ECONOMIC CONTRIBUTIONS OF THE FOREST INDUSTRY AND FOREST-BASED RECREATION IN FLORIDA IN 2016

Transcription

1 Sources: UF/IFAS, Rayonier Advanced Materials ECONOMIC CONTRIBUTIONS OF THE FOREST INDUSTRY AND FOREST-BASED RECREATION IN FLORIDA IN 2016 PRESENTATION TO THE FLORIDA FORESTRY ASSOCIATION AUGUST 31, 2017 Alan W. Hodges, PhD, Extension Scientist Christa D. Court, PhD, Assistant Scientist Mohammad Rahmani, PhD, Economic Analyst

2 Study Purpose Estimate economic contributions of the Florida forest industry in 2016 Estimate economic contributions for Florida regions and counties Evaluate community dependence on the forest industry Source: UF/IFAS Source: Florida Forest Service, Ricky Jones Evaluate forest-based recreation Compile estimates of ecosystem service values for Florida forests

3 Scope of the Florida Forest Industry million acres of forest land 50% of state land area 1,843 business establishments 78 primary wood-using mills Wood mills and wood/paper product manufacturers, 2016 Mills Manufacturers 363 secondary wood and paper product manufacturers Allied industries Forest chemical manufacturing Sawmill, woodworking, paper machinery manufacturing Wholesale trade in lumber and wood Biomass electric power generation Source: UF/IFAS Data Source: Forest Product Network

4 Data Sources USDA, Forest Service Bureau of Labor Statistics Forest Inventory and Analysis (2015) Timber Product Output (2013) National Forest visitation Quarterly Census of Employment and Wages U.S. Department of Commerce, Census Bureau Florida Department of Agricultural and Consumer Services, Florida Forest Service Timber removals (2014) State Forest visitation and expenditures USA Trade Online, port-level exports of forest products Forest2Market Average timber stumpage prices in Florida Forest Product Network Florida Department of Revenue Primary Forest Products Locator Secondary Forest Products Locator County Property Appraiser Records Florida Fish and Wildlife Conservation Commission Wildlife management area visitation IMPLAN regional input-output and social accounting software Source: UF/IFAS Captures multiplier effects of industry activities in all economic sectors

5 Forest Land in Florida Source: Brenner et al. report to Florida Forest Service (2016)

6 Florida Forest Types (2015) Tropical hardwoods 4% Other 5% Oak / gum / cypress 22% Longleaf / slash pine 33% Oak / hickory 16% Oak / pine 9% Loblolly / shortleaf pine 11% Data Source: USDA-FIA 2015

7 Florida Forest Ownership County, Municipal, and Local Government 3% State Government 17% Federal Government 16% Data Source: USDA-FIA (2015 data) Source: Brenner et al. (2016) Ownership National Forest National Park Service Fish and Wildlife Service Department of Defense Other federal State County and Municipal Other local government Private Total Private 64% Reserved Other Total Forestland Forestland Acres ,107,573 54,083 9,571 1,171, , , , , ,956 24, ,483 39,207 39,207 2,411, ,218 38,166 2,898, , ,665 37, ,017 3,377 5,971 9,348 10,856, ,848 11,028,669 15,276,332 1,592, ,811 17,156,396 Timberland

8 Florida Timber Removals (2014) Product Removals (green tons) Average Price ($/ton) Value (M$) Pine Sawtimber 4,891, Pine Pulpwood 9,871, Mixed Hardwood Sawtimber Hardwood Pulpwood 248, ,323, Total 16,334, Private Federal Government State/Local Government ± Miles Note: Price for pine sawtimber is an average of sawtimber and chip-n-saw. Data Sources: Brenner et al, 2016 (timber removals); Forest2Market (prices). Net annual growth of million tons on timberlands is 1.92 times timber removals

9 Florida Forest Planting Source: Jarek Nowak, FDACS-Florida Forest Service Over 450 million tree seedlings were planted during 2010 to 2015 (Florida Forest Service) In 2015, 1.65 million acres of Florida forestlands were timber stands 0-5 years of age suggesting an average of 330,000 acres are regenerated annually (USDA-FIA). Source: UF/IFAS

10 Forest Industry Sectors Industry Group Sector Timber tracts Logging Forestry Production Support activities for forestry (private and public) Statel-local and federal government timber sales Sawmills Wood preservation Primary Wood Product Manufacturing Veneer and plywood manufacturing Engineered wood member and truss manufacturing Reconstituted wood product manufacturing Wood windows and door manufacturing Cut stock, resawing lumber, and planing Secondary Wood Product Manufacturing Other millwork, including flooring Wood container and pallet manufacturing All other miscellaneous wood product manufacturing Pulp mills Primary Paper Product Manufacturing Paper mills Paperboard mills Paperboard container manufacturing Paper bag and coated and treated paper manufacturing Converted Paper Product Manufacturing Stationery product manufacturing Sanitary paper product manufacturing All other converted paper product manufacturing Forest chemicals production Sawmill, Woodworking and Paper Machinery Manufacturing Lumber and Wood Merchant Wholesalers Biomass Electric Power Generation

11 Thousands Jobs Florida Forest Industry Employment, Lumber and wood merchant wholesalers Converted paper product manufacturing Pulp, paper, and paperboard mills Other wood product manufacturing Plywood and engineered wood product mfg. Sawmills and wood preservation Forestry and logging Data Source: Bureau of Labor Statistics, QCEW

12 Florida Forest Industry Exports Data Source: Census Bureau, USA Trade Online

13 Economic Contribution Analysis IMPLAN regional economic impact analysis and social accounting software provides estimates of Employment (fulltime, part-time jobs) Labor income (wages, salaries, benefits, proprietor earnings) Value added (GDP) Industry output (sales revenues) Federal and State/Local Taxes Economic Multipliers Direct: Activity in a specific industry Indirect: Inter-industry transactions through of supply chain spending Induced: Employee household and government spending resulting from direct and indirect contributions

14 Summary of Florida Forest Industry Economic Contributions, 2016 Industry Group Employment (Fulltime, Part-time Jobs) Labor Income (wages, salaries) Value Added (GDP) Industry Output (Revenue) State- Local Taxes Federal Taxes Million Dollars Forestry Production 16, ,074 1, Primary Wood Product Manuf. 18, ,355 3, Secondary Wood Product Manufacturing 7, , Primary Paper Product Manuf. 37,355 2,031 3,477 7, Converted Paper Product Manufacturing Forest Chemical Product Manufacturing Sawmill, Woodworking and Paper Machinery Manufacturing Wholesale Trade Lumber and Wood 20,615 1,169 2,129 5, , , , ,569 2, Biomass Electric Power Total Industrial Activity 124,104 6,576 10,957 25, ,722 Data Source: Authors calculations with IMPLAN Tradeflows model for Florida

15 Employment Contributions by Florida Forest Industry Groups (Fulltime and part-time jobs) Wholesale Trade Lumber and Wood; 14,255; 12% Allied Manuf.; 343; 0% Biomass Electric Power; 114; 0% Forestry Production; 16,594; 13% Forest Chemical Manuf.; 9,178; 7% Converted Paper Product Manuf.; 20,615; 17% Primary Wood Product Manuf.; 18,549; 15% Primary Paper Product Manuf.; 37,355; 30% Secondary Wood Product Manuf.; 7,101; 6% Data Source: Authors calculations with IMPLAN

16 Value Added (GDP) Contributions by Florida Forest Industry Groups (Million dollars) Allied Manuf.; 28; 0% Forest Chemical Manuf.; 807; 7% Biomass Electric Power; 50; 1% Wholesale Trade Lumber and Wood; 1,569; 14% Forestry Production; 1,074; 10% Primary Wood Product Manuf.; 1,355; 12% Converted Paper Product Manuf.; 2,129; 20% Primary Paper Product Manuf.; 3,477; 32% Secondary Wood Product Manuf.; 468; 4% Data Source: Authors calculations with IMPLAN

17 Regional Multiplier Effects for Florida Forest Industry Economic Contributions, 2016 Multiplier Effect Employment (Fulltime, Part-time Jobs) Labor Income (M$) Value Added (M$) Industry Output (M$) State- Local Taxes (M$) Federal Taxes (M$) Direct 36,055 2,256 3,826 12, Indirect 19,659 1,055 1,694 3, Induced 68,391 3,265 5,438 9, Total 124,104 6,576 10,957 25, ,722.1 Data Source: Authors calculations with IMPLAN

18 Employment Contributions in Florida Counties (Fulltime and Part-time jobs) ,500 1,501 3,000 3,001 6,000 6,001 12,000 Data Source: Authors calculations with IMPLAN

19 Value Added (GDP) Contributions in Florida Counties (Million dollars) ,150 Data Source: Authors calculations with IMPLAN

20 Profile of Forest Industry Employment Contributions in Top 10 Florida Counties 12,000 Biomass Electric Power Fulltime, Part-time Jobs 10,000 8,000 6,000 4,000 2,000 0 Wholesale Trade Lumber and Wood Allied Manuf. Forest Chemical Manuf. Converted Paper Products Manuf. Primary Paper Products Manuf. Secondary Wood Products Manuf. Primary Wood Products Manuf. Forestry Production

21 Forest Industry Dependence: Contributions as a Share of Florida County Workforce 0.0% 5% 5% 15% 15% 30% 30% 55% 55% 100% Data Source: Authors calculations with IMPLAN

22 Forest Industry Dependence: Contributions as a Share of Florida County GDP 0% 5% 5% 15% 15% 30% 30% 55% 55% 100% Data Source: Authors calculations with IMPLAN

23 Employment Contributions Florida Economic Regions Fulltime, Part-time Jobs 30,000 Biomass Electric Power 25,000 Wholesale Trade Lumber and Wood 20,000 Allied Manuf. 15,000 Forest Chemical Manuf. 10,000 Converted Paper Products Manuf. 5,000 Primary Paper Products Manuf. 0 Secondary Wood Products Manuf. Primary Wood Products Manuf. Forestry Production Data Source: Authors calculations with IMPLAN

24 Contributions in Urban vs. Rural Florida Counties Urban-rural continuum classification 9: Rural less than 2,500 urban population, not adjacent to a metro 8: Rural less than 2,500 urban population, adjacent to a metro area 6: Urban population of 2,500 to 19,999, adjacent to a metro 4: Urban population of 20,000 or more, adjacent to a metro area 3: In metro areas of fewer than 250,000 population 2: In metro areas of 250,000 to 1 million population 1: In metro areas of 1 million population or more Data Source: USDA-Economic Research Service Urban-Rural Continuum Classification Number Counties Employment (Jobs) Output (M$) Value Added (M$) Labor Income (M$) ,580 12,369 5,455 3, ,633 5,689 2,408 1, ,376 2, Total Metro 44 98,589 20,288 8,840 5, ,964 1, ,608 3,248 1, , Total Non-Metro 23 25,515 4,757 2,117 1,307 Total All Areas ,104 25,045 10,957 6,576

25 Forest-Based Recreation in Florida (2015) Public Land (Managing Agency) State Forests (Florida Forest Service) State Wildlife Management Areas (Florida Fish and Wildlife Conservation Commission) National Forests (USDA-Forest Service) Total Acres Visitor-days 1,069,041 2,083,753 1,432,604 2,741,533 1,197,292 2,104,000 3,698,937 6,929,286 Data Source: FFS, FWC, USDA-Forest Service Expense Category Expense per person-day Expanded Amount (Million $) Florida NonTotal All Residents residents Visitors $99.22 $99.22 Lodging $44.70 Food & Beverage $33.00 $ $73.25 $ Transportation Entertainment & Recreation Shopping Other Expenses Total $18.10 $85.24 $40.18 $ $18.60 $87.60 $41.29 $ $17.30 $3.70 $ $81.48 $17.43 $ $38.40 $8.21 $ $ $25.64 $ Data Source: Authors calculations based on expenditure profile of domestic auto visitors in 2015 Florida Visitor Study (VISIT FLORIDA) Source: UF/IFAS

26 Economic Contributions of Recreational Expenditures by Nonresident Visitors to Florida Public Forest Lands (2015) Multiplier Effect Employment Jobs Direct Labor Income Value Added Industry Output State-Local Taxes Federal Taxes Million Dollars , Indirect Induced 3, Total 7, Data Source: Authors calculations with IMPLAN Source: UF/IFAS

27 Ecosystem Services of Forests Provisioning services: the provision of food, water, raw materials, fuel, and genetic, medicinal and ornamental resources Regulating services: climate regulation, regulation of water flows and quality, regulation of gases, carbon sequestration, waste treatment, and erosion control Cultural services: such as recreation, aesthetics, education, inspiration, spiritual experience, sense of place, and cognitive development Supporting services: Refugia, biological control, nursery services, soil formation, nutrition cycling, and pollination Source: Millenium Ecosystem Assessment, et al. Source: UF/IFAS

28 Ecosystem Service Values of Florida Forests Values estimated using global averages Benefit transfer method Ecosystem service values estimated for one location are used to estimate the value of similar services in another location. Accuracy depends on the quality of the original valuation study and the degree of similarity between the locations. Aggregate ecosystem service value of Florida forests ranges from $24.7 to $32.2 billion per year Ecosystem Service Category Average Value ($/acre/year) Aggregate Value ($M per year) ,438 5,704 4,559 6,581 7,824 24,669 Provisioning Regulating Habitat Cultural Total Data Source: de Groot et al. (2012) and authors calculations; Values in 2016 dollars Values estimated using regional averages Ecosystem Service Category Gas and Climate Regulation ,015 17,418 Pollination 170 2,922 Habitat/Refugia 102 1,752 Aesthetic and Non-use 559 9,593 1,884 32,323 Water Regulation and Supply Total Source: UF/IFAS Average Value Aggregate Value ($/acre/year) ($M per year) Data Source: Moore et al. (2011) data for Georgia and authors calculations

29 Corresponding Author Contact Information: Alan W. Hodges (352) Christa D. Court (352) economicimpactanalysis/

30 Connect. Explore. Engage.