| 2015 |
Timber Industry
in Focus
Educational information regarding forestry and
the forest products industry in Montana
This booklet is produced by the
Montana Wood Products Association.
What’s Inside?
MWPA Mission Statement
2
3-4 Forest Products Industry
5
Who Uses Wood?
6 Montana Forest Land Classification
7-8 Forest Facts
9
Sustainably managing our
resources
10 References & Resources
For questions or to request additional copies, contact us:
Montana Wood Products Association
PO Box 1967 | Missoula, Montana 59806
montanaforests.com
julia@montanaforests.com
To promote healthy forests
and healthy communities
through management of
Montana’s forests.
2
Montana’s Forests Products Industry
Montana’s timber industry is about more than jobs. It’s about people. Many towns were formed
around the processing of timber, and timber companies and their employees are still the
foundation of many communities. Besides direct employment, forest products businesses make
huge contributions to local economies, and their employees donate countless time and money to
support local organizations.
“Montana’s timber
industry is about
more than jobs.
It’s about people.”
For 2013, about 7000 of the 22,148 total manufacturing jobs in
Montana are in the forest products industry. Annually, the
manufacturing segment of Montana’s economy contributes about
$1.1 billion in labor earnings and $14 billion in sales to the total
state economy. Wood products manufacturing ranks first in the
manufacturing sector in Montana in terms of jobs, contributing
significantly to the state’s economy.
Montana forest industry workers are wellpaid, earning an average $49,300 per year.
This is above the statewide average annual
labor income of about $40,800. Labor
income from primary and value-added
wood products manufacturing was $296
million in 2013.
The 15 mills listed in Figure 1 are the
major players in Montana’s Forest
Products Industry. These mills rely on a
predictable supply of logs.
Summary of Montana Sawmills in 2014
In order to continue operations and
maintain the employees they have, the
annual
volume
requirements
for
maintaining these mills at full capacity is
approximately 400-450 million board
feet. This equates an average of 90,000
loaded log trucks per year!
3
Timber Facts at a Glance
Labor income in Montana’s forest industry was
estimated at $2 96 m illion du rin g 20 13 , about 4
percent higher than 2012.
Em ploym en t durin g 201 3 wa s a bou t 7,00 0
w orkers (including private sector foresters and
loggers, primary and secondary wood product
manufacturers, and forestry support activities), up a
little over 2 percent from 2012.
Montana’s tim be r h arves t volum e d uring 2013
w as a b out 365 m illion b oard fee t.
Ava ilab ility of tim be r contin ues to be a m a jor
cha lle nge to Montana’s forest industry. Without a
reliable and affordable supply of timber, mills cannot
respond to increasing demand for wood products.
W ood p rod ucts
m an ufa cturing ran ks f ir st in
the m a nuf acturing s ector in
Montana in terms of jobs,
contributing significantly to the
state’s economy.
1 | Owens & Hurst Lumber Co.
2 | Plum Creek Ksanka Mill
3| F.H. Stoltze Land & Lumber
4 | Plum Creek Columbia Falls
5 | Plum Creek Evergreen
6 | Plum Creek Pablo Mill
7 | Thompson River Lumber Co.
8 | Tricon Timber Inc.
9 | Pyramid Mountain Lumber
10 | Eagle Stud Mill
11 | Smurfit-Stone Container
12 | Marks-Miller Post & Pole
13 | Marks Lumber
14 | Stimson Lumber
15 | Rocky Mountain Log Homes
16 | Sun Mountain Lumber
17 | R-Y Timber Livingston
18 | R-Y Timber Townsend
19 | Roseburg Forest Products
20 | Willis Enterprises
*mills with fewer than 10 employees or less than
one million board feet capacity may not appear.
“Made in Montana”
Montana’s timber industry turns trees, a renewable
resource, into a wide array of products, including
lumber, plywood, particle board, linerboard for
cardboard boxes, posts and rails, log homes, wood
pellets, furniture and biofuels.
Nothing is wasted. Slabs and edgings, formerly
burned in incinerators, are chipped and made into
paper products. Sawdust is used for paper and
panel products. Planer shavings are made into finer
board. Even bark is utilized for industrial fuel and
landscaping.
Current & Future Market Conditions
High levels of domestic lumber consumption are
responsible for recent lumber price increases. These
nearly record prices follow 3 to 4 years of record
lows. The positive shift in wood product prices is
primarily due to a combination of the following:
•Low mortgage rates and high levels of
building activity.
• A sharp decline in the value of the U.S. dollar
against most major currencies.
Raw material availability continues to constrain
Montanan’s wood products industry. Federal timber
sale offerings continue to decline, while litigation of
timber projects has shown an increase. Timber
harvest from private ownerships increased in
response to higher prices and increased
competition for timber.
Perhaps the most threatening issues affecting
Montana mill operations is the availability of raw
materials. Uncertainty over log supply involves
public and private forestlands. Harvest from public
lands may increase in response to fire hazard
reduction and ecosystem restoration projects that
often have high levels of sub-merchantable
materials with limited use as timber products. The
products that produce commercial products are
frequently targeted for appeals and litigation.
Private harvest may decrease in parts of the state
where harvest levels have been high for many years.
4
Who Uses Wood?
Popula tion grow th im pa cts ou r nee d for
sp a ce a nd res ources. U.S. Census Bureau
projections now indicate that the number of
households will grow by nearly 24 million between
2000 and 2020. This breaks down to a need for
approximately 1.2 million new homes each year. In
order to accommodate these homes and the
businesses that come with them, by 2030, the U.S.
will require 44% more built-up space (developed
land) than existed in the year 2000.
The a vera ge Am erican hom e is larger today.
Today’s average home is approximately 2,200 sq. ft.
in size compared to the 1,400 sq. ft. of the average
home built in the 1970’s. The size figure includes
apartments and condos, which make up over 32% of
U.S. housing. A typical 2,500 sq. ft. home is built with
approximately 15,000 board feet of timber and wood
paneling, or 2-3 truckloads of raw logs. Depending
on the size and species of tree, about 130-180 trees
“Wood is Good”
When we are good stewards of our forestlands, wood
is a renewable resource that continues growing and
fulfilling our needs into the future. In addition, wood is
100% biodegradable, recyclable and natural. Did you
also know a recent study in cold, snowy Minnesota
revealed that a wood frame constructed home uses
17% less energy to heat than comparable steel
construction and 16% less than a concrete structure?
The study was conducted by the Consortium for
Research on Renewable Industrial Materials (CORRIM).
Additional climate benefits show that the growth of
wood in renewable forests works to sequester and
remove carbon from the atmosphere, and fewer
carbon emissions are created during wood product
manufacturing than their steel and concrete
counterparts. This makes wood a good choice for
those seeking environmentally-friendly products and
building materials.
5
would be needed to build that 2,500 sq. ft. home. In
addition, the average U.S. citizen uses about 12 lbs.
of wood fiber each day in their consumption of
cardboard, paper, lumber, and household products.
One source estimated this to be the equivalent of
each person using a 100-ft., 18 in. diameter tree each
year!
In 2 013, the U.S. im p orted $1 4.71 b illion of
our wood produ cts to su pp ly the g row ing
d em a nd for th is valua b le res ource. The
demand for land to build on will further exacerbate
this problem as more private and agricultural land is
sold for residential use.
Growth & Mortality
Su sta in ab le Fore st M an ag em en t. According to
the most recent inventory data available, tree growth
in Montana far exceeds natural mortality and harvest
combined. Theoretically, if only the volume equivalent
to the annual growth and mortality were harvested
each year, there would be little impact on existing
forest volumes.
Gr oss Gr owt h & Mo rta lity
on Ti mberla nd f or T op 6
Volum e Species Gr oups
Montana Forest Land Classification
Di ve rse fore sts of the Bi g S ky.
The forests of Montana are as diverse as her
landscape. Seventeen coniferous tree species cover
about ¼ of Montana’s land area, or about 22.5
million acres. Forests on the east side of the
Continental Divide are dominated by ponderosa
pine and Douglas Fir. In western Montana, many
more species are present, mostly due to higher
precipitation levels. These species include, western
larch, lodgepole pine, western white pine, grant fir,
alpine fir Engelmann spruce, western hemlock and
western red cedar.
F ore sted A cres : T he n and No w.
Changes reflect human influence such as harvesting
and settlement, as well as natural events, such as
forest fires and disease infestation. Some changes
are also due to modification in how “forestland is
classified.
Common Conifers
Tree & Shrub species common to Montana
Lodge pole Pi n e
(Pinus contorta)
Po nde rosa P in e
(Pinus ponderosa)
W es te rn W h it e P in e
(Pinus monticola)
W hi te bark ed P in e
(Pinus albicaulis)
Li mber Pin e
(Pinus flexilis)
S ubal pin e L arc h
(Larix lyallii)
W es te rn L arc h
(Larix occidentalis)
C olo rado (B l ue ) S pru ce
(Picea pungens)
W hi te Spr uc e
(Pinea glauca)
En gel mann S pru ce
(Picea engelmannii)
Dou gla s-fir
(Pseudotsuga menziesii)
W es te rn H e mloc k
(Tsuga heterophylla)
M oun tai n H e mloc k
(Tsuga mertensiana)
G ran d Fi r
(Abies grandis)
S ubal pin e F ir
(Abies lasiocarpa)
W es te rn R ed C e dar
(Thuja plicata)
Roc ky M oun tai n J u ni per
(Juniperus scopulorum)
Pac ifi c Y ew
(Taxus brevifolia)
C re epi ng J un i pe r
(Juniperus horizontalis)
C ommon Ju ni per
(Juniperus communis)
Utah J un ipe r
(Juniperus osteosperma)
Column1
Who Owns Montana's Forests? Nonindustrial
Private
20%
National Forest
60%
State
4%
Native
American Trust
4%
Forest Industry
8%
BLM
4%
O w ne rsh ip of Mo ntana’ s F ore sts .
Montana’s forests contain about 22.5 million acres of
classified forestland. Over 9.6 million federal acres
(43% of all forested acres) are “reserved” or
unavailable for harvest of wood products. Of this,
3.4 million acres are in National Forest Wilderness
Areas, National Parks and National Monuments,
while an additional 6.2 million acres of U.S. Forest
Service lands are also unavailable for harvest due to
their status as proposed wilderness areas, roadless
areas, experimental stations, and other special
management considerations. The remaining 12.9
million acres of non-reserved land (57% of total
forestland), is comprised of the following suitable for
timber production and harvest:
5.2 million acres
National Forest System Land administered by
8 National Forests in Montana.
726,662 acres
Forested State Trust Lands administered by
the Department of Natural Resources &
Conservation (DNRC).
6 million acres
Private land owned by farmers, ranchers and
other “non-industrial” private landowners.
900,000 acres
Owned by the forest products industry. This
equates to 8% of the forestland in Montana.
900,000 acres
Bureau of Land Management (BLM)
6
A Look a t Ha rvest Tre nds. Harvest levels typically
mirror the health of the nation’s economy. Harvest levels
plummeted during the recession of the early 1980’s.
However, recent declines in federal harvest levels are
politically driven, and run counter to the nation’s robust
economy. During the last 25 years, harvest from national
forests in Montana have fallen 80%, even as U.S. house
starts reached record levels. The federal harvest decline
is a direct result of regulatory constraints, timber sale
appeals and litigation.
Management of our public forests
W hy Ma na g e Our Na tion al Fores ts? You may
have heard this question raised by those who believe
we shouldn’t cut trees from our National Forests. The
truth is timber management has many benefits
besides production of useful forest products from our
renewable resource. Timber harvesting is used to
improve wildlife habitat, reduce losses to insects and
disease, improve the growth and vigor of our forests,
reduce the risk of high intensity wildfires and restore
forests to historic conditions.
7
Grow ing T omorrow ’s Forest Today. Forest
managers in Montana believe it’s not enough to simply
care for existing forests’ we must also ensure that future
generations have the same abundant forests we enjoy
today. That’s why foresters in Montana are committed to
reforestation of harvest areas through tree planting or
planned natural regeneration. On average, nearly
20,000 acres of forestland in Montana were regenerated
through planting and seeding. This does not include
areas naturally regenerated every year with seeds from
surrounding trees.
The Cost of Res toration. In recent
years, the federal timber program has
come under scrutiny for “below cost”
timber sales, where costs of selling
timber exceed revenues. The reasons
behind this phenomenon are complex and varied.
Even though the National Forest harvest levels
have plummeted, a large staff is still required to
conduct all environmental assessments for timber
projects. Timber sales are being designed to
remove smaller trees with less volume per acre,
and specialized logging equipment is often
required. These factors result in higher logging
costs and reduced federal timber revenues. Many
timber sales contain requirements for work that
has no timber output, such a streambed
restoration. Yet, the cost of these projects is billed
to the timber program.
Despite the large size of our National
Forest System in Montana, there are
surprisingly large tracts that are
classified for other uses and will not
have trees cut or removed. Suitable
acres are those currently available for
timber production and roaded for
multiple use management.
Timberland Species Composition
by Volume
Sta te Trust L an d M ana g em en t
In 1889, Congress granted certain tracts
of land to the states for the support of
schools. The Department of Natural
Resources and Conservation (DNRC)
manages timber, and surface and
mineral resources on over 6.3 million
acres of state trust lands in Montana, of
which about 11% is forested. Revenues
from each specific tract of land are
dedicated to the support of an
assigned beneficiary institution, or to the common school trust. In fiscal year 2013, the sale of timber from state
trust lands contributed roughly $15 million to support endowed institutions in Montana. See figure below. In
2003, the State Legislature passed HB 537, which directed the DNRC to conduct a sustained yield study to set a
new annual timber sale target based on updated forest inventory information. The study found that annually,
53.2 million board feet could be sustainably harvested from state trust lands, while still protecting fisheries,
wildlife and recreation values. With the state Land Board adoption of the Habitat Conservation Plan, the
sustained yield increased to 57.6 million board feet annually.
Trust Returns by Resource | Montana Department of Natural Resources & Conservation
Res ource B urea u
20 10
20 11
20 12
20 13
20 14
Agriculture & Grazing
Forest Management
Minerals (Mining)
Real Estate (Leases)
Recreation
T ota ls
17,956,610
9,241,157
118,060,706
7,732,549
1,087,310
177,413,333
20,714,158
10,496,231
41,781,055
8,243,871
1,043,707
105,600,229
23,898,972
7,173,483
45,846,476
9,028,381
1,101,020
111,591,970
27,827,321
10,504,738
38,873,679
13,757,776
1,089,037
115,484,304
28,495,222
11,204,002
39,116,340
11,041,050
1,101,392
114,418,828
Sh ared Revenu es. Since the Federal Government does not pay taxes to counties in which national
forestlands are located, a system of support was established whereby counties share in revenues from federal
land. Under the Weeks Law of 1911, the Payment in Lieu of Taxes (PILT) of 1976, and the Secure rural Schools
and Community Self-Determination Act of 2000, all 56 Montana counties are eligible for various amounts of
compensation to aid in funding county roads and schools. Thirty-four counties have USFS lands within their
boundaries. The remaining 22 counties contain other Federal lands managed for timber, rangeland, agriculture
and oil/minerals. PILT payments to Montana counties totaled $28,809,242 in fiscal year 2014.
8
Under the Weeks Law, the 34 Montana Counties with USFS timberlands receive 25% of the revenue derived
from total receipts from local National Forests. In 2000, in response to dramatic fluctuations in timber
harvest receipts from federal lands, 31 counties elected to accept an average of past revenues under the
Secure Rural Schools and Community Self-Determination Act, to stabilize funding for schools and roads.
These counties must allocate 80-85% of the money they receive towards roads and schools, however, they
may spend the remainder on search and rescue, forestry projects, road maintenance, fire prevention, etc. In
each county, the county commission allocates these funds through a local Resource Advisory Committee
(RAC) to determine how the remaining 15-20% of the funds will be used.
Sustainably Managing our Resources
M ontan a’s Fores t Policy Approach . When it comes to protecting our natural resources,
Montana has chosen education over regulation. A network of dedicated individuals,
organizations and programs ensures timber harvesting techniques in Montana are
among the best in the nation. Loggers do what’s right for the land because they
understand the need for careful practices. When harvesting next to a stream,
operations must follow the rules of Streamside Management Zone (SMZ) laws. Areas
along a stream are very special and important places in the forest – they are home to
wildlife, they provide shading for streams, and they act as natural filtration zones. The
SMZ is a buffer along each side of a stream and is at least 50 feet wide. On steeper
slopes, the buffer is 100 feet wide and management activities are modified within all
SMZ buffers. Some aspects of a harvesting job, such as equipment operation and road
building, are prohibited unless an alternative practice permit is granted. This ensures
that Montana’s streams remain cold and clear for generations to come.
Com m itme nt to Exce lle nce. For over 20 years, timber harvesting professionals
have proved their dedication to continual improvement. Educational workshops
designed by the Montana Forest Council, including Montana Logging
Association, Montana State University (MSU) Extension Forestry, and the
Department of Natural Resources and Conservation, give loggers reasons
not just rules. In 1994, the Accredited Logging Professionals (ALP) program
was conceived by loggers to advance professionalism in timber harvesting.
ALP graduates are required to attend 56 hours of training, including a 40
hour Forest Stewardship Workshop. Training topics include BMP’s, the
Streamside Management Zone laws, the Endangered Species Act, forest
ecology, insects and disease, business, safety, and first aid. Once accredited,
an ALP logger must attend 32 hours of training per year to retain accreditation.
9
Fore stry B es t M an ag em en t Pra ctices. Loggers and foresters follow voluntary guidelines
called Best Management Practices (BMPs) to ensure their operations minimize soil
disturbance and protect water quality BMPs cover every aspect of a harvest from layout
and design of roads, to road construction and stream crossings, to skidding. Loggers
even use BMPs when leaving a job, to ensure roads are drained adequately and disturbed
areas are grass seeded.
References and Resources
For ad d itiona l inform a tion on th e f acts a nd f igu res p rese nted in this b ooklet,
visit th e followin g w eb sites :
M on tan a Wo od Prod ucts A ss oci ati on | h ttp ://w ww .m o ntan af ores ts.co m
U .S D epartm en t o f C om m erce | h ttp ://w ww .co m me rce .go v
U .S . F ore st S e rvice | No rth e rn R eg io n | h ttp ://w ww .f s.u sda. gov/r1
De partm en t o f Natu ral R es ou rc es & C on se rv ati on | F ores try A ss istan ce Bu re au
h ttp ://d nrc.m t.g ov/F ores try/A s sis tance /Practice s/de faul t.asp
Bu reau of Bu si ne ss and Eco no m ic R es earch | F ore st Ind us try Re se arch P rog ram
h ttp ://w ww .b ber. um t.e du /F IR/de faul t.asp
Inte rnatio nal Wo od Prod ucts A sso ciati on | h ttp ://w ww .i wp awoo d.o rg/
M on tan a A ss ociation o f C ou nti es (M A C o) | h ttp ://w ww .m tco un tie s.o rg
M on tan a Log gin g As so ciatio n | h ttp ://w ww .l ogg in g.o rg
M SU E xten sion | Ide nti fyin g T ree s & Sh rub s in Mo ntan a
h ttp ://s tore .m su exte ns io n. org/pu bli catio ns /O u tdoo rsEn vi ron me n tan dWi ld li fe/2 B03 2 3. pdf
10
Contact Us
Montana Wood Products Association
PO Box 1967 | Missoula, Montana | 59806
Montanaforests.com
Julia@montanaforests.com