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Data Information and Reporting for Indicator B.d.
Oregon Indicator of Sustainable Forest Management B.d.
Forest products sector vitality
 

Forestry Program for Oregon Strategy B:
Indicator B.d. is one of four indicators that will measure progress towards achieving Forestry Program for Oregon Strategy B: Ensure that Oregon's forests provide diverse social and economic outputs and benefits provided by the public in a fair, balanced, and efficient manner.
 
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Other Indicators for
Stategy B Reporting
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Desired trend:
Production and product values of and investment in Oregon's forest products sector are stable or increasing.

At-a-Glance: Condition, Trend, and Information
 

Condition:Trend:Information:
Poor
Uncertain
Partial
Poor 
Uncertain 
Partial 

Why is this indicator important?
A photo of a feller buncher conducting a logging operation with minimal impact in a smaller area
A feller buncher can log with minimal impact in tight areas
Oregon’s forest products industry continues to enhance and diversify Oregon’s economy, and provides economic values to both rural and urban communities.  Oregon still remains the leader in lumber and plywood production in the United States and, with a strong and resilient forest products infrastructure, is set to strongly rebound once the country pulls out of the current recession.
 
Today, despite reduced harvests from historical levels on federal lands and ailing local, state, and national economies, Oregon’s forest sector is an important basic industry fueling the state's economy and creating related indirect economic benefits throughout the state.
 
A large share of these economic benefits occurs in more rural areas of the state, areas with high unemployment rates and other economic problems.  In addition to ameliorating economic and social problems in rural areas, healthy rural economies benefit urban areas because of the economic interdependence between the two.
 
It is therefore important to understand the health and sustainability of Oregon’s forest products sector and its prospects for continuing to produce the economic values that Oregonians have come to expect from their forests.  Long-term trends in sales and investments in forest industry infrastructure indicate the health of the industry and its' ability to continue to successfully compete in the global market place, as well as complete needed forest restoration work.

What does this indicator tell us about sustainable forest management?
Condition:

 Poor
Poor

Production and product values: Stumpage, log, and wood product production and prices are highly correlated with U.S. housing starts. Housing starts have collapsed (Figure 1) and the vitality of Oregon’s forest products sector has suffered. For example, Oregon timber harvests of 2.7 billion board feet in 2009 were the lowest since the Great Depression and are projected to remain below 3 billion board feet in 2010.  Lumber and plywood prices are at extremely low levels resulting in mill closures, loss of employment, and low log prices (Figure 2). In spite of the severe recession gripping the nation since 2007, depressed housing starts, and falling nonresidential construction, most of Oregon’s mills remain open. Sales value of paper and secondary wood products has not declined as much as it has for lumber and plywood manufacturers (Figure 3).
 
Productivity: Productivity of Oregon’s forest products sector has continued to improve as is evidenced by the increasing number of board feet of lumber produced per unit of wood harvested (Figure 4). The value of products produced per unit of wood harvested and per worker is higher than other western states, except for Washington (Figures 5 and 6).
 
Investment and Innovation: Investment in Oregon’s wood and paper industries appears to have been stable though 2006 (Figure 7), but other and more recent data on investment and innovation are currently insufficient for indicator reporting.

Trend:

 
Uncertain
Production and product values:  Production should increase and product values should improve over the next several years as the nation emerges from the current recession and housings starts and expenditures for other construction increase. Housing starts are forecasted to start increasing in 2011 but increases will be gradual and a return to long-term sustainable housing start levels of 1.6 million per year will not be reached until 2015. Thirteen primary wood products mills have closed over the past two years and it is unknown how many, if any, of those will re-open once wood product prices improve.
 
Productivity:  Productivity has and will continue to improve.  Intense competition from other regions, a strong forest products infrastructure, and world class research facilities at the Oregon State University will foster continual improvements in forest sector productivity.
 
Investment and Innovation:  Recent data on trends of investment and innovation are currently insufficient for indicator reporting.

Information:

 Symbol: Partial
Partial
Production and product values: National housing start and other general economic information is current, readily available, and of high quality. Statewide data for production and prices of logs, lumber, plywood, and paper is recent and of high quality.  Limited detailed data are available on Oregon’s secondary forest products industry.
 
Productivity: Information about productivity in the primary wood products mills is available, timely, and reliable.  Little is known about productivity in secondary forest products manufacturing in Oregon.  Work is ongoing to develop time series of product value per unit harvest volume and per employee.
 
Investment and Innovation: Information about capital expenditures of Oregon’s wood and paper products manufacturers is available from the U.S. Census Bureau and Annual Survey of Manufacturers, but this information is general and not timely.  Work is ongoing to survey key forest sector business leaders to better determine trends in investment and innovation.

Report: Historic and Forecasted U.S. Housing Starts (1979 to 2019)
This is a graphic display of historic and forecasted U.S. housing starts from 1979 to 2019.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Figure 1
 
Printable Chart [PDF; 107 KB]

Report: Western Oregon Log Price Index (1979 - 2010)
This is a graphic display of the Oregon Log Price Index from 1979 to 2010 adjusted for species, grade, and inflation in 2009 dollars
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Figure 2
 
 
Printable chart [PDF; 176 KB]
 

Report: Sales Value of Oregon's Wood and Paper Products (2003 to 2008)
This is a graphic display of Oregon's primary and secondary wood and paper products from 2003 to 2008
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Figure 3
 
 
Printable chart [PDF: 125 KB]
 

Report: Board Feet of Lumber Produced per Board Feet of Log Measurement
This is a graphic display of the amount of board feet of lumber produced per board feet of log measurement for the 1970s, 1980s, 1990s, and 2003
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Figure 4
 
 
 

Report: Value of Products per MMCF and MMBF of Timber Processed - Western States
This is a graphic display of the value of products per MMCF and MMBF of timber processed, primary wood and paper products manufactured FOB the producing mills for western states in 2006
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Figure 5
 
 
 

Report: Value of Product per Primary Forest Industry Worker in 2006
This is a report on the value of product produced per primary forest industry worker in 2006 (including logging, private forest management, and timber processors) for Oregon, Washington, California, Idaho, Montana, the Four Corners, Wyoming, and Alaska
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Figure 6
 
 
 

Report: Oregon's Wood and Paper Products Manufacturers Capital Expenditures
This is a graphic display of Oregon's wood and paper products manufacturers capital expenditures from 1997 through 2006
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Figure 7
 
 
 

Evaluations by the Oregon Roundtable on Sustainable Forests on the indicator
Initial Roundtable evaluation on Indicator B.d.: Forest products sector vitality [PDF; 5 pages; 201 KB]


Metrics and Data Sources


Metric
Data Source
Historic and forecasted U.S. residential construction
 
IHS Global Insight, Inc.
Oregon Log Price Index
 
Gary Lettman, Oregon Department of Forestry
Sales Value of Oregon's primary and secondary wood and paper products
 
U.S. Census Bureau, Annual Survey of Manufacturers; Bureau of Business and Economic Research, University of Montana
Board Feet of Lumber Produced per Board Foot of Log Measurement
 
Bureau of Business and Economic Research, University of Montana
Value of products per MMCF and MMBF of Timber Processed (time series under development)
 
U.S. Census Bureau, Annual Survey of Manufacturers; Western Wood Products Association; The Engineered Wood Association; Bureau of Business and Economic Research, University of Montana
Value of products per primary forest industry worker (time series under development)
 
U.S. Census Bureau, Annual Survey of Manufacturers; Western Wood Products Association; The Engineered Wood Association; Bureau of Business and Economic Research, University of Montana
Oregon's wood and paper products manufacturers capital expenditures
 
U.S. Census Bureau, Annual Survey of Manufacturers

Related State, National, or International Indicators
  • Montreal Process:  Criterion 6 - Maintenance and enhancement of long-term multiple socio-economic benefits to meet the needs of societies: 2003 Indicator 29: Value and volume of wood and wood products production, including value-added through downstream processing; 2003 Indicator 32: Value of wood and non-wood commodity production as a percentage of Gross Domestic Product (GDP); 2003 Indicator 38: Value of investment, including investment in forest growing, forest health and management, planted forests, wood processing, recreation, and tourism; 2003 Indicator 39, Level of expenditure on research and development, and education; 2003 Indicator 40: Extension and use of new and improved technology; 2003 Indicator 41: Rates of return on investment; 2010 Indicator 31: Value of exports and imports of non-wood products; 2010 Indicator 32: Exports as a share of wood and wood products production and imports as a share of wood and wood products consumption; and 2010 Indicator 34: Value of capital investment and annual expenditure in forest management, wood and non-wood product industries, forest-based environmental services, recreation
    and tourism
  • Canadian Council of Forest Ministers:  Criterion 5 - social and economics benefits: Indicator 5.1.3, Production, consumption, imports, and exports of timber products; Indicator 5.3.4, Productivity index.  Criterion 6, society’s responsibility: Indicator 6.5.3, Investment in forest research, timber products industry research and development, and education
  • USDA Forest Service, Northeastern Area:  Criterion 6, maintenance and enhancement of long-term multiple socio-economic benefits to meet the needs of societies: Indicator 12, Wood and wood products production, consumption, and trade; Indicator 14, Investments in forest health, management, research, and wood processing; Indicator 16, Employment and wages in forest-related sectors
  • Ontario’s Forests:  Criterion 5 -  providing for a continuous and predictable flow of economic and social benefits from the forest: Indicator 5.2, Monitoring and supporting forest sector employment, investment and competitiveness; Indicator 5.3, Monitoring and supporting enhanced forest sector contributions to the economy