clsses: tribl lnds, nonindustril privte forest (NIPF) lnd, nd public lnds. Most (55.9 percent) of the hrvested volume cme from tribl nd NIPF timberlnds, while 40.9 percent cme from Ntionl Forests (tble 4C-1). Ponderos pine ws the leding species hrvested for timber in the Four Corners Sttes during 2007, ccounting for 34.7 percent of the totl (tble 4C-2). Lodgepole pine ccounted for 24.1 percent, followed by spen nd spruces t 13.3 nd 12.9 percent, respectively. Swlogs were the leding component of the timber hrvest in the Four Corners (tble 4C-3); t 83 percent, no other product type cme close in hrvested volume. Trees hrvested for fiber logs nd industril fuelwood contributed 7.2 percent to the totl, while house logs ccounted for 5.9 percent of the hrvest. During 2007, the Four Corners were net importers of timber, with less thn one-hlf percent (964 MBF) of the regionl hrvest imported for processing (tble 4C-4). Of this imported volume, over 81 percent (lmost 781 MBF) ws house logs. There ws some volume trded nd utilized between the Sttes in the Four Corners region, but no identifible volume ws exported from the Four Corners Sttes for processing in By ownership, timber from privte lnds ws imported in the lrgest volumes, with timber from Ntionl Forest next. This flow of USDA Forest Service Resour. Bull. RMRS-RB

8 Tble 4C-2: Four Corners timber hrvest by species, 2002 nd 2007 (source: Morgn nd others 2006). Species MBF Scribner Percentge of hrvest MBF Scribner Percentge of hrvest Ponderos pine 186, , Lodgepole pine 21, , Aspen 20, , Spruces 46, , Dougls-fir 30, , Firs 16, , Other species All species 323, , Other species include juniper, other softwoods, nd hrdwoods other thn spen. Tble 4C-3: Four Corners timber hrvest by product, 2002 nd 2007 (source: Morgn nd others 2006). Product MBF Scribner Percentge of hrvest MBF Scribner Percentge of hrvest Swlogs 279, , Fiber logs nd industril fuelwood 14, , House logs 20, , Posts nd poles 4, , Vigs 3, , Other products 1, All products 323, , Other products include furniture logs, pilings, nd utility poles. Tble 4C-4: Four Corners timber products imports nd exports, Timber product Imports Exports Net imports (net exports) ---Thousnd bord feet, Scribner--- Swlogs 3,536 3, House logs 2,220 1, Other products b 6,747 6, All products 12,503 11, Imports nd exports re with other Sttes nd North Americn countries. b Other products include post nd poles, fiber logs, firewood, furniture logs, vigs nd industril fuel wood. timber into the region creted difference in the volume of timber hrvested from the Four Corners nd the volume received by the region s mills. The lrge mjority of timber used by primry forest products firms in the Four Corners cme from within the four-stte region. Additionl volume cme from Idho, Montn, nd Oregon, with some smller volumes from Wyoming nd Cnd. While the 2007 hrvest exceeded MMBF, totl receipts by Four Corners mills were slightly more thn 211 MMBF, volume equivlent to 101 percent 4 USDA Forest Service Resour. Bull. RMRS-RB

9 Tble 4C-5: Timber received by the Four Corners primry forest products industry by ownership clss nd product, Ownership clss Swlogs Fuelwood/ bioenergy House logs Post/pole Other products b All products Thousnd bord feet, Scribner Privte nd tribl timberlnd 104,270 2,402 3,089 1,942 6, ,175 Privte 82, ,680 1,567 6,473 94,461 Tribl 21,330 1, ,714 Public timberlnd 70,463 3,625 10,182 3,555 5,391 93,216 Ntionl Forest 67,826 3,625 10,114 2,430 2,492 86,487 Other owners 2, ,125 2,899 6,729 All owners 174,734 6,027 13,271 5,497 11, , Percentge of product by ownership Privte nd tribl timberlnd Privte Tribl Public timberlnd Ntionl Forest Other owners All owners Other owners include other public ownerships nd Cndin imports. b Other products include logs for log furniture, vigs, ltills, nd fiber logs. of the hrvest. Swlogs ccounted for the vst mjority (83 percent) of timber received by Four Corners mills (tble 4C-5), followed by house logs (6 percent). The NIPF lndowners supplied the lrgest shre (45 percent) of timber received by mills in the four Sttes, followed by Ntionl Forest System (NFS) lnds (41 percent) nd then tribl owners (11 percent). Timber-processing cpcity (the volume of timber tht could be used by existing timber processors if demnd for products were firm nd sufficient rw mteril were vilble) in the Four Corners during 2007 ws pproximtely 351 MMBF, Scribner. Thus, pproximtely 60 percent of timber-processing cpcity in the region ws utilized in Forest Products Industry Composition nd Opertions The FIDACS census identified 132 primry timber processing fcilities ctive during 2007 in the Four Corners. These fcilities included 62 swmills, 35 log home or house log mnufcturers, 15 log furniture producers, 6 post nd pole fcilities, 6 vig nd ltill producers, nd 8 other fcilities. Colordo nd Uth hd the most fcilities nd the lrgest shres of the log home nd log furniture sectors. Arizon nd New Mexico hd fewer fcilities but more of the vig nd ltill sector. Primry timber processors in the Four Corners produced n rry of products including: dimension lumber, bord nd shop lumber, mine timbers, rilrod ties, pllet stock, dunnge, excelsior, posts, poles, vigs, ltills, finished house logs, log homes, nd log furniture, s well s wood pellets, fuelwood, brk, mulch, nd pulp chips from mill residues. During 2007, production of lumber nd other swn products exceeded MMBF lumber tlly. Stte contributions included Colordo (116 MMBF), Arizon (55 MMBF), New Mexico (40 MMBF), nd Uth (23 MMBF). Production of house logs, vigs, nd ltills totled more thn USDA Forest Service Resour. Bull. RMRS-RB

10 Mill Residue: Quntity, Types, nd Use 5.4 million linel feet (MMLF), nd more thn 2.3 million pieces of log furniture, nd posts nd poles were produced by fcilities in the Four Corners. A substntil portion of the wood fiber, including brk processed by primry forest product plnts, ends up s mill residue. Three types of wood residues re typiclly generted by the primry wood products industry: corse or chippble residue consisting of edging, slbs, trim, log ends, nd pieces of veneer; fine residue consisting primrily of plner shvings nd swdust; nd brk. The 2007 census collected informtion on volumes nd uses of mill residue. Actul residue volumes, reported in bone-dry units (BDU), were obtined from fcilities tht sold ll or most of their residues. All mills reported how their residues were used on percentge bsis. One BDU is the equivlent of 2,400 pounds of oven-dry wood. Four Corners timber processors produced 259,853 BDUs of residue during 2007, of which just 9,843 BDUs (3.8 percent) went unused (tble 4C-6). Corse residues were the region s lrgest residue component (55 percent of ll residues), with just over 2 percent going unused. About 40 percent of corse residue ws used by the pulp nd bord sector, 35 percent went to the energy sector, nd n dditionl 23 percent went to other uses. Fine residue mde up the second lrgest component (28 percent) in 2007, with swdust comprising 18.5 percent nd shvings 9.4 percent. All but 5,140 BDUs (7 percent) of fine residue were used, primrily s niml bedding nd mulch. Four Corners fcilities generted 44,087 BDUs of brk while processing timber in 2007, of which ll but 3 percent ws utilized. About 55 percent of brk ws used s mulch, while 23 percent went to energy. During 2007, swmills generted 233,315 BDUs 90 percent of ll mill residues in the region. Residue volume fctors, which express mill residue generted per unit of lumber produced, were derived from production nd residue output volumes provided by mills (tble 4C-7). Tble 4C-6: Production nd disposition of Four Corners mill residues, Residue type Totl utilized Pulp nd bord Energy Mulch/ bedding Unspecified use Bone-dry units Unused Totl produced Corse 140,066 57,300 50,062-32,704 3, ,389 Fine 67,237-22,512 42,281 2,444 5,140 72,377 Swdust 43,222-16,005 25,195 2,022 4,856 48,078 Plner shvings 24,015-6,507 17, ,299 Brk 42,707-10,213 24,107 8,387 1,380 44,087 All residues 250,010 57,300 82,787 66,388 43,535 9, , Percentge of residue type by use Corse Fine Swdust Plner shvings Brk All residues Bone-dry unit = 2,400 lb oven-dry wood. 6 USDA Forest Service Resour. Bull. RMRS-RB

11 Tble 4C-7: Four Corners swmill residue fctors, 2002 nd 2007 (source: Morgn nd others 2006) Type of residue BDU per MBF BDU per MBF Corse Swdust Plner shvings Brk Totl Bone-dry unit (BDU = 2,400 lb oven-dry wood) of residue generted for every 1,000 bord feet of lumber mnufctured. Forest Products Sles nd Employment Mills responding to the FIDACS survey summrized their clendr yer 2007 shipments of finished wood products, providing informtion on volume, sles vlue, nd geogrphic destintion. Mills usully distributed their products either through their own distribution chnnels or through independent wholeslers nd selling gents. Becuse of subsequent trnsctions, the geogrphic destintion reported here my not reflect the finl delivery points of shipments. The Four Corners primry wood product sles vlue (f.o.b. the producing mill), including mill residues, totled nerly $197 million during 2007 (tble 4C-8). A little over $135 million (69 percent) of these sles were within the Four Corners Sttes, nd 44 percent ($86 million) of ll sles were lumber nd other swn products. Other products, which include excelsior, firewood, nd mill residue, ccounted for $50 million (25.6 percent of totl sles). Colordo led the region with more thn $104 million in sles, of which pproximtely $30 million cme from the other products sector. Totl sles for Arizon, New Mexico, nd Uth rnged from $26 to $38 million for ech Stte (tbles A18, N17, U16). While the forest products industry continues to provide substntil employment opportunities in the Southwest, the number of workers hs declined rdiclly over the pst 5 yers. Forest products firms, including logging compnies, employed bout 2,700 people in the Four Corners re in 2007, compred to 3,800 in Of this totl, pproximtely 1,000 individuls were employed in logging in 2007 (5.0 workers per MMBF hrvested), compred to 1,600 in 2002 (QCEW 2004, 2007; REIS 2004, 2007). Primry timber processing fcilities employed 1,700 workers in 2007 (8.3 workers per MMBF consumed) vs. 2,200 in USDA Forest Service Resour. Bull. RMRS-RB

12 Tble 4C-8: Destintion nd sles vlue of Four Corners primry wood products nd mill residues, Product Within 4-Corner Sttes Other Rocky Mtn Sttes Fr West b Northest c South d North Centrl e Mexico, Cnd, or other f Thousnd 2007 dollrs Totl Lumber, mine timbers, nd other swn products 68,159 3,554 1, ,371 5,236 4,547 86,286 House logs nd log homes 25,463 1, ,604 1, ,476 Posts, poles, vigs, ltills, nd log furniture 16,192 1,985 1,765 1,166 1,374 1,111-23,593 Other products g 25,396 2,924 7, ,328 3,881 2,186 50,346 Totl 135,210 10,119 10,794 2,553 19,677 11,575 6,773 $196, Percentge of regionl sles by product Lumber, mine timbers, nd other swn products House logs nd log homes Posts, poles, vigs, ltills, nd log furniture Other products g Totl Other Rocky Mountins includes Idho, Montn, Nevd. b Fr West includes Alsk, Cliforni, Hwii, Oregon, nd Wshington. c Northest includes Connecticut, Mine, Msschusetts, New Hmpshire, New Jersey, New York, Pennsylvni, Rhode Islnd, nd Vermont. d South includes Albm, Arknss, Delwre, Florid, Georgi, Kentucky, Louisin, Mrylnd, Mississippi, North Crolin, Oklhom, South Crolin, Tennessee, Texs, Virgini, nd West Virgini. e North Centrl includes Illinois, Indin, Iow, Knss, Michign, Minnesot, Missouri, Nebrsk, North Dkot, Ohio, South Dkot, nd Wisconsin. f Other res consist of products being shipped outside the United Sttes. g Other products include excelsior, mill residues, mulch, nd fuel pellets; they do not include pper products. Arizon Timber Hrvest, Flow, nd Use This chpter reviews Arizon s 2007 timber hrvest nd forest products industry ctivities nd chnges tht occurred since the 2002 industry census conducted by Morgn nd others (2006). Detils of timber hrvest, flow, nd use re followed by descriptions of the primry processing sectors, cpcity nd utiliztion sttistics, nd mill residue chrcteristics. The chpter concludes with informtion on primry wood products industry sles by Arizon mills. In 2007, Arizon hd pproximtely 3.4 million cres of nonreserved timberlnd (U.S. Deprtment of Agriculture, FIDO 2009), with Ntionl Forests ccounting for 71 percent, privte nd tribl owners ccounting for 28 percent, nd other public gencies ccounting for the remining 1 percent (tble A1). All privte timberlnd 8 USDA Forest Service Resour. Bull. RMRS-RB

13 Tble A1: Arizon nonreserved timberlnd by ownership clss (source: Forest Inventory nd Anlysis Progrm, 2008). Ownership clss Thousnd cres Percentge of nonreserved timberlnd Ntionl Forest 2, Privte nd tribl Other public 31 1 Totl 3, Timber Hrvest ws clssified s NIPF timberlnd. With the exception of severl Ntive Americn tribes, Arizon hd no lrge trcts of timberlnd owned by entities operting primry wood processing fcilities. Swtimber volume on nonreserved timberlnds ws estimted t 5.3 billion cubic feet or pproximtely 29.8 billion bord feet Scribner in 2008 (U.S. Deprtment of Agriculture, FIDO 2009). Arizon s 2007 timber hrvest ws 53.8 MMBF Scribner, only 42 percent of the 2002 hrvest, nd bout 15 percent of the nnul hrvest during the lte 1980s (Keegn nd others 2001). The decline in Arizon s totl nnul timber hrvest since 1990 ws lrgely due to the decline in Ntionl Forest timber hrvest. The mjor fctor tht contributed to the hrvest increse from 1998 to 2002 ws the slvge of 90 MMBF of ded, mostly fire-killed timber, ccounting for 70 percent of the 2002 hrvest volume. In 1998 ded trees ccounted for just 3 percent (2.4 MMBF) of the totl hrvest. Although substntil creges of both public nd tribl forests burned between 1998 nd 2002, tribl lndowners were ble to respond reltively quickly nd hrvested over 82 MMBF of fire-killed timber in Once the res ffected by the lrge fires were slvged, the nnul hrvest fell to below pre-fire levels. As Ntionl Forest nd totl timber hrvest in the Stte declined, disproportionte nd diminishing shre of Arizon s timber hrvest cme from Ntionl Forest timberlnds in recent yers (tble A2). In 1966, 1974, nd 1984 Ntionl Forests ccounted for 60 percent or more of hrvested volume (Setzer nd Throssell 1977; McLin 1988), wheres in 2002 nd 2007 Ntionl Forests ccounted for 16 nd 40 percent of hrvest volume, respectively (Morgn nd others 2006). Ntionl Forests provided the mjority (93 percent) of house logs hrvested in 2007, but tribl nd NIPF lndowners provided the mjority of swlogs nd other products Tble A2: Proportion of Arizon timber hrvest by ownership clss, selected yers (sources: Setzer 1971; Setzer nd Throssell 1977; McLin 1988; Keegn nd others 2001; Morgn nd others 2006). Ownership clss Percentge of hrvest Privte nd tribl timberlnd Privte Tribl Public timberlnd Ntionl Forest Other public All owners USDA Forest Service Resour. Bull. RMRS-RB

14 Tble A3: Arizon timber products hrvested by ownership clss, Ownership clss Swlogs House logs Other products All products Thousnd bord feet, Scribner Privte timberlnd 26, ,294 Ntionl Forest 21, ,723 Tribl timberlnd 2, ,600 4,410 Stte All owners 51, ,219 53, Percentge of hrvested product by ownership--- Privte timberlnd Ntionl Forest Tribl timberlnd Stte All owners Other products include industril fuelwood, furniture logs, fiber logs, nd vig logs. (tble A3). Swlogs ccounted for 95 percent (51 MMBF) of the totl volume hrvested. Historiclly, 80 percent or more of the Stte s nnul timber hrvest cme from three counties: Apche, Coconino, nd Nvjo. In 2007, Apche County led Arizon s timber hrvest with 59 percent of totl volume. Coconino County followed with 27 percent (tble A4). In 2002 Nvjo led with 50 percent followed by Gil nd then Coconino County (Morgn nd others 2006). In 1984, Apche led followed by Coconino nd Nvjo (McLin 1988). In 1974, Coconino County led the Stte with lmost 38 percent of the hrvest, followed by Nvjo with 34 percent nd Apche with 19 percent (Setzer nd Throssell 1977). Similrly, Coconino County ws the lrgest timber producer in 1969, contributing 32 percent of the hrvest, followed by Apche nd Nvjo with 25 nd 23 percent, respectively (Setzer 1971). Tble A4: Arizon timber hrvest by county, selected yers (sources: McLin 1988; Keegn nd others 2001; Morgn nd others 2006). County MBF Scribner Percentge Apche 171,128 15,641 6,350 31, Coconino 150,727 15,314 14,889 14, Gil 931 5,405 39,960 1, Grhm - - 1,100 1, Greenlee 4,623 1, Mricop Nvjo 52,745 38,384 64,027 3, Pim Snt Cruz Yvpi 2, ,895 1, Totl b 382,674 76, ,220 53, Less thn 0.05 percent. b Percentge detil my not sum to 100% due to rounding. 10 USDA Forest Service Resour. Bull. RMRS-RB

15 Tble A5: Proportion of Arizon timber hrvest by species, selected yers (sources: Setzer 1971; Setzer nd Throssell 1977; McLin 1988; Keegn nd others 2001; Morgn nd others 2006). Species Percentge of hrvest Ponderos pine Engelmnn spruce Dougles-fir White fir Pinyon pine, juniper, limber pine, spen < All species b Hrvest dt for 1969 nd 1974 include fuelwood; 1984,1998, 2002, 2007 do not include fuelwood. b Percentge detil my not dd to 100 due to rounding. Tble A6: Arizon timber hrvest by species, selected yers (sources: McLin 1988; Keegn nd others 2001; Morgn nd others 2006). Species MBF Scribner Ponderos pine 346,851 66, ,614 46,483 Engelmnn spruce 8,667 2,340 1,551 2,948 Dougls-fir 17,217 5,264 3,129 1,915 White fir 9, ,900 1,662 Other species All species b 382,674 76, ,220 53,777 Other species include juniper, other softwoods, nd hrdwoods. b My not sum due to rounding. Timber Flow Ponderos pine continued to be the leding species hrvested mong ll product types in Arizon in 2007 (tble A7), ccounting for 86 percent of totl hrvest (tble A5). Dougls-fir, white nd sublpine firs, nd Engelmnn spruce were hrvested in reltively smll quntities (tble A6). Engelmnn spruce comprised only 17 percent of the 2007 house log hrvest, Ponderos pine hrvest spiked in 2002 t 95 percent of totl hrvest prtly becuse of the slvge of fire- nd beetle-killed ponderos pine (Morgn nd others 2006). In 1984, ponderos pine ccounted for more thn 90 percent of the hrvest (347 MMBF of 383 MMBF hrvested), but McLin (1988) reported tht live trees ccounted for 97 percent of this volume. The mjority (97 percent) of Arizon s 2007 timber hrvest ws processed in Stte. However, Arizon ws net exporter of timber. Slightly more thn 1.7 MMBF ws exported for processing in Colordo, Nevd, nd Uth, while very smll mount of timber ws imported from Montn, Oregon, nd Uth for processing in Arizon (tble A8). Timber processors in Arizon received 52,133 MBF of timber in Ownership sources of timber delivered to Arizon mills in 2007 vried slightly with more volume coming from Ntionl Forest lnd thn in More thn 60 percent of ll receipts cme from privte nd tribl timberlnds with little less thn 40 percent from Ntionl Forests (tble A9), which supplied timber to 11 Arizon mills (65 percent) in Ntionl Forests provided Arizon log home mnufcturers with 96 percent of the house log volume processed in Arizon, with NIPF lndowners providing the remining 4 percent (tble A10). USDA Forest Service Resour. Bull. RMRS-RB

16 Tble A7: Arizon timber hrvest by species nd product, Species Swlogs House logs Other products b All products Thousnd bord feet, Scribner Ponderos pine 43, ,197 46,483 Engelmnn spruce 2, ,949 Dougls-fir 1, ,915 True firs 1, ,661 Other species c All species 51, ,219 53, Percentge of product by species Ponderos pine Engelmnn spruce Dougls-fir True firs Other species c All species True firs include white nd sublpine fir. b Other products include industril fuelwood, furniture logs, fiber logs, nd vig logs. c Other species include juniper,other softwoods, nd hrdwoods. Tble A8: Arizon timber products imports nd exports, Timber product Imports Exports Net imports (net exports) ---Thousnd bord feet, Scribner--- Swlogs - 1,683 (1,683) House logs Other products All products 74 1,718 (1,644) Other products include furniture logs, fiber logs, nd vig logs. Tble A9: Ownership of timber products received by Arizon forest products industry, 1998, 2002 nd 2007 (source: Keegn nd others 2001; Morgn nd others 2006). Ownership clss MBF Scribner Percentge of totl MBF Scribner Percentge of totl MBF Scribner Percentge of totl Privte nd tribl timberlnd 48, , , Tribl 45, , , Privte 2, , , Ntionl Forests 19, , , All owners 67, , , USDA Forest Service Resour. Bull. RMRS-RB

17 Tble A10: Timber received by Arizon forest products industry by ownership clss nd product, Ownership clss Swlogs House logs Other products All products Thousnd bord feet, Scribner Privte nd tribl timberlnd 29, ,056 31,706 Privte 26, ,306 Tribl 2,800-1,600 4,400 Public timberlnd 19, ,427 Ntionl Forest 19, ,427 All owners 49, ,243 52, Percentge of product by owner Privte nd tribl timberlnd Privte Tribl Public timberlnd Ntionl Forest All owners Other products include industril fuelwood, furniture logs, fiber logs, nd vig logs. Timber Use Arizon s 2007 timber hrvest pproximtely 11,300 thousnd cubic feet (MCF), exclusive of brk (fig. A1) ws used by severl mnufcturing sectors both within nd outside Arizon. Of this volume, 9,113 MCF ws delivered s logs to swmills, 73 MCF went to log home mnufcturers, nd 2,114 MCF went to other plnts, including post, pole, vig, ltill, nd wood pellet mnufcturers, s well s residue-utilizing fcilities including bioenergy fcilities, pulp mills, reconstituted bord plnts, nd mulch nd niml bedding producers. Volumes re presented in cubic feet rther thn bord feet Scribner becuse both mill residues nd timber products re displyed. The following conversion fctors were used to convert Scribner bord foot volume to cubic feet: 5.98 bord feet per cubic foot for house logs; 5.61 bord feet per cubic foot for swlogs; 1.05 bord foot per cubic foot for ll other products. Of the 9,113 MCF of timber received by swmills, 3,672 MCF (40 percent) ws processed into finished lumber or other swn products, nd bout 182 MCF ws lost to shrinkge. The remining 5,259 MCF (58 percent) yielded mill residue. About 5,198 MCF of swmill residue ws utilized by other sectors within Arizon nd in other Sttes 1,455 MCF for biomss energy; nd 3,743 MCF for pulp, livestock bedding, or mulch. Only 61 MCF (<1 percent) of swmill residue remined unused. Of the 73 MCF of timber received by log home mnufcturers, 31 MCF (43 percent) becme house logs. The remining 42 MCF becme mill residue. About 8 MCF of house log residue ws used by other sectors; nd bout 34 MCF remined unused. Of the 2,114 MCF of timber received by other mnufcturers, ll ws utilized for solid wood products such s posts, vigs, or ltills, or used in residue-relted products like mulch, livestock bedding, fuel pellets, or for biomss energy production. USDA Forest Service Resour. Bull. RMRS-RB

18 Arizon Timber Hrvest nd Flow, 2007 Totl Hrvest 11,300 MCF House log nd log home mnufcturers 73 MCF Other plnts 2,114 MCF Swmills 9,113 MCF Residue utilized by other plnts 8 MCF Residue utilized by other plnts 5,198 MCF Unutilized residue 34 MCF Unutilized residue 61 MCF Shrinkge 182 MCF Finished house logs nd log homes 31 MCF Other products 7,320 MCF Finished lumber nd other swn products 3,672 MCF Figure A1: Arizon timber hrvest nd flow, USDA Forest Service Resour. Bull. RMRS-RB

19 Forest Industry Sectors Arizon s primry forest products industry in 2007 consisted of 17 ctive mnufcturers in six counties (tble A11). Fcilities tended to be locted ner the forest resource long the northern side of the Mogollon Plteu, with concentrtions in southern Apche nd Nvjo counties (fig. A2). The swmill sector, mnufcturing lumber nd other swn products, ws the lrgest sector operting in 2007 with 8 fcilities three less thn were operting in Five fcilities produced house logs nd log homes, the sme s reported in A vig nd ltill mnufcturer, log furniture producer, one brk producer, nd fuel pellet mnufcturer were lso ctively purchsing or utilizing timber in These four firms were indictive of the incresed diversity of timber-processors tht developed in Arizon since the end of the 1980s. One pper mill utilizing recycled mteril lso operted in Arizon during 2007 but did not receive ny timber or mill residue. As recently s 1998 this fcility used some roundwood pulpwood nd mill residues nd ws included in previous reports (McLin 1988; Keegn nd others 2001). Primry wood products sles incresed s did the vriety of producers since 2002, with finished product sles in 2007 bout 5 percent higher thn in 2002 (tble A12). The 2007 sles increse over 2002, however, did not occur in the swmill industry, but in the more recently developing log home nd other products Tble A11: Active Arizon primry wood products fcilities by county nd product, 2007 (sources: McLin 1988; Keegn nd others 2001; Morgn nd others 2006). County Lumber Log homes nd house logs Other products Pulp nd pper Apche Coconino 2 2 Gil 1 1 Mricop Nvjo Yvpi Totl Totl Totl Totl Totl Other products include posts, poles, vigs, ltills, fuel pellets, log furniture, nd biomss energy. Totl Tble A12: Finished product sles of Arizon s primry wood products sectors, selected yers. (sources: WWPA vrious yers; Keegn nd others 2001; Morgn nd others 2006). Sector Thousnds of 2007 dollrs Swmills $176,934 $144,784 $30,640 $27,677 $20,458 Log home nd other sectors ,393 7,193 16,076 Totl b $177,182 $145,354 $33,033 $34,870 $36,534 Other sectors include producers of posts, poles, vigs, ltills, log furniture, nd fuel pellets. b All sles re reported F.O.B. the mnufcturer s plnt. Sles of mill residues, mulch, nd pper not included for comprison to previous yers. USDA Forest Service Resour. Bull. RMRS-RB

20 Figure A2: Mp of Arizon fcilities. Swmill Sector sectors where sles incresed 572 percent since In 1990, the four firms mnufcturing products other thn lumber ccounted for only $570,000, less thn 0.5 percent of totl wood products sles tht yer (Keegn nd others 2001). In 2007, sles from the house log nd other products mnufcturers exceeded $16 million, nd ccounted for 44 percent of finished products sles. The number of swmills in Arizon decresed in the pst five yers by over 25 percent, while totl lumber production decresed by 34 percent from bout 83 MMBF in 2002 to less thn 55 MMBF in 2007 (tble A13). A number of the Stte s lrgest swmills closed between 1998 nd 2007, shifting lrger proportion of the Stte s lumber production into smll mills producing less thn 10 MMBF nnully. Consequently, verge nnul lumber production per mill decresed from 13.5 MMBF in 1998 to 7.5 MMBF in 2002, nd 6.9 MMBF for 2007 (tble A14). 16 USDA Forest Service Resour. Bull. RMRS-RB

21 Tble A13: Arizon swmills by production size clss, selected yers (sources: Setzer nd Wilson 1970; WWPA 1992, 1993; Keegn nd others 2001; Morgn nd others 2006). Yer Under 10 MMBF Over 10 MMBF Totl Number of swmills c Percentge of lumber output--- Volume (MBF b ) c 54, , , , ,000 Size clss is bsed on reported lumber production. MMBF denotes million bord feet lumber tlly. b MBF = thousnd bord feet lumber tlly. c All mills were included in <10 MMBF to void disclosing individul opertions. Tble A14: Number of Arizon swmills nd verge lumber production, selected yers (sources: McLin 1988; Setzer nd Wilson 1970; Keegn nd others 2001; Morgn nd others 2006). Yer Number of swmills Averge lumber production MMBF MMBF = million bord feet lumber tlly. The Stte s four lrgest swmills in 2007 produced n verge of 12.7 MMBF, ccounting for 93 percent of the lumber production, while the remining four mills hd n verge lumber production of less thn 1 MMBF (tble A15). On verge, Arizon swmills produced pproximtely 1.12 bord feet of lumber for every bord foot Scribner of timber processed for n verge overrun of 12 percent in Overrun ws 27 percent in 2002 (Morgn nd others 2006) nd 46 percent in 1998 (Keegn nd others 2001). The overrun decline ws likely due to the drmtic shift of timber processed nd the resulting size, condition, nd product mix tht could be recovered from the hrvested timber. In 1998, bout 64 percent of the lumber produced by Arizon s swmills ws dimension nd studs, 35 percent ws bord nd shop lumber, nd less thn one percent ws timbers (Keegn nd others 2001). In 2002, only 22 percent of the lumber USDA Forest Service Resour. Bull. RMRS-RB

22 Tble A15: Arizon lumber production by mill size, Size clss Number of mills Volume MBF b Percentge of totl Averge per mill MBF b Over 5 MMBF 4 50, ,723 Under 5 MMBF 4 3, Totl 8 54, ,858 Size clss is bsed on reported lumber production. MMBF denotes million bord feet lumber tlly. b MBF = thousnd bord feet lumber tlly. Log home Sector Other Products Sector produced by Arizon s swmills ws dimension nd studs; while 69 percent ws bord nd shop lumber, nd timbers, cnts, or pllet stock constituted 19 percent of production (Morgn nd others 2006). For 2007, only 4 percent of the lumber produced by Arizon s swmills ws dimension nd studs; while 3 percent ws bord nd shop lumber, nd timbers, cnts, or pllet stock constituted 93 percent of production. Historiclly, the swmill sector hs ccounted for more thn 99 percent of wood products sles in Arizon. By 2002 tht proportion hd slipped to 79 percent, s timber hrvest levels declined nd the number of swmills decresed. Sles from swmills ccounted for just 56 percent ($20.5 million) of finished products sles in 2007, decresing from $27.7 million in 2002 (Morgn nd others 2006). Of the swmill products mine timbers, cnts, nd pllet stock ccounted for $18.8 million (91.8 percent), bord nd shop lumber ccounted for just under $1 million (4.5 percent) of swmill sles in 2007, nd dimension lumber ws $.76 million (3.7 percent) of sles. This ws quite shift in product blnce from historicl sles. Arizon s log home sector remined reltively unchnged from The number of house log mnufcturers did not chnge from 2002 to 2007 (tble A11). Only firms tht process timber nd mnufcture house logs or log homes, not log home distributors, were included in the 1990, 1998, 2002 nd 2007 censuses. In 2007, Arizon s five log home mnufcturers processed 452 MBF Scribner of timber, produced bout 139 MLF of house logs, nd generted bout $1.8 million in product sles sles were higher by10 percent ($2 million), nd both the volume of timber processed nd volume of house logs produced decresed 8 nd 17 percent respectively for As with the swmill sector fewer Arizon mills produced other primry wood products, with three less fcilities operting in 2007 thn in 2002 (tble A11). Finished products sles by mnufcturers of posts, poles, vigs, ltills, fuel pellets, nd log furniture exceeded $14 million in A specific sles vlue ws not reported in 2002 to void disclosure of firm level dt (Morgn nd others 2006); however, sles from the sector were estimted to hve incresed more thn 180 percent from 2002 to Additionl detil bout the sector must be withheld to protect the confidentility of firm level informtion. 18 USDA Forest Service Resour. Bull. RMRS-RB

23 Cpcity nd Utiliztion Mill Residue Volumes, Types, nd Uses Two spects of cpcity were exmined for clendr yer 2007 in Arizon nd the other Four Corners Sttes: production cpcity nd timber-processing cpcity. Production cpcity is defined s the mount of finished product tht could be produced given sufficient supplies of rw mterils nd firm mrket demnd for the products, considering norml mintennce nd down time. Primry wood products producers specified nnul nd 8-hour shift production cpcities in units of output (for exmple, MBF of lumber, MLF of house logs, number of vigs, etc.) for ech firm. Product recovery rtios were clculted for ech firm using reported timber input nd product output volumes. Timber-processing cpcity ws defined s the volume of timber reported in MBF Scribner tht could be processed given sufficient supplies of rw mterils nd firm mrket demnd for the products, nd ws estimted for ech firm by pplying the product recovery rtios to production cpcity. Arizon s nnul swmill production cpcity ws 77,850 MBF of lumber in Producing 54,860 MBF of lumber, swmills utilized bout 70 percent of their lumber production cpcity. Across ll industry sectors, totl timber-processing cpcity ws 84,857 MBF Scribner. Accounting for chnges in log inventories, totl of 58,231 MBF Scribner ws processed by Arizon firms in 2007, with timber-processing cpcity utiliztion bout 69 percent. Swtimber-processing cpcity ws 141,480 MBF Scribner in 1998, with 53,458 MBF Scribner (38 percent) utilized (Keegn nd others 2001). In 2002, swtimber-processing cpcity fell to 98,025 MBF Scribner, with 71,260 MBF Scribner (73 percent) utilized. The decresed swtimber-processing cpcity nd incresed cpcity utiliztion resulted from the permnent closure of two lrge swmills, which were operting well below cpcity in In 1998, Arizon s lone pper mill ws the lrgest consumer of mill residues tht were generted in the Stte. However, tht mill shifted to using recycled mteril nd did not use either roundwood pulpwood or mill residues in This chnge ffected not only the wys nd mounts of residues tht were utilized, but it lso impcted other sectors bility to operte profitbly. Swmills, the leding timber processors, were lso the min residue producers in Arizon. These fcilities hd to develop new mrkets for their residues, utilize the residues in-house, or consider cutting production to void generting more residue thn could be disposed of ffordbly. In 2007, Arizon mills produced 67,329 BDU, pproximtely 6,464 MCF of mill residue, with 98.5 percent utilized (tble A16). Both residue production nd the proportion utilized decresed from In 1998, Arizon swmills generted 8,687 MCF, utilizing 99.9 percent (Keegn nd others 2001). Arizon s drop in residue utiliztion between 1998 nd 2007 signled reversl of the long-term trend of incresed residue utiliztion noted by Keegn nd others (2001) nd ws lrgely ttributble to chnges t the Stte s pper mill. The decrese in totl residue volume generted, however, ws ttributble to swmills processing less volume but creting more residues per unit of lumber produced becuse of the blnce of products produced. In 1998, swmills produced bout 1.12 BDU per MBF of lumber; in 2007 tht residue fctor hd incresed to 1.22 BDU per MBF of lumber (tble A17). USDA Forest Service Resour. Bull. RMRS-RB

24 Tble A16: Production nd disposition of Arizon mill residues, Residue type Totl utilized Pulp nd bord Energy Mulch/ bedding Unspecified use Bone-dry units Unused Totl produced Corse 37,223 14,000 14,573-8, ,523 Fine 15, , ,202 Swdust 8, , ,316 Plner shvings 6, , ,886 Brk 13, ,814 7, ,604 Totl 66,296 14,000 14,575 21,351 16,370 1,033 67, Percentge of residue type Corse Fine Swdust Plner shvings Brk Totl Bone-dry unit = 2,400 lb oven-dry wood. Tble A17: Arizon swmill residue fctors, 1998, 2002 nd 2007 (sources: Keegn nd others 2001; Morgn nd others 2006). Type of residue BDU/MBF lumber tlly Corse Swdust Plner shvings Brk Totl Bone-dry unit (BDU = 2,400 lb oven-dry wood) of residue generted for every 1,000 bord feet of lumber mnufctured. Primry Forest Products Mrkets nd Sles Three types of wood fiber residue hve been produced by Arizon mills: corse residue (chips) consisting of slbs, edging, trim, peelings, nd log ends; fine residue consisting of plner shvings nd swdust; nd brk. Corse residue ws the Stte s lrgest residue component t 37,523 BDUs (55.7 percent) of ll residues in 2007, with 99 percent utilized. Out-of-Stte pulp nd pper fcilities used bout 14,000 BDUs of the corse mteril, with the remining utilized volume going to energy nd unspecified uses (tble A16). Fine residues comprised the second lrgest component t 16,202 BDUs (24.1 percent) of mill residues. Only 95.9 percent of fine residue ws utilized in 2007, primrily s mulch or niml bedding. Brk ccounted for 20 percent of ll residues nd ws lrgely used for mulch or unspecified products in 2007, with 13,536 BDU (99.5 percent) utilized. Sles from Arizon s primry wood products industry in 2007 totled $38.2 million, including finished products nd mill residues (tble A18). Lumber, mine 20 USDA Forest Service Resour. Bull. RMRS-RB

25 Tble A18: Destintion nd sles vlue of Arizon s primry wood products nd mill residues, Product Arizon Other 4-Corner Sttes Other Rocky North Mtn Sttes Fr West b Northest c South d Centrl e Other f Totl Thousnd 2007 dollrs Lumber, mine timbers, nd other swn products $7,930 $9,557 $ $1,584 $788 $90 $20,512 House logs nd log homes 1, ,855 Other products g 5,307 8,092-2, ,839 Totl $14,426 $17,977 $563 $2,440 $119 $1,584 $1,007 $90 $38, Percentge of regionl sles by product Lumber, mine timbers, nd other swn products House logs nd log homes Other products g Totl Other Rocky Mountins includes Idho, Montn, Nevd. b Fr West includes Alsk, Cliforni, Hwii, Oregon, nd Wshington. c Northest includes Connecticut, Mine, Msschusetts, New Hmpshire, New Jersey, New York, Pennsylvni, Rhode Islnd, nd Vermont. d South includes Albm, Arknss, Delwre, Florid, Georgi, Kentucky, Louisin, Mrylnd, Mississippi, North Crolin, Oklhom, South Crolin, Tennessee, Texs, Virgini, nd West Virgini. e North Centrl includes Illinois, Indin, Iow, Knss, Michign, Minnesot, Missouri, Nebrsk, North Dkot, Ohio, South Dkot, nd Wisconsin. f Other res consist of products being shipped outside the United Sttes. g Other products include posts, poles, vigs, ltills, log furniture, mill residues, mulch, nd fuel pellets. timbers, nd other swn products ccounted for 54 percent ($20.5 million) of totl sles; house logs nd log homes ccounted for 5 percent ($1.9 million); while other products nd mill residues ccounted for 41 percent ($15.8 million). The other Four Corners Sttes (Colordo, New Mexico, nd Uth) were the leding mrkets for lumber, log homes, nd other products which ccounted for 47 percent of totl sles. Arizon ws second with in-stte sles ccounting for 37.8 percent of totl sles, lumber plying significnt role. The Fr West Sttes were mjor mrket re for other products, including mill residues. Colordo This chpter focuses on Colordo s timber hrvest nd forest products industry during Detils of timber hrvest, flow, nd use re followed by descriptions of the primry processing sectors, cpcity nd utiliztion sttistics, nd mill residue chrcteristics. The chpter concludes with informtion on primry wood products industry sles by Colordo mills. Comprisons with previous yers re provided where possible. Limited historicl informtion is vilble bout timber hrvesting nd mill production nd residues in Colordo. The lst comprehensive report on the Stte s industril roundwood production nd mill residues ws conducted in 2002 (Morgn nd others 2006) nd dt for previous yers include 1962 (Spencer nd Frrenkopf 1964), 1969 (Setzer 1971b), 1974 (Setzer nd Shupe 1977), nd 1982 (McLin 1985). More recently, Lynch nd Mckes (2001) USDA Forest Service Resour. Bull. RMRS-RB

26 Timber Hrvest, Flow, nd Use provided brief discussion of Colordo timber hrvest in their study of wood use in Colordo from 1997 to Timber Hrvest In 2008, Colordo hd pproximtely 11.4 million cres of nonreserved timberlnd (Forest Inventory nd Anlysis 2009), with Ntionl Forests ccounting for 69 percent, privte owners ccounting for 22 percent, nd other public gencies ccounting for the remining 10 percent (tble C1). All privte timberlnd ws clssified s NIPF timberlnd. Colordo hd no lrge trcts of timberlnd owned by entities operting primry wood processing fcilities. Stnding swtimber volume on timberlnd ws estimted t 16.3 billion cubic feet or pproximtely 85.8 billion bord feet Scribner in 2008 (U.S. Deprtment of Agriculture, FIDO 2009). Colordo s 2007 commercil timber hrvest ws 86.5 MMBF Scribner, n 8.5 percent increse over 2002 s hrvest of 79.7 MMBF Scribner. The 2007 hrvest ws 21 percent less thn the 1999 hrvest of 110 MMBF reported by Lynch nd Mckes (2001) nd nerly 16 percent less thn the 1982 hrvest of 103 MMBF Scribner (McLin 1985). Only modest increses in Colordo s totl nnul timber hrvest occurred despite incresed slvge of ded timber, ccounting for 55 percent (47.8 MMBF) of the 2007 hrvest volume, more thn doubling the 26 percent (20 MMBF) hrvest of ded timber in 2002 (Morgn nd others 2006). In 1982 ded trees ccounted for just 8 percent of the totl hrvest volume (McLin 1985). As in most of the Western Sttes, decresing Federl timber hrvests hve led to smller totl hrvest volumes nd greter shres of nnul timber hrvest coming from other ownership sources. However the Ntionl Forest s shre of Colordo s timber hrvest in 2007 ws lmost 50 percent. While in recent yers privte nd tribl lndowners provided the mjority of Colordo s timber hrvest, for 2007 they were down slightly t 48 percent. Lynch nd Mckes (2001) indicted tht Ntionl Forests provided bout 47 percent of the 1999 hrvest. In 2002, the Ntionl Forest s shre of Colordo s timber hrvest hd dropped to 38 percent (tble C2). In 1974 nd 1982, Ntionl Forests ccounted for 90 nd 80 percent, respectively, of hrvested volume (Setzer nd Shupe 1977, McLin 1985). Ntionl Forests did provide the mjority (78.5 percent) of house logs nd other products hrvested in 2007, but NIPF lndowners provided the mjority of swlogs, nd post nd poles (tble C3). Swlogs ccounted for bout 84 percent (73 MMBF) of the totl volume hrvested, house logs nd other products ccounted for bout 5 nd 7 percent respectively, nd posts nd poles were bout 3 percent of the hrvest in Tble C1: Colordo nonreserved timberlnd by ownership clss (source: Forest Inventory nd Anlysis progrm, 2008). Ownership clss Thousnd cres Percentge of nonreserved timberlnd Ntionl Forest 7, Privte 2, Other public 1, Totl 11, USDA Forest Service Resour. Bull. RMRS-RB

27 Tble C2: Colordo timber hrvest by ownership clss, 1982, 2002 nd 2007 (source: McLin 1985; Morgn nd others 2006). Ownership clss MBF Scribner Percentge of totl MBF Scribner Percentge of totl MBF Scribner Percentge of totl Privte nd tribl timberlnd 14, , , Privte 14, , , Tribl Public timberlnd 88, , , Ntionl Forest 83, , , Stte lnds 4, , , Other public All owners 103, , , Tble C3: Colordo timber products hrvested by ownership clss, Ownership clss Swlogs Post & pole House logs Other products Thousnd bord feet, Scribner All products Ntionl Forest 34,610 1,295 3,621 3,653 43,179 Privte timberlnd 35,939 1, ,467 40,810 Other public lnds 1, ,027 Tribl timberlnd All owners 73,006 2,768 4,614 6,152 86, Percentge of hrvested product by ownership---- Ntionl Forest Privte timberlnd Other public lnds Tribl timberlnd All owners Other products include furniture logs, fiber logs, vig logs, nd logs delivered to primry mnufcturers tht becme firewood. During 2007, Grnd County led Colordo s timber hrvest with just over 35 percent (30.4 MMBF Scribner) of the volume; Delt nd Mes Counties followed with 15 nd 6 percent, respectively (tble C4). For the 2002 hrvest, Grfield County led Colordo s timber hrvest with just under 12 percent (9.3 MMBF Scribner) nd Mes nd Ls Anims Counties followed with 11 nd 9 percent. In 1982, Jckson nd Montezum Counties led the hrvest with more thn 15 MMBF (14 percent) of the hrvest ech (McLin 1988). Lodgepole pine ws the leding species hrvested in Colordo, ccounting for 52 percent of the hrvested volume in 2007 (tble C5). This mjor shift in species hrvested from pst yers minly stemmed from mssive numbers of lodgepole pine trees either killed by or thretened by mountin pine beetle ttck. Aspen nd cottonwood ccounted for 20 percent, spruces, including Engelmnn nd blue spruce, ccounted for lmost 12 percent, while ponderos pine ccounted for 8 percent. Ponderos pine ws the most frequently hrvested species by volume in 2002 (28 percent), followed by spruces t 25 percent, then spen/cottonwood 19 percent nd lodgepole pine t only 15 percent (Morgn nd others 2006). In 1982, spruces were the leding species hrvested, ccounting for slightly more thn 40 percent, USDA Forest Service Resour. Bull. RMRS-RB

28 Tble C4: Colordo timber hrvest by county, selected yers (sources: Setzer nd Shupe 1977; McLin 1985; Morgn nd others 2006). County MBF Scribner Percentge of hrvest-- Adms Almos Archulet 24, , Boulder Chffee Cler Creek Conejos 6,007 1, Costill - - 3,684 4, Custer 2,383 2, Delt 1, ,376 13, Dolores 12,687 7,801 5,907 3, Dougls 213 1, Egle 5,221 1, Elbert El Pso Fremont - 1,100 1, Grfield 2, ,321 1, Gilpin Grnd 18, ,113 30, Gunnison 12,431 2,336 4,249 4, Huerfno 2,192 1, Jckson 20,786 16,273 4,373 2, Jefferson - 1, L Plt 39,950 1,271 2, Lke Lrimer 5,219 2,497 3, Ls Anims 993 1,600 7,057 2, Logn Mes 5,252 1,765 8,660 4, Minerl 11,876 6, Mofft Montezum 4,169 15,001 4,495 3, Montrose 2,714 7,735 3,029 1, Oury - 2, Prk 252 2,456 4,369 2, Pitkin Pueblo Rio Blnco Rio Grnde 10,857 9, Routt 10,442 1,976 1,143 2, Sguche 11,426 4, , Sn Jun Sn Miguel - 2,131 1, Summit , Teller , Totl 214, ,448 79,711 86, Less thn 0.05 percent. 24 USDA Forest Service Resour. Bull. RMRS-RB

29 Tble C5: Colordo timber hrvest by species, selected yers (sources: Setzer nd Shupe 1977; McLin 1985; Morgn nd others 2006). Species MBF Scribner Percentge of hrvest ---- Lodgepole pine 42,187 15,500 12,457 45, Aspen 4,825 12,737 15,292 17, Spruce 91,638 41,877 19,908 10, Ponderos pine 34,306 22,716 22,526 6, Dougls-fir 26,927 6,574 6,959 3, True firs b 14,142 3,986 2,512 3, Other species c All species 214, ,448 79,711 86, Spruce includes Engelmnn nd blue spruce. b True firs include white nd sublpine fir. c Other species includegmbel ok nd western redcedr. Tble C6: Colordo timber hrvest by species nd product, Species Swlogs House logs Posts nd poles Other products Thousnd bord feet, Scribner All products Lodgepole pine 42,187 1,277 1, ,026 Aspen 11, ,715 17,319 Spruce b 7,025 3, ,203 Ponderos pine 5, , ,899 Dougls-fir 3, ,946 True firs c 3, ,133 Other species d All species 73,006 4,614 2,769 6,152 86, Percentge of product by species Lodgepole pine Aspen Spruce b Ponderos pine Dougls-fir True firs c Other species d All species Other products include furniture logs, fiber logs, vig logs, nd logs delivered to primry mnufcturers tht becme firewood. b Spruce includes Engelmnn nd blue spruce. c True firs include white nd sublpine fir. d Other species include gmbel ok nd western redcedr. while ponderos pine ccounted for 22 percent (McLin 1985). Lodgepole pine nd spen were the leding species hrvested for swlogs in 2007, ccounting for lmost 58 nd 16 percent, respectively (tble C6). Spruces comprised 67 percent of the house log hrvest, lodgepole pine ws the leding species hrvested for posts nd poles, nd spen nd cottonwood ccounted for 93 percent of other products volume hrvested. USDA Forest Service Resour. Bull. RMRS-RB

30 Timber Flow Timber Use The mjority (98 percent) of Colordo s 2007 timber hrvest ws processed in-stte; during 2007 Colordo ws net importer of bout 7.3 MMBF of timber. About 1.6 MMBF were exported for processing in Uth, nd New Mexico; while 8.9 MMBF were imported from Uth, New Mexico, Wyoming, Arizon, Montn, Oklhom, nd Cnd for processing in Colordo (tble C7). Timber processors in Colordo received 93,871 MBF of timber in 2007, including 8,968 MBF tht ws hrvested outside the Stte. Privte nd tribl timberlnds provided 48 percent of the timber delivered to Colordo mills in 2007, with 44,325 MBF coming from privte lnds nd 534 MBF from tribl lnds (tble C8). Ntionl Forests provided bout 46.6 percent (43,790MBF) of timber receipts, with 27 less thn hlf of Colordo s timber processors receiving timber cut from Ntionl Forests. During 2007, Ntionl Forests provided Colordo log home mnufcturers with 84 percent of the house log volume processed in-stte, NIPF lndowners provided 14 percent, nd less thn 1 percent cme from Cnd. Privte timberlnds supplied the mjority of swlogs nd posts nd poles processed in Colordo, while public timberlnds provided the mjority of timber for other products. Colordo s 2007 timber hrvest pproximtely 21,578 MCF, exclusive of brk (fig. C1) ws used by severl mnufcturing sectors both within nd outside of Colordo. Of this volume, 13,362 MCF went s logs to swmills, 918 MCF went to log home mnufcturers, nd 7,298 MCF went to post, pole, vig, ltill, log furniture, nd excelsior mnufcturers. The following conversion fctors were used to convert Scribner bord foot volume to cubic feet: 5.08 bord feet per cubic foot for house logs; 5.27 bord feet per cubic foot for swlogs; 2.21 bord foot per cubic foot for ll other products. Of the 13,362 MCF of timber received by swmills, 5,027 MCF (38 percent) ws processed into finished lumber or other swn products, nd bout 150 MCF ws lost to shrinkge. The remining 8,185 MCF (61 percent) yielded mill residue. About 8,076 MCF of swmill residue ws utilized, nd bout 123 MCF (1 percent) remined unused. Of the 918 MCF of timber received by log home mnufcturers, bout 603 MCF (66 percent) ws mnufctured into house logs, while the remining 315 MCF becme mill residue. About 305 MCF of house log residue ws utilized, nd bout 10 MCF remined unused. Of the 7,298 MCF of timber Tble C7: Colordo timber products imports nd exports, Timber product Imports Exports Net imports (net exports) --Thousnd bord feet, Scribner-- Swlogs 2,103-2,103 House logs 1, ,618 Other products 5,127 1,517 3,610 All products 8,968 1,637 7,331 Other products include furniture logs, fiber logs, vig logs, nd logs delivered to primry mnufcturers tht becme firewood. 26 USDA Forest Service Resour. Bull. RMRS-RB

31 Tble C8: Timber received by Colordo forest products industry by ownership clss nd product, Ownership clss Swlogs Posts nd poles House logs Other products Thousnd bord feet, Scribner All products Privte nd tribl timberlnd 38,192 1, ,657 44,859 Privte 37,692 1, ,657 44,325 Tribl Public timberlnd 36, ,275 6,510 48,982 Ntionl Forest 34, ,237 3,663 43,790 Stte lnds 2, ,832 5,002 Other public Other owners Other mills Cnd All owners 75,109 1,364 6,232 11,167 93, Percentge of product by owner Privte nd tribl timberlnd Privte Tribl Public timberlnd Ntionl Forest Stte lnds Other public Other owners Other mills Cnd All owners Other products include furniture logs, fiber logs, vig logs, nd logs delivered to primry mnufcturers tht becme firewood. Forest Industry Sectors received by other mnufcturers, nerly 6,409 MCF ws utilized in solid wood products (such s posts, poles, vigs, ltills, nd log furniture) or ws used in the production of excelsior. About 885 MCF of residues from these other sectors were utilized nd 4 MCF went unused. Colordo s primry forest products industry in 2007 consisted of 64 ctive mnufcturers in 28 counties (tble C9). Fcilities tended to be locted ner the forest resource in the centrl nd southwestern portions of the Stte (fig. C2). The swmill sector, mnufcturing lumber nd other swn products, ws the lrgest sector operting in 2007 with 30 mills; 19 fcilities produced house logs nd log homes. There were nine log furniture producers, five post nd pole firms, nd n excelsior producer lso operting in Morgn nd others (2006) identified 133 primry wood-processing plnts in 2002: 50 swmills, 46 house log plnts, 10 post nd pole fcilities, nd 27 fcilities producing log furniture nd other products including shke mill, nd n excelsior mnufcturer. Chnges in Colordo s industry structure over the pst 20 yers were similr to those experienced throughout the West, with the number of swmills decresing nd the number nd diversity of USDA Forest Service Resour. Bull. RMRS-RB

32 Colordo Timber Hrvest nd Flow, 2007 Totl Hrvest 21,578 MCF House log nd log home mnufcturers 918 MCF Other plnts 7,298 MCF Swmills 13,362 MCF Utilized residue 8,076 MCF Unutilized residue 10 MCF Utilized residue 9,266 MCF Utilized residue 885 MCF Unutilized residue 4 MCF Unutilized residue 123 MCF Shrinkge 150 MCF Finished house logs nd log homes 603 MCF Other products 6,409 MCF Finished lumber nd other swn products 5,027 MCF Figure C1: Colordo timber hrvest nd flow, USDA Forest Service Resour. Bull. RMRS-RB

33 Tble C9: Active Colordo primry wood products fcilities by county nd product, 2007 (sources: McLin 1985; Morgn nd others 2006). County Lumber Log homes nd house logs Post nd pole Log furniture nd other products Arphoe 1 1 Archulet 3 3 Boulder Conejos 2 2 Custer 1 1 Delt 3 3 Denver 1 1 Egle 1 1 El Pso 1 1 Fremont Grfield Grnd Huerfno 1 1 Jefferson 1 1 L Plt Lrimer Ls Anims 1 1 Mes 1 1 Minerl 1 1 Montezum Montrose Prk 3 3 Rio Grnde 1 1 Routt 2 2 Sguche 1 1 Summit Teller 1 1 Weld Totl Totl Totl Other products include excelsior. Totl other mnufcturers incresing (Keegn nd others 2001,b; Morgn nd others 2004,b; Morgn nd others 2006). Historic sles vlues for Colordo s primry wood products producers were not provided by Setzer (1971b), Setzer nd Shupe (1977), or McLin (1985). In 2007, sles vlue of finished products from Colordo s primry wood products industry totled $101 million. This compres to 2002 sles of $109 million in 2007 dollrs (tble C10). Sles from swmills ccounted for 44 percent, bout the sme s 2002; house log nd log home mnufcturers ccounted for 24 percent, 5 percent drop from 2002; nd other products mnufcturers ccounted for bout 33 percent, n increse from 2002 of bout 5 percent of finished products sles. USDA Forest Service Resour. Bull. RMRS-RB

34 Figure C2: Mp of Colordo fcilities. Tble C10: Finished product sles of Colordo s primry wood products sectors, 2007 (source: Morgn nd others 2006). Sector Thousnds of 2007 dollrs Swmills $47,193 $45,043 Log homes 31,808 19,460 Other sectors b 30,136 36,652 Totl $109,137 $101,155 All sles re reported f.o.b. the mnufcturer s plnt. b Other sectors include producers of posts, poles, log furniture, nd excelsior. 30 USDA Forest Service Resour. Bull. RMRS-RB

35 Swmill Sector The number of swmills in Colordo decresed from 84 in 1982 (McLin 1985) to 50 in 2002 nd to 30 in 2007 (tble C11), with 20 swmills closing between 2002 nd Totl lumber production in the Stte incresed 39 percent from bout 83 MMBF in 2002 (Morgn nd others 2006) to115 MMBF, the verge production per mill incresed 129 percent from 1.7 MMBF to 3.9 MMBF. This increse is function of fewer mills producing more volume. The Stte s nine lrgest swmills in 2007 produced n verge of 11,788 MBF, nd seven of these mills produced between 2,000 MBF nd 5,000 MBF. The remining 21 mills produced less thn 442 MBF of lumber (tble C12). Technologicl improvements hve mde Colordo mills more efficient. For exmple, thinner kerf sws reduce the proportion of the log tht becomes swdust. Additionlly, mill-delivered log dimeters re believed to hve decresed over the pst 25 yers, with reduced old-growth hrvesting nd incresed use of restortion nd fuels tretments tht fvor retention of lrger trees nd the removl of smller stems. As log dimeters decrese, the Scribner log rule, which is used in Colordo, under estimtes by n incresing mount the volume of lumber tht cn be recovered from log, thus incresing overrun. On verge, Colordo swmills produced pproximtely 1.54 bord feet of lumber for every bord foot Scribner of timber processed for n verge overrun of 54 percent in 2007, slightly higher thn the 47 percent overrun in 2002 (Morgn nd others 2006). Overrun ws estimted to be 17 percent in 1982, using WWPA s (1983) lumber production nd McLin s (1985) swlog consumption. This overrun increse ws ttributed to improved milling technology nd the incresed use of smller dimeter timber. Tble C11: Number of Colordo swmills nd verge lumber production, selected yers (source: McLin 1985; WWPA 1983; Morgn nd others 2006). Yer Number of swmills Averge lumber production MMBF b MMBF = million bord feet lumber tlly. b Totl production 118 MMBF. Tble C12: Colordo lumber production by mill size, Size clss Number of mills Volume MBF b Percentge of totl Averge per mill MBF b Over 2 MMBF , ,829 Under 2 MMBF 21 7, Totl , ,746 Size clss is bsed on reported lumber production. MMBF denotes million bord feet lumber tlly. b MBF = thousnd bord feet lumber tlly. USDA Forest Service Resour. Bull. RMRS-RB

36 Log Home Sector Other Products Sectors Cpcity nd Utiliztion Sles from swmills declined from 2002 to 2007, ccounting for just 43.5 percent ($44 million) of Colordo timber processors finished products sles in 2007; this prllels 2002 numbers of 43 percent ($41.5 million) (Morgn nd others 2006). In comprison; swmill sles ccounted for 56 nd 49 percent of timber processors finished product sles in Arizon nd New Mexico, respectively, during 2007, nd historiclly ccounted for 90 percent or more of sles throughout the Interior West (Keegn nd others 2001,b,c; Morgn nd others 2004b). Dimension lumber nd studs ccounted for $28.1 million (64 percent) of swmill product sles in 2007; other swn products ccounted for $7.3 million (17 percent); mine timbers, cnts, nd rilrod ties ccounted for $5 million (11 percent); bord nd shop lumber ccounted for $2.2 million (5 percent); nd other miscellneous products ccounted for nerly $1.4 million (3 percent) of finished product sles from swmills. Colordo s log home sector experienced substntil growth nd then decline over the pst 25 yers. Twenty-seven less fcilities were identified in 2007 thn in 2002, wheres 41 more house log mnufcturers were identified in 2002 thn in 1982 (tble C9). Only firms tht processed timber nd mnufctured house logs or log homes, not log home distributors, were included in the 1982, 2002 nd 2007 censuses. In 2007, Colordo s 19 log home mnufcturers processed lmost 6 MMBF Scribner of timber, produced bout 1.3 million linel feet (MMLF) of house logs, nd generted $19.5 million in product sles. By sles vlue, Colordo s log home industry is the third lrgest in the Western United Sttes behind Montn nd Idho. Following the sme trend s the log home sector, Colordo s producers of posts nd poles nd other primry wood products significntly expnded production from 1982 to 2002; production then declined from 2002 to There were 21 less mnufcturers operting in this sector in 2007 compred to 2002, while 31 more fcilities operted in 2002 thn in 1982 (tble C9). In 2007, nine of these other products fcilities mnufctured log furniture, five were post nd pole producers, nd one ws n excelsior plnt. Finished products sles by mnufcturers of posts nd poles exceeded $9 million, nd sles by mnufcturers of log furniture nd excelsior exceeded $30 million in Additionl detil bout this sector is withheld to protect the confidentility of firm level informtion. Colordo s nnul swmill production cpcity ws MMBF of lumber in Swmills produced MMBF of lumber in 2007, utilizing 56 percent of their lumber production cpcity. This ws n increse from the historiclly low level of 35 percent production cpcity utiliztion of reported in 2002 (Morgn nd others 2006). Timber-processing cpcity mong Colordo swmills ws 121,927 MBF Scribner, with 72,007 MBF Scribner of timber processed, mking utiliztion of timber-processing cpcity mong swmills bout 59 percent in Across ll industry sectors, totl timber-processing cpcity ws 144,308 MBF Scribner. Accounting for chnges in mills log inventories, totl of 93,894 MBF Scribner ws processed by Colordo firms in 2007, mking timber-processing cpcity utiliztion bout 65 percent cross ll sectors. The greter timber-processing cpcity utiliztion of ll sectors compred to swmills lone would indicte tht processors 32 USDA Forest Service Resour. Bull. RMRS-RB

37 Mill Residue Volumes, Types, nd Uses Primry Forest Products Mrkets nd Sles other thn swmills were operting ner their totl timber cpcity nd re better positioned to utilize the mix of timber being offered in Colordo. Swmills, the leding timber processors, were lso the min residue producers in Colordo. In 2007, swmills produced 1.04 BDU of residue per MBF of lumber (tble C13). Across ll sectors, Colordo timber processors produced 121,982 BDU, pproximtely 11,729 MCF of mill residue, with 98.7 percent utilized (tble C14). Totl residue production declined from 22,749 MCF in 1974 nd 12,420 MCF in 1982, but incresed from 9,115 MCF in 2002, while the proportion utilized incresed from 40 percent in 1974 to 64 percent in 1982 (McLin 1985), to 98 percent in 2002 (Morgn nd others 2006). Colordo s decresed residue production stemmed from incresed milling efficiencies working in concert with decresed timber volumes processed. Incresed residue utiliztion between 1974 nd 2007 ws ttributble to decresed residue production nd the evolution of better mrkets for residue-relted products. Corse residue ws the Stte s lrgest residue component t 57 percent (69,552 BDU) of ll residues in 2007, with 99 percent utilized. Out-of-Stte pulp, pper, nd reconstituted bord fcilities used 43,300 BDUs of the corse mteril; the remining volume ws used for energy production nd unspecified uses (tble C14). Fine residues comprised the second lrgest component t 30 percent (36,639 BDUs) of mill residues. Almost 98 percent of fine residue ws utilized in 2007, primrily for energy, with little over one-third of fine residues going to mulch or niml bedding fcilities. Brk ccounted for 13 percent of ll residues nd ws lrgely burned for energy or used for mulch in 2007, with 15,596 BDUs (98 percent) utilized. Sles from Colordo s primry wood products industry during 2007 totled nerly $104 million, including finished products nd mill residues (tble C15). Lumber, mine timbers, nd other swn products ccounted for 43 percent (over $45 million) of totl sles; house logs nd log homes ccounted for 19 percent (over $19 million); while other products nd mill residues ccounted for 29 percent (slightly over $30 million). Colordo ws the leding mrket re for lumber, log homes, posts, poles, nd log furniture, within-stte sles ccounting for 47 percent of totl sles. The other Four Corners Sttes (Arizon, New Mexico, nd Uth) Tble C13: Colordo s swmill residue fctors, 2002 nd 2007 (source: Morgn nd others 2006). Type of residue BDU/MBF lumber tlly ---- Corse Swdust Plner shvings Brk Totl Bone-dry unit (BDU = 2,400 lb oven-dry wood) of residue generted for every 1,000 bord feet of lumber mnufctured. USDA Forest Service Resour. Bull. RMRS-RB

38 Tble C14: Production nd disposition of Colordo mill residues, Residue type Totl utilized Pulp nd bord Energy Mulch/ bedding Unspecified use Bone-dry units Unused Totl produced Corse 68,949 43,300 11,070-14, ,552 Fine 35,857-22,508 13, ,639 Swdust 25,378-16,001 9, ,976 Plner shvings 10,479-6,507 3, ,663 Brk 15,596-9,916 5, ,791 Totl 120,402 43,300 43,494 18,913 14,695 1, , Percentge of residue type Corse Fine Swdust Plner shvings Brk Totl Bone-dry unit = 2,400 lb oven-dry wood. Tble C15: Destintion nd sles vlue of Colordo s primry wood products nd mill residues, Product Colordo Other 4-Corner Sttes Other Rocky North Mtn Sttes Fr West b Northest c South d Centrl e Other f Totl Thousnd 2007 dollrs Lumber, mine timbers nd other swn products $32,874 $7,380 $1,905 $200 $28 $1,165 $1,490 - $45,042 House logs nd log homes 9,929 3, ,588 1,128-19,460 Posts, poles, nd log furniture 3,742 1, , ,142 Other products g 2,383 5,886 2,898 4, ,913 3,800 2,186 30,153 Totl $48,928 $18,672 $6,138 $5,734 $1,385 $13,711 $7,043 $2,186 $103, Percentge of product sles by region Lumber, mine timbers nd other swn products House logs nd log homes Posts, poles, nd log furniture Other products g Totl Other Rocky Mountins includes Idho, Montn, Nevd. b Fr West includes Alsk, Cliforni, Hwii, Oregon, nd Wshington. c Northest includes Connecticut, Mine, Msschusetts, New Hmpshire, New Jersey, New York, Pennsylvni, Rhode Islnd, nd Vermont. d South includes Albm, Arknss, Delwre, Florid, Georgi, Kentucky, Louisin, Mrylnd, Mississippi, North Crolin, Oklhom, South Crolin, Tennessee, Texs, Virgini, nd West Virgini. e North Centrl includes Illinois, Indin, Iow, Knss, Michign, Minnesot, Missouri, Nebrsk, North Dkot, Ohio, South Dkot, nd Wisconsin. f Other res consist of products being shipped outside the U.S. g Other products include excelsior, firewood, nd mill residues. ccounted for bout 18 percent of totl sles; the mjority of revenues were generted from sles of lumber nd log home products. The Southern U.S. ccounted for over 13 percent of totl sles, 18 percent of log home sles nd 26 percent of other products sles. The North Centrl Sttes, Fr West, nd Northest were mjor mrket res for other products, including excelsior nd mill residues. 34 USDA Forest Service Resour. Bull. RMRS-RB

39 New Mexico Timber Hrvest, Flow, nd Use This chpter focuses on New Mexico s timber hrvest nd forest products industry during 2007, nd discusses chnges tht occurred since the 2002 industry census conducted by Morgn nd others (2006). Detils of timber hrvest, flow, nd use re followed by descriptions of the primry processing sectors, cpcity nd utiliztion sttistics, nd mill residue chrcteristics. This chpter concludes with informtion on New Mexico s primry wood products industry sles. Timber Hrvest In 2003, New Mexico hd pproximtely 4.4 million cres of nonreserved timberlnd (O Brien 2003), with Ntionl Forests ccounting for 64 percent, privte nd tribl owners ccounting for 33 percent, nd other public gencies ccounting for the remining 3 percent (tble N1). All privte timberlnd ws clssified s NIPF timberlnd. With the exception of severl Ntive Americn tribes, New Mexico hd no lrge trcts of timberlnd owned by entities operting primry wood processing fcilities. Swtimber volume on nonreserved timberlnds ws estimted t 5.1 billion cubic feet or pproximtely 29.1 billion bord feet Scribner in 2008 (U.S. Deprtment of Agriculture, FIDO 2009). New Mexico s 2007 commercil timber hrvest ws 39,770 MBF Scribner, 53 percent of the 2002 hrvest, nd 40 percent of the 1997 hrvest (Morgn nd others 2006; Keegn nd others 2001b). The reduction in New Mexico s totl nnul timber hrvest since the lte 1980s ws primrily due to the decline of Ntionl Forest timber hrvest. As Ntionl Forest nd totl timber hrvest in the Stte declined, disproportionte nd diminishing shre of New Mexico s timber hrvest cme from Ntionl Forest timberlnds (tble N2). In 1966, 1969, 1974, nd 1986 Ntionl Forests ccounted for 50 percent or more of hrvested volume (Setzer nd Wilson 1970; Setzer 1971c; Setzer nd Brrett 1977; McLin 1989), wheres in 2002 nd 2007 Ntionl Forests ccounted for 14 percent of the hrvest volume (Morgn nd others 2006). Unlike other Sttes in the region where Ntionl Forests provided the mjority of house logs hrvested, the mjority of ech of the timber products hrvested in New Mexico cme from privte nd tribl timberlnds, nd Ntionl Forests provided less thn 20 percent of ech product, except the other products ctegory, which ws lmost 40 percent from Ntionl Forest (tble N3). Swlogs ccounted for lmost 83 percent (33 MMBF) of the totl volume hrvested. Tble N1: New Mexico nonreserved timberlnd by ownership clss (source: O Brien 2003). Ownership clss Thousnd cres Percentge of nonreserved timberlnd Ntionl Forest 2, Privte nd tribl 1, Other public Totl 4, USDA Forest Service Resour. Bull. RMRS-RB

40 Tble N2: New Mexico timber hrvest by ownership clss, 1997, 2002 nd 2007 (source: Keegn nd others 2001b; Morgn nd others 2006). Ownership clss MBF Scribner Percentge of totl MBF Scribner Percentge of totl MBF Scribner Percentge of totl Privte nd tribl timberlnd 85, , , Privte 61, , , Tribl 24, , , Public timberlnd 11, , , Ntionl Forest 11, , , Stte timberlnd , All owners 97, , , Tble N3: New Mexico timber products hrvested by ownership clss, Ownership clss Swlogs Vigs House logs Other products Thousnd of bord feet, Scribner All products Tribl timberlnd 18, ,030 Privte timberlnd 11,388 1, ,730 14,971 Ntionl Forest 3, ,800 5,644 Stte timberlnd ,125 1,125 All owners 32,827 2, ,655 39, Percentge of hrvested product by ownership Tribl timberlnd Privte timberlnd Ntionl Forest Stte timberlnd All owners Other products include posts, poles, furniture logs, fiber logs, nd logs delivered to primry mnufcturers tht becme firewood. In 2007, s in 2002, Otero County led New Mexico s timber hrvest with slightly more thn 47 percent of totl volume; Colfx nd Sndovl Counties followed, with 24 nd 6 percent, respectively (tble N4). Otero County hs ccounted for n incresing shre of New Mexico s timber hrvest, with 7 percent in 1966, 10 percent in 1986, 38 percent in 1997, nd 42 percent in Historiclly, Rio Arrib hs been mong the Stte s top three timber-producing counties, ccounting for 15 percent or more of nnul hrvest volumes until 2007 when it only contributed 4.4 percent. Colfx County, however, ws not significnt contributor to New Mexico s nnul hrvest until 2007, only periodiclly ccounting for more thn 10 percent of hrvest in previous censuses (Setzer nd Wilson 1970; McLin 1989; Keegn nd others 2001b; Morgn nd others 2006). Ponderos pine continued to be the leding species hrvested in New Mexico, ccounting for nerly 47 percent of the hrvest in 2007; Dougls-fir retined its long-held position s the second most hrvested species (tble N5). White nd sublpine firs nd Engelmnn spruce together ccounted for bout 20 percent of the 2007 hrvest. Ponderos pine ws the leding species hrvested for swlogs, vigs, nd house logs in 2007 (tble N6). Dougls-fir nd true firs were substntil components of the swlog hrvest, while Engelmnn spruce ws minor component 36 USDA Forest Service Resour. Bull. RMRS-RB

41 Tble N4: New Mexico timber hrvest by county, selected yers (sources: Setzer nd Wilson 1970; McLin 1989; Keegn nd others 2001b; Morgn nd others 2006). County MBF Scribner Percentge Bernlillo Ctron 25,588 29,494 2, , Cibol - 13,857 7, Colfx 32,853 4,000 18,450 3,777 9, Eddy Grnt Lincoln - 1, , Los Almos McKinley 36,692-2, Mor 957 3,830 2,040 10, Otero 17,335 16,982 36,866 30,825 18, Rio Arrib 37,156 69,367 17,107 17,869 1, Sndovl 66,619 5,932 4,360 1,200 2, Sn Jun - 8, Sn Miguel 9,140 2,075 2,259 8, Snt Fe - 2, , Socorro 2,739-1, Tos 6,767 7,066 1, , Torrnce Vlenci 4, Totl b 242, ,342 97,626 74,361 39, Less thn 0.05 percent. b Percentge detil my not sum to 100% due to rounding. Tble N5: New Mexico timber hrvest by species, selected yers (sources: Setzer nd Wilson 1970; McLin 1989; Keegn nd others 2001b; Morgn nd others 2006). Species Percentge of hrvest Ponderos pine Dougls-fir True firs Other species b 15 4 < Engelmnn spruce All species True firs include white nd sublpine fir. b Other species include limber pine nd spen. of house logs t 13 percent. Engelmnn spruce nd Dougls-fir were lso smll components of the vig hrvest. Ponderos pine ws the leding species hrvested for other products, while spen nd other species were lso significnt components to the other product ctegory, which includes posts, poles, furniture logs, nd fire wood logs. USDA Forest Service Resour. Bull. RMRS-RB

42 Tble N6: New Mexico timber hrvest by species nd product, Species Swlogs Vigs House logs Other products Thousnd of bord feet, Scribner All products Ponderos pine 14,334 1, ,786 18,579 Dougls-fir 9, ,943 White fir 6, ,909 Lodgepole pine 1, ,557 Other species b ,475 1,484 Engelmnn spruce 1, ,298 All species 32,827 2, ,655 39, Percentge of product by species Ponderos pine Dougls-fir White fir Lodgepole pine Other species b Engelmnn spruce All species Other products include posts, poles, furniture logs, fiber logs, nd logs delivered to primry mnufcturers tht becme firewood. b Other species include lligtor juniper, Rocky Mountin juniper, two-needle pinyon, Western redcedr, nd Aspen. Timber Flow Timber Use The vst mjority (93 percent) of New Mexico s 2007 timber hrvest ws processed in Stte; however, New Mexico ws net exporter of timber. Almost 3 MMBF were exported for processing in Colordo, while smll mount of timber ws imported from Colordo for processing in New Mexico (tble N7). Timber processors in New Mexico received 37,917 MBF of timber in 2007, including 1,125 MBF tht ws hrvested outside the Stte. Timber receipts dropped nerly 45 percent since 2002, when New Mexico mills received 68,858 MBF of timber. Ownership sources of timber delivered to New Mexico mills chnged slightly since 2002, with the proportion from privte nd tribl lnds decresing from 85 percent to 79 percent in 2007 (tble N8). Ntionl Forests supplied timber to 10 less thn hlf of New Mexico s mills in 2007, ccounting for 18 percent of mill receipts, which ws n increse from 2002 when Ntionl Forests supplied just 15 percent of the timber received by New Mexico mills. Unlike other Sttes in the region, Ntionl Forests did not provide New Mexico forest products mnufcturers with lrge portion of timber products, supplying less thn 11 percent of swlogs, 26 percent of vigs, no house logs, but 60 percent of other products, mostly post nd poles nd firewood logs to the industry in 2007 (tble N9). New Mexico s 2007 timber hrvest pproximtely 10,813 MCF, exclusive of brk (fig. N1) ws used by severl mnufcturing sectors both within nd outside of New Mexico. Of this volume, 5,673 MCF went s logs to swmills, 485 MCF went to log home nd vig mnufcturers, nd 4,655 MCF went to other plnts, 38 USDA Forest Service Resour. Bull. RMRS-RB

43 Tble N7: New Mexico timber products imports nd exports, Timber product Imports Exports Net imports (net exports) Thousnd bord feet, Scribner Swlogs - 1,548 (1,548) House logs - 15 (15) Other products 1,125 1,415 (290) All products 1,125 2,978 (1,853) Other products include posts, poles, furniture logs, fiber logs, nd logs delivered to primry mnufcturers tht becme firewood. Tble N8: Ownership of timber products received by New Mexico mills, 1997, 2002 nd 2007 (sources: Keegn nd others 2001b; Morgn nd others 2006). Ownership clss MBF Scribner Percentge of totl MBF Scribner Percentge of totl MBF Scribner Percentge of totl Privte nd tribl timberlnd 82, , , Privte 57, , , Tribl 24, , , Ntionl Forests 8, , , Stte Lnds , All owners 90, , , Tble N9: Timber received by New Mexico forest products industry by ownership clss nd product, Ownership clss Swlogs Vigs House logs Other products All products Thousnd of bord feet, Scribner Tribl timberlnd 18, ,030 Privte timberlnd 9,840 1, ,993 Ntionl Forest 3, ,925 6,769 Stte lnds ,125 1,125 All owners 31,279 1, ,865 37, Percentge of product by owner Tribl timberlnd Privte timberlnd Ntionl Forest Stte lnds All owners Other products include posts, poles, fiber logs, nd logs delivered to primry mnufcturers tht becme firewood. including post, pole, log furniture, nd excelsior mnufcturers. The following conversion fctors were used to convert Scribner bord foot volume to cubic feet: 5.75 bord feet per cubic foot for swlogs; 5.17 bord feet per cubic foot for house logs nd vigs; 1.02 bord foot per cubic foot for ll other products. Of the 5,673 MCF of timber received by swmills, 2,600 MCF (46 percent) ws mnufctured into finished lumber or other swn products, nd bout 114 MCF USDA Forest Service Resour. Bull. RMRS-RB

44 New Mexico Timber Hrvest nd Flow, 2007 Totl Hrvest 10,813 MCF House log nd vig mnufcturers 485 MCF Other plnts 4,655 MCF Swmills 5,673 MCF Utilized residue 2,610 MCF Utilized residue 3,016 MCF Utilized residue 227 MCF Unutilized residue 1 MCF Unutilized residue 350 MCF Shrinkge 114 MCF Finished house logs nd log homes 306 MCF Other products 4,427 MCF Finished lumber nd other swn products 2,600 MCF Figure N1: New Mexico timber hrvest nd flow, USDA Forest Service Resour. Bull. RMRS-RB

45 Forest Industry Sectors ws lost to shrinkge. The remining 2,959 MCF (52 percent) yielded mill residue. About 2,610 MCF of swmill residue ws utilized, nd bout 350 MCF (12 percent) remined unused. Of the 485 MCF of timber received by log home nd vig mnufcturers, bout 306 MCF (63 percent) ws used for house logs, while the remining 179 MCF becme mill residue. All of the 179 MCF of house log residue ws utilized. Of the 4,655 MCF of timber received by other mnufcturers, bout 4,427 MCF ws utilized in solid wood products such s posts, poles, fuel wood, log furniture, or ws used in the production of excelsior. About 227 MCF of residues from these other sectors were utilized, nd 1 MCF went unused. New Mexico s primry forest products industry in 2007 consisted of 24 ctive mnufcturers in 12 counties (tble N10). Fcilities tended to be locted ner the forest resource in north-centrl New Mexico nd in Otero County (fig. N2). The swmill sector, mnufcturing lumber nd other swn products, ws the lrgest sector operting during 2007, with 12 fcilities 9 less mills thn were operting in Five fcilities produced vigs nd ltills, decrese of three since The number of other products mnufcturers operting in 2007 remined t seven, with one post nd pole mnufcturer, one log home producer, two brk product fcilities, one firewood producer nd two wood shving/excelsior fcilities. Keegn nd others (2001b) noted tht two prticlebord plnts nd medium density fiberbord (MDF) fcility operted in New Mexico in One prticlebord plnt closed in the erly 1990s, the MDF plnt closed in 1996, nd the prticlebord fcility operting in 1997 ws deemed inoperble in 2002 nd ws thus not included in the current nlysis. Primry wood products sles s well s the number of producers continued to decrese, with finished product sles in 2007 flling 51 percent since 2002 (tble N11). The overll drop in sles ws due to the drmtic decrese in swmilling Tble N10: Active New Mexico primry wood products fcilities by county nd product, 2007 (sources: McLin 1989; Keegn nd others 2001b; Morgn nd others 2006). County Lumber Vigs nd ltills Other Totl Bernlillo 1 1 Ctron 1 1 Colfx Grnt Lincoln 1 1 Mor 1 1 Otero Rio Arrib 1 1 Sn Miguel Sndovl Snt Fe Tos Totl Totl Totl Totl Other products include posts, poles, log homes, firewood, nd brk products. USDA Forest Service Resour. Bull. RMRS-RB

46 Figure N2: Mp of New Mexico fcilities. Swmill Sector sles but lso in the vig nd ltill sectors. Among other products, sles incresed 15 percent since In 1997 nd in 2002, lumber ccounted for 74 percent of totl wood product sles but in 2007 it ws only 49 percent. In 2007, sles from other product mnufcturers ccounted for 39 percent of finished products sles versus nerly 17 percent of sles in With the net loss of nine swmills since 2002, totl lumber production in New Mexico dropped 51 percent from bout 81.5 MMBF in 2002 to less thn 40 MMBF in 2007; most of the Stte s lumber production shifted to mills producing less thn 10 MMBF nnully by 2007 (tble N12). Closure of those nine mills cused verge nnul lumber production to fll 15 percent from 3.9 MMBF to 3.3 MMBF per mill (tble N13). In 2007, the Stte s six lrgest swmills produced n verge of 6.4 MMBF, ccounting for 97 percent of lumber production in New Mexico. The remining 6 mills hd n verge nnul lumber production of less thn 204 MBF 42 USDA Forest Service Resour. Bull. RMRS-RB

47 Tble N11: Finished product sles of New Mexico s primry wood products,selected yers (sources: McLin 1989; Miller Freemn, Inc. 1998; Keegn nd others 2001b; Morgn nd others 2006). Product Thousnd 2007 dollrs---- Lumber nd swn products $114,881 $53,122 $38,941 $12,616 Vigs nd ltills 4,453 12,555 5,225 3,149 Other products 5,566 5,744 8,804 10,102 Totl b $124,900 $71,421 $52,970 $25,867 Other products include posts, poles, log homes, log furniture, nd brk products. b All sles re reported f.o.b. the mnufcturer s plnt. Tble N12: New Mexico swmills by production size clss, selected yers (sources: Setzer nd Wilson 1970; McLin 1989; Keegn nd others 2001b; Morgn nd others 2006). Yer Under 10 MMBF Over 10 MMBF Totl Number of swmills c c c Percentge of lumber output--- Volume (MBF b ) 2007 c c 39, , , , , c c 242, c c 224,400 Size clss is bsed on reported lumber production. MMBF denotes million bord feet lumber tlly. b MBF = thousnd bord feet lumber tlly. c In 1960, 1962 nd 2007 ll mills were included in <10 MMBF to void disclosing individul opertions. per mill (tble N14). The continued declines in New Mexico s swmill sector were direct result of decresing timber hrvests in the Stte; however, the implementtion of restortion nd hzrdous fuel reduction tretments in the Stte could spur recovery of the swmill sector (Fiedler nd others 2002). On verge, New Mexico swmills produced pproximtely 1.28 bord feet of lumber for every bord foot Scribner of timber processed in Overrun verged 26 percent in 2002 (Morgn nd others 2006). The slight overrun increse from 2002 to 2007 ws likely due to the incresed proportion of lumber production by lrger mills, which typiclly re more efficient nd use smller logs, nd sw lrger proportion of dimension nd stud wood. In 2007, lumber produced by New Mexico s swmills consisted of: 63 percent dimension nd studs, 35 percent timbers, nd 2 percent bord nd shop lumber nd cnts. Dimension lumber ccounted for $6.3 million (50 percent) of swmill product sles in 2007, timbers were bout USDA Forest Service Resour. Bull. RMRS-RB

48 Tble N13: Number of New Mexico swmills nd verge lumber production, selected yers (sources: McLin 1989; Setzer nd Wilson 1970; Keegn nd others 2001b; Morgn nd others 2006). Yer Number of swmills Averge production per mill MMBF MMBF = million bord feet lumber tlly. Tble N14: New Mexico lumber production by mill size, Size clss Number of mills Volume Percentge of totl Averge per mill MBF b MBF b Over 1 MMBF 6 38, ,433 Under 1 MMBF 6 1, Totl 12 39, ,319 Size clss is bsed on reported lumber production. MMBF denotes million bord feet lumber tlly. b MBF = thousnd bord feet lumber tlly. Vig nd Ltill Sector Other Products Sector $5.9 million (48 percent), nd bord nd shop lumber nd cnts ccounted for $285 thousnd (2 percent). New Mexico s vig nd ltill sector continued to contrct between 2002 nd Three fewer vig nd ltill mnufcturers were identified in 2007 thn in 2002, nd sles dropped by more thn $2 million (40 percent). In 2007, the five firms remining in the sector processed 2,412 MBF Scribner of timber versus 3,393 MBF processed in 2002 (Morgn nd others 2006). At just over 828 thousnd linel feet of vigs nd ltills produced in 2007, production dropped substntilly from 2002 when more thn 1 million linel feet were produced. The continued contrction of the sector in 2007 emphsized the reversl of the previous decde s sector growth noted by Keegn nd others (2001b). However, becuse of the prt-time nture of mny vig nd ltill opertions, the sector my gin show incresed production nd sles in the future if demnd for trditionl styles of construction should increse nd if sufficient timber were vilble. The sme mills generlly produced other primry wood products in 2007 s in 2002; no new fcilities opened during this 5-yer period. Product sles by 44 USDA Forest Service Resour. Bull. RMRS-RB

49 Cpcity nd Utiliztion Mill Residue Volumes, Types, nd Uses mnufcturers of posts, poles, log homes, fire wood, brk nd mulch, nd wood shvings producers exceeded $10 million in 2007; this ws n increse of lmost 14 percent over the period. Infltion-djusted sles from the sector were bout $8.8 million in Additionl detil bout the sector is withheld to protect the confidentility of firm level informtion. New Mexico s nnul lumber production cpcity ws 67,425 MBF in Swmills produced 39,823 MBF of lumber nd utilized bout 59 percent of their production cpcity. Across ll industry sectors, totl timber-processing cpcity ws 61,941 MBF Scribner. Accounting for chnges in log inventories, totl of 36,803 MBF Scribner ws processed by New Mexico firms in 2007, with totl timber-processing cpcity utiliztion bout 59 percent. Swtimber-processing cpcity ws 170,000 MBF Scribner in 1997, with 48 percent utilized (Keegn nd others 2001b). In 2002, swtimber-processing cpcity fell to 88,162 MBF Scribner, with 65,116 MBF Scribner (74 percent) utilized (Morgn nd others 2006). Decresed cpcity nd cpcity utiliztion in the swmill sector resulted from the permnent closure of lrge swmills, which were operting well below cpcity in In 1997, Arizon s lone pper mill nd the prticlebord plnt in New Mexico were the lrgest consumers of mill residues generted in New Mexico. As previously indicted, the pper mill shifted to using recycled mteril nd the prticlebord plnt closed, thus ffecting residue utiliztion nd other spects of timberprocessing in New Mexico nd Arizon. Swmills, New Mexico s leding timber processors, were the min residue producers in the Stte. Swmills hd to develop new mrkets for their residues, utilize more of the residues in-house, or consider cutting production to void generting more residue thn could be disposed of ffordbly. The lck of outlets for mill residues lso negtively impcted the bility of swmills to process smll-dimeter timber (Fiedler nd others 2002), which typiclly cretes more residue per unit of lumber produced. During 2007, New Mexico mills produced 42,896 BDUs (pproximtely 5,820 MCF) of mill residue with 91.4 percent being utilized (tble N15). Both residue production nd the proportion utilized decresed from 2002, when New Mexico swmills generted 9,120 MCF, utilizing 95.7 percent (Morgn nd others 2006). New Mexico s drop in residue utiliztion between 2002 nd 2007 signled reversl of the long-term trend of incresed residue utiliztion noted by Keegn nd others (2001b) nd ws lrgely ttributble to closure of the prticlebord plnt nd chnges t the Arizon pper mill. The decrese in totl residue volume generted ws due to two fctors: substntilly smller volume of timber being processed nd swmills creting fewer residues per unit of lumber produced. In 1997, swmills produced bout 1.22 BDUs per MBF of lumber; by 2007 tht residue fctor hd dropped to 1.03 BDUs per MBF of lumber (tble N16). Corse residue (chips) ws the Stte s lrgest residue component t 54.5 percent (23,367 BDU) of ll residues in 2007, with 100 percent utilized. Energy fcilities used bout 22,369 BDUs of the corse mteril, with the remining utilized volume going to unspecified uses (tble N15). Fine residues swdust nd plner shvings comprised the second lrgest component t 23.4 percent (10,032 BDU) USDA Forest Service Resour. Bull. RMRS-RB

50 Tble N15: Production nd disposition of New Mexico mill residues, Residue type Totl utilized Pulp nd bord Energy Mulch/ bedding Unspecified use Bone-dry units Unused Totl produced Corse 23,359-22, ,367 Fine 6, ,562-3,470 10,032 Swdust 3, ,862-3,470 7,332 Plner shvings 2, , ,700 Brk 9, , ,497 Totl 39,215-22,660 15, ,681 42, Percentge of residue type Corse Fine Swdust Plner shvings Brk Totl Bone-dry unit = 2,400 lb oven-dry wood. Tble N16: New Mexico swmill residue fctors, 1997, 2002 nd 2007 (source: Keegn nd others 2001b; Morgn nd others 2006). Type of residue BDU/MBF lumber tlly Corse Swdust Plner shvings Brk Totl Bone-dry unit (BDU = 2,400 lb oven-dry wood) of residue generted for every 1,000 bord feet of lumber mnufctured. Primry Forest Products Mrkets nd Sles of mill residues. Only 65.4 percent of fine residue ws utilized in 2007, primrily s mulch nd niml bedding. Brk ccounted for 22.1 percent of ll residues nd ws lrgely used for mulch, with 9,294 BDUs (98.0 percent) utilized in Sles from New Mexico s primry wood products industry in 2007 totled slightly over $26 million, including finished products nd mill residues (tble N17). Lumber, mine timbers, nd other swn products ccounted for 48 percent ($12.6 million) of totl sles; other products nd mill residues ccounted for 40 percent ($10.3 million); while vigs nd ltills ccounted for 12 percent ($3.1 million). New Mexico ws the leding mrket re for vigs, ltills, nd other products, ccounting for 86.8 percent of vig nd ltill sles nd 40.7 percent of other products sles. The other Four Corners Sttes (Arizon, Colordo, nd Uth) s well s New Mexico ccounted for 46 percent of lumber sles, nd other res (outside the United Sttes) mostly Mexico ccounted for more thn 35 percent. 46 USDA Forest Service Resour. Bull. RMRS-RB

51 Tble N17: Destintion nd sles vlue of New Mexico s primry wood products nd mill residues, Product New Mexico Other 4-Corner Sttes Other Rocky North North Mtn Sttes Fr West b -est c South d Centrl e Other f Totl Thousnd 2007 dollrs Lumber, mine timbers nd other swn products $4,035 $1,804 $1,080 $1,080 - $161 - $4,456 $12,616 Vigs nd ltills 2, ,149 Other products g 4,207 3,136 1,210 1, ,337 Totl $10,975 $5,256 $2,290 $2,368 - $676 $81 $4,456 $26, Percentge of product sles by region Lumber, mine timbers nd other swn products Vigs nd ltills Other products g Totl Other Rocky Mountins includes Idho, Montn, Nevd. b Fr West includes Alsk, Cliforni, Hwii, Oregon, nd Wshington. c Northest includes Connecticut, Mine, Msschusetts, New Hmpshire, New Jersey, New York, Pennsylvni, Rhode Islnd, nd Vermont. d South includes Albm, Arknss, Delwre, Florid, Georgi, Kentucky, Louisin, Mrylnd, Mississippi, North Crolin, Oklhom, South Crolin, Tennessee, Texs, Virgini, nd West Virgini. e North Centrl includes Illinois, Indin, Iow, Knss, Michign, Minnesot, Missouri, Nebrsk, North Dkot, Ohio, South Dkot, nd Wisconsin. f Other res consist of products being shipped outside the United Sttes. g Other products include posts, poles,log homes, log furniture, brk products, firewood, nd mill residues. Uth Timber Hrvest, Flow, nd Use This chpter focuses on Uth s timber hrvest nd forest products industry during Detils of timber hrvest, flow, nd use re followed by descriptions of the primry processing sectors, cpcity nd utiliztion sttistics, nd mill residue chrcteristics. The chpter concludes with informtion on primry wood products industry sles by Uth mills. Comprisons to previous yers re provided where possible. Limited historicl informtion is vilble bout timber hrvesting nd mill production nd residues in Uth. The lst comprehensive study of the Stte s industril roundwood production nd mill residues ws conducted in 2002 (Morgn nd others 2006), nd dt for previous yers include 1966 (Setzer nd Wilson 1970), 1969 (Setzer 1971d), 1970 (Green nd Setzer 1974), 1974 (Setzer nd Throssell 1977b), nd 1992 (Keegn nd others 1995). In 2008, Uth hd pproximtely 4.1 million cres of nonreserved timberlnd (U.S. Deprtment of Agriculture, FIDO 2009) with Ntionl Forests ccounting for 73 percent, privte nd tribl owners ccounting for 18 percent, nd other public gencies ccounting for the remining 9 percent (tble U1). All privte timberlnd ws clssified s NIPF timberlnd. Uth hd no lrge trcts of timberlnd owned by entities operting primry wood processing fcilities. Swtimber volume on nonreserved timberlnds ws estimted t 4.8 billion cubic feet or pproximtely USDA Forest Service Resour. Bull. RMRS-RB

52 Tble U1: Uth nonreserved timberlnd by ownership clss (source: Forest Inventory nd Anlysis progrm, 2008). Ownership clss Thousnd cres Percentge of nonreserved timberlnd Ntionl Forest 2, Privte nd tribl Other public Totl 4, Tble U2: Uth timber products hrvested by ownership clss, Ownership clss Swlogs House logs Other products All products Thousnd bord feet, Scribner Ntionl Forests 8,666 5,660 1,164 15,490 Privte nd tribl timberlnd 8,679 1,690 1,301 11,669 Other public b 330-2,832 3,162 All owners 17,675 7,350 5,296 30, Percentge of hrvested product by ownership--- Ntionl Forests Privte nd tribl timberlnd Other public b All owners Other products include industril fuelwood, furniture logs, fiber logs, posts, nd poles. b Other ownership clss includes BLM nd Stte. Timber Hrvest 24.8 billion bord feet Scribner in 2008 (U.S. Deprtment of Agriculture, FIDO 2009). Uth s 2007 commercil timber hrvest ws 30.3 MMBF Scribner (tble U2), 27 percent less thn the 2002 hrvest of pproximtely 41 MMBF Scribner (Morgn nd others 2006), nd 51 percent less thn the 1974 hrvest of 62 MMBF (Setzer nd Throssell 1977b). The decrese in Uth s totl nnul timber hrvest since 1992 ws lrgely due to the decline in Ntionl Forest timber hrvest. In 1966 nd 1970, Ntionl Forests ccounted for 94 nd 88 percent, respectively, of hrvested volume (Setzer nd Wilson 1970; Green nd Setzer 1974). In 1992, Ntionl Forest timber ccounted for lmost 50.0 MMBF (77 percent) of the nnul hrvest (Keegn nd others 1995); in 2007 the gency provided only 15.5 MMBF (51 percent). As in most of the Western Sttes, decresing Federl timber hrvests hve led to greter shres of nnul timber hrvest coming from other ownership sources. Ntionl Forests still provide the mjority of the Stte s hrvest, but the volume nd proportionte shre supplied by privte nd tribl owners continues to increse. During 2007, privte nd tribl lndowners ccounted for 38.5 percent (11.7 MMBF) of Uth s timber hrvest, bout the sme percent s in Ntionl Forests provided the mjority (77 percent) of house logs hrvested in 2007, but mong swlogs nd other products (e.g., furniture logs, fiber logs, posts, poles, nd industril fuelwood) privte timberlnds nd Ntionl Forests were evenly split ech providing slightly less thn 50 percent (tble U2). Swlogs ccounted 48 USDA Forest Service Resour. Bull. RMRS-RB

53 Tble U3: Uth timber hrvest by county, selected yers (sources: Setzer nd Throssell 1977b; Keegn nd others 1995; Morgn nd others 2006). County MBF Scribner Percentge Bever 155 2, Cche 1, ,180 1, Crbon ,670 1, Dggett 3,193 2, Dvis Duchesne 2,539 1,767 3,469 1, Emery Grfield 8,502 7,047 3,446 3, Grnd 5, , Iron - 1, , Jub Kne 6,480 4,117 5, Millrd Morgn Piute , Rich 2,159-3, Slt Lke Sn Jun 5,000 4,503 1,444 1, Snpete 520 3,750 2,468 3, Sevier 715 3,663 1,703 1, Summit 5,589 10,000 4,107 2, Uinth 14,652 16,624 2,715 1, Uth Wstch 1,606 2,908 3,750 4, Wshington , Wyne 3,905 2, Weber Totl 62,465 64,666 41,268 30, Less thn 0.05 percent. for bout 58 percent (17.6 MMBF) of the totl volume hrvested in 2007, house logs were 24 percent, nd other products ccounted for bout 18 percent. In 2007, Wstch County led Uth s timber hrvest, with 14 percent (4.3 MMBF Scribner) of totl volume; Snpete nd Grfield Counties followed with 13 nd 10 percent, respectively (tble U3). In 2002, Kne nd Summit Counties led the hrvest with 5.5 MMBF (13 percent) nd 4.1 MMBF (10 percent) of the hrvest, respectively (Morgn nd others 2006). Spruces, including Engelmnn nd blue spruce, were the leding species hrvested in Uth, ccounting for 42 percent (12.6 MMBF) of the hrvest in 2007 (tble U4). Aspen nd cottonwood ccounted for 29 percent, lodgepole pine for 13 percent, Dougls-fir ccounted for 11 percent while ponderos pine only ccounted for 3 percent of hrvest. In 2002, spruce ws the leding species hrvested, ccounting for 44 percent, while lodgepole ccounted for 23 percent (Morgn nd others 2006). During the 1960s nd 1970s, ponderos pine ws the leding species hrvested, ccounting for 30 to 50 percent of the hrvest; while lodgepole pine USDA Forest Service Resour. Bull. RMRS-RB

54 Tble U4: Proportion of Uth timber hrvest by species, selected yers (sources: Setzer nd Wilson 1970; Setzer 1971d; Setzer nd Throssell 1977b; Keegn nd others 1995; Morgn nd others 2006). Species Percentge of hrvest Engelmnn spruce Aspen nd cottonwood c c Lodgepole pine Dougls-fir Ponderos pine True firs Other species b c c c All species True firs include white, sublpine, nd corkbrk fir. b Other species include juniper nd hrdwoods. c Less thn 0.5 percent. Tble U5: Uth timber hrvest by species nd product, Species Swlogs House logs Other products c All products Thousnd bord feet, Scribner Engelmnn spruce 6,517 5, ,607 Aspen nd cottonwood 5, ,601 8,730 Lodgepole pine 1,430 1,372 1,187 3,989 Dougls-fir 2, ,260 Ponderos pine 1, ,080 True firs Other species b All species 17,675 7,350 5,297 30, Percentge of product by species Engelmnn spruce Aspen nd cottonwood Lodgepole pine Dougls-fir Ponderos pine True firs Other species b d - d d All species True firs include white, sublpine, nd corkbrk fir. b Other species include juniper nd hrdwoods. c Other products include industril fuelwood, furniture logs, fiber logs, posts, nd poles. d Less thn 0.1 percent nd spruces ech ccounted for 15 to 25 percent (Setzer nd Wilson 1970; Setzer 1971d; Green nd Setzer 1974; Setzer nd Throssell 1977b). Spruces were the leding species hrvested for swlogs nd houselogs in 2007, ccounting for 6.5 nd 5.6 MMBF (37 nd 77 percent), respectively (tble U5). Aspen nd cottonwood ccounted for slightly more thn 3.6 MMBF (68 percent) of the volume hrvested for other products. Lodgepole pine ws the leding component of house logs (19 percent) nd of other products (22 percent). 50 USDA Forest Service Resour. Bull. RMRS-RB

55 Timber Flow Timber Use The mjority (83 percent) of Uth s 2007 timber hrvest ws processed in-stte; however, Uth ws net exporter of lmost 2.9 MMBF of timber. About 5.2 MMBF were exported for processing in Colordo, Wyoming, Idho, nd Arizon; while 2.3 MMBF were imported for processing in Uth from Arizon, Colordo, Idho, Montn, Wyoming, nd s fr wy s Oregon nd Cnd (tble U6). Timber processors in Uth received 27,470 MBF of timber in 2007, including 2,336 MBF tht ws hrvested outside the Stte. Privte nd tribl timberlnds provided 11,587 MBF (42 percent) of the timber delivered to Uth mills in 2007 (tble U7). Ntionl Forests provided 56 percent (15,502 MBF) of timber receipts, with more thn hlf (14) of Uth s timber processors receiving timber cut from Ntionl Forests. In 2002, Uth mills received 18 percent more timber. Ntionl Forests supplied 67 percent (21,898 MBF) of the timber in 2002, nd privte nd tribl owners supplied 28 percent (9,241 MBF). During 2007, Ntionl Forests provided Uth timber processors with 68 percent of house logs, 54 percent of swlogs, nd 52 percent of other timber products including fiber logs, furniture logs, nd posts, nd poles (tble U8). NIPF nd tribl lndowners provided 45 percent of swlogs, 32 percent of houselogs, nd 46 percent of other timber products. Stte lnds provided less thn 1 percent of the timber received by mills in Uth. Uth s 2007 timber hrvest pproximtely 7,082 MCF, exclusive of brk (fig. U1) ws used by severl mnufcturing sectors both within nd outside of Uth. Of this volume, 3,459 MCF went s logs to swmills, 1,842 MCF went to log home mnufcturers, nd 1,781 MCF went to other plnts, including post, pole, Tble U6: Uth timber products imports nd exports, Timber product Imports Exports Net imports (net exports) ---Thousnd bord feet, Scribner--- Swlogs 1, ,233 House logs 432 1,275 (843) Other products 471 3,712 (3,241) All products 2,336 5,187 (2,851) Other products include industril fuelwood, furniture logs, fiber logs, posts, nd poles. Tble U7: Ownership of timber products received by Uth mills, 1992, 2002 nd 2007 (sources: Keegn nd others 1995; Morgn nd others 2006). Ownership clss MBF Scribner Percentge of totl MBF Scribner Percentge of totl MBF Scribner Percentge of totl Privte nd tribl timberlnd 11, , , Public timberlnd 46, , , Ntionl Forest 46, , , Stte lnds , Other owners All owners 58, , , Other owners include the BLM, Cnd, nd (for 1992) unknown owners. USDA Forest Service Resour. Bull. RMRS-RB

56 Tble U8: Timber received by Uth forest products industry by ownership clss nd product, Ownership clss Swlogs House logs Other products b Thousnd bord feet, Scribner All products Privte nd tribl timberlnd 8,579 2, ,587 Public timberlnd 10,229 4,444 1,058 15,731 Ntionl forest 9,999 4,444 1,058 15,501 Stte lnds Other owners All owners 18,908 6,506 2,056 27, Percentge of product by owner Privte nd tribl timberlnd Public timberlnd Ntionl forest Stte lnds Other owners All owners Other owners include the BLM nd Cnd. b Other products include furniture logs, fiber logs, posts, nd poles. Forest Industry Sectors log furniture, nd excelsior mnufcturers. The following conversion fctors were used to convert Scribner bord foot volume to cubic feet: 4.81 bord feet per cubic foot for house logs; 5.15 bord feet per cubic foot for swlogs; 2.05 bord foot per cubic foot for ll other products. Of the 3,459 MCF of timber received by swmills, 1,640 MCF (47 percent) ws milled into finished lumber or other swn products, nd bout 69 MCF ws lost to shrinkge. The remining 1,750 MCF (51 percent) yielded mill residue. About 1,715 MCF of swmill residue ws utilized, nd bout 35 MCF (2 percent) remined unused. Of the 1,842 MCF of timber received by log home mnufcturers, bout 1,106 MCF (60 percent) ws processed into house logs, while the remining 736 MCF becme mill residue. About 684 MCF of house log residue ws utilized, nd bout 52 MCF remined unused. Of the 1,781 MCF of timber received by other mnufcturers, bout 1,773 MCF ws utilized s solid wood products such s posts, poles nd log furniture. About 7 MCF of residues from these other sectors were utilized, nd 1 MCF went unused. Uth s primry forest products industry in 2007 consisted of 27 ctive mnufcturers in 13 counties (tble U9). Fcilities tended to be locted ner the forest resource long the mountinous centrl spine of the Stte (fig. U2). Chnges in Uth s industry structure over the pst 25 yers were similr to those experienced throughout the West, with the number of swmills decresing nd the number nd diversity of other mnufcturers incresing (Keegn nd others 1995, 2001,b; Morgn nd others 2004,b; Morgn nd others 2006). The swmill sector (mnufcturing lumber nd other swn products) ws the lrgest, nd included 12 mills in 2007; 10 fcilities produced house logs nd log homes nd there were five log 52 USDA Forest Service Resour. Bull. RMRS-RB

57 Uth Timber Hrvest nd Flow, 2007 Totl Hrvest 7,082 MCF House log nd log home mnufcturers 1,842 MCF Other plnts 1,781 MCF Swmills 3,459 MCF Utilized residue 1,715 MCF Unutilized residue 52 MCF Utilized residue 2,406 MCF Utilized residue 7 MCF Unutilized residue 1 MCF Unutilized residue 88 MCF Shrinkge 69 MCF Finished house logs nd log homes 1,106 MCF Other products 1,773 MCF Finished lumber nd other swn products 1,640 MCF Figure U1: Uth timber hrvest nd flow, USDA Forest Service Resour. Bull. RMRS-RB

58 Tble U9: Active Uth primry wood products fcilities by county nd product, 2007 (sources: Keegn nd others 1995; Morgn nd others 2006). County Lumber Log homes nd house logs Log furniture nd other products Bever Cche Duchesne Grfield 1 1 Iron 1 1 Morgn 1 1 Slt Lke Snpete 1 1 Summit 3 3 Uinth 5 5 Uth 1 1 Wstch 2 2 Weber Totl Totl Totl Other products include posts, poles, nd brk products. Totl furniture producers operting in Morgn nd others (2006) identified 49 primry wood-processing plnts in 2002, including 23 swmills, 14 house log plnts, 10 log furniture producers, one post nd pole firm, nd decortive brk producer. In 1966 there were 50 ctive swmills in the Stte (Setzer nd Wilson 1970). The number of producers, nd primry wood products sles decresed between 2002 nd Finished product sles ($27,332,000 djusted for infltion) in 2007 were bout 30 percent lower thn 2002 sles, (tble U10). This overll decrese ws coupled with substntil decline in lumber nd log home sles while slight increse ws noted in other product sles. Lumber sles were down $6.5 million, nd log home mnufcturers sles decresed round $6 million; however the sles of other products incresed by bout $875 thousnd over the 2002 totls. In 2007, lumber sles ccounted for less thn 30 percent of finished product sles, versus 40 percent in 2002 nd 73 percent in 1992; house logs nd log homes ccounted for bout the sme in 2002 nd 2007 (55 percent) of sles. Other product sles nerly doubled to 15 percent in 2007 compred to 8 percent of totl sles in Tble U10: Finished product sles of Uth s primry wood products sectors, 1992, 2002 nd 2007 (sources: Keegn nd others 1995; Morgn nd others 2006). Sector Thousnds of 2007 dollrs--- b Swmills $27,389 $14,628 $8,114 Log homes 9,208 21,007 15,053 Other sectors 982 3,290 4,165 Totl b $37,579 $38,925 $27,332 Other sectors include producers of posts, poles, nd log furniture. Mill residues, firewood, mulch, nd brk products not included for comprison to previous yers. b All sles re reported f.o.b. the mnufcturer s plnt. 54 USDA Forest Service Resour. Bull. RMRS-RB

59 Figure U2: Mp of Uth fcilities. Swmill Sector Uth s swmill sector hs been in decline for severl decdes. Lumber production in 2007 ws 14 percent lower thn in 2002, 64 percent lower thn in 1992 nd 68 percent lower thn in 1966, while the number of mills declined 48, 32, nd 54 percent over the sme periods (tble U11). Most of the production loss ws mong the Stte s lrger mills tht produced more thn 1 MMBF of lumber nnully, while the gretest loss of milling fcilities ws mong the smll mills. The proportion of lumber production by lrge versus smll mills hs incresed with lrger mills contributing 94 percent of the production, but the verge nnul lumber production per mill hs returned to the 1992 level (tble U12). Averge nnul lumber production mong the Stte s five lrgest mills ws bout 4.3 MMBF lumber tlly in 2007 (tble U13), compred to 3.8 MMBF mong six mills in 2002.The remining 7 smll mills hd n verge lumber production of 182 MBF USDA Forest Service Resour. Bull. RMRS-RB