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
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
Scope of the Florida Forest Industry 17.16 million acres of forest land 50% of state land area 1,843 business establishments 78 primary wood-using mills 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
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
Forest Land in Florida Source: Brenner et al. report to Florida Forest Service (2016)
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
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 - - - - - - - - - - - - 1,107,573 54,083 9,571 1,171,227 729,502 729,502 184,785 184,785 520,956 24,527 545,483 39,207 39,207 2,411,775 448,218 38,166 2,898,158 336,622 175,665 37,729 550,017 3,377 5,971 9,348 10,856,821 171,848 11,028,669 15,276,332 1,592,253 287,811 17,156,396 Timberland
Florida Timber Removals (2014) Product Removals (green tons) Average Price ($/ton) Value (M$) Pine Sawtimber 4,891,170 25.35 126.63 Pine Pulpwood 9,871,902 15.56 173.35 Mixed Hardwood Sawtimber Hardwood Pulpwood 248,093 21.86 5.77 1,323,109 8.94 10.72 Total 16,334,227 316.47 Private 285.28 Federal Government 10.19 State/Local Government 21.00 ± Miles 0 40 80 160 240 320 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 31.32 million tons on timberlands is 1.92 times timber removals
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
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
Thousands Jobs 50 45 40 35 30 25 20 15 10 5 0 Florida Forest Industry Employment, 2001-16 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
Florida Forest Industry Exports Data Source: Census Bureau, USA Trade Online
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
Summary of Florida Forest Industry Economic Contributions, 2016 Industry Group Employment (Fulltime, Part-time Jobs) Labor Income (wages, salaries) Value Added (GDP) Industry Output (Revenue) State- Local Taxes Federal Taxes - - - - - - - - - - - - - - - Million Dollars - - - - - - - - - - - - - - - Forestry Production 16,594 758 1,074 1,769 60.6 176.5 Primary Wood Product Manuf. 18,549 907 1,355 3,445 98.0 224.0 Secondary Wood Product Manufacturing 7,101 324 468 1,239 19.2 78.0 Primary Paper Product Manuf. 37,355 2,031 3,477 7,685 258.1 533.6 Converted Paper Product Manufacturing Forest Chemical Product Manufacturing Sawmill, Woodworking and Paper Machinery Manufacturing Wholesale Trade Lumber and Wood 20,615 1,169 2,129 5,582 132.3 316.4 9,178 479 807 2,570 78 144 343 19 28 58 1.9 4.5 14,255 874 1,569 2,558 214.6 239.2 Biomass Electric Power 114 16 50 139 17.9 5.7 Total Industrial Activity 124,104 6,576 10,957 25,045 880 1,722 Data Source: Authors calculations with IMPLAN Tradeflows model for Florida
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
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
Regional Multiplier Effects for Florida Forest Industry Economic Contributions, 2016 Multiplier Effect Employment (Fulltime, Part-time Jobs) Labor Income (M$) Value Added (M$) Industry Output (M$) State- Local Taxes (M$) Federal Taxes (M$) Direct 36,055 2,256 3,826 12,554 308.6 608.9 Indirect 19,659 1,055 1,694 3,251 154.8 267.7 Induced 68,391 3,265 5,438 9,240 417.1 845.4 Total 124,104 6,576 10,957 25,045 880.4 1,722.1 Data Source: Authors calculations with IMPLAN
Employment Contributions in Florida Counties (Fulltime and Part-time jobs) 0 700 701 1,500 1,501 3,000 3,001 6,000 6,001 12,000 Data Source: Authors calculations with IMPLAN
Value Added (GDP) Contributions in Florida Counties (Million dollars) 0 60 60 150 150 300 300 550 550 1,150 Data Source: Authors calculations with IMPLAN
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
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
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
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
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$) Labor Income (M$) 1 16 58,580 12,369 5,455 3,194 2 19 28,633 5,689 2,408 1,480 3 9 11,376 2,230 977 594 Total Metro 44 98,589 20,288 8,840 5,268 4 5 4,964 1,149 457 266 6 16 18,608 3,248 1,506 944 8 1 1,635 322 133 83 9 1 309 38 21 14 Total Non-Metro 23 25,515 4,757 2,117 1,307 Total All Areas 67 124,104 25,045 10,957 6,576
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 $155.42 $73.25 $228.67 Transportation Entertainment & Recreation Shopping Other Expenses Total $18.10 $85.24 $40.18 $125.42 $18.60 $87.60 $41.29 $128.89 $17.30 $3.70 $135.40 $81.48 $17.43 $427.16 $38.40 $8.21 $300.56 $119.88 $25.64 $727.71 Data Source: Authors calculations based on expenditure profile of domestic auto visitors in 2015 Florida Visitor Study (VISIT FLORIDA) Source: UF/IFAS
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 - - - - - - - - - - - - - - 3,355 97 148 240 20.4 24.9 Indirect 630 30 53 96 4.2 7.9 Induced 3,833 183 305 516 23.2 47.4 Total 7,818 311 505 851 47.8 80.3 Data Source: Authors calculations with IMPLAN Source: UF/IFAS
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
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 ($M per year) 332 266 384 456 1,438 5,704 4,559 6,581 7,824 24,669 Provisioning Regulating Habitat Cultural Total Data Source: de Groot et al. (2012) and authors calculations; Values in 2016 dollars Values estimated using regional averages Ecosystem Service Category Gas and Climate Regulation 37 639 1,015 17,418 Pollination 170 2,922 Habitat/Refugia 102 1,752 Aesthetic and Non-use 559 9,593 1,884 32,323 Water Regulation and Supply Total Source: UF/IFAS Average Value Aggregate Value ($/acre/year) ($M per year) Data Source: Moore et al. (2011) data for Georgia and authors calculations
Corresponding Author Contact Information: Alan W. Hodges awhodges@ufl.edu (352) 294-7674 Christa D. Court ccourt@ufl.edu (352) 294-7675 http://www.fred.ifas.ufl.edu/ economicimpactanalysis/
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