Sacramento Mountain Wood Industry Summit
March 31, 2016
New Mexico’s Forest
Products Industry
Steve Hayes, CF
Eric Simmons
Bureau of Business and Economic Research
University of Montana

BBER-who, what, where

Overview of New Mexico’s
forests and timber resource

Current status of NM wood
products Industry

Logging utilization study
Bureau of Business and
Economic Research

Who We Are

The research and public service
branch of the University of Montana
School of Business Administration.

Mission – serve the general public,
business, labor, and government by
providing an understanding of the
economic environment in which We
live and work.
BBER
What we do
•
State & local economic analysis
•
Survey research
•
Health care industry research
•
Manufacturing industry research
 Forest industry research
Forest
Industry Research
•
State-level industry analysis
•
Removals from inventory- Resource
Planning Act Assessment & Timber
Products Output (RPA-TPO)
•
Cost of forest management activities
•
Other related projects
Key Factors Affecting the
Region’s Forest Industry

Timber Supply
– Forest (timberland) area
– Standing volume
– Species mix
– Growth & mortality
New Mexico’s Forests
Source: USDA Forest Service FIA Program
24.8 million acres of forests in New Mexico
4.3 million acres of productive, non-reserved timberland
63% National Forest
33% NIPF & Tribal
4% Other Public
20.5 million acres
non-productive (82%)
Tree Species by Area
Forestland Species composition by acres
<1%
pinyon/juniper
6%
Douglas fir
Ponderosa pine
19%
<1%
2%
<1%
<1%
fir/spruce/mt hemlock
55%
Other western softwood
Elm/ash/cottonwood
3%
aspen/birch
Other hardwood
11%
4%
Woodland hardwood
Exotic hardwood
Nonstocked
Timberland Species composition by
acres
2%
1%
0%
8%
19%
18%
pinyon/juniper
Douglas fir
Ponderosa pine
fir/spruce/mt hemlock
52%
Other western softwood
Elm/ash/cottonwood
aspen/birch
Key Factors Affecting the
Region’s Forest Industry

Timber Supply
– Ownership & Availability

Wood Products Demand
New Mexico’s Timber
Resource
Inventory Volume
32 billion board feet
 Net annual growth
214 million board feet
 Annual removals
<35 million board feet

Sawtimber volume by
ownership
Forest service
29%
Other federal
68%
3%
<1%
Source: USDA Forest Service FIA Program
State and local
Undifferentiated
private
Timberland species composition by
sawtimber volume
Douglas-fir
6%
3%
Ponderosa Pine
21%
10%
True fir
12%
Engleman and other
spruces
48%
Other western
softwoods
Cottonwood and aspen
Source: USDA Forest Service FIA Program
New Mexico Timber Harvest Select Years
300
Million Board Feet(Scribner)
250
200
150
100
50
0
1966
1986
1997
2002
2007
2012
Harvest by Species Select Years
100%
80%
60%
40%
20%
0%
1966
Ponderosa Pine
1986
Doulas-fir
1997
Other species
2002
True firs
2007
2012
Engelman Spruce
Harvest by Ownership Select Years
Million Board Feet (Scribner)
120
100
80
60
40
20
0
1997
2002
USFS
Tribal
2007
Private
2012
State
New Mexico Timber Harvest

28.8 MMBF harvest in 2012
– 50.3% NIPF & Tribal
– 49.7% National Forest

Sawlogs ~ 78% of total
Harvest by Species and Product Type
100%
80%
60%
40%
20%
0%
Sawlogs
Vigas
House logs
Other products
Ponderosa Pine
Doulas-fir
Other species
True firs
Lodgepole pine
Engelman Spruce
Key Factors Affecting the
Region’s Forest Industry

Timber Supply
– Ownership &
availability

Wood Products
Demand
– Population
– Housing

Economic Impacts
– Employment
– Worker earnings
New Mexico Primary Wood Products
Industry
Timber-processing facilities
in New Mexico by mill type and
volume of timber used 2012
Size
Sawmills
< 1 MMBF
11
6
17
>1 MMBF
Total
Vigas &
Latillas
5
0
5
Other
Total
6
0
6
22
6
28
County
Lumber
Bernalillo
Catron
Cibola
Colfax
Grant
Lincoln
Mora
Otero
Rio Arriba
Sandoval
San Miguel
Santa Fe
Taos
2012 Total
2007 Total
2002 Total
1997 Total
1986 Total
0
2
1
1
aOther
Vigas and
latillas
Othera
Total
0
1
1
2
2
2
1
1
1
6
2
3
2
3
2
28
24
36
44
41-46
1
1
1
1
1
4
2
2
1
2
1
17
12
21
22
26
2
1
1
1
1
5
5
8
15
5-10
6
7
7
7
10
products include posts, poles, house logs, firewood, pellets, shavings, erosion control products and bark
products.
US Housing & NM Wood, 1991-2014
Sources: U.S. Census Bureau; BBER; WWPA
New Mexico Capacity and
Timber Flow, 2012
28 active primary forest products
facilities, vs. 24 in 2007 and 36 in
2002.
 Combined capacity of 61 MMBF
Scribner annually (16 MMCF).
 38% of capacity utilized. 59% in
2002.
 Net exporter (out of state) of 5.9
MMBF of sawlogs 2012.

Changes in Capacity

Declining timber harvest levels directly led
to declining timber-processing capacity in
the West.

Declines were greatest in areas with
greater dependence on/use of National
Forest timber (e.g. Southwest).

Capacity declined despite high product
prices and high demand for wood products.

Less capacity = less financial feasibility of
forest management.
New Mexico Sales and Product
Flow, 2012
Millions of Dollars
30
25
20
15
10
5
0
New
Mexico
4C
Other products
Board & shop
Rockies
Far
west
N east
Vigas & Latillas
Dimension & stud
south
N
Other
Central
Timbers
New Mexico Forest Industry
Issues






Need for consistent & predictable supply.
Wild fire funding legislation.
Market demand not reaching the region.
Wood energy markets are slowly
emerging.
Restoring & re-vitalizing industry is
important to all forest landowners.
Change is needed!
Contacting Us
• Phone:
(406) 243-5113
• Email:
steve.hayes@business.umt.edu
eric.simmons@business.umt.edu
• Website:
www.BBER.umt.edu