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Impact of the great recession on the forest products industry in the western United States

Author(s):

Charles E. Keegan
Collin B. Sorenson
Todd A. Morgan
Steven W. Hayes

Year:

2012

Publication type:

Paper (invited, offered, keynote)

Primary Station(s):

Northern Research Station

Source:

In: Morin, Randall S.; Liknes, Greg C., comps. Moving from status to trends: Forest Inventory and Analysis (FIA) symposium 2012; 2012 December 4-6; Baltimore, MD. Gen. Tech. Rep. NRS-P-105. Newtown Square, PA: U.S. Department of Agriculture, Forest Service, Northern Research Station. [CD-ROM]: 5-9.

Description

Wood product prices and production fell dramatically in 2009 as a severe recession and massive decline in U.S. housing led to a global financial crisis. In 2009 and 2010, virtually every major western mill suffered curtailments and 30 large mills closed permanently. Sales value of wood and paper products in the West dropped from $49 billion in 2005 to $34 billion in 2009. Employment declined by 71,000 workers and lumber production fell by almost 50 percent from 2005 to 2009. Capacity utilization at sawmills and other timber-using facilities in the West fell from more than 80 percent in 2005 to just over 50 percent in 2009 and 2010. With the exception of exports and some paper markets, U.S. wood products markets have improved little since the recession officially ended in 2009. Modest improvements are expected in domestic markets in the short term, but substantial improvements are unlikely until 2014 or later, as U.S. home building recovers and global demand increases. Much of the West retains the bulk of its pre-recession (2006) capacity and mills could respond quickly to increased demand spurred by economic recovery.

Citation

Keegan, Charles E.; Sorenson, Collin B.; Morgan, Todd A.; Daniels, Jean M.; Hayes, Steven W. 2012. Impact of the great recession on the forest products industry in the western United States. In: Morin, Randall S.; Liknes, Greg C., comps. Moving from status to trends: Forest Inventory and Analysis (FIA) symposium 2012; 2012 December 4-6; Baltimore, MD. Gen. Tech. Rep. NRS-P-105. Newtown Square, PA: U.S. Department of Agriculture, Forest Service, Northern Research Station. [CD-ROM]: 5-9.

Publication Notes

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https://www.fs.usda.gov/treesearch/pubs/42663