New Mexico s Forest Products Industry

Transcription

1 Sacramento Mountain Wood Industry Summit March 31, 2016 New Mexico s Forest Products Industry Steve Hayes, CF Eric Simmons Bureau of Business and Economic Research University of Montana

2 BBER-who, what, where Overview of New Mexico s forests and timber resource Current status of NM wood products Industry Logging utilization study

3 Bureau of Business and Economic Research Who We Are The research and public service branch of the University of Montana School of Business Administration. Mission serve the general public, business, labor, and government by providing an understanding of the economic environment in which We live and work.

4 BBER What we do State & local economic analysis Survey research Health care industry research Manufacturing industry research Forest industry research

5 Forest Industry Research State-level industry analysis Removals from inventory- Resource Planning Act Assessment & Timber Products Output (RPA-TPO) Cost of forest management activities Other related projects

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7 Key Factors Affecting the Region s Forest Industry Timber Supply Forest (timberland) area Standing volume Species mix Growth & mortality

8 New Mexico s Forests 4.3 million acres of productive, non-reserved timberland 63% National Forest 33% NIPF & Tribal 4% Other Public Source: USDA Forest Service FIA Program 24.8 million acres of forests in New Mexico 20.5 million acres non-productive (82%)

9 Tree Species by Area Forestland Species composition by acres <1% 2% <1% <1% 3% 11% <1% 6% 19% 4% 55% pinyon/juniper Douglas fir Ponderosa pine fir/spruce/mt hemlock Other western softwood Elm/ash/cottonwood aspen/birch Other hardwood Woodland hardwood Exotic hardwood Nonstocked 18% Timberland Species composition by acres 2% 1% 8% 0% 52% 19% pinyon/juniper Douglas fir Ponderosa pine fir/spruce/mt hemlock Other western softwood Elm/ash/cottonwood aspen/birch

10 Key Factors Affecting the Region s Forest Industry Timber Supply Ownership & Availability Wood Products Demand

11 New Mexico s Timber Resource Inventory Volume 32 billion board feet Net annual growth 214 million board feet Annual removals <35 million board feet

12 Sawtimber volume by ownership Forest service 29% Other federal 3% <1% 68% State and local Undifferentiated private Source: USDA Forest Service FIA Program

13 Timberland species composition by sawtimber volume 6% 3% 10% 12% 48% 21% Douglas-fir Ponderosa Pine True fir Engleman and other spruces Other western softwoods Cottonwood and aspen Source: USDA Forest Service FIA Program

14 New Mexico Timber Harvest Select Years Million Board Feet(Scribner)

15 Harvest by Species Select Years 100% 80% 60% 40% 20% 0% Ponderosa Pine Doulas-fir Other species True firs Engelman Spruce

16 Million Board Feet (Scribner) Harvest by Ownership Select Years USFS Tribal Private State

17 New Mexico Timber Harvest 28.8 MMBF harvest in % NIPF & Tribal 49.7% National Forest Sawlogs ~ 78% of total

18 Harvest by Species and Product Type 100% 80% 60% 40% 20% 0% Sawlogs Vigas House logs Other products Ponderosa Pine Doulas-fir Other species True firs Lodgepole pine Engelman Spruce

19 Key Factors Affecting the Region s Forest Industry Timber Supply Ownership & availability Wood Products Demand Population Housing Economic Impacts Employment Worker earnings

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21 New Mexico Primary Wood Products Industry

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23 Timber-processing facilities in New Mexico by mill type and volume of timber used 2012 Size Sawmills Vigas & Latillas Other Total < 1 MMBF >1 MMBF Total

24 County Lumber Vigas and latillas Other a Total Bernalillo Catron 2 2 Cibola Colfax Grant 1 1 Lincoln 1 1 Mora 1 1 Otero Rio Arriba 2 2 Sandoval San Miguel Santa Fe Taos Total Total Total Total Total a Other products include posts, poles, house logs, firewood, pellets, shavings, erosion control products and bark products.

25 US Housing & NM Wood, Sources: U.S. Census Bureau; BBER; WWPA

26 New Mexico Capacity and Timber Flow, active primary forest products facilities, vs. 24 in 2007 and 36 in Combined capacity of 61 MMBF Scribner annually (16 MMCF). 38% of capacity utilized. 59% in Net exporter (out of state) of 5.9 MMBF of sawlogs 2012.

27 Changes in Capacity Declining timber harvest levels directly led to declining timber-processing capacity in the West. Declines were greatest in areas with greater dependence on/use of National Forest timber (e.g. Southwest). Capacity declined despite high product prices and high demand for wood products. Less capacity = less financial feasibility of forest management.

28 Millions of Dollars New Mexico Sales and Product Flow, New Mexico 4C Rockies Far west N east south N Central Other products Vigas & Latillas Timbers Board & shop Dimension & stud Other

29 New Mexico Forest Industry Issues Need for consistent & predictable supply. Wild fire funding legislation. Market demand not reaching the region. Wood energy markets are slowly emerging. Restoring & re-vitalizing industry is important to all forest landowners. Change is needed!

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