New Report Shows Economic Impact of Forestry in Virginia is $29.4 Billion;
Forest Industry Ranks First in Manufacturing Jobs & Pay

The Virginia Department of Forestry has just published its economic impact study of forestry and the forest industry in the Commonwealth and the results are mixed for this vital component of the state’s economy. The publication, Our Common Wealth, is produced every five years and serves as a benchmark for forest industry.

Study results show that the total economic impact dropped slightly – from $30 Billion to $29.44 Billion from 2001 to 2006. Yet, with a market value of $927.7 Million, timber is the No. 1 agricultural crop harvested annually in Virginia.

“The overall economic impact of forestry in the state decreased about $500 Million in the last five years,” said State Forester Carl E. Garrison III. “Much of this 1.7 percent drop is linked to the loss of 64,000 jobs that are either directly or indirectly tied to forest industry. (An example of an indirect job would be a store clerk who lost a job because the nearby paper mill closed.)

“A nearly 26 percent drop in direct and indirect employment is significant and should concern all Virginians as the forest products industry ranks first in manufacturing jobs (1 of every 6) and first in manufacturing salaries and wages ($1 of every $7 paid),” said Garrison.

Also of concern is the increase in the rate of forest land conversion in Virginia.

“We have seen the annual rate jump from 20,000 acres of forest land lost to other uses each year to more than 26,100 acres being lost annually,” said Garrison. “Unfortunately, it’s likely this trend will only continue, which means as many as 1 Million acres of Virginia forest land could disappear in the next 25 years. Our Virginia standard of living depends on the abundance and stability of the forest resource. And the loss of forest resources has a direct economic impact in the Commonwealth.”

Other risks to the 15.8 Million acres of forest land in Virginia include: insect and disease outbreaks; natural disasters; invasive weed species; uncontrolled forest fires; land-use changes; fragmentation and parcelization of the forest land, and restrictions on forest land management.

On the positive side:

• Virginia exported more than $445 Million in forest products through the Norfolk District Ports in one year.
• Forest product companies planned capital expenditures of more than $786 Million for new or expanding manufacturing plants between 2001 and 2005.
• Because of good forest management over the past 65 years, the volume of standing timber has increased from 10.4 Billion cubic feet to 26.9 Billion cubic feet – enough lumber to build almost 6 Million homes.
• Hardwood tree types cover 80 percent of the total forest acreage with the remaining 20 percent in pine species.

In addition, forests provide other valuable benefits to the Commonwealth and her citizens. Forests are natural filters that remove pollutants from the air and water, and trees are the cheapest and most efficient way to sequester and store carbon from the atmosphere, which reduces the impact from burning fossil fuels.

“The trees of Virginia’s forests contain more than 392 Million metric tons of carbon,” said Garrison. “This means more than 1.4 Billion metric tons of carbon dioxide have been removed from our air. This volume of carbon storage has an estimated value of more than $60.4 Billion.”

The study also concludes that it would cost more than $900 Million annually to remove five major pollutants (carbon monoxide, sulfur dioxide, nitrogen dioxide, ozone and particulate matter) through alternative means. This figure includes only the cost of removal and not additional concerns, such as health, infrastructure deterioration and environmental degradation.

Other positive values associated with Virginia’s forest land include:

• lower energy costs,
• storm water mitigation,
• reductions in crime where trees are a component of the urban landscape, and
• a higher quality of life as compared to communities without significant tree cover.

To learn more or to read the entire report, click on http://www.dof.virginia.gov/resources/pub-2006-Va-Forests-Common-Wealth.pdf

-30-

The Virginia Department of Forestry protects and develops healthy, sustainable forest resources for Virginians. Headquartered in Charlottesville, there are Forestry staff members assigned to every county to provide service to citizens of the Commonwealth. VDOF is an equal opportunity provider.

With nearly 16 million acres of forest land and more than 184,000 Virginians employed in the forest products industry, Virginia forests provide more than $29.4 billion annually in benefits to the Commonwealth.