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Criterion 6 Indicator 29
Rationale
Value and Volume of Wood and Wood Products, Including Value Added Through Downstream Processing
 
Individuals make choices that help them achieve their goals. These choices add up collectively to society’s desires for goods and services, and these desires are expressed through the marketplace. In response, the market allocates scarce resources of land, labor, and capital to meet society’s desires. Wood products such as lumber and paper are one category of these resources.
 
Wood products are one of the most valuable economic benefits of forests. An assessment of the value and volume of wood products coming from Oregon’s forests is one way to measure these forests’ economic benefits to society.

Can This Indicator Be Quantified
For the last few reporting years (1994-96), the total value of wood products shipped from Oregon’s forests has been around $13 to $14 billion, as shown in the table below.
 
Manufacturing has added $4 to $5 billion of value to the original value of the unprocessed logs.
 
Table 29-1. Value of wood product shipments from Oregon forests, 1994-96
 
YearValue of Shipments (SIC 24 and 26)Value Added by Manufacture
(Billions of Dollars)
1994$13,985.90$4,710.80
1995$13,965.00$4,914.60
1996$13,065.50$4,438.70
 
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Figure 29-1. Total value of wood products made in Oregon, 1988-96
 
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Trends
The total annual value of wood products made in Oregon has been relatively stable when compared with other economic indictors such as timber production or employment. The value of total annual shipments decreased from $12 and $13 billion in 1988 and 1989 to a low of about $11 billion in 1992. From 1993 through 1995, the value of shipments was about $14 billion, but it decreased to $13 billion in 1996. The value added by manufacture was about 40 percent of the total value in 1988 and 1989, but has dropped to around 35 percent since then.
 
Throughout the 1970’s Oregon’s timber harvest was around 8 billion board feet, lumber production was between 7 and 8 billion board feet, and plywood production was about 7 million square feet. During the recession of the early 1980’s production in all categories fell, but production rebounded to historic levels during the later years of the decade. In the early 1990’s production declined due to reduced supply from federal lands. For the past few years timber production has been about 4 billion board feet, but lumber production has remained between 5 and 6 billion board feet because of improved saw milling utilization. Recent plywood production has dropped to less than 4 million square feet.
 
Figure 29-2. Timber Harvest, Lumber Production, and Plywood Production
 
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Data Source and Availability
 
The data used came from the Annual Survey of Manufacturers, 1988-96. These reports are produced annually by the U.S. Bureau of the Census.
 
Western Wood Products Association. Statistical yearbook of the western lumber industry.

Reliability of Data
  The annual survey of manufacturers is a sample of key manufacturing companies conducted by the Census Bureau. Data is withheld for some individual sectors, in some years, for reasons of confidentiality. For example, individual data for paperboard containers and boxes (SIC 265) is withheld, in order to avoid disclosing data for individual companies. However, the data is included in higher level totals (SIC 26).

Scale
  Statewide.

Recommended Action for Data Collection
  None.

Definitions
   
Value of shipments — Net selling values of all products shipped.
 
Value added by manufacture — Is derived by subtracting the cost of materials, supplies, etc. from the value of shipments.

Selected References
   
None.