Status of Northern Forest Region
States’ Forestry and Forest Products
Industry
A report to the Northern Forest Center and North Country Council
May 31, 2008
Innovative Natural Resource Solutions LLC
37 Old Pound Road
Antrim, NH 03440
www.inrsllc.com
Acknowledgements
Innovative Natural Resource Solutions LLC (INRS) would like to thank the Northern Forest
Center and North Country Council for agreeing to have INRS complete this research project for the
Sustainable Economy Initiative (SEI). Financial support was from the two organizations and their
funder for the SEI, the federal Economic Development Administration of the U.S. Department of
Commerce.
INRS would also like to thank the numerous individuals who agreed to be interviewed as part of the
research for this project. Lastly, INRS would like to acknowledge the individuals who had a role in
research, writing and editing this document: Charles A. Levesque, President, INRS; Eric Kingsley,
Vice-President, INRS; Erin Quigley, Associate, INRS; Julie Renaud-Evans, The Silvics Company;
and H. William Rockwell, Jr., Ph.D, Strategic Resource Systems.
2
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Contents
Page
1. Introduction …………………………………………………………………………….. 4
2. Forests of the Northern Forest Region
2.1 Forest Area, Trends and Forest Ownership……………………………………….
2.2 Forest Inventory………………………………………………………………….
2.3 Trends in Forest Inventory………………………………………………………..
2.4 Future Forest Inventory…………………………………………………………..
2.5 Past, Current and Future Use of the Forest Inventory…………………………….
2.6 Policy Questions on Forest Inventory, Use and Ownership………………………
3. The Forest Products Industry in the Northern Forest Region
3.1 Current Inventory of Forest Products Industry Production Facilities…………….
3.2 Changes in Production Facilities in the Past 15 years……………………………..
3.3 Projections for the Future of Production Facilities: A Summary
and a Look Toward New Investment…………………………………………….
3.4 Wood Availability – the Many Factors Affecting the Commerce of
Moving Wood from Forest to Mill……………………………………………….
3.5 Policy Questions - Future of Forest Products Industry Production Facilities……..
5
22
26
28
36
42
50
60
64
66
70
4. Markets for the Forest Products Industries of the Northern Forest Region
4.1 Pulp……………………………………………………………………………….
4.2 Paper………………………………………………………………………….......
4.3 Lumber……………………………………………………………………………
4.4 Panels…………………………………………………………………………......
4.5 Energy…………………………………………………………………………….
73
74
75
77
78
5. Climate Change and the Role of Forests in the Northern Forest Region
5.1 Kyoto Protocol……………………………………………………………………
5.2 Regional Greenhouse Gas Initiative………………………………………………
5.3 Federal legislation…………………………………………………………………
5.4 Voluntary markets…………………………………………………………………
5.5 Implications for Forests in the Northern Forest Region…………………………..
80
81
81
81
82
6. An Assessment of the Forest Products Industries of the Northern Forest by State
6.1 New Hampshire…………………………………………………………………..
6.2 New York…………………………………………………………………………
6.3 Maine……………………………………………………………………………..
6.4 Vermont…………………………………………………………………………..
83
89
93
98
7. Best Practices in the Forest Products Industry Within and Outside the
Northern Forest Region Based on Six Characteristics……………………………….
Case Studies
8. Conclusions……………………………………………………………………………..
103
Sources…………………………………………………………………………………………..
164
3
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
162
1. Introduction
This report is provided as key background information for the Sustainable Economy Initiative. The
Sustainable Economy Initiative (SEI) of the Northern Forest Center and North Country Council
was created to fulfill the first recommendation of the Northern Forest Lands Council 10th
Anniversary Forum:
Invest public and private resources to develop and implement community and economic
development strategies across the region to reinvigorate the rural economies of the
Northern Forest. These strategies should seek to assess the economic strengths and
weaknesses of the region, strengthen the region’s forest products industry and landowner
stewardship, and spur the creation of new economic ventures that foster the sustainable use
of the region’s abundant natural resources. These efforts should build upon the strong
traditions and character of the region’s communities with the goal of strengthening
sustainable Northern Forest communities.
In fulfilling this recommendation, the SEI has several goals:
•
•
•
•
Deliver a regional strategy and action plan for revitalizing the declining Northern Forest
economy and sustaining the long-term health of its people and lands.
Provide a framework for new public and private investment in Northern Forest
communities.
Recommend specific actions for leveraging the competitive advantages of the region’s
primary economic sectors—forest products, recreation and tourism, energy, and the
knowledge/creative economy—into sustainable economic development.
Create region-wide commitment to action and form networks of individuals, communities,
organizations, and governments ready for implementation.
Integral to these goals is the need for good information about the Northern Forest region. The
Northern Forest Center and North Country Council asked Innovative Natural Resource Solutions
LLC to fulfill several information needs, namely to provide an update on the status of forestry and
the forest products industry in the 4-state Northern Forest region. This portion of the study is
largely historical although some future projections are included where available. A second portion of
this analysis includes a look at the innovative activities in forestry and the forest products industry
occurring in the region and beyond. This “best practices” approach will demonstrate possible
models for improving the status and fate of the portion of the economy and communities
dependent on forestry and the forest products industry in the region.
The forestry and forest products industry in the 4-state Northern Forest region is substantial and
ever changing. This analysis will provide an in-depth look at the current status of these key
economic and social sectors, but will also review trends and likely futures – important in
understanding where limited public and private resources should be invested for the benefit of the
people of this forested region.
4
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
2. Forests of the Northern Forest Region
2.1
Forest Area, Trends and Forest Ownership
2.1.1 The Area
The states of Maine, New Hampshire, Vermont, and New York make up the northeastern corner of
the continental United States. Combined, these states encompass an area of about 100,000 square
miles. The land is bordered by over one thousand miles of Canadian border, and over threethousand miles of coastline on the Atlantic Ocean. The region is the northern end of the
Appalachian Mountain range and has significant mountain peaks in all four states. Northern New
England and New York are known for its scenic beauty of mountains, coastline, extensive forests
and water resources including over fourteen thousand lakes and ponds and almost one-hundredthousand miles of river.
Table 2.1 Total land area of Northern Forest states in acres
Maine
New Hampshire New York
Total land area
19,951,395 ac
5,739,594 ac
Source: USDA Forest Service Forest Inventory and Analysis (FIA)
5
30,216,742 ac
Status of Northern Forest Region States’ Forestry and Forest Products Industry
Vermont
5,919,702 ac
May 31, 2008
2.1.2 The People
The four Northern Forest states are home to 22.5 million people1. This regional population has
increased greatly in the last two decades. Consider these data comparing state populations since
1990:
Table 2.2 Census data
Population, 1990
Census
Population, 2000
Census
% increase
Population, 2007
Estimate
% increase over
2000
Maine
New Hampshire New York
Vermont
1,227,928
1,109,252
17,990,455
562,758
1,274,923
1,235,786
18,976,457
608,827
3.8%
1,317,207
11.4%
1,315,828
5%
19,297,729
8%
621,254
3.3%
6.5%
1.6%
2%
Source: U.S. Census Bureau
Figure 2.1
Areas surrounding Boston and New York are part of the fastest growing population in the country.
New Hampshire is a good example, as it has experienced unprecedented growth -- the state’s
population grew 17% from 1990 to 2004 and is expected to increase another 28% by 2025. Most of
this growth has been concentrated in three counties in the southeastern part of the state. Due to
good highways and easy commuting time, this area has become an extension of Boston’s suburban
zone.
1
U.S. Census Bureau 2007 population estimate
6 Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
The Census Bureau also separates its population data into Urban and Rural categories. In 1990
approximately 27% of the population of the four states was considered rural. The 2000 census
indicates that the rural population in the region decreased to 18% over a ten year period. In both
Maine and Vermont, 60% of the population is located in rural communities. New Hampshire,
however, has lost much of its rural characterization. The Census Bureau calculates its population to
be only slightly higher than forty-percent rural. New York comes in a distant last, with a mere
thirteen percent of its population found in rural areas.
2.1.3
The Forest
The Natural Resource Conservation Service, part of the U.S. Department of Agriculture, conducts a
periodical Natural Resource Inventory for the US. Part of the inventory includes an estimate of land
use and land use change over time including such categories as cropland, pastureland, rangeland,
forestland, and developed land. In the New England/Mid Atlantic region, which includes our study
area, land considered ‘developed’ has increased significantly over the last twenty-five years.
Since 1982 New England and the Mid Atlantic states have lost 17% of their cropland, 24% of their
pastureland, and 2% of their forestland, resulting in a 47% increase in the amount of developed
land(NRCS NRI 2003). Population growth, development, and the resulting forest fragmentation are
just some of the changes affecting the forest of the northeast.
The USDA Forest Service also tracks amount of forestland through its Forest Inventory and
Analysis (FIA) program. According to the latest data, forestland covers 61% of New York, 75% of
Vermont, 84% of New Hampshire, and 89% of Maine -- the most forest coverage of any state in the
nation. Together the entire region is about 77% forested. For comparison, the larger, twenty-one
state Northeastern region is 66% forested. Forestland is defined by the FIA program as land that is
at least 10% stocked with trees of any size, or that formerly had such tree cover and is not currently
developed as non-forest use. FIA also distinguishes timberland, which is defined as forestland
producing, or capable of producing, crops of industrial wood (more than 20 cubic feet per acre per
year) and not withdrawn from timber utilization. The table and graph below depict the relationship
between land area, forestland, and timberland for each of the four states.
Table 2.3 Total land area, forestland area, and timberland area in the four Northern Forest states.
Acres of land
Total Land Area
Maine
19,951,395
Forestland
17,671,177
Timberland
17,160,607
Source: USDA Forest Service FIA
7
New Hampshire New York
Vermont
5,739,594
4,850,055
4,673,844
5,919,702
4,462,835
4,352,855
30,216,742
18,464,222
15,781,241
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Figure 2.2
2.1.4
Ownership
Private and Public Lands
Most of the land in the four Northern Forest states is privately owned, which is typical for the
eastern part of the country. Private land is owned by individuals, corporations, and nongovernmental organizations. Public land is owned and controlled by a public entity such as the
town, county, state, or federal government.
Table 2.4 Percent of Private and Public Land Ownership in the four Northern Forest states.
Maine
Public
Private
7%
93%
Source: USDA Forest Service FIA
8
New
Hampshire
New York
Vermont
Whole
Region
26%
74%
23%
77%
19%
81%
17%
83%
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Figure 2.3
Source: USDA Forest Service FIA
New York and Maine have significant state lands, including the Adirondack Park (NY) and the
Baxter State Park and Bureau of Public Land ownerships (ME), whereas New Hampshire and
Vermont each have a large federal presence in the White Mountain (NH) and the Green Mountain
(VT) National Forests. The rest of the public lands are smaller-scale public ownerships in state
parks and forests, and municipal pieces such as water supply lands and recreation areas.
Until the last decade, the amount of public ownership has been relatively stable in this region.
Recently, large conservation efforts in response to land sales and threat of development have
increased public ownership. This has occurred especially in the local and state categories, as well as
in the public ownership of partial interests in land through conservation easements.
9
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Figure 2.4
Public Lands in the Northern Forest States
3,500,000
3,000,000
Acres
2,500,000
2,000,000
1994
1999
2004
1,500,000
1,000,000
500,000
0
ME State ME Federal NH State NH Federal
Lands
Lands
Lands
Lands
VT State
Lands
VT Federal
Lands
NY State
Lands
NY Federal
Lands
Source: USDA Forest Service FIA and state sources
The following charts provide a perspective on timberland ownership in the region by dividing the
private sector and distinguishing the public sector. New Hampshire and Vermont’s national forests
show here as federal, whereas New York’s Adirondack Park is state property. The charts are based
upon Forest Service data from 2005 and 2006. The large business ownerships in Maine have
historically been held by paper and sawmill companies, but today these are more likely to be held by
trusts, corporations, and investment funds.
10
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Figure 2.5 Timberland ownership in Maine.
Source: USDA Forest Service FIA
Figure 2.6 Timberland ownership in New Hampshire.
Source: USDA Forest Service FIA
11
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Figure 2.7 Timberland ownership in New York.
Figure 2.8 Timberland ownership in Vermont.
Historically, the private land that supports the forest product industry in the Northern Forest region
12
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
has been divided into two large categories: industrial forestland and non-industrial forestland. In
the past , large industrial tracts that were acquired through land grants or from lumber baron owners
in the nineteenth century stretched across the Northern Forest region . The timber was managed
and harvested to support the paper and lumber industries. Often, sawmills owned both their
manufacturing facilities and large tracts of forest to ensure a continual stream of resource. Across
southern portions of the region, the ownerships were much smaller and usually non-industrial. This
land supported over 90% of the region’s population. Settlement patterns reflected the population
growth along the coast and up the rivers where water power was used. These smaller forest
properties were most often part of farms or residences. Both industrial and non-industrial
forestland have experienced great changes in the last twenty years.
2.1.4.1 Trends in Private Large Tract Ownerships
Divestiture and Transfer of Traditional Industrial Ownerships
The sale of timber company Diamond International’s property in all four states in 1988 began a
transformation of landowners and their relationships -- both with the forest itself and the mills
reliant on the forest resource. “When the former Diamond lands were sold, the concerns from
policy makers came not from the sheer action of these land sales, but the potential for major shifts
in the availability and protection of public and private values associated with these lands (Kingsley,
Levesque, Peterson 2004)2.”
Prior to 1988, the largest forested areas in northern Maine, New Hampshire, Vermont, and New
York were held by industrial owners, or those that owned forest land along with forest products
manufacturing facilities. Since that time there has been a complete shift to a new variety of owners.
The companies have separated their manufacturing facilities and sold off the land, planning to
supply their wood needs through private forest owners on the open market. This is a national trend
seen throughout regions with a forest products industry presence. Recent divestitures over the last
fifteen years by the forest industry total 46 million acres of forestland. These forest product
companies, largely publicly traded, have sold or transferred almost 79 percent of their land holdings.
Thirty-three percent of these transfers were to publicly traded companies such as real estate
investment trusts (REITs), 50% were to institutional or other investors through timber investment
management organizations (TIMOs) and 17% were to privately held forest industries, individuals,
conservation groups, family trusts, and partnerships. 3
The regional view is this: in 1988 approximately 9.7 million acres were owned by industrial owners
and about 3.6 million acres were owned by large non-industrial owners. From 1988 to 1994, nearly
1.3 million acres shifted from industrial to non-industrial categories across the region.4
2
Kingsley, Eric, Levesque, Charles A., and Peterson, Christina, The Northern Forest of Maine, New Hampshire, Vermont and
New York: A look at the land, economies and communities 1994-2004, unpublished 2004
3 Alvarez, Mila “State of America’s Forests” Society of American Foresters, 2007
4
Kingsley, Eric, Levesque, Charles A., and Peterson, Christina, The Northern Forest of Maine, New Hampshire, Vermont and
New York: A look at the land, economies and communities 1994-2004, unpublished 2004
13 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
Table 2.1 Private Land Ownership in Northern Forest Region (acres)
Ownership/State 19885
Industrial
Large-Non-industrial
Ownership/State 19946
Industrial
Large Non-industrial
Large NGO
Ownership/State19997
Industrial
Large-Non-industrial
Large NGO
Ownership/State20048
Industrial
Large-Non-industrial
Large NGO
Maine
7,700,000
3,100,000
Maine
6,867,763
3,277,152
46,092
Maine
4,369,591
5,956,235
48,018
Maine
3,239,156
6,560,412
164,246
N. Hampshire
500,000
50,000
N. Hampshire
402,161
153,787
76,710
N. Hampshire
311,716
210,231
21,129
N. Hampshire
26,489
455,034
12,292
New York
Vermont
1,200,000
500,000
300,000
50,000
New York
Vermont
960,916
203,689
103,503
New York
741,668
221,241
102,299
New York
671,706
208,833
155,903
202,541
46,579
10,259
Vermont
9,002
190,815
57,490
Vermont
9,577
163,266
58,781
TOTAL
9,700,000
3,600,000
TOTAL
8,433,381
3,681,207
236,564
TOTAL
5,431,977
6,578,522
228,936
TOTAL
3,946,928
7,387,545
391,222
From 1994 to 1999 over 3 million acres formerly held by industrial timberland owners were sold to
other owner types. The vast majority (nearly 2.9 million acres) went to large private non-industrial
landowners while a very small subset went to conservation non-profits, state government or the
federal government.
The chart below shows a major shift from the industrial ownership type (first column set) to the
large non-industrial type (second column set) from 1994 to 2004.
5Excerpt
from Finding Common Ground Appendix J
Definitions of categories: Industrial – private timberland ownership of any size where the owner also owns forest
products manufacturing assets (generally over 2,000 acres); Large non-industrial – private timberland ownership where
the owner owns no manufacturing assets (generally over 2,000 acres).
6
James Sewall Company, 2004
7
James Sewall Company, 2004
8
James Sewall Company, 2004
14 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
Figure 2.9
Northern Forest Landow nership
9,000,000
8,000,000
7,000,000
Acres
6,000,000
1994
5,000,000
1999
4,000,000
2004
3,000,000
2,000,000
1,000,000
0
Industrial
Large Non-industrial
Large NGO
State land
(statew ide)
Federal land
(statew ide)
Landow nership Type
Source: Northern Forest Lands Council 10th Anniversary Forum – Background White Paper from USDA Forest
Service FIA sources
Between 1988 and 2004 the amount of forest land in the private industrial category was reduced by
sixty percent. TIMOs were the vast majority of new non-industrial private owners of these acres.
Other investor owners include REITs and limited partnerships (MLPs or LLCs).
The transfer of forestland has continued since 2004. From 2005 to 2007 another 1.2 million acres
were sold in Maine and New York (minimum sale size of 20,000 acres). By 2007, the leading owners
of forestland in the region had shifted to institutional investors and timber REITs. Ownership by
environmental and non-governmental organizations (ENGOs) increased dramatically in the same
period. Compare the ownership maps presented here to see the change9.
9
James W. Sewall Co. Timberland Report 2007
15 Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Figure 2.10 Northeastern Timberland Ownership, 1995
Source: James W. Sewall Co.
16
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Figure 2.11 Northeastern Timberland Ownership, 2007
Other Trends in Large Tract Ownership
The shift away from industrial ownership of forestland, particularly in the Northern Forest region,
has boosted conservation efforts. The result has been purchase of forest tracts by towns, states,
land trusts, and environmental organizations.
Community Forests
Settlement of early New England towns often included tracts set aside for the school, church, and
the town forest. Town forests have been used to provide firewood for the poor, to provide funds
for town facilities, to protect a local water supply, and as a respite area for recreation. Today, the
Town Forest is being reinvented as a way for communities to control changing land ownership
patterns and potential development on valued parcels. Town acquisition of forestland is also
pursued in order to retain traditional uses of the forest including timber management and open
access recreation. Five significant Community Forest projects have protected a combined 50,000
acres in New Hampshire, Vermont, and Maine.
• Paul T. Doherty Memorial Forest, Gorham New Hampshire
17
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
•
•
•
•
Farm Cove Community Forest, Grand Lake Stream, Maine
13 Mile Woods, Errol, New Hampshire
Brushwood Community Forest, West Fairlee, Fairlee, and Bradford, Vermont
Randolph Community Forest, Randolph, New Hampshire
These forests have been purchased and protected for their conservation value, their economic
development value, and their community development value. Most have been protected with a
conservation easement, and are managed to provide resources and jobs in the forest products
industry.
Table 2.2
Values of Community Forests
Conservation Values
Economic Values
Community Values
Buffer conservation lands
Link conservation lands
Conserve forest land
Protect wildlife habitat
Leverage partnerships
Provide raw materials
Provide/maintain jobs
Environmental services
Water supply
Recreation
Continue culture & tradition
Build social capital
Expand community capacity
Support education
Support recreation
Community forests are based on the principles of sustainable development and community-based
natural resource management. They have the potential to become a valuable component of the
mosaic of conservation, community, and economic development strategies for the region that can
result in the conservation of productive forestland and important ecological systems while
promoting community vitality and economic well-being.10
Conservation Easements
According to the Land Trust Alliance, each year America loses 2 million acres of farms, forests, and
open spaces to developed uses. Fortunately, there has been a significant effort to conserve these
lands in the last two decades. The Alliance reports that by 2005 there were 37 million acres across
the nation conserved through private means; this was up from 24 million in year 2000.11
Conservation easements have been used in the Northeast since the late 1960s, but the acreage under
these legal instruments literally exploded after 1994 from thousands of acres to millions of acres.
Some 2,500 properties covering over two million acres of forest are now under easements in New
York, Vermont, New Hampshire, and Maine. There are over a dozen easements in the region
exceeding 10,000 acres, and several existing easements are over 100,000 acres.12
Maine, New York, and Vermont are some of the states with the highest total acres conserved. The
Northeast shows the highest increase in acres under conservation easement from 763,391 acres in
2000 to 2,310,487 acres in 2005 -- a near three-fold increase. The bulk of that growth is from the
single largest conservation transaction in history: the conveyance of a 762,192 acre conservation
Community Forests, A Community Investment Strategy, Community Forest Collaborative, 2007
2005 Land Trust Census Report, Land Trust Alliance 2006
12 NFLC 2004
18 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
10
11
easement on Maine’s Pingree forest.13
Table 2.3 Total Acres Protected by Local and State Land Trusts and Increase in Acreage
Maine
New Hampshire
New York
Vermont
2000
136,712
193,563
571,519
444,770
Source: Land Trust Alliance
Acres Protected
2005
Increase
1,717,656
263,633
624,241
576,733
1,580,944
70,070
52,722
131,963
Since 2005, an additional 341,067 acres have been protected through conservation easements.
• 12,710 acres in central Maine
• 24,710 acres in central New Hampshire
• 303,647 acres in the Adirondacks of New York.14
Conservation easements are funded through a variety of means and programs. From April 1993 to
April 2004, the Forest Service’s Forest Legacy Program provided more than $58 million to Northern
Forest states. This money conserved 663,364 acres of the Northern Forest 15
Other U.S. Government funds include the Land and Water Conservation Fund, Coastal Programs,
Transportation Enhancements, and the Cooperative Endangered Species Enhancement Fund. Large
land protection projects in the region usually combine federal funding with state funding and private
fundraising. Projects often involve multiple public and private agencies in addition to the willing
seller.
One approach to conservation easements used successfully in the region is the division of former
industrial timberlands into reserves and conserved working forests. In three notable cases since
1998, consortia of state, industry, and environmental interests pooled financial resources to acquire
(in fee or easement) expansive forest properties. Through the process, the parties negotiated what
areas to protect as reserves and what lands to retain as working forests. Examples in region include:
• Champion lands in the Northeast Kingdom of Vermont (132,000 acres)
• Connecticut Lakes Headwaters in New Hampshire (171,500 acres)
• Bunnell Forest in New Hampshire. (18,500 acres)
• Katahdin Forest Project in Maine (200,000 acres)
• West Mountain WMA in Vermont (22,000 acres )
• International Paper lands in the Adirondacks of New York (260,000)
These areas are now a mix of ownerships between public (usually state) and private (either private
investor or traditional industrial), and the properties have been split between ecological reserves and
working forest area.
2005 Land Trust Census Report, Land Trust Alliance 2006
Land Trust Alliance and State Government sources.
15 NFLC 2004
19 Status of Northern Forest Region States’ Forestry and Forest Products Industry
13
14
May 31, 2008
Trends in Non-industrial Private Forests
Forestlands account for two-thirds of the land cover throughout the Northeast. Approximately
70% of those lands are Family Forests owned by families and businesses. Other ownerships, as
already discussed, include public (18%) and industrial or investment owners (12%). Family forest
owners are defined as individuals, married couples, family estates and trusts, or other groups of
individuals who are not incorporated or otherwise associated as a legal entity. There are 10.3 million
family landowners across the nation and they own about 40% of the total forest acreage. Ninety
percent of these landowners are in the East, and 77% have their primary residence within one mile
of the property. 16
The USDA Forest Service periodically conducts its National Woodland Owner Survey (NWOS) in
order to characterize the private forest owners of the US and determine why they own land and
what they intend to do with it. It is part of the FIA program and represents the social compliment
to the program’s biological resource inventory.17
National trends of forest owners have been similar for some time, reflected in the surveys completed
in both 1992 and 2002.
• 90% of the owners have tracts less than 50 acres in size and the average size is 24 acres
• There is an increasing number of owners
• The average age is 60
• The primary reasons for owning land include aesthetic enjoyment, to protect nature, as part
of a home site, for privacy, or to pass on to heirs.
Nationally only 9% of family forestland owners own their land for timber management and
harvesting; in the north (21 states), this is true for 18% of owners. Often these types of landowner
surveys are completed at the state level as well, with similar results. In 2001 the Society for the
Protection of NH Forests surveyed a sample of the 83,000 landowners in New Hampshire and
found that primary reasons for ownership were aesthetic enjoyment and as part of a residence -together these accounted for 74 percent of the respondents.
Subsequent data over time indicates that tract size of forestland is decreasing; for a long time about
85 percent of landowners had parcels less than 50 acres in size. This still held true through the 1994
data. However, with the 2002 data the number of owners with tracts less than 50 acres rose to
ninety percent. At the same time the number of owners having over 100 acres dropped by 25% and
the number of owners having at least 500 acres dropped by fifty percent.
Multiple studies in then Northeast , as well as the FIA data, show that we are increasing the number
of landowners, and decreasing the size of land parcels. A study in New York noted that 8,000 new
parcels were added to a five county region in the Catskills between 1984 and 2000. This resulted in
average parcel size diminishing from 19 acres to 16 acres.18 In Vermont the number of landowners
owning less than ten acres doubled between 1983 and 1993. 19 These changing ownership patterns
Butler, Brett and Leatherberry, Earl, “America’s Family Forest Owners,” Journal of Forestry 2004
Butler, Brett and Leatherberry, Earl, “America’ Family Forest Owners,” Journal of Forestry 2004
18 Germain, Rene, Anderson, Nate, and Bevilacqua, Eddie, “The Effects of Forestland Parcelization and Ownership
Transfers on Nonindustrial Private Forestland Forest Stocking in New York,” Journal of Forestry, Dec 2007
19 Fidel, Jamey, “Roundtable on Parcelization and Forest Fragmentation,” Vermont Natural Resources Council, 2007
20 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
16
17
have the potential to remove significant acreages of forestland from the timberland category by
changing ownership objectives and reducing the economic viability of management for timber. 20
Parcelization is the division of large land holdings into smaller ones. Tremendous population
growth rates throughout northern New England and New York are resulting in such subdivision in
the region, especially in southern counties. Rising land values and demand for new homes have
encouraged development and land conversion from farm or forestland to buildings and roads.
Moderate to high rates of land conversion are now found throughout the southeastern third - if not
half- of New Hampshire.21 Similar growth patterns are being seen throughout the four-state region.
Parcelization has the potential to affect wood availability in two ways: landowner objectives and
viable size of parcels for management and harvesting. People who own smaller parcels may be less
likely to harvest their timber, and population growth may include forestland acquisition by
individuals raised in an urban culture who see forestry as irrelevant to their landowning objectives. 22
Smaller parcels may not be viable for timber growth and harvest for logistical management issues.
The average per-acre cost of preparing a timber sale, harvesting, and regeneration goes up as the size
of the sale goes down, particularly as it drops below 50 acres. 23 At the same time, the price paid to
landowners for stumpage tends to go down as harvest plots get smaller. The effect is reduced
incentive to manage smaller ownerships for timber production.24
20 Germain et al “Forestland Parcelization in Upstate New York Despite Economic Stagnation and a Declining
Population, Northern Journal of Applied Forestry 2006
21 Society for the Protection of NH Forests, “ New Hampshire’s Changing Landscape,” 2005
22 Sampton, N, and DeCoster, L. “Forest Fragmentation, Implications for Sustainable Private Forests,” Journal of
Forestry March 2000
23 Thorne, Sarah and Sundquist, Dan, “New Hampshire’s Vanishing Forests: Conversion, Fragmentation and
Parcelization of Forests in the Granite State,” Society for the Protection of New Hampshire Forests, 2001
24 R. Neil Sampson, “ America’s Family Forest Owners, Implications for Forest Production,” Journal of Forestry 2004.
21 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
2.2
Forest Inventory
The best and nearly only source of information on forest inventory at a state, regional or national
level in the US is the Forest Inventory and Analysis (FIA) of the USDA Forest Service. Created in
the 1940s, the FIA program reports on status and trends in forest area and location; in the species,
size, and health of trees; in total tree growth, mortality, and removals by harvest; in wood
production and utilization rates by various products; and in forest land ownership25. The FIA does
this through the measurement and re-measurement of trees and other biological data on a series of
thousands of fixed plots in the forests of the entire US.
The Forest Service has significantly enhanced the FIA program in recent years by changing from a
periodic survey, where the fixed plots in a state were all re-measured during the same year (or
sometimes two years), to an annual survey, where a portion of all plots country-wide are remeasured each year. FIA data collection has also expanded from its timber focus in early years to
now include ecological conditions such as soil type, understory vegetation, tree crown conditions,
coarse woody debris, and lichen community composition.
The inventory of the forests in the Northern Forests region – meaning the number and volume of
the trees in this four-state area – has been increasing since the mid-1900s. In this section we look at
the standing inventory in the forests of the region as they stand today, and in the next section we
examine inventory trends over time.
2.2.1 Standing Inventory by Species
Figure 2.12 shows the relative volumes of trees in the Northern Forest by species. Red maple (soft
maple) is the most dominant species of tree by volume at 15%. Spruce and balsam-fir are next at
14% followed by Eastern white pine and red pine (12%) and sugar (hard) maple (12%). Total
volume of the growing stock26 trees in the Northern Forest is 65,006,229,100 cubic feet.
25
26
http://fia.fs.fed.us/
Growing stock – live trees 5 inches or larger in diameter measured at 4.5 feet off the ground
22 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
Figure 2.12
Source: USDA Forest Service, Forest Inventory and Analysis 2008 (data from 2003-2006)
2.2.2 Softwoods versus Hardwoods
The forests of the Northern Forest states have both softwood (pine, spruce, fir, etc) and hardwood
(sugar maple, red oak, etc) species. Hardwoods predominate and contain net growing stock of
39,757,487,966 cubic feet while softwoods contain 25,248,741,134 cubic feet (Figure 2.13).
Figure 2.13
23
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
2.2.3 Growth of Tree Species Groups in the Northern Forest States
Just as with the standing inventory, hardwood growth outweighs softwood growth in the region
(Figure 2.14). Nearly 70 million cubic feet of hardwood growth and over 40 million cubic feet of
softwood growth occurs each year in the region’s forest.
Figure 2.14
2.2.4 Annual Harvest by Species Groups
As can be expected, more hardwoods are harvested each year than softwoods (because more
hardwoods are available on the landscape). The percentage of harvests by these species groups,
however, is not the same as inventory or growth. A higher percentage of harvests occur in
softwood species as seen in Figure 2.14. This is largely due to the nature of softwood growth and
the fact that a higher percentage of softwood trees can be milled into high value lumber (as
opposed to pulpwood or wood chips for energy).
Importantly, harvest of timber is less than growth in both the hardwood and softwood
categories (Figure 2.15). For hardwoods, 50 million cubic feet of timber is harvested annually while
over 70 million cubic feet grows. For softwoods, 46 million cubic feet of timber grows annually
while 43 million cubic feet is harvested. That means that for both species groups, growth is greater
than harvest and inventories are increasing.
24
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Figure 2.15
Figure 2.16
Current inventory of trees across the Northern Forest states is substantial as this region is one of the
most forested regions in the country.
25
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
2.3
Trends in Forest Inventory
As described in the forest inventory section above, the USDA Forest Service Forest Inventory and
Analysis data is the only dataset from which to look at future trends in the inventory of the forests
of the region.
2.3.1 Current Inventory Levels in the Northern Forest
Overall, the forest inventory27 in the Northern Forest states is increasing. Figures 2.17 and 2.18
show that both volume of trees and the land area of larger trees has increased at a steady rate since
the 1970s.
Figure 2.17
Source: USDA Forest Service Forest Inventory and Analysis
For the purposes of this section forest inventory means data primarily focused on the standing trees and their volume
along with the growth on those trees.
26 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
27
Figure 2.18
Source: USDA Forest Service Forest Inventory and Analysis
The implications of these changes are several. First, the forests of the Northern Forest states are
growing older and larger. This provides more options for the use of the timber for wood products,
including increasing harvest levels (see next section). Second, older and larger forests across the
landscape allow for the assurance and proliferation of wildlife species that require such forests.
27
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
2.4
Future Forest Inventory
The future of the Northern Forest has yet to be determined, but well-constructed models can make
intelligent projections about the region’s future. A 2002 study published by the North East State
Foresters Association28 used the ATLAS and FLexFIBER models along with an econometric model,
the Sub-Regional Timber Supply Model, to look at possible futures for the forest contained in the
four-state region.
The following section outlines the findings of that multi-year modeling effort29.
2.4.1 A Forest Resource Model of the States of New York, Vermont, New Hampshire, and
Maine
The region included in the model work covers more than 45 million acres of forestland in the four
Northern Forest states – representing all the forests of the four-state region. The modeling analysis
uses the most recent FIA plot data available at the time30, plus information from state agencies and
other sources, to establish initial conditions for projections over a 50-year time horizon. The FIA
plot-level data (from which the model data are derived) are organized into ecological habitat types, a
biophysical classification scheme that incorporates soils, understory vegetation, and other measures
as a way of grouping forest land acres. Ecological measures, also derived from FIA plot data, are
used to add insight to the traditional projections of timber growth and harvest. Land-use change is
included in the analysis and basic principles of resource supply and demand are used to characterize
shifts in harvest demand over the model period. The results of the model runs are available at the
regional or state level. It should be strongly noted that results from this model are not predictions
of the future but rather identify possible futures given certain assumptions.
Highlights/Findings
-
-
The four NEFA states are in a regional forest resource and forest products economy.
Current regional harvest levels are sustainable.
A 1% annual increase in harvest levels (56% net increase over 50 years) is not sustainable.
Ecological metrics can be derived from FIA data and show that the biological components
of the forest resource are resilient. Taking this modeling output to a higher level analysis will
clarify the role of changed assumptions in the model on non-timber resources.
Net timberland loss is not a significant issue regionally but is significant on the state level.
New York has a net gain of timberland due to agricultural land reversion and New
Hampshire has a net loss due to development. Maine and Vermont have a reasonable
balance of additions to forestland from reversion of field to forest against loss of forest to
conversion to non-forest uses (primarily development).
The model reflects the scale and sensitivity of the relative size of the forest and forest
industry within the NEFA states. New York and Maine are considerably larger than New
Hampshire & Vermont both in terms of forest area and the industries that depend on them.
28
funded through a grant from the USDA Forest Service.
of this narrative comes directly from the Turner/Caldwell white paper report from 2001 entitled A Forest Resource Model
of the States of New York, Vermont, New Hampshire, and Maine.
29Portions
30 The lead modeler in this project, Robert Turner, has said in personal communication that the more up-to-date FIA
data available today is so similar to the data used when this project was completed that the results of the model runs
would be virtually the same as those described in this report.
28 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
-
Data on the future forests of the region is valid on the state and regional level, but not on a
geographic level smaller than a state.
Condition of Forest Resource
Timberland area remained relatively stable from 1970 to 2000, increasing by roughly 3%. Except in
New York, gains from reverting farmland in the rural parts of most states are offset by losses to
development in urbanizing regions. Significant increases to the forest land base are not likely in the
future.
Forests in the NEFA region are maturing. From 1970 to 2000 the proportion of acres in the nonsawtimber classes declined while acres in sawtimber increased. Regional inventories are building.
New York's inventory grew 32%. Maine shows a decline in inventory, largely due to the spruce
budworm outbreak and salvage harvesting of the 1980s. Maine is now (2008) slowing increasing its
inventory as harvests are slightly less than the net growth. Net growth across the states increased
slightly, while removals of mature timber increased in recent years. Mortality remained steady,
though state data reveal increased mortality in Maine and decreased mortality in New York.
More wood is being grown than harvested, though the combination of slower net growth (due to
maturing forests) and increased harvesting has narrowed the margin. This is part of a predictable
cycle. The current forest has grown back from heavy cutting early in the 20th century and the
abandonment of agricultural lands. The forests are now mature, and growth is less vigorous. Along
with declining per-acre growth rates, increased harvests and slower increases (or even modest
declines) in inventories should be expected.
New inventory data is being developed constantly and these data may influence how the changing
forests of the region are viewed. It is helpful to understand the simple formula used to determine the
state of growth of a forest (net growth or actual growth to inventory):
Net Growth of the Forest = gross tree growth less mortality less tree harvesting
Model runs
The results of all modeled scenarios depend on data and techniques that have varying degrees of
uncertainty and error. A team of regional and national experts reviewed and influenced the
assumptions
made to frame each model run.
Five different projections were used, including:
(1) keeping the current level of harvest constant,
(2) sharply increasing the level of harvest demand,
(3) proposing a substantial loss of timberland acres,
(4) evaluating the impacts of the elimination of clearcutting, and
29
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
(5) assessing the continued advancement of hemlock woolly adelgid.
Results
The constant-demand projection (see Figure 1) indicates that the current harvest of approximately 12.9 million cords per year across the four-state region can be sustained for the 50-year
time horizon, resulting in net increases in total inventory over the period. This means that over
the period of the analysis, the forests of the region will have more, older and larger trees that
contain more volume of wood.
However, due to the aging and stocking levels of many hardwood stands, overall growth
is projected to decline by 11% for the region (from 35.3 cubic feet per acre per year to
31.4 cubic feet per acre per year). Regional sustainability does not ensure
sustainability at the state, timbershed, or landscape level. For example, Maine’s
hardwood volume is projected to decrease slightly, and is compensated by increasing softwood
volumes. The land-use change assumptions for this run imply that the region will gain 480,000
acres of timberland over the 50 years. New York contributes the bulk of this gain from reverting
agricultural land. New Hampshire experiences a 4% decline in timberland acres and a 6%
reduction in inventory.
Consistent with an aging resource, indices for fine seed (aspen and others) and soft mast
(miscellaneous berries, cherry) species decline while the indices for conifer and large-nut
mast species increase (figure 2).
30
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
The increased-demand run includes the same base assumptions as the constant demand run,
except that the projected harvest is based on a 1% annual increase of the current harvest level of
approximately 12.9 million cords per year. This results in a 56% harvest increase (to 20.1 million
cords per year) and a 3% overall increase in inventory volumes over the 50-year period
(figure 3). At the state level, inventory declines 29% in Maine and 19% in New
Hampshire. Land-use change reflects assumptions from the previous constant demand run.
The ecological results for this projection show the forest responding to the increased harvest
pressure with higher levels of fine seed and soft mast and a decline in vertical structure
(figure 4).
31
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Recent steep rates of timberland loss are addressed in the third scenario. Initial
assumptions about land use change were modified to be more pessimistic. Under
these new assumptions, the region loses 900,000 acres (about 2%) of current timberland
area over the 50 years. Southern New Hampshire and southern Maine are projected to
see the greatest declines and the oak-pine resource in those regions is negatively affected (fig. 5).
Region-wide, timberland inventory volume still increases, though more slowly. New
Hampshire’s inventory moved from modest gains in the early decades to roughly
equivalent losses by 2050.
Table 1 displays the model assumptions of land use change by state for this pessimistic land use
32
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
change model run.
The last projection investigates the impacts of a pest infestation. The hemlock woolly
adelgid (HWA) is an exotic insect pest that infests and kills eastern hemlock trees over
a 3 to 6 year period. The presence of HWA is documented in the NEFA region. This
projection simulates the continued expansion of the HWA northward. It contains yield
curves that reflect high levels of hemlock mortality and incorporates direct harvesting
responses. Growth declines substantially in the hemlock-red spruce habitat and is noticeable
at the regional level, particularly over the first two decades of simulation; but its impact
on the larger resource base over a longer time frame is minimal (figure 6).
This graph shows additional hemlock woolly adelgid losses (millions of merchantable net
cubic foot volume).
Model State Summaries
New York:
-
-
-
The most recent FIA data is from 1993, so New York's forests were "grown ahead" using
ATLAS to approximate a common year (2000) starting point with the other states.
FIA data does not include the 2.5 million acres of public forest land within the Adirondack
and Catskill state parks. Other data sources were used to compile information on stand
types, volumes, and average diameters on these acres. These sources do not have the
statistical reliability of FIA data.
Removals of growing stock remained steady during the past two decades.
Over the last 50 years, New York showed a 50% gain in forest land area (5.4 million acres).
Abandoned agriculture land supplied most of these acres.
FIA summaries for New York (1993) show 43,000 acres of timberland lost between 1980 and
1993 while non-commercial forest land gained 178,000 acres. The bulk of the noncommercial gain came from additions to state-owned area in the “forever wild” Adirondacks
and Catskills, with the majority of that coming from timberland.
Inventory of growing stock increased 32% during the three most recent inventories (roughly
a 30-35 year period).
33
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
-
Even with the higher harvest levels in the increased demand run, New York continues to
build inventory by 36%.
The model predicts a gain of 640,000 acres of timberland during the 50-year period. The
pessimistic land use run reduces that gain to 527,000 acres.
Mortality due to the hemlock woolly adelgid is predicted to be 971.1 millions of
merchantable net cubic foot volume over the 50 year period.
Vermont:
-
FIA data for VT was released in 1998.
Removals of timber increases substantially between the 1970s and 1990s as growing stock
matured.
Amount of timberland increases by 24,000 acres during the 50-year period projected in the
model, due to agricultural land reverting to forest.
Even with the higher harvest levels in the increased demand run, Vermont shows only a
slight reduction of 1%.
In the pessimistic land use run, 12,000 acres of timberland is lost in VT.
Mortality due to the hemlock woolly adelgid over the 50-year period is negligible.
34
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
New Hampshire:
-
FIA data for NH was released in 1998.
Removals of timber increased substantially between the 1970s and 1990s as growing stock
matured.
- The largest drop in timberland acres in the land use model occurs in NH with a loss of
188,000 acres. The largest drop in timberland acres is in southern NH with 155,000 acres.
- In the increased demand run, there is a significant increase in harvest rate, which results in a
19% decrease in volume.
- In the pessimistic land use run, New Hampshire’s timberland acreage loss increases 5-fold,
from 188,000 to 1 million acres. Oak-white pine habitat (the dominant habitat in southern
NH) shows the steepest decline. Inventory and growth also decline. Harvests exceed growth
by the end of the 50-year period.
- Mortality due to the hemlock woolly adelgid over the 50 year period is predicted to be 643.0
million net cubic feet of merchantable volume.
Maine:
-
The most recent FIA data is from 1995, so Maine's forests were "grown ahead" using
ATLAS to approximate a common year (2000) starting point with the other states.
Removals of timber increased substantially between the 1970s and 1990s as growing stock
matured.
Inventory of growing stock declined during the three most recent inventories (roughly a 3035 year period) due to the spruce budworm outbreak and subsequent salvage harvesting of
1980s. Effects of the spruce budworm are reflected in increased mortality rates.
Industrial management is most intensive in ME. Even so, the proportion of truly even-aged
stands is small.
There is a drop in timberland acres of 62,000 acres in southern Maine, but an increase of
61,000 acres in northern Maine, where agricultural land is reverting to forest.
In the constant demand run of the model the softwood proportion of regional net growth
increases slightly to 40%, benefiting from the rebound of the spruce-fir habitat in Maine.
Increases of harvest rates in the increased demand run result in a 29% decrease in inventory.
In the pessimistic land use run Maine goes from a 1,000 acre loss to a 410,000 acre loss in 50
years.
Mortality due to the hemlock woolly adelgid over the 50- year period is predicted to be 526.1
million net cubic feet of merchantable volume.
Forest Model Conclusion
The NEFA region supports a diverse and surprisingly resilient forest resource. The region is
currently growing substantially more wood than is being harvested, though each state
has specific issues and concerns. Inventories are roughly 70 times the level of current
annual harvest, or about 19 cords per acre.
The increased demand run shows that a harvest increase of roughly 10% per decade
cannot be sustained towards the end of the 50 year modeling horizon and results in a
downward trend in inventory.
35
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
2.5
Past, Current and Future Use of the Forest Inventory
For over 100 years the Northern Forest region has had a robust economy based on the
forest products industries. These are the industries that use logs and chips from the trees of
the forest in a renewable fashion and convert them to useful products for consumers within
and outside of the Northern Forest region. It is helpful to think of these consumers of
wood from the forest in three categories (see next section for a more thorough review on
the status of the forest products industry): sawmills, pulp and paper, and energy (energy
plants and use of wood to heat residential and commercial/industrial facilities).
All three of these sectors are important to the use of the wood resource as raw material for
businesses that employ thousands in the region. Currently sawmills consume approximately
21% of the wood used in the region while pulp mills consume 47% and biomass energy
plants 32%.
2.5.1 Sawmills
In the first decade of the 20th century, lumber production from sawmills in the Northern
Forest states peaked at nearly 3.2 billion board feet per year (Figure 2.19). A second major
peak occurred in the year 2000 and in 2005 lumber production in the region is still at levels
higher than any period since 1917 (except for the recent year leading up to 2000 and a brief
stint in 1943-45 for the World War II effort when government was the key market for the
lumber output). Current output is nearly 2 billion board feet per year on timber harvests of
over 2.5 billion board feet of sawlogs. What is not manufactured at Northern Forest
sawmills largely travels to Canada and, to a lesser extent, some out of region states. Very few
raw logs are exported overseas.
36
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Figure 2.19
Sources: US Census, Lumber Production in the United States 1839-1946, Henry Steer, USDA; Andrew Jones and
Don Seville, Sustainability Institute; North East State Foresters Association
While sawmill production is down somewhat in the last half-decade in the region, mill by
mill efficiency is up and mill by mill production has increased as many fewer sawmills are
operating than were even in 1998. In 1915 (a comparable year to 2008 in terms of volume
of lumber produced), over 2500 sawmills existed in the Northern Forest states. Today,
approximately 160 commercial scale sawmills are operating. Sawmills can be expected to
consume a reasonably steady supply of sawlogs in the next decade with an expected upturn
after 2010 when the housing market is predicted to rebound.
2.5.2 Pulp and Paper Mills
The historical trend for the region’s pulp and paper mills is similar to that of sawmills.
Although not as long standing as sawmills, which were in place using waterpower in the
1700s and before, pulp mills first appeared in the region as early as 1690. They used rags for
37
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
their raw material, not wood, until 185031. No historical data for pulp and paper mill
production comparable to the sawmill data described above is available. However, sufficient
information is available to describe the situation in this sector. Overall consumption of
wood by pulp mills is down in the region due to closures of a few of the older, smaller pulp
mill facilities (see later section for more information). Despite the closures, pulp and paper
is still the greatest among the 3 primary sectors of wood usage, consuming nearly 11 million
tons of wood annually. Figure 2.20 shows wood usage for pulp and paper since 1994. Since
that date, pulp mills in the region have reduced wood consumption and production by
approximately 23%.
The first pulp mill on the North American Continent was built in Germantown, Pa., in 1690 by William Rittenhouse
following techniques developed in Europe. He constructed his mill near the city center where an ample supply of rags
was always available for reduction to pulp and then pressed into paper.
31
By 1810 some 185 mills were operating in the new United States. With so many mills in production, the supply of rags
became scarce, and the search was on for new raw materials. Many were tried and still used today, including tree bark,
bagasse (sugarcane waste), straw, and cornstalks. It wasn’t until the introduction of mechanical wood grinders and new
technology developed in England that ground wood pulp was used in paper production. The first US newspaper to be
printed on paper made from ground wood pulp was the Boston Weekly Journal on January 14, 1863.
Ground wood is reduced to pulp using grinding stones or mechanical grinders along with plenty of water. Due to the
nature of this process the ground wood contains wood fibers that are fragmented and there is significant debris. As
ground wood contains all of the elements of the tree, papers produced in this way are subject to discoloration, are weak
in strength, and are mainly used in the production of newsprint and low cost book paper.
The use of chemicals to reduce wood to pulp was developed in the United States as early as 1857 and chemical wood
pulp came into full production by the 1870’s. A Sulfite cooking liquor was first developed, then by the 1940’s a less
corrosive process called the Kraft process was used to loosen the fiber and completely remove the cellulose. The pulp is
placed in a large cooking vessel with the cooking liquor at an elevated pressure. The mixture is blown out of the vessel,
strained, separated, and pressed into bolts for final use in the paper mill, normally located close by. Papers produced
from this process are of high quality and high strength.
38
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Figure 2.20
Future use of wood and production of pulp in the Northern Forests states is very likely for decades
to come. A 2005 study of Maine’s forest products industry32 suggested that only a small portion of
the pulp mills and their associated paper mills in the region would become uncompetitive in the
world market. Some of those have already closed, so those that remain are well-positioned and will
potentially be a consistent market for pulpwood in the region for some time to come. Even at
current harvest levels, in recent years the price being paid for pulpwood in the region is at an all
time high – inflation adjusted. Competition from the growing wood energy sector is partly to blame
while a reduction in the capacity of the logging industry is another.
2.5.3
Wood Energy
The wood energy sector is the bright spot in discussions about wood usage
in the Northern Forest states. Though the forest products industry has always used wood to some
degree to supply its thermal and electrical energy needs33, it was not until the 1980s, when both
Congress and state legislatures developed special laws to incentivize small power producers, that
wood energy (wood-fired electricity generation) facilities became a reality. Stand alone production
of electricity has been the major consumer of wood (primarily in chip form) while thermal usage for
heat and steam has been a minor component. Today over 8.2 million tons of wood is used in the
region’s wood energy plants. This is a decrease of about 14% since 1994 (likely a peak of wood
usage for this sector) but a 6.5% increase since 2003. Figure 2.21 demonstrates this change.
32
Maine Future Forest Economy Project: Current Conditions and Factors Influencing the Future of Maine’s Forest Products Industry,
March 2005
33
With wood raw material already flowing to sawmills and pulp mills, it was logical to develop systems on-site to utilize
the excess from these sources, bark for example, to fire boilers, dry kilns and provide electrical generation.
39 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
Figure 2.21
The future for growth in the wood energy sector is nearly assured given the incentives in place from
the federal and state governments34. It is anticipated that in the next ten years a doubling of the use
of wood for energy production (both for electricity production and thermal applications) is likely.
2.5.4 Wood Pellets
A sleepy sub-sector of the wood energy sector is also likely to see significant
growth in the coming decade. Wood pellets, tiny cylindrical pieces of wood waste the size and shape
of gerbil food, are growing in production and usage worldwide and, very significantly, in North
America. According to the Pellet Fuels Institute, the industry has experienced significant market
growth in the US over the last 10 years and more growth is expected. Nationwide, the industry uses
approximately 1 million tons of wood waste per year for production. In the Northern Forest region,
five wood pellet manufacturing plants exist, using approximately 350,000 tons of wood. Most of this
amount comes from wood waste (sawdust and other residues from other wood manufacturing
processes), but as demand for the fuel rises more raw material is coming directly from forest
harvesting activities in the form of wood chips. Plans for more pellet plants in the region are public
and this industry should double its wood use in the next ten years.
2.5.5 Firewood
34 A production tax credit is available at the federal level for renewable energy producers and renewable energy portfolios
have proliferated in half of the states in the US including all four Northern Forest states. Both provide significant real
financial incentives to the wood energy industry.
40 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
As fossil fuel prices for space heating continue to climb, use of traditional firewood for home
heating will climb as well. No good statistics are kept in this sector but recent data from the
Northern Forest states suggest that several million tons are being cut, sold and utilized by
homeowners in the region.35
2.5.6 Summary of Past, Current and Future Wood Usage in the Northern Forest Region
Figure 2.22 shows the recent trends in wood usage from the major sectors. In the last 50+ years,
wood usage has been greatest in the pulp and paper sector. That is still true today, but reductions in
recent years and the current leveling off of usage will likely continue into the next decade or beyond.
Sawmill wood usage, though down in the last several years due to the downturn in the housing
industry, will level off and even likely increase when the housing slump ends.
New industries like wood pellets will increase their wood usage in the coming years as space heating
in the US shifts from dominant oil and gas fuel sources to wood sources. Traditional space heating
through firewood will also increase.
Figure 2.22 Wood Usage in the Northern Forest Pulp, Sawmill and Wood
Energy sectors (1000 tons)
Forest products marketing and utilization foresters of state government in Maine, New Hampshire, Vermont and New
York.
41 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
35
2.6
Policy Questions on Ownership, Forest Inventory and Wood Use
2.6.1 Policy Discussion regarding Ownership
The National Perspective
Recognizing the tremendous changes in forest ownership within the last twenty years, in both large
and small tracts, considering the future of forest ownership is a challenge. What will the patterns of
ownership look like in the next twenty or fifty years?? Key discussion areas related to today’s new
ownerships that warrant consideration include:
•
•
•
•
Large ownerships are no longer tied directly to manufacturing facilities
Current TIMO and REIT ownerships are built upon a very short (7-10 year) investment
model
Property values will continue to increase
Human populations will continue to grow.
These are the local issues discussed in a variety of documents and reports. Additionally, how forests
are managed in the future will depend on a complex set of interrelated factors such as:
•
•
•
•
•
•
Technological changes in production and utilization
Local and global markets
Attitudes of forest owners regarding management and cutting
Changes in energy public policy and markets
Consumer interest and demand
Consumer influence on public policy.
The Northern Forest Land Study in 1988, the final report of the Northern Forest Lands Council,
Finding Common Ground in 1994, and the follow-up review Northern Forest Lands Council 10th Anniversary
Forum Final Report in 2004 (and background documents and reports) provide the best discussions of
recommended policies and actions to strengthen the forest products industry, encourage long-term
investment in forestland, and ensure high quality management of those lands.
At least four issues at the national level which influence local and regional forest ownership and
management are:
1. The demographic differential between urban and rural areas and populations
2. Conservation (or preservation) understandings, policies, and goals of environmental
organizations
3. Federal tax policies, including income tax, estate tax and, capital gains laws
4. Funding of programs which support management and conservation.
Urban and Rural Populations - The differences between urban and rural populations, including
their attitudes, wealth, education, value systems, and subsequent influence on public policy, continue
to be a background reality for rural land economics. Currently, only eighteen percent of the region’s
42
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
population lives in rural areas. Populations in the counties of the 26 million acre36 Northern Forest
area are significantly more rural but are, nevertheless, affected by urban attitudes of those who visit
or choose to move to the region. At one-fifth of the population, it is difficult to have an influence
on public policy discussions.
Conservation and Preservation Understanding - Many environmental organizations are
supportive of working forests, and sustainable forest management. Others may not be. Efforts in
the Northern Forest region to set aside working forestland for solely ecological reasons provide
benefits to society only for those who value ecological factors over other values. When thinking
about the forest products economy of the region and the availability of wood to supply the many
industries that use wood as their input raw material, the amount of forestland available for timber
harvesting must be considered. Some forestland is better for growing timber than other forestland.
Factors such as elevation, soil, aspect, access, proximity to markets and current species mix are all
part of the formula for identifying key areas for timber production.
Efforts to conserve large areas of forest in the region with the intent to prohibit timber harvesting,
should take the suitability of the land to grow trees into account along with the many other factors
used to analyze the suitability of land for permanent conservation. Prohibiting timber management
and harvesting can have implications on the economy, jobs and social issues associated with working
forests. In order to maintain the forestland base available for sustainable management and
harvesting of wood, conservation efforts should consider these effects. Tools such as working
forest conservation easements can often address the protection of the full suite of forestland values,
including timber harvesting.37
Tax Policies - Key federal tax policies affecting the future of the Northern Forest states are:
Income Tax – The Northern Forest Lands Council report in 1994 made three
recommendations regarding federal tax policy: 1. reduce income tax on capital gains from
timber, 2. allow adjustment for inflation in the calculation of a basis for timber, and 3.
eliminate the 100 hour work requirement for owners in order to deduct their management
expenses. Unfortunately, there has been progress on only the third area in making necessary
changes to these laws.
Estate Tax – There has been some partial implementation progress on the NFLC’s
recommendations regarding the estate tax. For example, families may now pursue a
conservation easement on property as part of the estate settlement and the exclusions
(amount in an estate not subject to estate tax) have been increased substantially. This change
has trickled down and been implemented at the state level as well.38 Federal changes in these
areas, however, are scheduled to sunset unless further action by the Congress.
The Northern Forest Land Study, a Congressionally mandated effort, designated the counties and region that make up
the Northern Forest area of Maine, New Hampshire, Vermont and New York 1991.
37 Sampson, Neil and DeCoster, Lester, Forest Fragmentation, Implications for Sustainable Private Forest, Journal of Forestry ,
2000
38 Kingsley, E., Levesque, C., Peterson, C., The Northern Forest of Maine, New Hampshire, New York and Vermont: A look at
the land, economies, and communities 1994-2004, 2004
43 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
36
Pursuing these recommended changes in the tax law would be valuable in creating conditions to
encourage forest ownership and good management on those lands.
Federal Programs to Encourage Sound Forest Management and Acquisition of Public
Values - Federal programs which provide acquisition funds for conservation projects and assistance
to family owners in management activities need to be continually funded at an adequate level to
ensure their effectiveness. The USDA Forest Service’s Forest Legacy program has been
instrumental in purchasing conservation easements on both large and small scale projects in the last
decade. Continued adequate funding is critical to provide options and flexibility as conservation
projects are designed and developed. Small landowner assistance programs, such as the Forest Land
Enhancement Program (FLEP), the Conservation Reserve Program (CRP), the Wildlife Habitat
Improvement Program (WHIP), the Wetlands Reserve Program (WRP), and the Environmental
Quality Incentives Program (EQUIP) are funded through the Farm Bill and face annual challenges
in amount of funds available. The new Farm Bill, recently adopted, could provide some significant
incentives here.
The Regional View
On the smaller regional and state scale, where population growth and increasing property values are
destabilizing forest ownership through parcelization and fragmentation, other policy approaches are
necessary.
Increasing Land Prices and Property Taxes
Property values in the New England-New York region have skyrocketed in the last decade.
Vermont data shows incredible increases from 2001 to 2005:
• Average sale price for primary homes rose 56.8 percent
• Median price for vacation homes rose 82%
• Median price per acre of open land/forestland (greater than 25 acres ) rose 62%
• Median price per acre of open land/forestland (1 to 25 acres) rose 117%39
Other states in New England have experienced similar increases. Such land values create the
temptation to sell.
Increased property values bring increased local property taxes. All four states in the region face the
challenge of controlling property taxes. Local property taxes are a solid source of state and local
funding throughout the region, and are especially critical in New Hampshire which has no income
tax or sales tax in its state funding structure. With increasing property values, landowners are
pressured to subdivide and/or sell their property. Rising property taxes have severe impacts on the
ability of landowners to own and manage forest land. 40 The combination of both high property
values and high property taxes create strong incentives – in the realms of both private economics
and publicly funded services – to split forestland into smaller pieces and move it toward
development.41
39
Fidel, Jamey, Roundtable of Parcelization and Forest Fragmentation, Vermont Natural Resources Council, 2007
NFLC, Finding Common Ground, 1994
41 Sampson, N, and DeCoster, Lester, Forest Fragmentation, Implications for Sustainable Private Forests, Journal of Forestry,
March 2000
44 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
40
The Northern Forest Lands Council recommended strengthening Current Use Assessment
programs in all four states. Though some progress has been made, specific recommendations have
not been implemented; these need to be put in place. See the Vermont Roundtable on Parcelization
and Forest Fragmentation for a more up-to-date discussion of the importance of their Use Appraisal
program in encouraging forestland ownership. Pursuing the tax policy change recommendations
outlined in previous studies, including the NFLC’s Finding Common Ground, would greatly enhance
landowner’s ability to hold forestland and manage it.
The continued use of ad valorem taxation for all properties needs to be revisited at the state level as
well. If all real property were assessed at its current value in its current use it would:
• Significantly reduce the administration of the property tax,
• Change the antiquated and deficient assessment method now employed,
• Eliminate the need for current use assessment programs, and
• Allow accurate assessment of forestland as undeveloped forest42.
Insufficient Land Planning to Arrest Forest Parcelization Trends
Though significant work has been completed in the region regarding land use planning and
specifically Smart Growth Initiatives, more progress must be made to stem the continual dividing of
forest tracts. There are towns in the Northern Forest region that are so starved to create value from
their land, that they have voted to have no planning board, and thus no regulation of land use or
parcel size beyond the state rules governing these activities. This signifies the need for further and
stronger educational efforts to local officials including selectmen and land use board volunteers.
The value of open space, the value of smart planning through tools such as cluster/open space
development, and the value of conservation easements to protect traditional uses and views of the
landscape are three topics of top priority in such an educational effort.
Ongoing Education of General Public
The education of the general public about forestland and forest issues is a recurring discussion in
forestry and forest products industry circles. Getting mainstream Americans to understand rural
land use and economic issues enough to be helpful in policy development and implementation is a
continuous challenge. Nonetheless, people who own land, plus the people who work in forestry and
the forest products industry, with the people who have a connection to land through their
environmental knowledge or hobbies, all together still represent a tiny portion of the U.S.
population.
Voters at both the state and national level influence budgets and therefore programs to buy land,
conserve land, protect resources, and assist landowners. The state Forest Resource Plans discuss
valuable federal programs like Forest Legacy and the state-funded land conservation programs as
key tools to conserve the state’s most important resource to ensure their perpetual contribution to
the states’ economy, environment, and overall quality of life. Policy makers must be able to make
the connection between investment in programs and stronger forest communities. A Selectman in
Errol, New Hampshire, when working to acquire a 5,000 acre Community Forest once said, “We
have forests and we have water. If we don’t take care of these then the visitors won’t come, and our
42
NFLC, Finding Common Ground, 1994
45 Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
town won’t exist”43. Ongoing and continuous efforts to reach and teach the general citizenry and
policy makers are critical to success in all policy discussions regarding present and future forest
ownership patterns.
43
Personal conversation with Bill Freedman, 2005
46 Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Future Forest Ownerships – Is there a perfect Model?
As rural regions of New England and New York were settled in the latter half of the nineteenth
century, lumber barons and railroad owners quickly distributed themselves among the forests of the
Northern Forest region. Lumber supplied building materials for the growth in the southern part of
the region (Boston and New York City and everything in-between), Maine’s shipbuilding industry,
and the new paper industry.
Early in the twentieth century, these lumber barons sold their lands to newly established forest
products industries, especially in the burgeoning paper industry, and a great many were transformed
into public lands such as the White Mountain and Green Mountain National Forests. The industrial
owners kept their forest land for almost 100 years. Did the model of forest ownership in the
Northeast work in the twentieth century? Yes; the region enjoyed a relatively successful and stable
century of lumber and paper production, small but healthy rural economies based upon land
management and manufacturing of forest products, a tradition of open access for public recreation
on these vast lands, and a healthy forest in terms of inventory and lack of decimating disease.
By the end of the twentieth century, however, regional forest-based economies were beginning to
struggle. Global markets, a global paper industry, a national lumber industry, and the economic
realities of cheaper labor and less intensive environmental regulation overseas had impacted the
viability of the local industries. Coupled with population growth, rising land values, and new
investment laws and opportunities, the ownership of the forests were again ripe for change. In the
past twenty years, we have seen many new types of forest owners arise. In 1990, private forestland
ownership in the Northeast was dominated by paper and lumber companies. By 2007, the leading
owners of forestland in the region had shifted to institutional investors and timber REITs. The
holdings of environmental and non-governmental organizations increased substantially over the
same period.44
The institutional investor model is based upon a very short business investment time span of only
seven to ten years. One of the first TIMOs to be active in the northeast, Hancock Timber Resource
Group, went from owning no acreage in the region in 1988 to owning 564,023 in the four states in
1994. Hancock increased their acreage to 622,363 acres in 1999 and then began selling land. By
2004, Hancock owned just 235,847 acres across the four states and later divested virtually all of its
remaining ownership in the region.45 The inventory of wood on these properties was depleted
during their ownership tenure; what does this mean for the next owner? How many successive
investors with a short term business plan can the land support? What will the lands which Hancock
owned in the 1990’s or other TIMOs and REITs own today look like in ten more years, and who
will own them?
As TIMOs and other ownerships took hold, people sought ways to retain traditional uses of the
forest. Efforts to conserve the properties in times of change and uncertainty resulted in many
creative and innovative partnerships, easements, and ownerships:
• Conservation easements prohibiting development
• Working forest conservation easements requiring active forest management and harvests
James Sewall Company, Timberland Report, Vol. 9 No. 2, 2007
Kingsley, E., Levesque, C., Peterson, C., The Northern Forest in Maine, New Hampshire, New York and Vermont: A look at
the land, the economies, and communities 1994 -2004, 2004
47 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
44
45
•
•
•
Wood supply agreements where land was sold with promise to provide resource to a mill
Preservation of ecological reserves in the same ownership as working forests
Community forests ranging from 3,000 to 27,000 acres.
These are all promising new models of forest ownership that have long-term stewardship as their
goal, but what will be the long term success of each of these in regards to their specific goals? We
simply do not have sufficient experience, since these models are so new, to judge their long-term
effectiveness.
Like forestry and forest management itself, measurement of patterns of successful ownership in
forest land must be based upon a long term perspective. Ongoing questions to be asked:
• Is the forest healthy -- is there adequate stocking to support a viable industry as well as other
attributes such as wildlife habitat and recreational experience?
• Is the forest industry healthy -- how do employment rates and wood flow change over time
and how should forest industry health be measured?
• Are conservation goals being met?
• Are individuals and families still able to own forestland?
• Can the forest industry re-invent itself so that it is able to extract wood from smaller parcels?
Fortunately, the changes in the forest ownership patterns of the Northern Forest have not gone
unnoticed. Follow-ups to the work of the Northern Forest Lands Council raised awareness on the
issues and set an important baseline of data for continued data accumulation. All four states have
done important follow-up work, and numerous organizations continue to track, investigate, and
research.
2.6.2 Policy Discussions on Forest Inventory and Wood Use in the Region
Land ownership is key to the availability of wood for the current and future wood using industries
of the Northern Forest region. Given stable land ownership, should the policy issues referenced in
the previous section be addressed successfully, opportunities exist for wood use to continue to play
an important role in the economy of the region.
Most importantly, forest inventory information described herein outlines a forest resource that is
growing more than is being harvested and lost to tree mortality. The result is increasing inventory
every year. Looked at from a gross perspective across a four-state region, this is very positive. A
closer look at sub-regional wood inventories and supplies, however, may show areas of continued
heavy wood use (Maine and Northern New Hampshire) where expanded wood use may not be
sustainable biologically or economically.
In these discussions, it is especially important that an understanding be reached that forest products
economies – from land ownership and management to logging infrastructure to forest products
manufacturing facilities – are interconnected and cross state lines, national lines (with Canada
especially) and surely within and without the 26 million acre area that has become known as the
Northern Forest. Thinking or encouraging policy changes without this realization is folly.
48
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Policy changes affecting the inventory and use of the wood inventory must be centered on the
landowners and their willingness to harvest timber as well as the logging infrastructure and forestry
expertise to get that accomplished. Much of this was discussed in the previous section.
Specific incentives for the forest manufacturing sectors can be found at the end of section 3 (the
next section) of this paper.
49
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
3. The Forest Products Industry in the Northern Forest Region
3.1 Current Inventory of Forest Products Industry Production Facilities
Three major categories of primary wood using industries can be found in the Northern Forest
region: sawmills and board mills, pulp mills and wood energy plants46. Despite unstable times
for these industries in the recent decade, the Northern Forest states have a robust manufacturing
sector in these industries compared to other regions of the United States.
In general terms, the number of manufacturing facilities in the sawmill/board mill and pulp sectors
has been decreasing over time while their production has decreased as well. Production has
decreased at a slower pace, however, as facilities that remain increase production through capital
investment and efficiencies. The wood energy industry, made up of large-scale plants that use
wood-chips to produce electricity and sometimes steam for co-generation synergies, is in an
expanding mode after a period in the 1990s when the plants built in the 1980s, incentivized by
federal and state regulations, reduced operations. This resulted as initial projections for future oil
prices (projections in the 1980s) were overestimated and electricity made from wood appeared to be
high-priced. Recent skyrocketing fossil fuel prices have put wood back in the limelight and
numerous plans for re-starting several wood energy plants built in the 1980s but mothballed in the
1990s have been completed or are underway. A new 50 megawatt plant47 owned by Northeast
Utilities’ New Hampshire-based Public Service Company of New Hampshire began operation in late
2006 and several other large-scale wood-fired electricity generating plants are in the works. The two
farthest along are another 50 megawatt facility in Russell, Massachusetts (which will use some wood
from the Northern Forest states), and a similar sized co-generation facility at Anheuser-Busch’s
Merrimack, NH brewery.
Though in their infancy in terms of large wood use, wood pellet mills are also springing up in the
region and as use of pellets increases, use of wood from the forest for these facilities is also
increasing.
3.1.1 Sawmills and board plants – The history of production in the sawmill industry was
highlighted in the previous section. Despite the recent downturn in production over the last several
years due to the slumping housing market48, the sawmill and board industry49 are still at high levels
of production. Collectively in the Northern Forest, sawmills are using nearly 2 billion board feet of
wood annually. This includes the few veneer-producing mills in the region and the two oriented
strand board mills. These mills make plywood and OSB, respectively, instead of lumber. Plywood
Primary refers to facilities that use the raw material produced by loggers directly from the forest such as logs,
pulpwood and chips.
47 A 50 megawatt plant is a small electricity generating plant compared to nuclear plants, coal or natural gas-fired plants,
some of which top 1,000 megawatts of output. A 50 megawatt wood-fired plant, however, is the largest found in the US
– this size plant uses over 500,000 tons of wood chips annually and is about half the size, wood usage-wise, of a pulp
mill.
48 The sawmill and board industries are heavily dependent on the housing industry as their output is used for
construction of buildings as well as furnishings for new houses. When the housing industry is in a slump, the sawmill
and board industries quickly follow.
49 Board industry refers to the producers of panel products such as plywood and oriented strand board. A few of these
facilities dot the region whereas hundreds of sawmills can be found.
50 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
46
mills utilize the very best logs for raw material while OSB facilities use material of lower quality than
sawlogs, about pulpwood grade50. A small number of sawmills also produce logs for log homes and
cabins.
Sawmills are located all over the region. The map in Figure 3.1 shows the distribution of all sawmills
that utilize at least 2 million board feet of logs per year51.
Figure 3.1
Sawmills in the Northern Forest States
50 Pulpwood – logs of lower quality than sawlogs, generally, that are chipped and used in the pulping process to
manufacture pulp for the paper producing industries.
51 Mills smaller than 2 million board feet per year are considered very small and, though they dot the landscape, do not
amount to any significant wood production compared to the larger mills.
51 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
A listing of the mills with wood usage of 2 million board feet per year or greater is as follows:
Maine
-Louisiana Pacific,
Inc.
-Irving Forest
Products – Highland
-Old Town Lumber
Co.
-Fraser Timber
Limited
-Lumbra Hardwoods,
Inc.
-Lovell Lumber
Company
-Stratton Lumber Co.
-Lowell Lumber Co.,
R.E.
-Tukey Brothers
-Hurd Lumber Co.
-Robbins Lumber
Inc.
-N.C. Hunt Inc.
-Chester Forest
Products, Inc.
-Cold Stream Lumber
Co.
-Bear Hill Lumber
Co.
-Haskell Lumber Co.
-Maschino Lumber
Co.
-Hammond Lumber
Co.
-Higgins Lumber Mill
-Columbia Forest
Products
-Irving Pinkham
Forest Products
-Songo Timber
Products
-Isaacson Lumber
Co.
-Pride Manufacturing
-Moose River
Lumber Co.
-Parker Lumber Co.
-Hardwood Products
Co. LLC
-Cousineau Wood
Products
-LaValley Lumber
Co.
-Great Brook
Lumber, Inc.
-The Red Mill
-Huber Engineered
Woods, LLC.
-Maine Wood
Company
-Hancock Lumber
Co. (3)
-Katahdin Forest
Products
-Irving Forest
Products
52
-Walpole Wood
Workers
-Stillwater Lumber
Co.
-Record Lumber Inc.
-Thomas Hammond
and Sons
-Morgan Lumber Co.
-Sebasticook Lumber
-Hillside Lumber Co.
-Mace Lumber
-Limington Lumber
Co.
-Pleasant River
Lumber
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
New Hampshire
-Barton Lumber Co.,
Inc.
-Ireland Lumber Co.,
Inc.
-Chocorua Valley
Lumber Co., Inc.
-Kenneth E.
Whitcher, Inc.
-International Paper,
Madison Lbr Mill
-King Forest
Industry, Inc.
-Senter Forest
Products
-Poulsen Lumber
Co., Inc.
-Beaman Lumber
Inc.
-Precision Lumber
Co.
-Blanchflower
Lumber Corp.
-Stanhope Lumber
Co., Inc.
-Tommila Bros., Inc.
-Stinson Forest
Products
-Paul Vallee Lumber
Co.
-Perras Lumber Inc.
-Stratford Lumber
Co.
-White Mountain
Lumber, Co.
-Cersosimo Lumber
Co., Inc.
-G. H. Evarts & Co.,
Inc.
-H. G. Wood
Industry, Inc.
-Bingham Lumber
-New England Forest
Products
-Breezy Hill Lumber
-Colby Lumber Co.
-Contoocook River
Lumber, Inc.
-Durgin & Crowell
-Herrick Mill Work,
Inc.
-HHP, Inc.
-New Hampshire
Timber Products
-Patenaude Lumber
Co.
-Fernald Fernald
Lumber, Inc.
-Seacoast Mills, Inc.
-Middleton Building
Supply
-Cote & Reney
Lumber Co., Inc.
-Monadnock Forest
Products, Inc.
-Onnela Lumber Co.
-Pine Tree Lumber
-R.L. Balla, Inc.
-Goss Lumber Co.
Inc.
-Granite State Forest
Products
New York
-Cooksburg Lumber
Co., Inc.
- Rudy Stempel &
Family Sawmill
53
-Allegany Hardwoods
-Baldwin's Forest
Products, Inc.
-Eli Yoder Sawmill
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
-Moses Lumber
-Phillips Angelica
Forest Products
-Baillie Lumber Co.,
Inc.
-Trathen Logging Co,
Inc.
-Lok-N-Logs
-Cornwright Lumber
Corp.
-A.D.Bowman& Son
Lbr.Co.Inc.
-Pomeroy Lumber,
Inc.
-Drake Lumber Corp
-Adams Lumber Co.,
Inc.
-Quality Hardwoods,
Inc.
-Ward Lumber Co,
Inc.
-Ghant Wood
Products, Inc.
-Tupper Lake
Hardwoods
-Meltz Lumber
-N.Hudson
Woodcraft, Corp.
-Dover, Inc.
-Maple Valley
Hardwoods, Inc.
-Portville Forest
Products, Inc.
-Potter Lumber Co.,
Inc.
-Baldwin Lumber
-Brookside Lumber,
Inc.
-Cannonsville
Lumber
-Como Lumber
Co.,LLC
-P&W Forestry
Products
-Rawlings
Adirondack
-Uion Tools, Inc
-Cote Wood
Products, Inc.
-Ben Aaron Lumber
-Bissel-Babcock, Inc
-King Forest
Products
-Greene Lumber
Co.,LP
-Berry Bros. Lumber
-Johnston Forest
Products, Inc.
-Clement's Burrville
Sawmill
-Mallery Lumber
-St. Lawrence
Lumber
-Pawlikowski Sawmill
-Livermore Logging
-Louis Mason Mill
-Russell Bass & Son
Lumber
-J&J Log & Lumber
Corp
-Lyon Wood
Products, Inc.
-Deer River Lumber
Co., Inc.
-Farney Lumber
Corp
-Hdk Wood Products
-Studd & Whipple
-Swanson Lumber
-Ames/True Temper
Corp
54
-Gutchess Lumber
-US Lumber
Company
-Brian Crouse Sawmill
-Eagle Forest
Products, Inc.
-Johnson Lumber
Co, Inc.
-Pine Grove Lumber
-Dansville Logging &
Lumber Corp
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
-Great Lakes Veneer,
Corp.
-Thurman & Sons
Inc.
-Lakewood Products,
Inc.
-Demonstoy Lumber,
Inc.
-Trathen Logging
Co., Inc.
-Trathen Logging
Co.Inc.
-Two Rivers Timber
Co., Inc.
-Johnson Bros.
Lumber
-Ames/True Temper
Corp
-Hofer Log &
Lumber
-Coddington Lumber
Co.
-Clune Lumber Corp
-Hofer Transport &
Lumber
-J.A.Yansick Lumber
-KlemmerGuldenschuh
Lumber
-Cytech Hardwoods,
Inc.
-Phillips Lumber Co.
Inc.
-McGraw Lumber
Co., Inc.
-SMC Lumber, Inc.
-Wightman Lumber
& Bldg. Supplies
-3B Timber Co., Inc.
-Berlin Lumber Inc.
-Baillie Lumber Co.,
Inc.
-L.J.Valente, Inc.
-Double Aught
Lumber, Inc.
-Rynard G. Gundrum
Lumber
-Owego Contracting
Co., Inc.
-W.J.Cowee, Inc.
-Robinson Lumber
-AFI/Lincoln Logs
Ltd.
-Wagner Lumber
-Harden Furniture
-Koenig Brothers
Sawmill, Inc.
-Mcdonough Lumber
Co., Inc.
-Spink Lumber, Inc.
-B&B Lumber Co.
Inc.
-A.C.Duell & Sons,
Inc.
-F.E.Miller & Son
-Waruch Lumber,
Inc.
-Ronald Brownell
-Brown & Son
-Wagner Hardwoods,
LLC
-Shepard's Mill
55
-Boiceville Lumber
-Kilmer Lumber Co.,
Inc.
-Lumber and Pallets
Urrey Lumber
-C&Z Farms &
Sawmill
-Rocky Vitale
Lumber
-Brothers Lumber
-Potsdam
Hardwoods, Inc.
-Lumber Co. Inc.
-JC Lumber, Inc.
-Richard Baker &
Sons Sawmill
-Robert J. Sweet Inc.
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
-Vaughan &
Davignon Sawmill
-Metowee Lumber &
Plqstics Co.Inc.
-Tim Cretin Sawmill
Co.
-Shushan Bentwood
Co. Inc.
-Attica Package Co.
-A.Petteys Lumber
-Commonwealth
Plywood
-Peter C. Herman,
Inc.
-Mead Lumber
Vermont
-Claire Lathrop
Bandmill, Inc
-Ethan Allen, Inc.
-Lussier's Sawmill
-The A.Johnson
Company
-George F. Adams &
Company
-Bear Paw Lumber
-Manosh Hardwoods
-Eagle Lumber Co.,
Inc.
-P & R Lumber
-Northeast Wood
Products
-Buffalo Mountain
Lumber, Inc.
-Greenwood Mill,
Inc.
-Clifford Lumber
Company
-Cyr Lumber, Inc.
-Britton Lumber
Company
-Johnson Lumber
Company
-Columbia Forest
Products
-Ls Branche Lumber
Co., Inc.
-M.Piette & Sons,
Inc.
-Lamell Lumber
Corporation
-Westwood Fences,
Inc.
-Gagnon Lumber,
Inc.
-American Paper Mill
of Vermont
-Mill River Lumber,
Ltd.
-Greenmont, LLC
56
-Rutland Plywood
Corp.
-Stanley Tool, Inc.
-W.Central VT
Lumber
-Allard Lumber
Company
-Cersosimo Lumber
Co., Inc.
-Cobb Lumber, Inc.
-Smith, Inc.
-DCI Sawmill
-G & S Forest
Products
-Gilcris Enterprises,
Inc.
-Vermont Log
Buildings
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
3.1.2 Pulp Mills
Pulp mills, often tied to paper mills, are enormous manufacturing facilities with hundreds, if not
thousands, of employees. As individual plants, their wood usage dwarfs that of any other type of
wood-using facility in the region. Eleven pulp mills, most associated with paper mills at the same
site (see table below) are located in the Northern Forest states. All of these mills are in Maine (9
plants) and New York (2 plants). Vermont has never had a pulp mill facility but has had paper mills.
New Hampshire has had two pulp mills associated with paper mills, both of which closed in the last
four years. Each state also has numerous stand-alone paper mills where no raw wood is purchased.
Market pulp is purchased from around the world to furnish these many facilities. These stand-alone
paper mills are not discussed in this paper except in the facility closure section.
Collectively, the pulp mills in the Northern Forest use over 11 million tons of wood annually - down
from historic highs of approximately 16 million tons. Figure 3.2 below shows the mill locations.
Figure 3.2 Pulp Mill Locations in the Northern Forest States
Pulp (and paper)
57
Wood energy
Oriented Strand Board plants
Status of Northern Forest Region States’ Forestry and Forest Products Industry
Pellet mills
May 31, 2008
Inventory of pulp (and paper) facilities in the Northern Forest states:
Owner
Location
State Pulp
Paper
Domtar
Fraser*
Red Shield
Verso
Verso
Katahdin
Katahdin
Lincoln Paper & Tissue
Madison Paper
SAPPI Somerset
Finch Paper
International Paper
Woodland
Madawaska
Old Town
Bucksport
Jay
E. Millinocket
Millinocket
Lincoln
Madison
Madison
Glens Falls
Ticonderoga
ME
ME
ME
ME
ME
ME
ME
ME
ME
ME
NY
NY
closed
operating
closed
operating
operating
operating
operating
operating
operating
operating
operating
operating
operating
operating
operating
operating
operating
operating
idle
operating
operating
operating
operating
operating
* the pulp mill is in Edmonston, New Brunswick, the paper mill in Maine
3.1.3 Wood Energy facilities
As discussed in the previous section under uses of wood inventory, wood (biomass) energy facilities
are the second largest users of wood from the Northern Forest. Figure 3.2 shows the distribution of
these facilities. From historic highs in numbers and volume in the late 1980s and early 1990s, the
downturn in the late 1990s has quickly reversed as fossil fuel prices have increased. The newest
plant in Portsmouth, NH owned by Northeast Utilities subsidiary Public Service Company of NH is
50 megawatts, the largest likely to be built due to the enormous task of getting sufficient wood
supplies to the facility at all seasons of the year (to avoid downtime in production of electricity).
This plant is the first to be built in over 15 years.
New biomass energy plants are being planned for many other areas in the Northern Forest. A
number will most certainly be built and it is possible that use of wood for energy in the Northern
Forest region will outpace use of wood for pulp within the next ten years.
Smaller thermal-based uses of wood chips (and soon pellets) in commercial and small industrial
settings will also increase substantially in the next decade. Typical installations are in institutions
such as schools, hospitals, and colleges. Figure 3.3 shows the facilities located in Vermont, where a
non-profit organization, Biomass Energy Resource Center, and state policy have encouraged this
activity over the last 15 years. We can expect a similar proliferation of this use of wood for energy
elsewhere in the region.
58
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Figure 3.3 Small-scale thermal wood facilities in Vermont
3.1.4
Pellet Mills
As described in the previous section on use of wood inventory, wood pellets are rapidly becoming a
serious alternative to fossil fuels for residential heating applications in the US. While it may take
decades, wood pellets could potentially displace much of the traditional oil use for residential heating
in the Northern Forest states. A small facility owned by New England Wood Pellet in Jaffrey, NH
has struggled along for over 10 years, but now it is well-positioned for the future growth in demand
for this wood fuel product. Expanded production at the Jaffrey facility and a brand new pellet mill
facility in Schuyler, New York, owned by the same company, opened in late 2007, portends of the
changes in this industry. New facilities also operate in Corinth, Athens and Ashland, Maine. Many
others are being planned but it is uncertain whether the market will grow fast enough to allow those
facilities to become operational. A new facility in this industry will use approximately 200,000 tons
of wood as input fuel annually – about half the size of the larger biomass electricity plants.
59
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
3.2
Changes in Production Facilities in the Past 15 Years
Allusions to forest products mill closures have been found throughout this paper. The graphs
showing production and wood consumption have provided data that begins to describe some of this
phenomenon. It is important to understand that the changes in forest products
manufacturing facilities are part of a larger set of changes and downsizing in all
manufacturing industries in the United States. As more and more production occurs in low
cost manufacturing regions of the world such as Asia, Africa, and South America, employment in
manufacturing and the number of manufacturing plants in the United States has decreased, resulting
in downsizing, closures and displacement of jobs and production. This does not mean that
production in US manufacturing is down, however. Changes may mean fewer jobs and fewer
plants, but they also mean more productivity, capital investment in the latest technology and, in
some cases, increased production – doing more with less52.
Within this context, however, the effects on the forest products industry have been substantial. In
the US, four sectors have been most affected53:
• pulp, paper, and paperboard;
• plywood and oriented strandboard;
• softwood lumber; and
• household furniture.
In 2005, 39% of the softwood lumber used by Americans came from other countries54. While much
of this lumber was from Canada, our nearest trading partner, more and more was coming from
countries overseas. Some of this trend results from the reduction in federal timber from National
Forests (primarily softwood lumber) since the spotted owl controversy in the early 1990s55. This led
to numerous lumber, plywood and pulp mill closures in the western US. The trend is also due to
globally competitive forces and the lowering of trade barriers, which has favored cheap imports. An
additional factor has been the surge in the US dollar against foreign currency, which negatively
affected the US forest products industry during the 1990s and early 2000s. Interestingly, the
substantial weakening of the dollar in the mid to latter part of this decade has allowed for increasing
exports of all forest products from the US to foreign countries in the western and eastern
hemispheres.
The most affected areas of change in the forest products industry in the Northern Forest states have
been pulp and paper and softwood lumber (primarily white pine for finish uses and spruce and fir
for structural uses). These and other sectors continue to operate despite challenges, but their
margins shrink and volumes lessen until shift cutbacks occur. Then, for the most affected, sale or
closure follow. The information below outlines some of the closures in the Northern Forest over
the last eighteen years. The table following the map includes pulp mills, paper mills and sawmills.
Ikenson, Daniel, Talk about industry's demise just a manufactured myth, Cato Institute, November, 2007
Collins, Sally, Darr, David, Wear, David, Brown, Hutch, Global Markets and health of America’s Forests: A Forest
Service Perspective, Journal of Forestry, January/February 2008
54 ibid
55 Federal timber sales on national forests went from a high of 12.7 billion board feet in 1987 to 1.7 billion board feet in
2002 – with a slight increase to 2.3 billion board feet in 2006.
60 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
52
53
Figure 3.4
Pulp Mill Closures in the Northern Forest region states 1990-2008
Table 3.1
Forest Products Mill Closures in the Northern Forest region states 1990-2008
State
Town
Company Name
Location
Type of
mill
ME
Ashland
Irving Forest Products
Ashland
Sawmill
ME
Augusta
American Tissue
Augusta
P&P
ME
Baileyville
Georgia Pacific
Baileyville
Sawmill
ME
Brunswick
Mariner Lumber Co.
Brunswick
Sawmill
ME
Costigan
International Paper
Costigan
Sawmill
150
2000
ME
East Millinocket
Great Northern Paper
East Milinocket
P&P
400
2003
ME
Gardiner
Gardiner Paperboard
Gardiner
P&P
ME
Gardiner
Newark Group
Gardiner
ME
Houlton
Georgia Pacific
ME
Madawaska
ME
#
employees
Closure
date
138
2002
56
2005
2001
P&P
40
2001
Houlton
Paper
70
2002
Nexfor Inc. Fraser Paper
Madawaska
P&P
190
2003
Madawaska
Fraser Paper
Madawaska
P&P
325
2003
ME
Mechanic Falls
Mechanic Falls Mill
Mechanic Falls
P&P
ME
Millinocket
Great Northern Paper
Milinocket
P&P
700
2003
ME
North Anson
Woodtek
North Anson
Sawmill
100
2001
ME
Old Town
Georgia Pacific
Old Town
Tissue
ME
Passadumkeag
International Paper
Passadumkeag
Sawmill
61
Status of Northern Forest Region States’ Forestry and Forest Products Industry
Notes
2006
263
May 31, 2008
2000
Re-opened as Re
ME
Rumford
Mead Paper
Rumford
Paper
ME
Shermon Station
Sherman Lumber Co.
Shermon Station
Sawmill
4
machines
150
2
machines
1999
2000
ME
Westbrook
SAPPI
Westbrook
Paper
ME
Winslow
Kimberly-Clark
Winslow
P&P
ME
Winslow
Kimberly-Clark
Winslow
Tissue
115
NH
Berlin
Fraser Papers
Berlin
Pulp
300
NH
Groveton
Groveton Papers
Groveton
Pulp
2006
NH
Groveton
Wausau Paper
Groveton
Paper
2008
NH
Contoocook
Papertech Corporation
Contoocook
Paper
1999
NH
C. Barnstead
Timco
C. Barnstead
Sawmill
2005
NH
Gorham
Fraser Papers
Gorham
Paper
NH
Hinsdale
Hinsdale Products Co.
Hinsdale
Paper
1998
NH
Hinsdale
McGoldrick Tissue Mill
Hinsdale
Paper
2002
NH
Milton
Milton Mill
Milton
Paper
1990s
NH
Milton
Technical Papers & Board
Div.
Milton
Paper
1990s
NH
North Rochester
Spaulding Composites Co.
North Rochester
??
1990s
NH
Penacook
Penacook Fibre Co.
Penacook
??
2001
NH
West Henniker
West Henniker Mill
West Henniker
??
1990s
NH
Winchester
American Tissue
Winchester
Paper
2002
NH
Woodsville
Davidson Industries
Woodsville
Sawmill
2005
VT
Bellows Falls
Bellows Falls Mill
Bellows Falls
??
VT
Brattleboro
SCA Inc.
Brattleboro
Paper
VT
1999
1997
120
2007
2008
1990s
Technial
Papers
128
2002
83
2001
East Ryegate
Kimberly Clark
East Ryegate
VT
Gilman
American Paper Mills of
Vermont
Gilman
P&P
2003
VT
Gilman
Simpson
Gilman
Paper
1999
VT
West Burke
Burke Lumber Company
West Burke
Sawmill
2001
VT
Jeffersonville
Bell-Gates Lumber
Jeffersonville
Sawmill
2005
VT
Wells River
Wells River Mill
Wells River
??
1998
NY
Amsterdam
Sonoco Products
Amsterdam
Paper
38
1998
NY
Beaver Falls
FiberMark Inc.
Beaver Falls
Paper
100
1999
NY
Carthage
Fort James Corp.
Carthage
P&P
62
Status of Northern Forest Region States’ Forestry and Forest Products Industry
1998
May 31, 2008
Partial - still running
NY
Castleton-onHudson
Fort Orange Paper Co.
Castleton-onHudson
Paper
2002
NY
Chatham
Columbia Corp.
Chatham
??
1995
NY
Clayville
Doeskin Inc.
Clayville
??
1990s
NY
Corinth
International Paper
Corinth
Coated Gnd
wd Machine
NY
Corinth
International Paper
Corinth
NY
Deferiet
Deferiet Paper
91
1999
P&P
225
2001
Deferiet
P&P
420
2001
NY
Fayetteville
McIntyre Paper Co.
Fayetteville
Paper
2002
NY
Fulton
North End Paper Co.
Fulton
Paper
1994
NY
Fulton
Smurfit-Stone Corp.
Fulton
Box Plant
1990s
NY
Ganesevoort
Ganesevoort Mill
Ganesevoort
Paper
1990s
NY
Greenwich
American Tissue
Greenwich
Paper
2002
NY
Greenwich
Greenwich Mill
Greenwich
Paper
1990
NY
Lockport
Caraustar Industries
Buffalo Mill
Gypsum
NY
Lyons Falls
Lyon Falls Pulp & Paper
Lyons Falls
60
2003
P&P
186
2002
Converting
140
NY
Maspeth
Fonda Group
Maspeth
NY
Napanoch
Napanoch Mill
Napanoch
Paper
NY
Newark
Gulf States Paper Co.
Newark
Paper
NY
New Windsor
Lafayette Paper
New Windsor
Paper
1997
NY
Newton Falls
Appleton Papers
Newton Falls
Paper
2000
NY
North
Tonawanda
North Tonawanda Mill
North
Tonawanda
Paper
1990s
NY
Ogdensburg
Ponderosa
Ogdensburg
Paper
1990s
NY
Oswego
International Paper
Oswego
Paper
NY
Oswego
International Paper
Oswego
Container
NY
Piermont
Piermont Mill
Piermont
Paper
NY
Pulaski
Felix Schoellar
Pulaski
Paper
NY
Pulaski
Felix Schoeller Technical
Papers Inc.
Pulaski
Paper
2002
NY
South Glens
Falls
Palatka Division
South Glens
Falls
Paper
1990s
NY
Tonawanda
Spaulding Composites
Tonawanda
??
NY
Utica
Evers Paper Co.
Utica
Paper
NY
Warrensburg
Warrensburg Mill
Warrensburg
??
NY
Watervliet
Norton Coated Abrasives
Watervliet
63
219
102
2001
2002
2002
1990s
165
2001
1992
1990s
1990s
43
Paper
Status of Northern Forest Region States’ Forestry and Forest Products Industry
2001
1990s
May 31, 2008
1990s
3.3
Projections for the Future of Production Facilities: A Review and a Look Toward
New Investment
Collins et al wrote this year56:
In some ways, long-term prospects appear to be improving for the American forest-products industry as a whole. Large
producers have adopted more capital-intensive operations …From 1995-2005, the number of softwood lumber mills
operating in the United States fell from 862-664, whereas the average mill capacity rose by 60%. In the pulp and
paper sector, annual output per employee jumped almost 70% from 1992 to 2003. From 1997 to 2005, the pulp,
paper, and paperboard industry cut one out of every three jobs at mills by closing less efficient mills and improving labor
productivity at the rest. After a decade of downsizing and structural change, large forest-related operations in the
United States have become leaner and more productive, renewing modest growth.
And so it has been for the Northern Forest portion of the industry with one twist. Some of the
mills in the Northern Forest, especially the pulp and paper mills, are among the oldest in the world
and, as such, causes the region to be at a disadvantage -- older mills are likely to be smaller and less
efficient than new mills. In many cases, large capital investment has occurred at pulp and paper and
also larger sawmill facilities and this has placed them in a better position to compete, coupled with
reduction in workforce to reduce cost.
The growth areas in the forest products industries in the Northern Forest are found in the energy
field but growth in productivity (and production when the current housing slump rebounds for the
sawmill sector) will occur through all sectors in the next 10 years.
3.3.1 Timber Harvesters – the essential logging sector – This paper has not yet discussed the
role of the timber harvester or logger as it relates to the markets for wood in the Northern Forest.
Loggers play an essential role in the success of all the primary wood-using industries discussed.
Without an adequate infrastructure in the logging community, the remainder of the forest products
industry is sure to fail. In recent years, and with various closings (and sometimes re-openings) of
pulp mills and wood energy markets for wood, the health of the logging community has suffered.
Modern loggers generally have at least several hundred thousand dollars worth of equipment – more
and more have over $1 million-worth. This modern equipment requires substantial loans and debt
service that rely on stable work, cash flow and markets. When markets in any of the sectors
(sawmill, pulp and wood energy) change to a great degree, the logging community must adjust or, in
some cases for loggers with excessive debt service and employees, downsize or close.
As new potential markets in the wood energy field arise, concerns abound about whether adequate
logging infrastructure is in place to properly and adequately supply these new (substantial) markets.
Little known outside the forest products industry and yet critical is the fact that the relative value of
the various products derived from the tree when a logger harvests it (veneer, sawlogs, pulpwood, or
energy chips (whole tree chips)) determine whether a logger can be successful financially. More
specifically, a logger can make money and stay in business if there is an adequate percentage of highvalue trees in the forest which is being harvested (this means veneer and sawlogs), along with some
lower value products (pulpwood, energy chips). A logger generally cannot afford to harvest a forest
56
Collins, Sally, Darr, David, Wear, David, Brown, Hutch, Global Markets and health of America’s Forests: A Forest
Service Perspective, Journal of Forestry, January/February 2008
64 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
if only pulpwood and energy chips will be generated (at current prices). For instance, the same
amount of effort will harvest a tree with two veneer logs (the highest value product), a sawlog, and
an energy chip top, or a tree that is so poor in quality that only energy chips can be made from it. A
logger will be paid many more times as much for the first tree as the second. They cannot survive
on only the second tree.
The relevance of this is that in order to maintain or grow any sector of the forest products industry,
adequate logging infrastructure is necessary. If the sawmill industry is stressed and markets are
reduced for high-value logs, then loggers may not be available to harvest and deliver the wood to,
for instance, the growing wood energy industry. This is true, of course, unless the price paid for
wood chips does not increase substantially. Prices for wood chips at market, paid based on weight,
would likely have to triple, quadruple, or more in order to pay loggers what they receive in the
sawlog and veneer markets (paid on a per thousand board foot basis).
The lesson is that the forest products industry is interconnected, and the logging infrastructure,
where the raw materials get from forest to market, is a critical link. And diesel fuel runs this logging
infrastructure. Recent increases in diesel fuel prices (near $5.00/gallon at the time of this writing) are
especially hard on loggers and the truckers that get wood to market. The recent spikes and the
prospect of prolonged or permanent high diesel prices are adding significant stress to an already
stressed industry.
65
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
3.4 Wood Availability – the Many Factors Affecting the Commerce of Moving Wood from
Forest to Mill
The Northern Forest region of the U.S. is blessed with abundant forests providing both timber and
non-timber values. The issue of what is truly available to the forest products industry for use in the
many wood manufacturing businesses in the region is complex.
Many factors affect whether or not timber standing as trees in the public and private forests of the
region can be made available for manufacturing. While Section 2.4 of this paper described how the
forests of the region are growing considerably more wood than is being harvested or lost through
tree mortality, it did not discuss whether this abundant amount of wood is available to markets that
require timber as their raw material source. The key factors to consider for better understanding of
this issue include the following:
3.4.1 Regulation, Ownership and Terrain – Through certain public ownerships such as the lands
in state ownership in the Adirondack Forest Preserve, the Wilderness and recreation-only lands of
the Green and White Mountain National Forests in New York, Vermont, New Hampshire and
Maine, and a few other public ownerships at the state level as well as some private conservation
lands owned primarily by non-profit organizations, several million acres of forestland in the region
are not available to timber harvesting activities. Additionally, tens of thousands of acres of forests
are off-limits to harvesting due to the restrictions placed on lands under conservation easements57 most notably the very large conservation easements that have been put in place since the early
1990s. Lastly, certain terrain is off-limits to harvesting simply because the land is not accessible to
logging machinery. These lands tend to be mostly steep areas or areas that are too remote to justify
the expense of road building, given the value of the timber. If the timber were valuable enough in
these areas, techniques such as helicopter logging would be employed. No significant use of this
harvesting technique occurs in the Northern Forest region given the lack of value of many timber
species (relative to west coast species).
3.4.2 Landowner Attitudes and Timber Prices – The most significant factor affecting wood
availability on private forestland in the region is landowner attitude towards timber harvesting.
Commercial forest owners, those with ownerships from as little as 1,000 acres to several million, are
in the business of managing for timber harvests as a key income source. The several hundred
thousand private forest owners with smaller ownerships in the region, however, are different in that
respect. Survey after survey58 of family forest owners show similar results – chiefly that, on average,
they are motivated by reasons other than timber harvesting.
The most comprehensive national effort to understand forest owners in this sector is the National
Woodland Owner Survey researched and published by the USDA Forest Service Forest Inventory
and Analysis. Each year surveys are sent out to a sample of forest landowners across the country
and periodically the results of those surveys are published. The most recent published information
57 These lands tend to be sensitive lands to wildlife and for biodiversity conservation. Typical set-asides are riparian
zones adjacent to streams, rivers, ponds and lakes, steep slopes, rare plant habitats and the like. Each easement is unique
and, depending on the land-type, may or may not have certain set-asides.
58 Hundreds of papers and surveys of family forest owners are available (the bibliography cites a few). This issue has
been studied thoroughly.
66 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
is for the period ending in 2004 and published in 2005. An updated survey data set and analysis for
the period ending 2006 is scheduled to be published later in 2008.
The key finding of this comprehensive survey and other studies, usually covering smaller geographic
areas, is the same – that forest owners are not primarily motivated to harvest timber as a purpose for
owning forestland. Having said that, a substantial proportion of forest owners in the Northern
Forest and the U.S. have harvested timber or are planning to. Forty percent of the forest area
owned by the family forest owner in the Northern Forest region and the US has been
harvested on in the past 5 years. This represents over 25% of all forest owners, suggesting that
the larger forest owners are more likely to harvest timber than the smaller forest owners. These
numbers are an important statistic, as it seems counterintuitive to the notion that most family forest
owners list timber harvesting in the bottom 20% of reasons for owning forestland. While forest
owners are not motivated to own forestland for timber harvesting purposes, what they do with the
land is the opposite. They harvest in large numbers and acreages.
A recent literature survey of studies of forest owners confirms part of this phenomenon:
“Most family forest owners rank things like aesthetics, recreation, wildlife viewing, and part of
residence as the most important reasons for owning forestland; timber production is usually a low
priority, although many owners surveyed in the various studies reviewed have harvested timber.”59
Also stated in this literature review:
“The importance of commercial timber production is positively correlated with acreage of holding,
as it is with the likelihood that the owner has used professional forestry advice and/or public
assistance programs.”60
Landowner attitudes are key to the availability of timber on private family forest ownerships, but
actions show that, over time, most of this land will be harvested for timber anyway. Price is
certainly a motivating factor in this situation. While a significant portion of forestland will be
harvested as long as markets are available for the timber, if the price increases significantly, more of
this wood will become available to the marketplace.
One final point on the family forest factor is this: the wood products manufacturing industries in the
Northern Forest do not need every acre of timberland growing and legally capable of delivering
timber to the marketplace available in any given year – only a small portion of the land area, roughly
estimated at less than .5%, in any given year, is needed to supply the existing industries. Timber
shortages have not occurred in the region – as long as purchasers of timber have been willing to
raise prices to bring more timber to the marketplace.
59
Hodgdon, Benjamin, Tyrrell, Mary, An Annotated Bibliography on Family Forest Owners, Yale Program on Private Forests, 2003
60
ibid
67
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
3.4.3 Logging and Trucking Infrastructure – Perhaps a much more important factor in seeking
to ensure adequate supplies of timber for the wood-using industries in the region is the changing
state of logging and trucking infrastructure. With several closures of large regional markets such as
pulp mills in recent years, coupled with increased costs of equipment, labor, insurance and most
recently diesel fuel, the future of the logging and wood trucking sectors is uncertain. Today there is
sufficient logging infrastructure to supply the current wood markets that exist with timber products.
The question is whether the supply will be sufficient in ten or twenty years.
The timber harvesters and truckers of the region are a hardy and independent group of business
people. Most probably would say that that they have wood in their veins and will stick with the
business until they no longer grace the face of the earth (indeed some respond to surveys in such a
manner). Others look at their options and may find other venues for their machinery that are more
lucrative, such as turning the log truck into a gravel hauling rig or other trucking design. A vigorous
used market exists for selling logging equipment, so those looking to get out of the line of work
usually have a way to re-coup a small portion of their initial capital investment.
The bigger issue by far, however, is the increasing average age of loggers and the fact that loggers’
sons and daughters are much less likely to enter the family business today than their predecessors
were 25 or 40 years ago.
Several studies have been done on this logger succession issue, most notably those conducted
through the University of Maine and Laval University in Quebec City, Canada. Their conclusions
are simple – the logging workforce is getting older in the Northeast US and eastern Canada. New
younger workers are entering the industry but not at a high enough rate to keep logger average age
static. This is partly because loggers’ offspring are not entering the family business in sufficient
numbers, and partly due to the high cost of entry into the profession.
On the latter point, not more than 25 years ago, a young man (very few women entered this
profession and most who did, served administrative roles) could become a logger on a $10,000 loan
from a relative or lending institution if sufficient credit history existed. The money paid for a used
skidder primarily and, coupled with a pick-up truck and chainsaw, the logger was in business. Today
things are not so simple. Very few single-person cable skidder61/chainsaw operations exist
compared to several decades ago. Partly due to safety issues, partly to workers compensation
insurance rates and partly to production, most loggers now own grapple skidders62, feller-bunchers
or timber processors and other equipment to de-limb and cut timber to length without ever getting
out of the machine cab or picking up a chainsaw. Others also have chippers to chop lower quality
logs into fuel chips for the wood energy industry.
While much safer, all this equipment is very expensive. With minimum hardware, prices can be in
the $75,000 - $100,000 range. The total equipment value for small logging companies often easily
tops $250,000. With these capital costs it is very hard for the independent, hardworking individual
to become a logger. On top of this is the training available throughout the region -- not required by
61 A cable skidder is a large tractor that drags logs in the woods, once cut, to a landing where they are cut to proper
length and loaded onto a truck. The cable is on a winch at the back of the skidder and pulled out by hand and attached
with chains to a log. The log is then winched in close to the skidder and the driver then drives away, logs in tow.
62 A grapple skidder does what a cable skidder does but no cable is involved. Instead, the skidder driver backs up to a
pile of logs cut in the woods and grabs them with a rear-mounted claw and then drives away to the landing.
68 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
law, but usually necessary for the logger to consistently receive work from foresters, government
agencies, large forest owners and others.
On the positive side loggers are more trained and professional than ever, as significant logger
training programs have proliferated in the Northern Forest states since the late 1980s. The
infrastructure in place today is highly skilled and the safety record ever improving. More and more
logging work is accomplished without a chainsaw (or with loggers standing on the ground), and
today’s modern harvesting equipment is far safer than ever. Amenities like climate controlled cabs
with stereos and GPS units abound.
Lastly, diesel fuel runs the forest products timber harvesting economy. The recent rise in diesel
costs has cut deeply into already meager profit margins for most loggers in the region. Markets will
need to compensate loggers for these rapidly escalating input costs or risk reduced availability of raw
materials.
Conclusion – Timber availability is an important factor for the future of the wood-using industries
of the Northern Forest region. Currently the combination of land ownership patterns, government
regulation, landowner willingness to harvest trees, availability of loggers, and sufficiently-paying
markets combine to provide adequate timber supplies to the wood using sector of the economy.
Potential changes in one or more of these factors could create availability issues. The marketplace is
already addressing some of these factors by increasing the price paid for wood harvested. In the
case of wood energy chips, prices paid to harvesters have about doubled in less than five years.
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3.5
Policy Questions on Future of Forest Products Industries Production Facilities
Few blanket pronouncements about the important policy questions facing the forest products
industry are possible. There are a number of key factors of concern for all sectors, however: global
competition, fossil fuel prices, electricity prices, labor and regulations – to name a few. A look at
each sector is necessary.
The wood energy industry, manifesting itself through: stand-alone plants that burn wood chips to
make electricity and in some cases steam; small-scale wood-chip-using technologies for heat at the
commercial and small-industrial scales; newer wood pellet manufacturing targeted currently mostly
at the residential market, but with applications on the small commercial scale; and the traditional use
of firewood for residential heating has a promising future given the skyrocketing prices of fossil fuel
alternatives. While some incentives to encourage more residential and small-scale commercial use
of wood chips and pellets are warranted, growth is already occurring in these arenas. The largescale use of wood chips for electricity and steam production currently has substantial government
incentives that are, in part, responsible for the renewed interest and growth in this sector.
Renewable Portfolio Standards at the state level must be maintained to continue to incentivize these
wood-using activities for electricity production. Similar incentives are also needed for wood use at
industrial scales for thermal applications. The federal production tax credit for renewable electricity
production, which also incentivizes wood use, must also be maintained.
Pulp and paper and sawmill and board production are not so fortunate at this time. While these
sectors of the wood-using industries are struggling relative to the wood energy sector, they still
represent a substantial economy, in each state worth more than triple the forest-based recreation
economies63. Forest-based manufacturing in the Northern Forest states is valued at $14.4 billion per
year while the forest-based recreation and tourism economies, while growing, are valued at $3.6
billion annually. Some government incentives could assist the forest products industry as it searches
for its niche in the new economy of the 21st century. Particularly, government at the state and
federal level could assist through:
•
•
Incentives for capital investment – the forest products businesses and sub-sectors that have
invested in capital improvements64 are those that will survive in the changing economy.
While adding employment may be a laudable public policy, it will not, in and of itself,
improve the chances of the success of the forest products industry. That takes capital
investment in the latest technology to improve efficiencies, reduce energy use and cost and
allow for increased production with current labor. State governments must help create
incentives to do this.
A concerted effort by state government to understand the needs of the forest products
manufacturing sectors and put forth the resources to assist these sectors is needed. Too
often, the economic development arm of state government dismisses the forest products
sector because there is little understanding of the importance of this long-standing
The Economic Importance and Wood Flows from the Forests of Maine, New Hampshire, Vermont and New York, 2007, North East
State Foresters Association
64
Many confidential investments in capital at sawmills and pulp and paper facilities have occurred in the past decade.
The businesses who have been able to accomplish this investment are currently better positioned with new efficiencies
and reduced unit cost to succeed in the future economy of the region and world.
70 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
63
•
•
•
•
manufacturing sector. There are often other sectors, such as the so-called “high tech,”
higher on the agencies’ lists. State government needs to understand this industry and be
willing to work closely with it. Further, states should work to strengthen those forest
products businesses that are operating today before chasing new potential businesses in this
sector.
Investment in research and development for technology for the forest products sector –
Government can do this by providing R&D tax incentives, investing tax dollars in the
university system, and working with other states and the federal government on these
efforts. The forest products industry has always innovated and technology is key to future
success.
Embracing entrepreneurs – people with ideas (often individuals) are where innovation
comes from. State governments must embrace programs and funding for entrepreneurs in
the forest products sector and the private sector should embrace entrepreneurial efforts
through non-profits and direct funding.
Making regulations and permitting business-friendly – Regulation of manufacturing often
scare off potential entrepreneurs in the forest product and other sectors. Government
regulations at the state and local level must be understandable for businesses looking to
expand and for those looking to create or site new facilities.
Logging infrastructure – this sector of the forest products economy is essential and
struggling. Incentives for this sector to address increasing cost problems may be critical to
the entire forest products industry. If wood cannot get from the forest to the mill, nothing
in the forest products manufacturing sector will matter.
Lastly, though not particularly controllable, the value of the dollar can assist the wood-using
industries in the new economy. The recent fall of the dollar relative to world currencies
provides a huge advantage to the forest products manufacturing sectors (and all
manufacturing sectors) by giving them greater access to foreign markets. Since US produced
goods are less expensive when the dollar is weak the market share for US products
increases, and foreign imports from countries with stronger currencies are at a disadvantage
in their efforts to penetrate the US goods markets.
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4
Markets for the Forest Products Industries of the Northern Forest Region
In any discussion about an industrial sector, it is helpful to understand the connectivity and
complexity of it. The following diagram helps explain how the various sectors discussed in this
paper are connected and provides a good lead-in for a discussion about end product markets
Diagram 1
Forest Products Economy of the Northern Forest States
Source: Maine Future Forest Economy Project, 2005
End product markets take a variety of forms for the five sub-sectors (3 major sectors of pulp
and paper, sawmills and wood energy):
•
•
•
•
•
Pulp
Paper
Lumber
Panels
Energy
We will look at end markets for each of these sub-sectors.
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4.1 Pulp
Most wood pulping plants in the Northern Forest states are co-located with paper
manufacturing facilities. Only one facility, Katahdin’s facility in Millinocket, ME, has the
paper mill running but not the pulp mill. Another similar situation in Berlin/Gorham, NH
exists, but the pulp mill has been completely dismantled over the last 2 years and will never
operate again. Wood pulp is, in and of itself, a product that is sold to paper mills that do not
have pulping capability. Markets for this pulp exist across the region, the US, North
America and overseas. Some pulp mills in the Northern Forest have more pulping capacity
than their paper mills can handle and so they sell pulp on the open market. As a commodity
product, it is sold and traded worldwide.
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4.2 Paper
Printing and writing grades dominate paper produced in this sub-sector in the Northern
Forest region. While some lower quality paper, like newsprint, is produced, the majority is
of higher grades. This is a good thing since these products tend to track the growth of the
economy, and thus an upturn signals increased demand for high-grade paper.
Paper mills produce large rolls of many paper grades. Paper is sold in this form to paper
brokers around North America and the world or, at some pulp and paper facilities in the
Northern Forest, is sheeted to yield large or small size flat sheet paper for the printing
industry. There are approximately 30,000 printers, large and small, in the US alone. These
printers, some of them newspapers, are the end user of the paper produced at the pulp and
paper facilities from the region. Other markets include the office paper market, which is
typified by the copy paper that can be purchased at office supply retailers. These businesses
all purchase their paper either from a paper broker or sometimes, especially for large
operations, directly from the pulp and paper facility.
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4.3 Lumber
Lumber products are much more diverse than paper products, despite the multitude of
paper grades and sizes available. Lumber from softwood trees such as spruce, fir, hemlock,
and white pine is generally used for different purposes than lumber from hardwood trees
such as sugar maple, red oak and yellow birch.
Softwood
Spruce and fir logs are usually sawed into structural lumber (2x4s and other 2x material) used
for framing in the construction industry for both residential and commercial buildings. This
is largely a commodity product, with material from the Northern Forest states competing in
the marketplace with products from all over North America. The softwood lumber
agreement has lessened competition from Canada somewhat. Up until 1990, offshore
structural lumber imports were negligible in the US markets (less than 0.1%). They now
account for over 4%. These imports are from New Zealand, Chile, Baltic countries, Russia,
Africa and other sources. Demand for this product area is directly tied to the housing
industry. As housing starts reduce, (as they have done in the year leading up to date of this
paper), demand for structural lumber decreases.
End markets for the sawmills that produce structural lumber include big-box retailers such
as Home Depot and Lowe’s, and smaller lumber yards that dot the North American
landscape. Large, direct purchasers of structural lumber such as manufactured housing
contractors and large building contractors round out the mix. Some overseas export of
structural lumber from the Northern Forest occurs but this is a small component of the
market for this sub-sector.
White pine lumber is used for entirely different purposes and has more varied markets than
spruce and fir structural lumber. White pine is sold for boards, sheathing, millwork, crates,
toys and furniture, among other products.
White pine lumber from mills in the Northern Forest states is sold to big-box retailers and
lumber yards, as well as furniture and cabinet manufacturers, wood workers and others.
Many white pine mills also retail directly to consumers or have a lumber yard of their own.
Some white pine is exported but not nearly at the levels of hardwood lumber.
Hardwood
The hardwood lumber industry is very different from the softwood sector. In the hardwood
sector, end markets use smaller pieces of wood than for the softwood sector. The two
dominant markets for hardwood lumber manufactured in the region are pallets (for shipping
all kinds of products) and furniture, although the latter has seen major changes in the US.
Other uses and markets for hardwood lumber include millwork, flooring and cabinets.
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U.S. Hardwood Lumber Use65
Figure 4.1
16
Miscellaneous
Exports
Railroads
Lumber Yards
Pallet / Crating
Flooring
Millwork
Cabinets
Furniture
Billion Board Feet
14
12
10
8
6
4
2
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
0
Data Source: Hardwood Review
A key issue for those in the hardwood lumber industry is the decline in US furniture
manufacturing since 2000. This is largely due to cheaper imports to the US market from
places like China. As a result, more lumber sawed in Northern Forest hardwood-producing
sawmills will be shipped overseas and trends show this to be a growing market.
Figure 4.2
Hardwood Use in Furniture, U.S.
4.0
Billion Board Feet
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Source: Hardwood Review
Barrett, George. Editor, Hardwood Review. U.S. Hardwood Industry in a Global Economy. Presented at the N.H. Forest
Industry Summit. June 11, 2004.
76 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
65
Secondary manufacturing is, ultimately, the major market for hardwood lumber production.
There is a long list of products produced across the Northern Forest state’s secondary wood
products manufacturing sectors including, but not limited to, the following66:
Apple boxes, crates, architectural woodwork, art, bark/landscape material, barrels, baskets,
bins, bird feeders, boxes, buckets, cabinets, canoes – canoe parts and accessories, carvings,
casework, child swing and play sets, Christmas trees and wreaths, clothes pins, containers,
crafts, custom woodwork for houses, decking, dimension stock for structural work, doors
and windows, dowels, fencing, fixtures, flooring, furniture (home, office, outdoor), furniture
parts and turnings, games and toys, gazebos, handles, homes (log, modular, post & beam,
conventional), ladders, lattice and trellis, lawn and garden accessories, lobster traps, finish
lumber, medical implements, millwork and moldings, musical instruments, novelties and
souvenirs, oars and paddles, pallets, panels, patterns (decorative), poles and posts, railroad
ties, rulers and yardsticks, screen doors, shavings, shelving, shingles and shakes, siding, signs,
sporting goods (baseball bats, golf tees etc.) squares, stairs, stakes, tools, trusses, turnings,
much more…
66
Maine Wood Products Association and other sources
77 Status of Northern Forest Region States’ Forestry and Forest Products Industry
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4.4 Panels
Panel production – 4’x8’ sheets- are another solid wood primary product produced in a very
limited number of facilities across the Northern Forest region. Markets for these products
are also varied. Plywood is produced for both structural sheathing and finish plywood for
furniture and cabinets. Oriented Strand Board (OSB), the plywood alternative, is produced
for sheathing in construction and for parts for OSB I-beams that replace spruce and fir
structural 2x materials (such as 2x10 flooring joists or roof rafters).
Markets for these products are similar to those in the structural lumber and hardwood
sectors. Structural plywood and OSB are shipped to big-box stores for retail sale, as well
aslocal lumber yards. Large construction firms and manufactured housing companies also
purchase large quantities for use in their manufacturing processes. As with structural
lumber, these uses are dependent on the health of the housing market.
Finish plywood for cabinets and furniture, large and small users, are shipped to those
industries in North America and abroad.
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4.5 Energy
Extensive discussion about the use of wood for energy production can be found elsewhere
in this paper. End markets for energy wood are more simple to describe than for the other
wood products coming from primary processors of wood from the Northern Forest region.
Electricity produced in biomass power plants is sent onto the electricity grid and used by
consumers in the residential, commercial and industrial sectors, along with all the other
power produced through coal, nuclear, natural gas, hydro, wind and other electricity
producers in the region. Once electrons are sent on the grid, they are non-discriminating -that is, we use them from all the power production sources.
Wood used for thermal purposes (i.e. heat and steam for heating buildings and/or for
manufacturing processes) is an on-site use, where the wood material is combusted in boilers
at the facility where the thermal product is consumed. Pellets and firewood are used
predominantly in the residential sectors.
Conclusion – End markets for wood-based products made at manufacturing facilities across
the Northern Forest region are varied, both in type of market and geographic location. This
complexity assures that all sectors will not be negatively affected should one sector feel
significant pressures from global market forces, such as the downturn of US furniture
markets that has affected hardwood lumber production. The weakness of the dollar has
helped all sectors that are involved in exports to other countries.
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5
Climate Change and the Role of Forests in the Northern Forest Region
Significant interest in climate change and the role forests might play in its mitigation has been
generated worldwide, and more recently over the last several years in the United States. While the
potential is great for forest-based mitigation efforts in the U.S., no significant benefits will accrue to
forest landowners or traditional forest products industries for at least several years.
5.1 Kyoto Protocol - Most carbon offset67 efforts worldwide are the result of Kyoto Protocol68, to
which 191 of the developed countries in the world had signed on as of 2005. The United States has
not signed onto the agreement. The Protocol requires developed countries to reduce their
greenhouse gas emissions by a set amount (unique to each country) during the period 2008 to 2012
in order to bring worldwide emissions to 5% below 1990 worldwide levels. Most signatory countries
to the Protocol have adopted laws and regulations to implement their role in the Protocol
agreement. Much of the focus of emission reductions as a result of these national laws and the
Protocol have been on direct reductions of air emissions of greenhouse gases from emitters such as
power plants, factories and other direct sources. A minor component of the Protocol (in terms of
percentage of greenhouse gas emission reductions) are so-called carbon-offsets, of which
sequestration by trees is a part. These laws have resulted in a market for buying and selling
greenhouse gas reduction credits (measured in metric tons of carbon) among the countries that are
part of the Kyoto Protocol.
Strict rules govern the sequestration of carbon by trees if these efforts are to “count” toward the
country-wide emission reduction targets. Most specifically, the Protocol only counts sequestration
efforts in forests if they result from afforestation (planting trees on land that has no trees), and
reforestation (planting trees on land that was once treed) since 1990. Given that the Northern
Forest region is one of the most heavily forested regions on Earth and also that very little tree
planting occurs in the region due to adequate natural forest regeneration resulting from sufficient
rainfall and soils, the prospect of significant benefits to forest landowners under the Kyoto Protocol
(should the US adopt it) or any subsequent greenhouse gas emission reduction scheme are not likely
unless requirements are changed.
Currently, carbon credits (i.e. a ton of carbon) are trading for upwards of $40 (€25) in European
markets. Forests in fast-growing Southeastern US pine plantations are estimated to sequester up to
1 ton of carbon per acre per year. Forests in the slower-growing Northern Forest can be expected
to sequester less than half of this amount.
67
Carbon offsets refer to projects or efforts to sequester carbon dioxide or other greenhouse gases such as methane
from the atmosphere in an effort to offset direct emissions of greenhouse gases into the atmosphere. Carbon dioxide
taken in by plants such as trees in photosynthesis are said to “sequester” carbon from the atmosphere and serve as
offsets to emissions.
68 The adoption of the Framework Convention on Climate Change (UNFCCC) in 1992 as part of the Earth Summit set
the stage for the adoption of the Kyoto Protocol. After two and a half years of intense negotiations, the Protocol shares
the objective and institutions of the Convention. The major distinction between the two, however, is that while the
Convention encouraged developed countries to stabilize GHG emissions, the Protocol commits them to do so. The
detailed rules for its implementation were adopted at COP 7 in Marrakesh in 2001, and are called the “Marrakesh
Accords.” (from United Nations). The Protocol was put into effect in 2005 when a sufficient number of countries had
signed on. Not all countries in the developed world have signed on, including the United States. The Protocol expires
in 2012.
80 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
5.2 Regional Greenhouse Gas Initiative – The Regional Greenhouse Gas Initiative (RGGI –
pronounce “reggie”) is a cooperative agreement among ten states in the northeast and Mid-Atlantic
region of the United States to reduce greenhouse gas emissions. These states, which include the
four Northern Forest states, are currently turning the agreement by the governors into legislation
that will hold the states accountable by law to reach certain targets in a “cap and trade”69 system for
reducing greenhouse gas emissions. RGGI only covers electricity-generating power plants and their
emissions of greenhouse gases. Any electricity generation facilities that get at least half of their fuel
from biomass sources are exempt from RGGI compliance. RGGI is a regional attempt at
implementing binding reductions in greenhouse gas emissions because the federal government has
not signed onto the Kyoto Protocol and also has not yet adopted a federal law requiring greenhouse
gasemissions reduction (see next section).
The rules governing carbon offsets by forest sequestration through RGGI are similar to the Kyoto
Protocol requirements. No allowances for carbon sequestration through sustainable forest
management or land protection activities are yet recognized, though efforts within RGGI and in
national and international sectors are underway to urge adoption of such forestry-based alternatives
in addition to afforestation and reforestation.
5.3 Federal Legislation and a Regulatory Program for Greenhouse Gas Emissions
Reductions in the US – Federal legislation to create a regulatory program in the US similar to
those in the Kyoto Protocol nations regarding reduction of greenhouse gas emissions has been
debated for many years. The common wisdom is that with the coming presidential election in 2008,
the next Congress will actually pass federal greenhouse gas emission reduction legislation. All three
leading presidential candidates support such legislation, and Congress now appears ready to pass
carbon reduction legislation.
While the problem of only recognizing afforestation and reforestation as forest carbon offsets still
exists, efforts are underway to include sustainable forest management and/or permanent forest
protection as additional approaches to sequestering carbon in pending federal legislation.
5.4 The Voluntary Carbon Market in the US – While Kyoto Protocol projects are happening
worldwide and RGGI is soon likely to be law in most of the ten RGGI states, a voluntary market for
carbon sequestration and offsets has developed in the US. At least four carbon registries have been
created to keep track of the carbon sequestration projects and efforts in the US. The most wellknown registry is through the Chicago Climate Exchange. The others include the California Climate
Action Registry, National Voluntary Greenhouse Gas Reporting Program and RGGI. Rules have
been developed for all of these registries to determine whether a project or effort qualifies for a
carbon credit. With regard to forestry and forest offsets, The California Climate Action Registry and
National Voluntary Greenhouse Gas Reporting Program allow some credit for sustainable forestry
but the accounting and verification protocols are significant. The Chicago Climate Exchange and
RGGI do not.
Theoretically, forest certification programs such as the Sustainable Forestry Initiative and Forest
Stewardship Council might be used as part of verification mechanisms should sustainable forestry be
69 A cap and trade system refers to a program whereby emitters of pollutants are allowed to either reduce their emissions
or purchase credits from others who have reduced emissions more than they are required so that the end result is overall
emissions targets for a state or region are met.
81 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
recognized as a countable carbon offset in a regulatory program. To date, however, they have not.
Several of the four US registries (including the Chicago Climate Exchange and RGGI) have ongoing
discussions about how to recognize sustainable forestry in carbon offset approaches.
Until a full regulatory market in the US exists for carbon credits (through federal legislation or
RGGI or similar efforts at the regional level), the value of carbon in voluntary markets will remain
low since the price of these credits is only anticipatory of a regulatory market. Current prices for
carbon credits in the voluntary markets in the US are well under $10 per credit.
5.5 Implications for the forests of the Northern Forest region –
Steven Ruddell and thirteen co-authors of The Role for Sustainably Managed Forests in Climate Change
Mitigation in the September, 2007 issue of the Journal of Forestry make an impassioned plea to
international, national and regional efforts like RGGI (there is a similar regional effort in the western
US) to include sustainable forest management and permanent land conservation – “keeping forests
in forests”- as acceptable approaches to carbon offsets from forests. They write:
There is a need to develop a national policy and forest project standards that promote the role of forest offsets in the
United States, which (1) help keep forests in forests and (2) sequester more carbon through sustainable forests
management.
In order to potentially benefit forest landowners and forests of the Northern Forest region,
sustainable forestry and permanent land protection efforts will need to be recognized in one or more
of the emerging regulatory greenhouse gas reduction efforts, assuming the eventual program uses a
cap and trade approach. Other alternatives have been discussed, including a straight carbon tax
(taxing emitters of greenhouse gases). In such a scenario, carbon offsets, such as those discussed
from forests in this paper, would not be a useful tool.
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6
An Assessment of the Forest Products Industries of the Northern Forest by State
6.1
New Hampshire
A Quick Overview of the Forest Products Industry
New Hampshire’s forestry and forest products industries have undergone significant change in the
past twenty years and will continue to evolve in the future. Currently, forest products manufacturing
is worth over $1.2 billion in shipments or 7% of the state’s total manufacturing sales.
Approximately 9,500 individuals are employed in the industry (including the loggers, truckers and
foresters who move timber to market where manufacturing can occur). The annual payroll for these
individuals is over $320 million. The most significant recent event in the sub-sector is the closure of
the pulp mill in Groveton in 2005, as well as the 2008 closing of the paper mill attached to that pulp
mill. The closing of the Berlin pulp mill in 2006 (and subsequent dismantling of the structure)
followed in 2007. The estimated effect of the closure of the two pulp mills in the North Country is
near $150 million of annual shipment value while reducing direct employment by over 500 and
wood usage by 1.2 million tons per year.
Forest landowners receive over $45 million per year in stumpage (amount paid for standing timber
by the timber purchaser, who may be a logger or a primary forest manufacturer).
The wood energy sector provides approximately 6% of electricity used in New Hampshire. New
wood to energy plants are expected to be built in New Hampshire beginning as early as 2008. In
2006, Public Service Company of New Hampshire opened the Schiller Wood Energy Plant in
Portsmouth, replacing one of its coal-fired boilers at that location. Since its late 2006 start-up, the
estimated effect of the opening of the Schiller Plant has been to increase forest-based manufacturing
output by $30 million per year and wood consumption by 500,000 tons of wood chips per year,
while increasing employment within the logging and trucking sector by an undeterminable amount.
Combined with the other five operating wood energy plants in New Hampshire, this sector uses
approximately 1.7 million tons per year (one box tractor trailer used to truck chips from the forest to
the energy plant holds 25-30 tons of chips).
The forest products manufacturing sector includes approximately fifty sawmills (of substantial size)
that annually process approximately 38 million board feet of hardwood sawlogs70 and 184 million
board feet of softwood sawlogs into lumber. The value added from the point at which the sawmill
saws the logs to wood preservation, millwork, wood container and pallet manufacturing and prefabricated wood buildings is approximately $293 million annually, and the value of product
shipments is $754.4 million. This sector employs over 3,600 individuals.
The paper sector employs approximately 2,000 people and now obtains its raw material through
pulp mills outside of New Hampshire. This sector supplies annual paper shipments valued at over
$300 million.
70
A board foot is a 1 foot by 1 foot by 1 inch (thick) piece of wood.
83 Status of Northern Forest Region States’ Forestry and Forest Products Industry
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The secondary wood manufacturing sector employs approximately 1,500 people and produces such
products as cabinets, moulding, clapboards, furniture, canoe and kayak paddles and many other
products. This sector has a payroll of $50.0 million annually. The total value added for furniture &
related products is approximately $43.0 million and the value of shipments is $152.1 million.
There are approximately 400 foresters and 1,300 loggers employed in the primary forestry and
logging fields. Payroll in these sectors tops $80 million per year.
6.1.1 Leadership – New Hampshire has been blessed with significant support in the forest
products sector by businesses, non-profit organizations, and governments. The industry has never
been a controversial one as it has been in other states. At the state level, significant support exists
from the Governor’s office down. Currently, Governor John Lynch has initiated a Forest Industry
Task Force to look at the current challenges facing the forest products manufacturing sector. This
effort is led by State Forester Philip Bryce who, prior to the start of his first term as state forester,
just over ten years ago spent his entire career in the forest products sector. He has been known to
say publicly that “…the role of government is to facilitate the orderly conduct of commerce…”.
The executive branch of NH state government has tried many times in the last decade to save the
pulp and paper mill facilities in Berlin and Groveton, while its economic development arm in the
Department of Resources and Economic Development has actively worked with many sub-sectors
in the forest products field – most recently in the wood energy area.
Adjunct to state government is the University of New Hampshire and the related Cooperative
Extension. Both entities are very supportive of the industry, and the University is trying to reinvigorate its forestry program to be in a position to lead from the academic sector.
The legislative branch of government in New Hampshire is one of the more business-friendly state
legislatures in the U.S. In 2007, they passed a Renewable Portfolio Standard requiring a certain
percentage of New-Hampshire-generated electricity to come from renewable sources. Wood-based
energy fits under this important incentive, and many plans for wood-energy facilities are in the
works in the Granite State. This year a special North Country tax incentive was passed, partly to
encourage a re-invigoration of the forests products sector in the face of the two recent pulp mill
closures.
The non-profit sector has strongly supported the forest products industry through the leadership of
the New Hampshire Timberland Owners Association. In 1985, this association went from largely
representing forest landowners to one that also represented foresters, loggers, sawmills, pulp and
paper mills and wood energy facilities. It has a multi-sector representative board with landowners,
foresters, loggers, mill owners and others serving in order to represent the entire forest products
sector.
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6.1.2 Policy – The most important recent policy advances for the forest products sector are
included above. Several others that involve the forest landowners are worth noting. First, the
legislature in New Hampshire has been a strong supporter of current use assessment, a law that
assesses undeveloped land at its current use as forestland rather than at its highest potential use as
developed land. Over 3 million acres (52%) of the state’s forest are enrolled in the program. This
law is crucial to forest owners, as paying full property taxes in a state that relies heavily on its
property taxes for government revenues would force many forest owners out of ownership. Fewer
forest owners with smaller parcels, the consequence of high property taxes, means fewer acres
potentially available for harvest.
Another important policy initiative from 2007-08 has been an effort to permanently fund the state’s
Land and Community Heritage Investment Program, part of which provides grants for permanently
conserving forestland through conservation easements and public acquisition. A dedicated funding
source was signed into law in 2007 and adjusted slightly in the 2008 session of the legislature. A flat
fee on recording certain documents at the registry of deeds is the source for this new dedicated fund,
which will provide approximately $5 million annually.
6.1.3 Investment – As described elsewhere in this paper, capital and other investment in the forest
product sector has been key to maintaining the strong forest products businesses in the Northern
Forest states. Investment from the public sector is described mostly in the policy and leadership
sections above. Private sector investment has been substantial and on-going in the state’s forest
products sector.
Figure 6.1 New Hampshire Capital Investment in the Forest Products Industry
Source: US Census Annual Survey of Manufactures 2006 (Published 2007)
Note: 321 et al refers to North American Industry Classification System (NAICS)
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On a business-to-business level, examples of substantial investment are testament to the desire by
this sector to remain a strong component of the New Hampshire economy. Stellar examples
include:
-
-
-
Schiller Wood Energy Plant, Portsmouth – Public Service Company of New Hampshire, a
regulated electric utility, invested over $75 million to convert the former coal fired energy
plant into a wood chip fired power plant. The plant began operation in late 2006.
Valley Lumber, Milan – After a fire completely destroyed this long-time softwood sawmill in
2005, the owners rebuilt the plant into a state of the art high volume structural lumber mill,
sawing primarily spruce and fir for the construction market. Dry kilns were also added as
part of the re-build. No announced investment was disclosed but experts estimate that the
rebuild cost in excess of $30 million.
Henniker Hardwood and Pallet, Henniker – recent mill upgrades (2004-05) at this primarily
hardwood sawmill and pallet shop focused on computer optimizers, re-saw, and automatic
sorting technology -- all designed to increase efficiency and production. Investments in
pallet treatment technology for ridding pallet shipments of invasive species (required by the
European Union and other market areas) are another example. Specific investment amounts
were not disclosed but are estimated at $10 million.
New England Wood Pellet, Jaffrey – This wood pellet manufacturer has been in business for
over ten years, but only recently saw itself well-positioned to bring in partners and new
investment due to the growing wood pellet market in the face of fossil fuel price spikes.
New England Wood Pellet more than doubled the size of its manufacturing plant and also,
through a partnership with another firm, is developing its own efficient wood chip power
and heat source. The company has also invested in developing a brand-new facility in New
York (see NY section) and a converting plant in Massachusetts used primarily to bag bulk
wood pellets produced by others. The company also developed an offshoot company to
supply the hardware and technology to others looking to develop wood pellet manufacturing
facilities of their own. Lastly, the company is launching a boiler manufacturing operation for
the commercial market to encourage companies to convert from fossil fuels to wood pellets
for heating and cooling needs. Investment amounts are unknown but are estimated at $25
million in New Hampshire.
6.1.4 Knowledge Development and Dissemination – There is no concerted effort as an industry
to supply technology transfer and knowledge dissemination. Nevertheless, there is much going on
in that regard. First, strong relationships exist between manufacturers of technology and the
industry. New advances are often tested by manufacturers in real world situations at mills and other
facilities, and those technologies and improvements are added if they prove advantageous.
The Cooperative Extension (University of NH and State of NH) employs a forest marketing and
utilization specialist, whose job is focused solely on assisting the forest products industry through
knowledge transfer and technology and marketing assistance. The other Northern Forest states
have employed similar individuals, who generally have a strong relationship with the members of the
forest products industry. Positive outcomes range from a new contact for a piece of hardware to
suggestions on markets and personnel.
While not focused on technology transfer, the forest products industry association, the NH
Timberland Owners Association, holds numerous seminars and training sessions on safety and other
important issues to the industry, as well as serving as its connection to government. Information
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about legislative or executive branch actions is quickly disseminated among the industry by the
association.
More could be done in this area through the industry association or another association geared
specifically to technology transfer, knowledge dissemination and marketing of products.
6.1.5 Infrastructure – From the time a tree is cut to the time it is shipped as intermediary or final
product to customers, the forest products industry relies most heavily on transportation and energy
to produce. Without adequate roads and affordable energy, the sector could not survive.
New Hampshire’s road system is adequate for the industry’s needs, however, the east-west routes
need improvement. This issue is not new, nor does it only affect the forest products industry, but it
is particularly important because of the need to truck a low value/high weight product from forest
to mill and from mill to market. Any improvements in shortening routes or speeding up routes
saves money on the product. This is particularly acute given the recent increase in diesel fuel costs.
Rail is the most efficient method known to move high weight/low value products such as those in
the forest products industry. The rail system in New Hampshire is poor, and developing new routes
or improving existing routes would require huge investments from unknown sources. A first step
would be to partner with other industries with interest in rail use and study the existing
infrastructure to determine what could be done to improve the rail system, and who would pay for
it.
Energy is a significant input into the forest products industry, from logging equipment to trucking
with diesel to manufacturing with electricity and process steam and heat. New Hampshire has some
of the highest energy prices in the nation, as do many of the surrounding states. No recent efforts in
the government sector (including deregulation) have brought down the cost of electricity. Escalating
gasoline and diesel fuel prices, though not controllable on the state scale, are putting pressure on
certain sub-sectors of the forest products industry that will likely result in temporary or permanent
shut-downs at marginal facilities. Recent passage of the Renewable Portfolio Standard in 2007 may
help some sub-sectors of the forest products industry in New Hampshire (those who invest in
producing electricity with wood) but hurt others through increased electricity prices.
While clearly some of these infrastructure issues are regional if not national in scale, others are at
state scale. Road infrastructure, rail and other issues such as increasing truck weight allowances on
state roads are all areas where state government could become involved and benefit the industry.
6.1.6 Innovation – The investment examples listed above describe serious innovations in the
forest products sector in New Hampshire. Other examples exist as well. Innovation is derived from
a societal climate that encourages entrepreneurs to take risks, obtain investment and have successes
as well as likely failures. A state government such as New Hampshire’s, which is very careful about
making changes that might negatively affect business, is an important foundation to the necessary
societal license to innovate.
Other ways to accomplish this are to cultivate and encourage entrepreneurs at levels not seen. This
may mean changes to infrastructure to encourage entrepreneurial activity by the non-profit sector,
provision of start-up funds by the government sector, investment tax credits, research and
development tax credits or funding, or other similar programs.
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Innovation in this industry is occurring, as evidenced by the recent investments made, but more
might occur with the creation of an organization focused on entrepreneurship or additional effort by
the government to provide a better climate for innovation.
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6.2
New York
A Quick Overview of the Forest Products Industry
The forest products industry has long been an anchor of upstate New York’s rural economy.
Currently forest products manufacturing is worth over $6.9 billion in shipments, roughly 4.5% of
the state’s total manufacturing sales. Nearly 57,000 individuals are employed in the industry
(including the loggers, truckers and foresters who move timber to market where manufacturing can
occur). The annual payroll for these individuals is over $2.1 billion.
Forest landowners receive roughly $300 million per year in stumpage.
New York has three stand-alone biomass electricity plants, and a number of proposed facilities in
early development. At the cutting edge of biomass energy development, The State of New York has
also provided $20 million in funding to two cellulosic ethanol projects.
The forest products manufacturing sector includes sawmills that collectively process approximately
438 million board feet of hardwood sawlogs71 and 120 million board feet of softwood sawlogs
annually into lumber. The value added from the point at which the sawmill saws the logs to wood
preservation, millwork, wood container and pallet manufacturing and pre-fabricated wood buildings
is nearly $700 million annually, and the value of product shipments is $1.6 billion. This sector
employs over 10,000 individuals.
New York’s two pulp mills, combined with a number of stand-alone paper mills and other paper
processing facilities, add over $2.34 billion in value from the time they receive wood to the time they
ship products. The entire value of shipments from New York’s paper industry is $4.9 billion. Much
of this activity occurs at facilities that may not be directly connected to the state’s pulp mills.
The secondary wood manufacturing sector is significant in New York, and employs nearly 24,000
people. Products such as furniture and modular homes are manufactured by this sector. It has a
payroll of nearly $900 million annually, the total value added for furniture & related products is
approximately $1.76 billion, and the value of shipments is $300 billion.
There are approximately 5,900 individuals employed in the primary forestry and logging fields.
Payroll in these sectors tops $110 million per year.
6.2.1 Leadership – The Empire State Forest Products Association (ESFPA) is the membership
organization and trade association for the forest products industry and large landowners in New
York. ESFPA has landowners, foresters, loggers and wood-using industries in its membership. The
organization works on industry promotion and collaboration, and has a significant policy presence in
the state.
The New York Forest Owner’s Association (NYFOA) is a membership organization of family
forest landowners who share information, promote outreach activities, and work to promote policy
71
A board foot is a 1 foot by 1 foot by 1 inch (thick) piece of wood.
89 Status of Northern Forest Region States’ Forestry and Forest Products Industry
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that supports private land ownership. A number of organizations that work with forest landowners
and the forest industry in geographically distinct regions also exist to address specific local issues and
challenges. One example of this is the Watershed Agricultural Council, which works on land use
issues in the watershed that serves as water supply to New York City.
6.2.2 Policy – New York is positioning itself as a leader in the development of cellulosic ethanol
from wood. The state has made concerted efforts to develop both the intellectual and physical
infrastructure necessary to support cellulosic ethanol. The SUNY College of Environmental Science
& Forestry at Syracuse is a recognized leader in the development of cellulosic ethanol processes, and
has a history of working collaboratively with industry to move ideas from the bench scale toward
commercialization.
In 2006 the NY Department of Agriculture and Markets, in collaboration with the NY State Energy
Research & Development Authority, announced up to $25 million in funding for two pilot scale
cellulosic ethanol facilities. These facilities, developed by Lyonsdale Biomass and Mascoma, are
major steps in moving wood to liquid fuel toward commercialization.
New York has also adopted a Renewable Portfolio Standard, and as part of this policy initiative has
developed criteria for eligible biomass. The structure of New York’s RPS, which includes renewable
energy certificates committed for multi-year periods of time, has provided important financial
support to existing biomass energy facilities, but has proven difficult for new biomass developers.
This is because biomass is typically procured on a spot-market basis, and committing to an REC
price without knowing a fuel price is challenging.
6.2.3 Investment –
Figure 6.2 New York Capital Investment in Forest Products Industry
Source: US Census Annual Survey of Manufactures 2006 (Published 2007)
Note: 321 et al refers to North American Industry Classification System (NAICS)
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On a business-to-business level, examples of substantial investment are a testament to the desire by
this sector to remain a strong component of the rural New York economy. Examples include:
•
•
•
•
•
•
$15 million in new investment at International Paper’s mill in Ticonderoga has been used to
add processing and converting operations, providing additional value-added opportunity
after the rolls of paper are produced;
Niagara Biomass, a 50 MW power plant recently purchased and converted from coal to
biomass by U.S. Renewables Group, represents a significant new market for low-grade wood
in Western New York;
In Glens Falls, Royal Wood Shavings is constructing a facility that will make both pulp
quality chips and shavings for agricultural bedding. This facility may also serve as a supplier
to community scale biomass energy facilities, and help move that market forward;
HDK Wood Products opened a new pine mill in Harrisville;
Two new wood pellet firms have been constructed – Schuyler Wood Pellets (part of New
England Wood Pellets) and a facility at Two Rivers Timber’s sawmill in Addison;
A number of sawmills have made and continue to make investments in efficiency,
productivity and value added processing.
6.2.5 Infrastructure – From the time a tree is cut to the time it is shipped as intermediary or final
product to customers, the forest products industry relies heavily on transportation and energy.
Without adequate roads and affordable energy, the sector could not survive.
New York has a road network that consists of federal, state, and local roads. Local and state roads
vary in quality, but are generally sufficient. As in other parts of Northern New England, the road
systems are better in the North-South direction than East-West. New York has an interstate
highway system that allows the efficient movement of products to market.
New York has the most robust rail infrastructure in the four Northern Forest states. With strong
connections to the south and west, this rail network provides many options for moving product to
market. It is possible that wood-using industries which do not currently use rail will re-evaluate this
option as diesel prices climb (rail uses less fuel per ton-mile travelled, but often incurs additional
handling cost for getting a product from the rail to a final destination).
Energy is a significant input into every sub-sector of this industry, from logging equipment to
trucking with diesel to manufacturing with electricity and process steam and heat. No recent efforts
in the government sector (including deregulation of the industry) have brought down the cost of
electricity. Recently escalating gasoline and diesel fuel prices, though not controllable on the state
scale, are putting pressure on certain sub-sectors of the forest products industry that will likely result
in temporary or permanent shut-downs at marginal facilities.
6.2.6 Innovation – The investment examples listed above describe ongoing innovation in the
forest products sector in New York. Other examples exist as well. Innovation is derived from a
societal climate that encourages entrepreneurs to take risks, obtain investment and have successes as
well as likely failures. New York has encouraged innovation through the funding of the emerging
cellulosic ethanol industry and has shown a willingness and interest in developing the necessary
infrastructure to support this industry.
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Recently the Empire State Forest Products Association, with funding from the USDA Forest
Service – Wood Education & Resource Center and the New York State Energy Research &
Development Authority, led an effort to evaluate business structures and models that can meet the
supply and economic needs of biomass suppliers and developers. This project evaluated a number
of innovative solutions to help biomass projects move forward, and has led to increased interest in
direct dialogue between all parties that want to see biomass energy projects move forward.
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6.3
Maine
A Quick Overview of the Forest Products Industry
Maine’s forest products industry, long the largest and most diverse forest industry in the region, has
faced significant challenges in the past decade and adapted to meet new economic conditions.
Currently forest products manufacturing is worth over $5.3 billion in shipments, or 36% of the
state’s total manufacturing sales. Nearly 20,000 individuals are employed in the industry (including
the loggers, truckers and foresters who move timber to market). The annual payroll for these
individuals is over $750 million.
Forest landowners receive roughly $180 million per year in stumpage.
The wood energy sector provides approximately 20% of electricity used in Maine, as well as a
significant amount of thermal energy for industrial processes. Eleven stand-alone biomass electricity
facilities exist in the state, as well as ten biomass facilities integrated with manufacturing facilities. In
addition, three wood pellet facilities are now located in the state, and a large number of additional
pellet manufacturing facilities are in various stages of development. At the cutting edge of biomass
energy development, Red Shield Environmental, in partnership with the University of Maine, has
recently received a $30 million grant from the U.S. Department of Energy to pilot an ethanol
production technology that utilizes wood feedstock prior to pulping.
The forest products manufacturing sector includes over one hundred large sawmills that process
approximately 200 million board feet of hardwood sawlogs72 and 728 million board feet of softwood
sawlogs annually into lumber. The value added from the point at which the sawmill saws the logs to
wood preservation, millwork, wood container and pallet manufacturing and pre-fabricated wood
buildings is approximately $550 million annually, and the value of product shipments $ 1.3 billion.
This sector employs over 5,400 individuals.
The paper sector employs over 8,000 people and processes 3.4 million cords of wood annually.
Maine has nine operating mills, producing a wide range of pulp and paper products. This sector
adds over $1.8 billion in value from the time it receives the wood to the time it ships a product. The
entire value of shipments from Maine’s pulp and paper industry is $3.8 billion. The significant
presence of the pulp and paper industry in Maine sets its forest industry apart from the other
Northern Forest states.
The secondary wood manufacturing sector employs approximately 1,800 and produces golf tees,
wood turnings, furniture, and many other products. This sector has a payroll of $61 million
annually. The total value added for furniture & related products is approximately $112 million and
the value of shipments is $213 million.
There are approximately 2,600 individuals employed in the primary forestry and logging fields.
Payroll in these sectors tops $83 million per year.
72
A board foot is a 1 foot by 1 foot by 1 inch (thick) piece of wood.
93 Status of Northern Forest Region States’ Forestry and Forest Products Industry
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6.3.1 Leadership – Maine has a diverse forest products industry, and a number of organizations to
meet its needs. At the state level, the Maine Forest Service serves as the primary point of contact for
the forest products industry within the state government. The Maine Forest Service recently
commissioned a comprehensive analysis of the state’s forest products industry – the Maine Future
Forest Economy Report. This effort, released in 2005, serves as a blueprint for state and industry
cooperation to support and enhance the state’s forest industry.
In parallel with this effort, Governor John Baldacci appointed a Governor’s Task Force on the
Sustainability of the Forest Products Industry. The information and action steps developed during these
efforts have served to help move the state’s forest industry forward. Recently, Governor Baldacci
appointed a Governor’s Task Force on Wood Energy, which was established to:
“Identify, evaluate and promote the economically advantageous use and development of
sustainable alternative energy resources and technologies for buildings by capitalizing on the
abundance of Maine's forest resources. The Task Force will evaluate the economic,
environmental and public health impacts of forest-based energy alternatives and will provide
recommendations to reduce energy costs, reduce reliance on foreign oil, develop and
preserve new and existing markets and ensure the responsible stewardship of Maine's forest
resources.”
Maine has a number of trade associations and other non-governmental organizations that serve the
forest products industry. Most of the large landowners and solid wood industries belong to the
Maine Forest Products Council (MFPC), which serves as a leading voice for the forest products
industry on a wide range of issues. The Maine Pulp & Paper Association (MPPA) represents all of
the state’s pulp and paper mills, and tends to focus its efforts on issues of direct relevance to the
operation of a manufacturing facility in Maine. Both the MFPC and MPPA are involved in
significant public policy efforts, and work with a variety of levels of government to support their
members’ interests.
The Maine Wood Products Association (MWPA) works with companies that produce wood
products such as furniture, wood turnings, and structural items. The MWPA focuses on marketing
and information sharing, and serves its members through newsletters and events. The Small
Woodland Owners Association of Maine (SWOAM) is a membership organization that supports
non-industrial private landowners, typically family owners. SWOAM and its regional chapters serve
as a way for landowners to band together to address challenges, identify opportunities, and speak
with a collective voice. The state’s logging workforce is served through the Professional Logging
Contractors of Maine.
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6.3.2 Policy – Public policy has often been divisive within and outside the forest products industry
in Maine. In the late 1990s, a number of referenda on forest practices caused significant public
debate on forestry and the forest products industry. While the forest industry position prevailed,
these highly public and highly controversial efforts diverted industry staff and resources away from
the management and development of core business, and potentially discouraged investment in
manufacturing facilities. On the positive side, these dialogues did lead – indirectly – to an effort led
by the state to promote third-party certification of public and private lands. This effort, in part
driven by market demands for certified paper products, has positioned Maine as a leader in third
party certification of forestland.
Maine has taken a series of steps to implement the recommendations of the Maine Future Forest
Economy Project. For example, the state has taken steps to provide tax stability for investments in new
manufacturing equipment, providing businesses with incentive to invest in new equipment and
enterprises. A number of organizations, including the University of Maine, SWOAM, the Maine
Tree Foundation and the Maine Forest Service have collaborated to provide fact-based information
on the state of the forest products industry and the issues that it faces. The state has also recently
enhanced its Renewable Portfolio Standard to encourage development of new renewable energy
facilities, including biomass facilities.
6.3.3 Investment –
Figure 6.3 Maine Capital Investment in the Forest Products Industry
Source: US Census Annual Survey of Manufactures 2006 (Published 2007)
Note: 321 et al refers to North American Industry Classification System (NAICS)
On a business-to-business level, examples of substantial investment are a testament to the desire by
this sector to remain a strong component of the Maine economy. Examples include:
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-
-
-
Louisiana Pacific invested $100 million in an engineered wood facility in New Limerick,
updating this facility to produce a new line of Oriented Strand Lumber;
A number of existing wood-fired power plants in the state have made significant
investments in emissions control technologies in order to qualify for and participate in the
Renewable Energy Certificate markets developed in other New England states. For
example, Greenvillle Steam changed their boiler configuration in order to qualify for the
Massachusetts RPS, and Boralex made significant investments at their Stratton and
Livermore Falls plants in order to qualify for the Connecticut RPS;
In 2004, a new ownership group purchased Pleasant River Lumber in Dover-Foxcroft and
made significant investment in both capacity and efficiency. This mill, which produces
dimensional lumber, is an economic engine in that region;
An investor group, Red Shield Environmental, has purchased the pulp mill in Old Town and
is operating both the pulping operations and an on-site biomass boiler. The facility is
collaborating with the nearby University of Maine to pilot a novel way of incorporating
cellulosic ethanol into the pulping operation, and this effort recently attracted $30 million in
funding from the U.S. Department of Energy, matched by private sector investment;
Pride Manufacturing in Burnham is a world leader in the design and production of golf tees.
This company has taken its significant expertise in this field and made investments in other
parts of the golf business, providing a unique product integration;
Correct Building Products in Biddeford produced extruded decking products derived from a
combination of plastics and sawdust. Founded in 1999, this company is an example of ways
that entrepreneurs are developing new market niches and business models.
6.3.4 Knowledge Development and Dissemination – In addition to work conducted by trade
associations, Maine is fortunate to have two world-class centers for forest products. Both housed at
the University of Maine in Orono, the Advanced Engineered Wood Composite (AEWC) Center and
the Pulp & Paper Process Development Center serve as leaders in the development of new methods
and products for forest products manufacturers. The AEWC has developed expertise in engineered
wood products that use Maine resources to create new forest products. Examples include blastresistant panels for use in military tents, extruded products such as decking, and OSB panels that can
withstand hurricane-force winds. The Process Development Center, which houses a pilot paper
machine, is able to work with industries to identify new products, efficiencies and technologies.
The Process Development Center has a long-standing relationship with the forest products industry,
supported through the Maine Pulp & Paper Foundation. The AEWC has worked with a number of
Maine businesses, and has also created products commercialized by Maine businesses. AEWC is
working to strengthen its ongoing relationship with the state’s forest products industry.
6.3.5 Infrastructure – From the time a tree is cut to the time it is shipped as intermediary or final
product to customers, the forest products industry relies heavily on transportation and energy.
Without adequate roads and affordable energy, the sector could not survive.
Maine has a road network that consists of federal, state, local and private roads. The private road
network, throughout the unorganized territories, is unique in the nation in providing a multi-owner
system of high quality roads dedicated to the transport of forest products. Some of these roads lead
directly to forest product industries, allowing for the transport of wood to a mill without ever using
a public road. Local and state roads vary in quality, but are generally sufficient. As in other parts of
Northern New England, the road systems are better in the North-South direction than East-West.
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On the interstate highway, loads are restricted to 80,000 pounds north of Augusta. While trucks can
travel at weights up to 100,000 pounds on the interstate south of Augusta, and on state roads, this
significant restriction limits the ability of Maine forest industries to efficiently move raw materials
and feedstocks into and out of mills.
Maine has a number of rail systems, running from the New Hampshire border to New Brunswick
and Quebec. The efficiency of these systems varies by carrier, but some Maine industries have
successfully used rail to bring in raw materials or ship out finished product. As diesel prices escalate,
the attractiveness of rail increases, assuming that Maine industries can get the level of service they
require from rail carriers.
Energy is a significant input into every sub-sector of this industry, from logging equipment to
trucking with diesel to manufacturing with electricity and process steam and heat. Maine currently
has of the highest electricity prices for industrial users in the contiguous United States. No recent
efforts in the government sector (including deregulation of the industry) have brought down the
cost of electricity. Recently escalating gasoline and diesel fuel prices, though not controllable on the
state scale, are putting pressure on the forest products industry that will likely result in temporary or
permanent shut-downs at marginal facilities.
6.3.6 Innovation – The investment examples listed above describe innovation going on in the
forest products sector in Maine. Other examples exist as well. Innovation is derived from a societal
climate that encourages entrepreneurs to take risks, obtain investment and have successes and
failures. Maine views itself as a state that encourages innovation, and has devoted significant public
funding, - through the Maine Technology Institute – to supporting the development of new
technologies in a number of sectors, including the forest products industry.
The University of Maine is also a national leader in the development of forest-based bio-products,
and is working with industry to develop cellulosic ethanol technologies. With multiple rounds of
federal funding, the University is establishing itself as a leading research institute in this sector.
Maine is also focusing on ways that wood can be used to meet the thermal energy needs of
residential, commercial and institutional sites, and may position itself as a leader in this emerging
industry.
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6.4 Vermont
A Quick Overview of the Forest Products Industry
Vermont has always had a forest products industry heavily based on hardwood sawmills, as the
forests of Vermont are dominated by hardwood species. Vermont has not had a pulp and paper
industry, instead relying on the markets provided west in New York and east in New Hampshire for
pulp. In the 1980s, two wood-fired energy plants were built, one just south of Burlington (the
McNeil Generating Station) and the other in Ryegate (Ryegate Power Station). These facilities have
provided a low-grade wood market in addition to those found in surrounding states.
Forest products manufacturing in Vermont is worth over $1 billion in shipments, or 9.3% of the
state’s total manufacturing sales. Approximately 6,400 individuals are employed in the industry
(including the loggers, truckers and foresters who move timber to market). The annual payroll for
these individuals is over $207 million. Vermont experienced a loss of low-grade timber markets
when the 2 pulp mills in New Hampshire closed in 2005-06, since these markets are relatively close
to Vermont forests -- especially those in the Northeast Kingdom counties. In recent years, outside
of a few small sawmill closings and start-ups and expansion of other mills, the market for wood
products in Vermont has not changed drastically. Vermont leads the way with small users of wood
chips in schools and other institutions, and more are coming on line all the time, but collectively,
these markets for low-grade wood are tiny compared to the wood energy plants at Ryegate and
Burlington.
Forest landowners receive over $31 million per year in stumpage.
The wood energy sector provides approximately 6% of electricity use in Vermont. The two wood
energy plants in Vermont use up to 700,000 tons of wood per year combined.
The forest products manufacturing sector includes approximately thirty-five large sawmills that
process approximately 115 million board feet of hardwood sawlogs73 and 69 million board feet of
softwood sawlogs into lumber annually. The value added from the point at which the sawmill saws
the logs to wood preservation, millwork, wood container and pallet manufacturing and prefabricated wood buildings is approximately $211 million annually, and the value of product
shipments is $423 million. This sector employs over 3,100 individuals.
The paper sector employs approximately 1,400 people and obtains its raw material from pulp mills
outside of Vermont. This sector supplies annual paper shipments valued at over $300 million.
The secondary wood manufacturing sector employs approximately 2,400 individuals and produces
cabinets, moulding, clapboards, furniture, canoe and kayak paddles and many other products. This
sector has a payroll of $79 million annually. The total value added for furniture & related products is
approximately $153 million and the value of shipments is $273 million.
There are approximately 900 people employed in the primary forestry and logging fields. Payroll in
these sectors tops $30 million per year.
73
A board foot is a 1 foot by 1 foot by 1 inch (thick) piece of wood.
98 Status of Northern Forest Region States’ Forestry and Forest Products Industry
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6.4.1 Leadership – Vermont has had uneven leadership in the forest products sector through
government, non-profit and business communities. Under the current administration of Governor
James Douglas, the strongest support for the forest products sector from government in many years
has been realized. In 2001-2002, leading to a 2003 report from the Vermont Forest Products
Council74, a series of recommendations to strengthen the value-added wood using industries of
Vermont was issued. In the recommendations, four major areas were stressed:
-
Marketing: A “Vermont Brand” for value-added wood products should be built and
marketed.
Economic Development: The forest products economy needs increased state agency
support, working capital, technical assistance, and improvements to the Workers’
Compensation system.
Education and Training: Educational opportunities needed by the industry range from
employee leadership skills to education in public schools about Vermont’s natural resources
economy.
Wood Resources: to ensure a viable wood supply to businesses in the state, market linkages
should be established, wood utilization for energy and timber stand improvement
encouraged, and education of private landowners by county foresters supported.
Considerable work has been done since on the branding concept, though less has been done on the
other issues. In 2002 Jonathan Wood was appointed Commissioner of Forests, Parks and
Recreation. Mr. Wood was the forester for Bell-Gates Lumber prior to the Commissioner position.
He is one of the few appointees in Vermont in recent years to a position of state government at this
high level with a forest product business background – demonstrating further the Douglas
administration’s support for the forest products industry.
The non-profit sector in Vermont is fractured relative to support and leadership for the forest
products industry. Five different organizations purport to represent the industry. These
organizations include:
- Associated Industries of Vermont – the state’s premier business association with strong
lobbying credentials and respected in various circles. A special forest industry committee has
functioned for years -- primarily to represent the industry before the legislature but for other
purposes as well.
- Vermont Logger's Association – small organization focused on loggers’ issues and training.
Currently this organization is struggling under pure voluntary leadership.
- Vermont Forest Products Association – a small organization comprised mostly of
businesses that manufacture logs into products.
- Vermont Wood Manufacturer's Association – a small association representing the
Formed to provide recommendations to the Douglas Administration and the legislature by the Working Landscape
Committee of the Vermont Council on Rural Development.
99 Status of Northern Forest Region States’ Forestry and Forest Products Industry May 31, 2008
74
secondary wood manufacturing businesses such as wood furniture makers, wood turners and
the like.
- Vermont Woodlands Association – a small association representing the small family forest
owner.
In a state as small as Vermont (the forest products industry is somewhat smaller than New
Hampshire’s and the smallest of the four northern forest states) it is very difficult for the forest
products industry to support an association that covers all of the entities addressed by the five
organizations listed above. As a result, with these businesses and individuals supporting five
separate organizations, the ability of any one of the organizations to have sufficient capacity to
properly provide leadership for the forest products industry is limited. This is a problem for the
industry in Vermont. All the other Northern Forest states (include New Hampshire, whose industry
is only slightly larger than Vermont’s) have fully integrated forest products industry associations that
provide substantial leadership, representation and service. Vermont’s industry would be in a better
leadership position if it, too, had a fully integrated association.
6.4.2 Policy – Several recent efforts by the Douglas Administration that support the forest products
economy in Vermont are worth mentioning. First, as part of a larger economic stimulus package,
more timber sales on state lands are being offered – providing more quality wood opportunities for
Vermont mills (although the sales cannot be limited to Vermont-only firms due to federal law
prohibiting restraint of trade over state lines). Other efforts include several passed by the legislature
this year, including one to look at the certification of state lands under FSC and SFI, another to
include a look at workers’ compensation insurance, and a third to examine the creation of a forest
viability program.
Vermont also strives to keep its current use program an integral component of forest land
ownership. The funding of the Vermont Housing and Conservation Board, where state funding of
land conservation is derived, continues to be successful, working closely with a very strong land
conservation community in the private sector.
6.4.3 Investment – As described elsewhere in this paper, capital and other investment in the forest
product sector has been key to maintaining the strong businesses in the Northern Forest states.
Investment from the public sector is described mostly in the policy and leadership sections above.
Private sector investment has been on-going in the state’s forest products sector.
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Figure 6.4 Vermont Capital Investment in the Forest Products Industry
Source: US Census Annual Survey of Manufactures 2006 (Published 2007)
Note: 321 et al refers to North American Industry Classification System (NAICS)
On a business-to-business level, examples of substantial investment are a testament to the desire by
this sector to remain a strong component of the Vermont economy. Examples include:
-
-
-
Cersosimo Lumber, a large sawmill operation with main manufacturing facilities in
Brattleboro and another site in New Hampshire, recently invested in a whole new division to
market its hardwood and white pine products to overseas markets.
Allard Lumber – In Brattleboro, this hardwood sawmill has invested in capital
improvements in 2006-07 that are proving worthwhile to stability and growth. The have
developed a modern re-saw mill, with the most efficient equipment available with a narrowkerf double-cut band saw to get more boards from a log. The dry kilns, holding 225,000
board feet, use Chiptec wood gasifiers, which recycle mill wastes to create an exceptionally
clean energy.
Columbia Forest Products, Newport – though not exclusively for the New Port Vermont
facility since Columbia Forest Products has plywood manufacturing facilities throughout
North America, the company’s new PureBond® product – plywood using nonformaldehyde adhesives (soy-based) – has taken off in the marketplace, especially for
institutional buyers, due to concerns about air contamination with the formaldehyde
adhesive. The Vermont (and Maine) plants for Columbia will benefit in the marketplace.
Columbia invested in research for this new adhesive technology through the University of
Oregon.
Ethan Allen, Beecher Falls – As a large furniture manufacturer, Ethan Allen (the Beecher
Falls facility is part of many manufacturing facilities for this large company) has had to deal
with the challenges of global competition and cheap Asian imports for many years now. In
an effort to reduce energy costs, which tend to amount to a significant portion of input costs
at a sawmill and furniture manufacturing facility such as the plant in Vermont, a wood-fired
power plant was installed in 2006 and became operational in 2007. The plant, using wood
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Status of Northern Forest Region States’ Forestry and Forest Products Industry
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chips from local suppliers, provides steam and electricity generation at the site in an effort to
reduce energy costs.
6.4.4 Knowledge Development and Dissemination – As with the other states, there is no
concerted effort as an industry to supply technology transfer and knowledge dissemination.
Nevertheless, there is much going on in that regard. First, strong relationships exist between
manufacturers of technology and the industry. New advances are often tested by manufacturers in
real world situations in mills and other facilities, and those technologies and improvements are
added if they prove advantageous.
The State of Vermont employs two part-time forest marketing and utilization specialists, whose jobs
are focused on assisting the forest products industry through knowledge transfer, technology, and
marketing assistance. These individuals generally have a strong relationship with members of the
forest products industry, and positive outcomes range from a new contact for a piece of hardware to
suggestions on markets and personnel.
Training programs for loggers occur primarily through the LEAP program (Logger Education to
Advance Professionalism) which has trained hundreds in its comprehensive regime over the last
decade.
As with the other states, more could be done in this area through the existing industry associations
or another association geared specifically to technology transfer, knowledge dissemination and
marketing of products.
6.4.5 Infrastructure – From the time a tree is cut to the time it is shipped as intermediary or final
product to customers, the forest products industry relies heavily on transportation and energy.
Without adequate roads and affordable energy, the sector could not survive.
As with New Hampshire, Vermont’s road system is adequate for the industry’s needs. However, the
east-west routes are areas for improvement. This issue particularly affects the forest products sector
because of the need to truck a low value/high weight product from forest to mill and from mill to
market. Any improvements that shorten routes or save time save money on the product. This is
particularly important given the recent increase in diesel fuel costs.
Rail is the most efficient method known to move high weight/low value items such as those in the
forest products industry. The rail system in Vermont is poor, and improving the routes or
developing new routes would require huge investments from unknown sources. A first step would
be to partner with other industries showing interest in rail use and study the existing rail
infrastructure to determine if the system could be improved, and who would pay for it.
Energy costs are high in Vermont, as in the other Northern Forest states. Incentives for power
generation on a small scale could help as would an effective Renewable Portfolio Standard (RPS) –
Vermont’s current RPS does not provide the kind of incentives included in the southern New
England RPS statutes (or the NH one that is modeled in part after the southern New England laws).
Issues such as road infrastructure, rail, and increasing truck weight allowances on state roads are all
areas where state government could become involved that could benefit the industry.
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6.4.6 Innovation – The investment examples listed above provide a range of ideas for others to
ponder (and there are many more than have been listed here). Ultimately, innovation is about new
ideas, trial and error and risk taking. Another way to accomplish this is to cultivate and encourage
entrepreneurs at levels not seen. This may mean the non-profit sector could create or change
existing infrastructure to encourage this kind of activity, the government sector to provide start up
funds, investment tax credits, research and development tax credits or funding or other similar
programs in order to encourage entrepreneurial activity.
Innovation in this industry is occurring as evidenced by the recent investments made, but more
might occur with an organization focused on entrepreneurship in this sector and the government
really making additional efforts in that area to provide an even better climate for innovation.
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7. Best Practices in the Forest Products Industry Within and Outside the Northern Forest Region Based on Six Characteristics
The following are examples of best practices or innovative approaches within the forest products industry that may provide ideas and cause for others to
innovate.
Maine
Red Shield - Old Town
Leadership: e.g. provision of effective
leadership within and for the industry on the
local, regional, and/or state level for this
industry area; effective advocacy for
constituents
Description
State of Maine from Governor Baldacci down was integrally involved in the early stages to get this project off the
ground. State support has continued.
Policy: e.g. developing and/or advancing
policies to support and grow the sector and
support constituents
Investment: e.g. providing or attracting
investment in the sector from multiple
stakeholders (private and public)
The Red Shield/University of Maine partnership just received a $30 million grant from the U.S. Dept of Energy. In Feb 2008 the
company had received a $ 500,000.00 grant from the Maine Technology Institute. The total investment by Red Shield is expected to
be $100 million.
Knowledge Development and
Dissemination: e.g. an effort to understand
macro and micro trends impacting the
sector and/or effective dissemination to
constituents
Infrastructure: e.g. provision of a support
system to foster creativity and innovation in
the sector; new physical infrastructure to
provide opportunities for constituents
Innovation: e.g. new business practices;
R&D
Development of a state-of-the-art Energy Park on the former Georgia Pacific pulp mill site: will include Pilot plant for ethanol
production utilizing van Heiningen process to cook hardwood to yield an extract of complex sugars for fermentation into ethanol.
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Project Descriptors
Name of entity, address, website link (if
available) and principal contact and contact
information.
Red Shield Environmental LLC, 24 Portland Street, Old Town, ME 04468-2024
phone: 207-827-7711
Contact: Edward Paslawski, CEO
Mission/goal statement or guiding principles
(if available)
Industry area and target clientele (incl. fee
range)
Scale and profile of business (amenities,
age, number of products or services
available)and future areas of growth
Red Shield Environmental started in 2006 and purchased the pulp mill from Georgia Pacific. They are in the process of developing
a comprehensive Energy Park which will include the development of a cellulosic biorefinery . This will be the first plant of its kind to
manufacture biofuels from cellulose.
Forest Certification Initiative
Description
Leadership: e.g. provision of effective leadership within
and for the industry on the local, regional, and/or state
level for this industry area; effective advocacy for
constituents
The State of Maine is committed to being a leader in the certification of forest lands, both nationally and internationally.
At present, Maine is second in the nation with 7.2 million acres of certified land. The State is currently working to attain
50% certification of the state's forest land.
Policy: e.g. developing and/or advancing policies to
support and grow the sector and support constituents
Maine Certification Leadership Team (CLT) formed in 2005 following the Governor's Initiative in 2003 to implement the
recommendations in the Final Report of the Maine Forest Certification Advisory Committee (Jan 2005).
Investment: e.g. providing or attracting investment in the
sector from multiple stakeholders (private and public)
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Status of Northern Forest Region States’ Forestry and Forest Products Industry
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Knowledge Development and Dissemination: e.g. an
effort to understand macro and micro trends impacting
the sector and/or effective dissemination to constituents
The first recommendation of the Advisory Committee was to "Create a Maine Forest Certification Information System" the MFS is currently developing strategies to simply certification and to make it less costly. The MFS has also developed
a brochure, targeted to landowners, which describes certification, the realities of the marketplace for certified land, and
current certification systems available.
Infrastructure: e.g. provision of a support system to
foster creativity and innovation in the sector; new physical
infrastructure to provide opportunities for constituents
Innovation: e.g. new business practices; R&D
Project Descriptors
Name of entity, address, website link (if available) and
principal contact and contact information.
The Maine Forest Service Certification Initiative, Department of Conservation, Maine Forest Service, 22 State House Station, Augusta,
ME 04333-0022
phone: 207-287-2791 fax: 207-287-8422 website: www.forestcertification.maine.gov email: forestcertification@maine.gov
Contact: Donald Mansius, Director, Forest Policy and Management 207-287-4906
Mission/goal statement or guiding principles (if available)
To help grow Maine's forest industry by distinguishing Maine products in the marketplace while improving forest
management on the ground.
Industry area and target clientele (incl. fee range)
Scale and profile of business (amenities, age, number of
products or services available)and future areas of growth
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July 2003 state-wide program launched by Gov. Baldacci. Maine Forest Service began implementation of
recommendations in January 2005.
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Pride/Softspikes
Description
Leadership: e.g. provision of effective
leadership within and for the industry
on the local, regional, and/or state
level for this industry area; effective
advocacy for constituents
Policy: e.g. developing and/or
advancing policies to support and
grow the sector and support
constituents
Investment: e.g. providing or
attracting investment in the sector
from multiple stakeholders (private
and public)
This merger/acquisition required private investment on the part of Pride Manufacturing.
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities
for constituents
Innovation: e.g. new business
practices; R&D
Merger of world's leading golf tee manufacturer with world's leading golf cleat producer into one company. Turned a wood turning
company that made golfing products into a golf products company that made wood-turned golf products. This transformation saved the
wood-turning part of the company.
Project Descriptors
Name of entity, address, website link
(if available) and principal contact and
contact information.
Pride/Softspikes, 10 Maine Street, Burnham, ME 04922
Contact: Bob Burr, CEO and President - 800-638-0075
Mission/goal statement or guiding
principles (if available)
To offer the ultimate one stop shopping for golf accessory products.
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Industry area and target clientele (incl.
fee range)
Global
Scale and profile of business
(amenities, age, number of products
or services available)and future areas
of growth
LP in Houlton
Description
Leadership: e.g. provision of effective leadership within and for the
industry on the local, regional, and/or state level for this industry
area; effective advocacy for constituents
Louisiana Pacific received the Maine Investor Award for growth of their company and contributions to state
economy from the State Chamber of Commerce in Oct 2007
Policy: e.g. developing and/or advancing policies to support and
grow the sector and support constituents
Investment: e.g. providing or attracting investment in the sector
from multiple stakeholders (private and public)
Louisiana Pacific invested $ 100 million to convert Houlton plant from oriented strand board production to
oriented strand lumber.
Knowledge Development and Dissemination: e.g. an effort to
understand macro and micro trends impacting the sector and/or
effective dissemination to constituents
Infrastructure: e.g. provision of a support system to foster creativity
and innovation in the sector; new physical infrastructure to provide
opportunities for constituents
Renovated manufacturing facility will produce oriented strand lumber, one of a handful in North America.
Innovation: e.g. new business practices; R&D
Oriented strand lumber is a relatively new product, an engineered wood product used in various home
construction applications.
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Project Descriptors
Name of entity, address, website link (if available) and principal
contact and contact information.
Louisiana Pacific, Maine Station Road, New Limerick Maine 04761, (207) 532-7361
Mission/goal statement or guiding principles (if available)
Industry area and target clientele (incl. fee range)
Scale and profile of business (amenities, age, number of products or
services available)and future areas of growth
Robbins Lumber, Searsmont
Leadership: e.g. provision of effective leadership within
and for the industry on the local, regional, and/or state
level for this industry area; effective advocacy for
constituents
Description
Robbins Lumber has been in existence since 1881 in Searsmont Maine.
Policy: e.g. developing and/or advancing policies to
support and grow the sector and support constituents
Investment: e.g. providing or attracting investment in
the sector from multiple stakeholders (private and
public)
109
Good example of continuous investments in technology and innovations in both its mill and on its forest lands. In 1996
Robbins became fully compliant with ISO 9001 requirements for quality in manufacturing and in 2002 became SFI certified
for their forest lands and procurement system. In 2006-07 completed yet another upgrade in the mill with computer
optimizing equipment to maximize utilization and additional investment to increase production.
Status of Northern Forest Region States’ Forestry and Forest Products Industry
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Knowledge Development and Dissemination: e.g. an
effort to understand macro and micro trends impacting
the sector and/or effective dissemination to
constituents
Infrastructure: e.g. provision of a support system to
foster creativity and innovation in the sector; new
physical infrastructure to provide opportunities for
constituents
Robbins' facilities are continually upgraded to maintain their leadership position in using state-of-the-art sawing technology: Very
efficient sawmill using scanning technologies to get the most out of every log, lumber is graded to NeLMA standards and put into the
kiln the same day as sawing. Kilns maintain the highest level of drying technology and produce boards with consistent 10-12%
moisture content. The company manufactures its own knives to use in its moulders and planers. The 40 acre mill site is also support
by a 1.2 MW co-generation plant.
Innovation: e.g. new business practices; R&D
Innovations in labeling, packaging, inventory and shipping allow Robbins to maintain its strong market presence.
Name of entity, address, website link (if available) and
principal contact and contact information.
Robbins Lumber, P.O. Box 9, Searsmont, ME 04973
phone: 207-342-5221 fax: 207-342-5201 website: rlco.com
Contacts: Jim Robbins, President Bruce McLaughlin, VP Operations Manager
Mission/goal statement or guiding principles (if
available)
Robbins Lumber is a vertically integrated forest products firm producting Eastern white pine lumber and byproducts in its
mill, while at the same time caring for and growing forest products on superbly managed woodlands
Industry area and target clientele (incl. fee range)
International
Scale and profile of business (amenities, age, number
of products or services available)and future areas of
growth
In place since 1881, this family-owned white pine lumber mill produces 25 million board feet of lumber each year,
purchases logs from 150 independent loggers, and owns/manages 30,000 acres of land.
Project Descriptors
AWEC at UMO
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Leadership: e.g. provision of effective
leadership within and for the industry
on the local, regional, and/or state
level for this industry area; effective
advocacy for constituents
AEWC is a globally recognized leader is composites research and development.
Policy: e.g. developing and/or
advancing policies to support and
grow the sector and support
constituents
Investment: e.g. providing or
attracting investment in the sector
from multiple stakeholders (private
and public)
since 2001 has received over $17 million in research funding from govt agencies; has done R & D work for 150 private
companies, formed multiple partnerships for pilot projects
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
publication of 400 articles and reports, demonstration projects, host 1,000 visitors each year
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities
for constituents
AEWC has a 48,000 sq. ft. facility at the University of Maine which is a state-of-the-art shop for developing a composite product
or structure from the conceptual stage through research, manufacturing of prototypes, comprehensive testing and evaluation,
code approval and commercialization.
Innovation: e.g. new business
practices; R&D
AEWC conducts research leading to commercial development of the next generation of cost-effective, high-performance, wood-nonwood
composite materials. The center also house two pilot plants: a Wood Plastic Composites Pilot Plant and an OSB/OSL Pilot Plant. The center
has been awarded 8 patents to date.
Project Descriptors
Name of entity, address, website link
(if available) and principal contact and
contact information.
Advanced Engineered Wood Composite Center, University of Maine, 5793 AEWC Building, Orono ME 04469-5793
phone: 207-581-2123 fax: 207-581-2074 website: www.aewc.umaine.edu email: contactaewc@umit.maine.edu
Contacts: Dr. Habib J. Dagher, Director 207-581-2138 habib.dagher@umit.maine.edu
Mission/goal statement or guiding
principles (if available)
The AEWC is dedicated to research, education, and economic development focused on the material science and structural application of hybrid
composites. The Center's goals are 1. To develop the underlying science and engineering principles needed to produce low-cost, highperformance structural composites, 2. To support current and emerging industries that produce/use these products by providing testing,
engineering and consulting services, and 3. To actively pursue commercialization, entrepreneurship, and job creation in Maine and beyond.
Industry area and target clientele (incl.
fee range)
Clients include govt agencies and private firms.
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Status of Northern Forest Region States’ Forestry and Forest Products Industry
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Scale and profile of business
(amenities, age, number of products
or services available)and future areas
of growth
Correct Deck
Leadership: e.g. provision of effective
leadership within and for the industry
on the local, regional, and/or state
level for this industry area; effective
advocacy for constituents
Description
Correct Building Products considers itself a leader in conserving Natural Resources as a participant in State of Maine's
Governors Carbon Challenge, two time winner of the Governor's Waste Reduction Award, supporter of goals of USGBC and
LEED program, and member of multiple green organizations.
Policy: e.g. developing and/or
advancing policies to support and
grow the sector and support
constituents
Investment: e.g. providing or
attracting investment in the sector
from multiple stakeholders (private
and public)
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities
for constituents
Innovation: e.g. new business
practices; R&D
Development of ultra-low maintenance Correct Deck CX decking
Incorporation of recycled polypropylene in to CBP products
Tremendous growth in exports
Project Descriptors
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Name of entity, address, website link
(if available) and principal contact and
contact information.
Correct Building Products, 8 Morin Street, Biddeford, ME 04005
phone: 207-284-5600 fax: 207-284-1001 website: correctdeck.com
Mission/goal statement or guiding
principles (if available)
"Our passion for creating safe, superior, and sustainable products allows those who value their time, to build their dreams with
pride and confidence."
Industry area and target clientele (incl.
fee range)
Facilities in Maine, ship products around the globe.
Scale and profile of business
(amenities, age, number of products
or services available)and future areas
of growth
Founded in 1991, use 300 tons of sawdust per week to create composite decking materials made from 60% recycled sawdust
and 40% recycled polypropylene. Products include decking, railing systems, dimensional composite lumber, docks & marinas,
porch flooring and decking accessories
Greenville Steam
Description
Leadership: e.g. provision of effective
leadership within and for the industry
on the local, regional, and/or state
level for this industry area; effective
advocacy for constituents
Policy: e.g. developing and/or
advancing policies to support and
grow the sector and support
constituents
Investment: e.g. providing or
attracting investment in the sector
from multiple stakeholders (private
and public)
New Energy Capital makes strategic investments and acquisitions in 1. Renewable Energy Assets,and 2. Distributed Generating
Assets
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
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Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities
for constituents
Greenville Steam Company has a 16 MW wood-fired electricity generating plant which has been recently refurbished with
advanced fluidized bed combustion and control technology; the result of this investment in updated technology is reduced plant
emissions of nitrogen oxides and greenhouse gases by more than 40%. This upgrade qualifies the facility as a New Renewable
Generating Unit making it eligible to sell Renewable Energy Certificates.
Innovation: e.g. new business
practices; R&D
Project Descriptors
Name of entity, address, website link
(if available) and principal contact and
contact information.
Greenville Steam Company , P.O. Box 298, Greenville, ME 04441
phone: 207-695-2125 website: newenergycapital.com
Contact: Scott Hersey
Mission/goal statement or guiding
principles (if available)
Industry area and target clientele (incl.
fee range)
Scale and profile of business
(amenities, age, number of products
or services available)and future areas
of growth
Pine Tree Zone
Description
Leadership: e.g. provision of effective
leadership within and for the industry
on the local, regional, and/or state
level for this industry area; effective
advocacy for constituents
Policy: e.g. developing and/or
advancing policies to support and
grow the sector and support
constituents
State program in economic development to create 1. Quality jobs in 2. Targeted industries in 3. Targeted areas.
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Status of Northern Forest Region States’ Forestry and Forest Products Industry
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Investment: e.g. providing or
attracting investment in the sector
from multiple stakeholders (private
and public)
Pine Tree Development Zone program offers eligible businesses the chance to greatly reduce or virtually eliminate state taxes for up to ten
years. Goal is to create quality jobs in targeted industries in targeted geographic areas with high unemployment and low wages.
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities
for constituents
The Pine Tree Zones greatly support investments in the forest products industry; targeted industries include manufacturing,
composite materials technology, environmental technology, and advanced technology for forestry and agriculture.
Innovation: e.g. new business
practices; R&D
Project Descriptors
Name of entity, address, website link
(if available) and principal contact and
contact information.
Pine Tree Zones, Maine Office of Business Development, 59 State House Station, Augusta, ME 04333
phone: 207-624-9804 fax: 207-287-5701 website: www.mainebiz.org/pine_tree email: biz.growth@maine.gov
Contact for Pine Tree Zone: Judith Bielecki 207-624-7457
Mission/goal statement or guiding
principles (if available)
Pine Tree Development Zone program offers eligible businesses the chance to greatly reduce or virtually eliminate state taxes for
up to ten years. Goal is to create quality jobs in targeted industries in targeted geographic areas with high unemployment and
low wages.
Industry area and target clientele (incl.
fee range)
Eight designated zones in Maine: Aroostook County, Androscoggin Valley, Downeast, Kennebec Valley, Midcoast, Penobscot
Valley, PenQuis, and Southern Maine, plus acreage for Maine Indian Tribes.
Scale and profile of business
(amenities, age, number of products
or services available)and future areas
of growth
Established in 2004. Eligible areas encompass 30,000 acres within 100 communities. Almost 200 companies are certified to
date representing an investment of $ 17,500,00.00.
New Hampshire
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Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
New England Wood Pellet
Description
Leadership: e.g. provision of effective leadership
within and for the industry on the local, regional,
and/or state level for this industry area; effective
advocacy for constituents
Policy: e.g. developing and/or advancing policies
to support and grow the sector and support
constituents
Investment: e.g. providing or attracting
investment in the sector from multiple
stakeholders (private and public)
Recent reorganization of private company to include several new investors. Partnership to construct wood-fueled
direct-fired gas turbine cogeneration plant to provide power to the Jaffrey plant.
Knowledge Development and Dissemination:
e.g. an effort to understand macro and micro
trends impacting the sector and/or effective
dissemination to constituents
Infrastructure: e.g. provision of a support system
to foster creativity and innovation in the sector;
new physical infrastructure to provide
opportunities for constituents
The Jaffrey facility has undergone repeated upgrades in manufacturing processes many designed by the Owner and
widely accepted in the industry today.
Innovation: e.g. new business practices; R&D
New (second) facility in Schuyler New York producing 100,000 tons of wood pellets per year.
Name of entity, address, website link (if available)
and principal contact and contact information.
New England Wood Pellet, P.O. Box 532, Jaffrey NH 03452
phone:
website: www.pelletheat.com
Contact: Steve Walker 603-532-9400
Mission/goal statement or guiding principles (if
available)
New England Wood Pellet is expanding rapidly to meet growing demand and solidify its position as the largest, most
competitive, lowest cost producer of premium wood pellet fuel I the Northeast.
Project Descriptors
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Status of Northern Forest Region States’ Forestry and Forest Products Industry
email: info@pelletheat.com
May 31, 2008
Industry area and target clientele (incl. fee range)
Northeast U.S.
Scale and profile of business (amenities, age,
number of products or services available)and
future areas of growth
Private company started in 1992.
Middleton Building Supply
Description
Leadership: e.g. provision of effective leadership
within and for the industry on the local, regional,
and/or state level for this industry area; effective
advocacy for constituents
Policy: e.g. developing and/or advancing policies to
support and grow the sector and support
constituents
Investment: e.g. providing or attracting investment
in the sector from multiple stakeholders (private and
public)
long history of investment for mill improvements; utilized $ 460,943 renewable energy grant from the USDA Rural
Development
Funds to install wood boiler and steam turnines to cogenerate heat and electricity
Knowledge Development and Dissemination:
e.g. an effort to understand macro and micro trends
impacting the sector and/or effective dissemination
to constituents
Infrastructure: e.g. provision of a support system to
foster creativity and innovation in the sector; new
physical infrastructure to provide opportunities for
constituents
continually upgrade technology and facilities including an entire re-build in 2002
Innovation: e.g. new business practices; R&D
new 600 hp wood-fired boiler system to power the dry kilns plus a 600kW steam turbine to produce electricity
Project Descriptors
117
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Middleton Building Supply/Diprizio Pine, 5 Kings Highway, Middleton NH 03887
phone: 800-647-8989
Contact: Marcie Perry, General Manager
Name of entity, address, website link (if available)
and principal contact and contact information.
Mission/goal statement or guiding principles (if
available)
Industry area and target clientele (incl. fee range)
Oregon forest products industry
Scale and profile of business (amenities, age,
number of products or services available)and future
areas of growth
Family business started in 1932, currently saw 16 mmbf per year. Approximately 25% of this volume goes to their
own retail locations. Total employment at mill and retail is over 120 people.
Vermont
VFF - Flooring
Description
Leadership: e.g. provision of effective
leadership within and for the industry
on the local, regional, and/or state
level for this industry area; effective
advocacy for constituents
Policy: e.g. developing and/or
advancing policies to support and
grow the sector and support
constituents
Investment: e.g. providing or
attracting investment in the sector
from multiple stakeholders (private
and public)
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Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities
for constituents
Family Forest Flooring Project: brings together consumers purchasing hardwood flooring with the flooring harvested from FSC
certified Family Forests in the region - this involves landowners, foresters, loggers, truckers, and secondary wood product
manufacturers - the floors are built with wood from healthy, local, beautiful, productive Vermont forests
Innovation: e.g. new business
practices; R&D
coordination of multiple levels of wood production to sell flooring from local certified forests to local consumers
Name of entity, address, website link
(if available) and principal contact and
contact information.
Vermont Family Forests, P.O. Box 254, Bristol, Vermont 05443
phone: 802-453-7728, fax: 802-453-7729, website: www.familyforests.org, email: info@familyforests.org
David Brynn, Executive Director
Mission/goal statement or guiding
principles (if available)
VFF is a non-profit family forest conservation organization that promotes the conservation of forest community health, and when
appropriate, promotes careful cultivation of local family forests for community benefits
Industry area and target clientele (incl.
fee range)
Vermont
Scale and profile of business
(amenities, age, number of products
or services available)and future areas
of growth
Vermont Family Forests was started in 1997 as a pool of 32 landowners with well-managed forests; in 1998 the group became
FSC certified and also incorporated as a non-profit corporation
Project Descriptors
VFF - Community Firewood
119
Description
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Leadership: e.g. provision of effective leadership
within and for the industry on the local, regional,
and/or state level for this industry area; effective
advocacy for constituents
Policy: e.g. developing and/or advancing policies to
support and grow the sector and support constituents
Investment: e.g. providing or attracting investment in
the sector from multiple stakeholders (private and
public)
Knowledge Development and Dissemination: e.g.
an effort to understand macro and micro trends
impacting the sector and/or effective dissemination to
constituents
Infrastructure: e.g. provision of a support system to
foster creativity and innovation in the sector; new
physical infrastructure to provide opportunities for
constituents
Community Supported Forestry Firewood Program: connecting customers who care about forest health and want to
act upon that concern by using firewood from landowners who are practicing exemplary forest management
(certified by FSC through VFF) -- customers include both residential and local wood energy projects (ex. schools)
Innovation: e.g. new business practices; R&D
Project Descriptors
Name of entity, address, website link (if available) and
principal contact and contact information.
Vermont Family Forests, P.O. Box 254, Bristol, Vermont 05443
phone: 802-453-7728, fax: 802-453-7729, website: www.familyforests.org, email: info@familyforests.org
David Brynn, Executive Director
Mission/goal statement or guiding principles (if
available)
VFF is a non-profit family forest conservation organization that promotes the conservation of forest community
health, and when appropriate, promotes careful cultivation of local family forests for community benefits
Industry area and target clientele (incl. fee range)
Vermont
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May 31, 2008
Scale and profile of business (amenities, age, number
of products or services available)and future areas of
growth
Vermont Family Forests was started in 1997 as a pool of 32 landowners with well-managed forests; in 1998 the
group became FSC certified and also incorporated as a non-profit corporation
VWMA - Resource Manual
Description
Leadership: e.g. provision of effective leadership
within and for the industry on the local, regional,
and/or state level for this industry area; effective
advocacy for constituents
Policy: e.g. developing and/or advancing policies
to support and grow the sector and support
constituents
Investment: e.g. providing or attracting investment
in the sector from multiple stakeholders (private
and public)
Knowledge Development and Dissemination:
e.g. an effort to understand macro and micro
trends impacting the sector and/or effective
dissemination to constituents
Vermont Wood Products - A Resource Manual - Connecting Architects, Designers and Purchasers with Vermont
Producers and Craftspeople: this provides information on manufacturers of architectural millwork, furniture, plywood
lumber and doors/windows that are capable of producing at institutional and commercial quality and volumes.
Infrastructure: e.g. provision of a support system
to foster creativity and innovation in the sector; new
physical infrastructure to provide opportunities for
constituents
Innovation: e.g. new business practices; R&D
connecting manuafacturers with institutional construction projects opened up new markets and also created foundation
for expanding into other sectors
Project Descriptors
121
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May 31, 2008
Name of entity, address, website link (if available)
and principal contact and contact information.
Vermont Wood Manufacturers Association, P.O. Box 6004, Rutland, VT 05702
phone: 802-747-7900 fax: 802-747-7989 website: www.vermontwood.com
Mission/goal statement or guiding principles (if
available)
Mission: "To support the wood products manufacturing industry in Vermont and to promote its long-term viability by
expanding the presence of members in the marketplace, ensuring a dependable supply of raw materials,
increasing workforce skill and creativity, and acting as responsible employers and community members.
Industry area and target clientele (incl. fee range)
Vermont
Scale and profile of business (amenities, age,
number of products or services available)and
future areas of growth
VWMA is a membership organization with 120 primary and secondary processors and related businesses, these
members combined employ 6,000 people.
VWMA - Furniture Festival
Description
Leadership: e.g. provision of effective leadership
within and for the industry on the local, regional,
and/or state level for this industry area; effective
advocacy for constituents
Policy: e.g. developing and/or advancing policies to
support and grow the sector and support
constituents
Investment: e.g. providing or attracting investment
in the sector from multiple stakeholders (private and
public)
festival supported by Vermont Wood Manufacturing Association, Vermont Council on Rural Development, and Marsh
Billings Rockefeller National Park
Knowledge Development and Dissemination: e.g.
an effort to understand macro and micro trends
impacting the sector and/or effective dissemination
to constituents
122
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May 31, 2008
Infrastructure: e.g. provision of a support system to
foster creativity and innovation in the sector; new
physical infrastructure to provide opportunities for
constituents
Vermont Fine Furniture and Woodworking Festival: an annual festival held in Woodstock Vermont featuring over 40
wood artisans and typically hosting over 2,000 visitors from 20 states
Innovation: e.g. new business practices; R&D
Project Descriptors
Name of entity, address, website link (if available)
and principal contact and contact information.
Vermont Fine Furniture and Woodworking Festival, P.O. Box 6004, Rutland, VT 05702
phone: 802-747-7900 fax: 802-747-7989 website: www.vermontwoodfestival.org
Mission/goal statement or guiding principles (if
available)
Mission: "To support the wood products manufacturing industry in Vermont and to promote its long-term viability by
expanding the presence of members in the marketplace, ensuring a dependable supply of raw materials,
increasing workforce skill and creativity, and acting as responsible employers and community members.
Industry area and target clientele (incl. fee range)
marketing for this festival is done throughout New England, New York, and the Northeast
Scale and profile of business (amenities, age,
number of products or services available)and future
areas of growth
VWMA is a membership organization with 120 primary and secondary processors and related businesses, these
members combined employ 6,000 people.
VWMA - Forest Tours
Description
Leadership: e.g. provision of effective
leadership within and for the industry on
the local, regional, and/or state level for
this industry area; effective advocacy for
constituents
Policy: e.g. developing and/or advancing
policies to support and grow the sector
and support constituents
123
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Investment: e.g. providing or attracting
investment in the sector from multiple
stakeholders (private and public)
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
Vermont Woodshop & Forest Tours: The Vermont Forest Heritage Trail: a regionally-themed itinerary and driving tour that
unifies and connects diverse forest-product-related experiences; brochures and websites guide visitors through showrooms
and woodworking studios, tour factories and sawmills, or walk through working forests
Infrastructure: e.g. provision of a support
system to foster creativity and innovation
in the sector; new physical infrastructure to
provide opportunities for constituents
Innovation: e.g. new business practices;
R&D
Project Descriptors
Name of entity, address, website link (if
available) and principal contact and
contact information.
Vermont Wood Manufacturers Association, P.O. Box 6004, Rutland, VT 05702
phone: 802-747-7900 fax: 802-747-7989 website: www.vermontwood.com
Mission/goal statement or guiding
principles (if available)
Mission: "To support the wood products manufacturing industry in Vermont and to promote its long-term viability by
expanding the presence of members in the marketplace, ensuring a dependable supply of raw materials,
increasing workforce skill and creativity, and acting as responsible employers and community members."
Industry area and target clientele (incl. fee
range)
Vermont
Scale and profile of business (amenities,
age, number of products or services
available)and future areas of growth
VWMA is a membership organization with 120 primary and secondary processors and related businesses, these members
combined employ 6,000 people.
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May 31, 2008
Exclusively Vermont
Description
Leadership: e.g. provision of effective
leadership within and for the industry on
the local, regional, and/or state level for
this industry area; effective advocacy for
constituents
Policy: e.g. developing and/or
advancing policies to support and grow
the sector and support constituents
Investment: e.g. providing or attracting
investment in the sector from multiple
stakeholders (private and public)
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities for
constituents
Innovation: e.g. new business
practices; R&D
Exclusively Vermont Wood Products is a retail outlet specializing in local Vermont wood products available directly to the
consumer.
Name of entity, address, website link (if
available) and principal contact and
contact information.
Exclusively Vermont Wood Products, LLC, 723 Hewitt Road, Bristol, Vermont 05443
phone: 802-453-2897 website: www.exclusivelyvermont.com
Owners: Thomas C. and Pamela Lathrop
Mission/goal statement or guiding
principles (if available)
"Our goal is to offer a full line of lumber and flooring products at affordable prices, complete with a chain of custody documents.
Only Vermont timber that has been proven to be harvested sustainably will qualify."
Project Descriptors
125
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Industry area and target clientele (incl.
fee range)
Vermont
Scale and profile of business (amenities,
age, number of products or services
available)and future areas of growth
The Lathrop family has been in the lumber business for five generations. This new business was started in 2006.
Vermont Hardwood Pens
Description
Leadership: e.g. provision of effective leadership
within and for the industry on the local, regional,
and/or state level for this industry area; effective
advocacy for constituents
Policy: e.g. developing and/or advancing policies to
support and grow the sector and support
constituents
Investment: e.g. providing or attracting investment
in the sector from multiple stakeholders (private and
public)
Knowledge Development and Dissemination:
e.g. an effort to understand macro and micro trends
impacting the sector and/or effective dissemination
to constituents
Infrastructure: e.g. provision of a support system
to foster creativity and innovation in the sector; new
physical infrastructure to provide opportunities for
constituents
small specialized craftsman designing and making pens from Vermont hardwood; specialty is making pens from a
consumer's "favorite tree" or other unique source of wood (example: reclaimed antique wormy chestnut)
Innovation: e.g. new business practices; R&D
Project Descriptors
126
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Vermont Hardwood Pens, 65 Munsill Ave, Bristol, VT 05443
phone: 802-453-2453, website: www.moosemaple.com, email: jim05443@gmail.com
Contact: Jim Cunningham
Name of entity, address, website link (if available)
and principal contact and contact information.
Mission/goal statement or guiding principles (if
available)
Industry area and target clientele (incl. fee range)
Scale and profile of business (amenities, age,
number of products or services available)and future
areas of growth
Burlington Electric
Leadership: e.g. provision of effective
leadership within and for the industry
on the local, regional, and/or state
level for this industry area; effective
advocacy for constituents
small one-person craftman operation, utilizing unique wood sources ; easily replicable throughout the nation
Description
Leader in locally produced power, investment in wood-burning, and promotion of energy conservation .
Policy: e.g. developing and/or
advancing policies to support and
grow the sector and support
constituents
Investment: e.g. providing or
attracting investment in the sector
from multiple stakeholders (private
and public)
BED owns 50% of the McNeil Generating Station (there are three other owners).
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
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Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities
for constituents
Innovation: e.g. new business
practices; R&D
Project Descriptors
Name of entity, address, website link
(if available) and principal contact and
contact information.
Burlington Electric Department, 585 Pine Street, Burlington, VT 05401-4891
phone: 802-658-0300 fax: 802-865-7400 website: www.burlingtonelectric.com
Mission/goal statement or guiding
principles (if available)
to be a leader in sustainability by producing power that is as clean and as locally produced as possible
to treat the environment with the utmost respect and to influence public policy that enhance env. quality, and the use of
renewable resources
(plus more based on customer needs and business practices)
Industry area and target clientele (incl.
fee range)
City of Burlington Vermont
Scale and profile of business
(amenities, age, number of products
or services available)and future areas
of growth
BED was formed in 1905 and is VT's largest municipally owned electric utility serving more that 19,600 customers, in 1977 BED
began using wood to create power, in the 1990's took a leadership role in encouraging energy conservation.
McNeil Generating Station
Description
Leadership: e.g. provision of effective leadership
within and for the industry on the local, regional,
and/or state level for this industry area; effective
advocacy for constituents
Leader in wood-burning generation and commitment to maintaining environmental quality.
Policy: e.g. developing and/or advancing policies to
support and grow the sector and support
constituents
128
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Investment: e.g. providing or attracting investment
in the sector from multiple stakeholders (private and
public)
Knowledge Development and Dissemination:
e.g. an effort to understand macro and micro trends
impacting the sector and/or effective dissemination
to constituents
Infrastructure: e.g. provision of a support system
to foster creativity and innovation in the sector; new
physical infrastructure to provide opportunities for
constituents
Test plot of 5,000 planted hybrid willow trees Burlington. The quick-growing trees are harvested every three years.
The first harvest was conducted in Nov 2000, with a yield of 35 tons per acres (five times native forest stands).
Innovation: e.g. new business practices; R&D
Project Descriptors
Burlington Electric Department, 585 Pine Street, Burlington, VT 05401-4891
phone: 802-658-0300 fax: 802-865-7400 website: www.burlingtonelectric.com
Contact for biomass crop experiment: Forester Bill Kropelin 802-865-7484
to be a leader in sustainability by producing power that is as clean and as locally produced as possible
to treat the environment with the utmost respect and to influence public policy that enhance env. quality, and the use
of renewable resources
(plus more based on customer needs and business practices)
Name of entity, address, website link (if available)
and principal contact and contact information.
Mission/goal statement or guiding principles (if
available)
Industry area and target clientele (incl. fee range)
City of Burlington Vermont
Scale and profile of business (amenities, age,
number of products or services available)and future
areas of growth
McNeil Generating station was built in 1984 (at the time it was the world's largest wood-burning generating plant). The
plant consumes 76 tons of wood per hour and produces 50 megawatts of power.
Biomass Energy Resource Center
129
Description
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Leadership: e.g. provision of effective leadership within and for the
industry on the local, regional, and/or state level for this industry
area; effective advocacy for constituents
Leader in promoting sustainable biomass energy systems at the community scale.
Policy: e.g. developing and/or advancing policies to support and
grow the sector and support constituents
Investment: e.g. providing or attracting investment in the sector
from multiple stakeholders (private and public)
Initiates and facilitates partnerships for community biomass projects.
Knowledge Development and Dissemination: e.g. an effort to
understand macro and micro trends impacting the sector and/or
effective dissemination to constituents
Facilitates education and training programs in community based biomass; participate in conferences and
national speaking engagements, creation of replicable manuals and studies.
Infrastructure: e.g. provision of a support system to foster creativity
and innovation in the sector; new physical infrastructure to provide
opportunities for constituents
Innovation: e.g. new business practices; R&D
Local and regional research to support potential biomass projects.
Name of entity, address, website link (if available) and principal
contact and contact information.
Biomass Energy Resource Center (BERC), P.O. Box 1611, Montpelier, VT 05601
phone: 802-223-7770 website: www.biomasscenter.org email: contacts@biomasscenter.org
Contacts: Christopher Recchia, Executive Director
Timothy Maker, Senior Program Director
Project Descriptors
Mission/goal statement or guiding principles (if available)
To achieve a healthier environment, strengthen local economies, and increase energy security across
the U.S. through the development of sustainable biomass energy systems at the community level.
national
Industry area and target clientele (incl. fee range)
130
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Scale and profile of business (amenities, age, number of products or
services available)and future areas of growth
VSJF - The Cornerstone Project
Leadership: e.g. provision of effective leadership within and for
the industry on the local, regional, and/or state level for this
industry area; effective advocacy for constituents
BERC is an independent, non-profit organization that assists in the development of biomass energy
projects. As an unbiased, experienced partner, help communities, schools and colleges, state and local
governments, businesses, utilities, and others make the most of their local energy resources.
Description
Connecting regional institutions, colleges, with local suppliers of wood products and services.
Policy: e.g. developing and/or advancing policies to support
and grow the sector and support constituents
Investment: e.g. providing or attracting investment in the sector
from multiple stakeholders (private and public)
Knowledge Development and Dissemination: e.g. an effort to
understand macro and micro trends impacting the sector and/or
effective dissemination to constituents
Creation of lists and manuals to facilitate local green buildling projects.
Infrastructure: e.g. provision of a support system to foster
creativity and innovation in the sector; new physical
infrastructure to provide opportunities for constituents
The Cornerstone Project: aims to marshal the purchasing power of Vermont's major institutions to buy local
forest products. This project has brought together institutions (colleges) and wood suppliers for green
buildling projects, and created manuals for future projects.
Innovation: e.g. new business practices; R&D
Project Descriptors
131
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Name of entity, address, website link (if available) and principal
contact and contact information.
Vermont Sustainable Jobs Fund, 3 Pitkin Court, Suite 301E, Montpelier, VT 05602
phone: 802-828-1260 website: vsjf.org
email: info@vsjf.org
Contact: Ellen Kahler, Executive Director
Mission/goal statement or guiding principles (if available)
Purpose: To build a stronger, healthier Vermont economy by creating markets for sustainable VT products and services. Goals: 1.
Strengthen existing business & provide opportunities for new businesses engaged in the provision of good & services necessary to
build a sustainable economy., 2. Encourage greater profitability or cost savings through adoption of sustainable business practices., 3.
Work with VT businesses and institutions to retain a greater portion of the states's public & private capital resources in the state., 4.
Maintain local autonomy in economic and community decision making while participating in the global economy.
Industry area and target clientele (incl. fee range)
Vermont
Scale and profile of business (amenities, age, number of
products or services available)and future areas of growth
Vermont Sustainable Jobs Fund is a quasi-governmental nonprofit organization that has access to
Vermont's General Fund for support. Since 1997, the VSJF has made grants of over $2.7 million to 150
recipients, these funds were used to leverage an additional $11.8 million to implement projects. These
funds have benefitted 8,800 businesses and created or retained 800 jobs.
NY Forests Forever
Description
Leadership: e.g. provision of effective
leadership within and for the industry on
the local, regional, and/or state level for
this industry area; effective advocacy
for constituents
Policy: e.g. developing and/or
advancing policies to support and grow
the sector and support constituents
Investment: e.g. providing or attracting
investment in the sector from multiple
stakeholders (private and public)
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
educational program aimed at providing info regarding NY forests, forest products, and the ways that professional resource
managers work to balance the needs for quality wood products while managing our forests for the environment; program
includes teacher training, partnership with Project Learning Tree, distribution of CD to teachers (looks at NY forests and
products), and links to other resources for teachers
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Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities
for constituents
Innovation: e.g. new business
practices; R&D
Project Descriptors
Name of entity, address, website link (if
available) and principal contact and
contact information.
Empire State Forest Products Association, NY Forestry Resource Center, 47 Van Alstyne Dr., Renssalear, NY 12144
phone: 518-463-1297, fax: 518-426-9502 website: www.esfpa.org email: esfpa@esfpa.org
Contact: Kevin King, President and CEO, kking@esfpa.org
Mission/goal statement or guiding
principles (if available)
The ESFPA is dedicated to improving the business climate for the forest products industry while promoting management of New
York's forests to meet the resource needs of today and for future generations.
Industry area and target clientele (incl.
fee range)
New York's teachers
Scale and profile of business
(amenities, age, number of products or
services available)and future areas of
growth
ESFPA has 400 members, many of whom own or manage a combined 1.2 million acres of NY forestland.
Mascoma & Genencor
Description
Leadership: e.g. provision of effective
leadership within and for the industry on the
local, regional, and/or state level for this
industry area; effective advocacy for
constituents
Policy: e.g. developing and/or advancing
policies to support and grow the sector and
support constituents
133
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Investment: e.g. providing or attracting
investment in the sector from multiple
stakeholders (private and public)
The New York State Dept of Agriculture and Markets and the New York State Energy Research and Development
Authority granted 14.8 million
dollars to build and operate the biomass-to-ethanol demonstration plant. Additionally the U.S. Dept of Energy granted $
16 million to the project.
Mascoma has raised approximately $ 100 million in equity investment.
Knowledge Development and
Dissemination: e.g. an effort to understand
macro and micro trends impacting the sector
and/or effective dissemination to constituents
Infrastructure: e.g. provision of a support
system to foster creativity and innovation in
the sector; new physical infrastructure to
provide opportunities for constituents
Mascoma plans to develop demostration and commercial scale cellulosic ethanol production facilities across the U.S.
Innovation: e.g. new business practices;
R&D
Mascoma is working to identify, patent, and deploy a new generation of microbes and low-cost processes for developing advanced
biochemistry technologies to produce ethanol and other biofuels. Mascoma has developed a single step cellulose-to-ethanol method.
New plnat in Rome NY will move the technology into demonstration and prepare for commercial application.
Project Descriptors
Name of entity, address, website link (if
available) and principal contact and contact
information.
Mascoma Corporate Office 1380 Soldiers Field Rd Boston MA 02135 617-234-0099, email: info@mascoma.com
Mascoma Research Facility 16 Cavendish Court Suite 2A,, Lebanon NH 03766, 603-676-3320 email: info@mascoma.com
Mascoma New York, 679 Ellsworth Road, Rome NY 13441 315-356-4780 email: info@mascoma.com Contact: Colin South, President
Mission/goal statement or guiding principles (if
available)
Vision: We are developing innovative and cost effective advances in biotechnology and engineering to unlock and harness
the potential of this low carbon, renewable energy solution - moving the world beyond traditional approaches to ethanol
production.
Industry area and target clientele (incl. fee
range)
Research in New Hampshire, First plant in Rome, New York, planned to expand across U.S.
Scale and profile of business (amenities, age,
number of products or services available)and
future areas of growth
134
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Outside of the Northern Forest Region
Agenda 2020
Leadership: e.g. provision of effective
leadership within and for the industry
on the local, regional, and/or state
level for this industry area; effective
advocacy for constituents
Description
"The Agenda 2020 Technology Alliance is an industry-led partnership with government and academia that holds the promise of reinventing the forest products
industry through innovation in processes, materials and markets. The collaborative, pre-competitive research, development, and deployment supported through
Agenda 2020 provide the foundation for new technology-driven business models that will enable our industry to meet competitive challenges, while also
contributing solutions to strategic national needs. """
Policy: e.g. developing and/or
advancing policies to support and
grow the sector and support
constituents
Investment: e.g. providing or
attracting investment in the sector
from multiple stakeholders (private
and public)
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
"The Forest Products Industry Technology Roadmap, updated in early 2006, captures this vision and translates it into a set of focus areas and
R&D priorities for each Agenda 2020 technology platform. The purpose of the Roadmap is to provide the research community, and their funding
organizations, with information on the technical challenges and research needs that are considered priorities by the U.S. forest products
industry. The goal is to stimulate collaborative, precompetitive research, development, and deployment that will provide the foundation for new
technology driven business models that enable the industry to meet competitive challenges, while also contributing solutions to strategic
national needs."
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities
for constituents
Innovation: e.g. new business
practices; R&D
Technology Platforms: Advancing the Forest Biorefinery, Nanotechnology for the Forest Products Industry, Breakthrough Manufacturing Technologies, Next
Generation Fiber Recovery and Utilization, Positively Impacting the Environment, Advancing the Wood Products Revolution, Technologically Advanced
Workforce
Project Descriptors
Name of entity, address, website link
(if available) and principal contact and
contact information.
phone: 202-463-2700; website: http://www.agenda2020.org/default.htm
135
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Mission/goal statement or guiding
principles (if available)
"The Agenda 2020 technology vision leverages collaborative partnerships to drive innovation in the forest products industry's processes, materials, and markets.
Technology objectives are defined to address shared industry and national strategic goals. Agenda 2020's research, development and deployment (RD&D)
initiatives provide the foundation for new technology-driven business models. The objective is to create options to meet industry's competitive challenges, while
contributing solutions to strategic national needs associated with energy, the environment, and the economy."
Industry area and target clientele (incl.
fee range)
"Agenda 2020 Technology Alliance, a special project of the American Forest & Paper Association, is dedicated to collaborative partnerships to
create innovation in the forest products industry's processes, materials, and markets."
Scale and profile of business
(amenities, age, number of products
or services available)and future areas
of growth
"The Agenda 2020 technology vision builds on the forest products industry's strategic advantage as stewards of an abundant, renewable and sustainable raw
biomaterial: forests. The industry also includes owners of the fundamental infrastructure for converting these biomaterials. Thus, the industry is uniquely
positioned to produce new "green" bio-based products -- fiber, fuels, chemicals -- without increasing its current consumption of forest materials or disrupting
production of the traditional line of forest products. Advanced technology will endow these new bio-products with "smart" properties and high performance
characteristics. Agenda 2020's technology platforms are designed to use emerging technologies, such as biotechnology and nanotechnology, coupled with
breakthrough advances in process and conversion technologies, to create and capture value from both new and existing product streams efficiently, cleanly, and
economically."
ORWIC
Description
Leadership: e.g. provision of effective
leadership within and for the industry
on the local, regional, and/or state
level for this industry area; effective
advocacy for constituents
Policy: e.g. developing and/or
advancing policies to support and
grow the sector and support
constituents
Investment: e.g. providing or
attracting investment in the sector
from multiple stakeholders (private
and public)
brokering and market connections
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
publications; technical assistance by phone or visit; short courses and workshops
136
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities
for constituents
facilities for: wood fiber characterization & wood identification, including an X-ray densitometer; assessing strength properties of wood-based materials; assessing
insect and decay resistance, including a pressure cylinder for wood preservation; research and testing of plant materials for value-added chemical products;
development, testing, and troubleshooting of adhesives, including presses (hot and cold), glue spreader, refiner, digester, blender, former, and wood-plastic
extruder; optical scanning, process modeling, simulation and optimization of wood processing enterprises; measuring volatile organic compound (VOC) emissions
and for research in lumber drying
Innovation: e.g. new business
practices; R&D
new product development and testing; short- and long-term research
Project Descriptors
Name of entity, address, website link
(if available) and principal contact and
contact information.
Oregon Wood Innovation Center, 119 Richardson Hall, Corvallis, OR 97331-5751; Director Scott Leavengood; Phone: (541) 737-4212; Fax:
(541) 737-3385; E-mail: Scott.Leavengood@oregonstate.edu; website: http://owic.oregonstate.edu/index.php
Mission/goal statement or guiding
principles (if available)
"Oregon State University’s College of Forestry and Extension Service have teamed up to create the Oregon Wood Innovation Center (OWIC).
OWIC’s mission is to improve the competitiveness of Oregon’s wood products industry by fostering innovation in products, processes, and
business systems. A key function of the Center is to serve as the primary link between university research and needs and opportunities in the
forest industry."
Industry area and target clientele (incl.
fee range)
Oregon forest products industry
Scale and profile of business
(amenities, age, number of products
or services available)and future areas
of growth
wood anatomy, quality, and technology; timber engineering & structural design; biodeterioration, wood protection and product
durability; wood adhesion and plywood manufacturing; wood drying and dry kiln operation; lesser-known species utilization
(primarily western juniper); composite materials; computer-aided manufacturing; operations research, and quality & process
control; marketing & business management
TimberTech
Description
Leadership: e.g. provision of effective
leadership within and for the industry
on the local, regional, and/or state
level for this industry area; effective
advocacy for constituents
Policy: e.g. developing and/or
advancing policies to support and
grow the sector and support
constituents
137
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Investment: e.g. providing or
attracting investment in the sector
from multiple stakeholders (private
and public)
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities
for constituents
Innovation: e.g. new business
practices; R&D
Project Descriptors
Name of entity, address, website link
(if available) and principal contact and
contact information.
TimberTech, 894 Prairie Avenue, Wilmington, OH 45177; phone: (800) 307-7780; website:
http://timbertech.com/Default2.aspx
Mission/goal statement or guiding
principles (if available)
"TimberTech is a leading manufacturer of low-maintenance, high-quality composite decking and railing solutions."
Industry area and target clientele (incl.
fee range)
"TimberTech's wood plastic composite products (made from reclaimed wood fibers and pure plastic resins), and
expanded polymer products, provide revolutionary alternatives to traditional wood decks."
Scale and profile of business
(amenities, age, number of products
or services available)and future areas
of growth
Fiber Tech Polymers
Description
138
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Leadership: e.g. provision of effective
leadership within and for the industry on
the local, regional, and/or state level for
this industry area; effective advocacy for
constituents
Policy: e.g. developing and/or advancing
policies to support and grow the sector
and support constituents
Investment: e.g. providing or attracting
investment in the sector from multiple
stakeholders (private and public)
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities for
constituents
Innovation: e.g. new business practices;
R&D
Project Descriptors
Name of entity, address, website link (if
available) and principal contact and
contact information.
FiberTech Polymers, Inc., 1901 E. Alton Avenue, Suite 150, Santa Ana, California 92705; phone: (888) 262-2070; fax: (949)
724-1090; email: Info@fibertechpolymers.com; website: http://www.fibertechpolymers.com/index.php
Mission/goal statement or guiding
principles (if available)
"FiberTech Polymers, Inc. uses proprietary technology to combine our patent pending cellulose fiber with polymer to create
extruded wood-plastic composite boards."
Industry area and target clientele (incl.
fee range)
manufacturing plants in California and the Midwest; distribution through landcape wholesalers and retailers
139
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Scale and profile of business (amenities,
age, number of products or services
available)and future areas of growth
"All of our board products are made from 100% recycled materials, of which a minimum of 65% is post consumer....These high
performance boards are not only superior in aesthetics and performance to plastic, fiber, wood, and other composite products,
but are also the environmentally responsible alternative to harvested wood."
Wood Company
Description
Leadership: e.g. provision of effective
leadership within and for the industry
on the local, regional, and/or state
level for this industry area; effective
advocacy for constituents
Policy: e.g. developing and/or
advancing policies to support and
grow the sector and support
constituents
Investment: e.g. providing or
attracting investment in the sector
from multiple stakeholders (private
and public)
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities
for constituents
Innovation: e.g. new business
practices; R&D
Project Descriptors
Name of entity, address, website link
(if available) and principal contact and
contact information.
The Woods Company, 985 Superior Avenue, Chambersburg, PA 17201; phone: 717-263-6524 or 888-548-7609; fax: 717-2639346; email:woodfloors@thewoodscompany.com; website: http://www.thewoodscompany.com/index.asp
140
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Mission/goal statement or guiding
principles (if available)
"The Woods Company manufactures the finest quality specialty wood flooring and architectural wood products from antique
reclaimed and traditional new woods."
Industry area and target clientele (incl.
fee range)
"Old buildings made of Oak, Chestnut, Heart Pine, and other historic woods are carefully dismantled and the lumber is shipped to
our mill in Chambersburg, Pennsylvania. There, it is de-nailed, resawn, and kiln dried. Our craftsmen then accurately grade and
remill the lumber into plank flooring of superb quality and character."
Scale and profile of business
(amenities, age, number of products
or services available)and future areas
of growth
"The Woods Company maintains a 90,000sf manufacturing facility under roof on over 4 acres and the entire production process
is controlled by us at one location. Salvaged lumber is brought to our facility, either by our own dismantling crew, or from the
many other salvagers that we deal with, to be sorted, tallied, and inventoried. As our production schedule dictates, the lumber is
denailed, metal detected, graded, and kiln dried."
Leadership in Forestry
Description
Leadership: e.g. provision of effective
leadership within and for the industry on the
local, regional, and/or state level for this
industry area; effective advocacy for
constituents
"As a powerful, united voice for forest sector research in Canada, FPInnovations is quickly establishing itself as the key element in the
sector’s transition to a stronger, more sustainable future. From genetics and harvesting operations to wood and paper products and
beyond, FPInnovations is positioned to provide a sector-wide voice on issues of global importance to the Canadian forest industry and its
customers."
Policy: e.g. developing and/or advancing
policies to support and grow the sector and
support constituents
Investment: e.g. providing or attracting
investment in the sector from multiple
stakeholders (private and public)
Knowledge Development and
Dissemination: e.g. an effort to understand
macro and micro trends impacting the sector
and/or effective dissemination to
constituents
Infrastructure: e.g. provision of a support
system to foster creativity and innovation in
the sector; new physical infrastructure to
provide opportunities for constituents
141
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Innovation: e.g. new business practices;
R&D
Bioeconomy; forest productivity, fibre delivery, usage, and value; forestry operation and management processes; suppress and manage wildland fires;
environmental sustainability; production costs and manufacturing processes; quality and variety of specialty, wood-based products; wood construction
products and system solutions; building codes and standards; pulp and paper processes and traditional and revolutionary paper products; extracting
chemicals and energy from forest biomass; cellulose-based nanomaterials to produce high-performance paper and packaging; and environmentally
sustainable mill practices
Project Descriptors
Name of entity, address, website link (if
available) and principal contact and contact
information.
570 St-Jean Blvd., Pointe-Claire, QC, H9R 3J9; phone: 514 630-4100; fax: 514 630-4134; email: info@fpinnovations.ca
Mission/goal statement or guiding principles
(if available)
1 Leadership in Forestry; 2 Innovation in Wood Products; 3 Creativity in Pulp, Paper and Beyond
Industry area and target clientele (incl. fee
range)
Canadian forest-based sector
Scale and profile of business (amenities,
age, number of products or services
available)and future areas of growth
FPInnovations brings together FERIC, Forintek, Paprican, and the Canadian Wood Fibre Centre of Natural Resources Canada, to create
the world’s largest private, not-for-profit forest research institute. With over 600 employees spread across Canada, FPInnovations unites
the individual strengths of each of these internationally recognized forest research and development institutes into a single, greater force.
Forestry Innovation Investment
Leadership: e.g. provision of effective leadership within
and for the industry on the local, regional, and/or state level
for this industry area; effective advocacy for constituents
Description
"FII works in partnership with the Government of Canada, Government of British Columbia, and the forestry
sector."
Policy: e.g. developing and/or advancing policies to support
and grow the sector and support constituents
Investment: e.g. providing or attracting investment in the
sector from multiple stakeholders (private and public)
142
"FII funds international marketing, market access and product development programs to maintain BC’s position
as the world’s largest exporter of softwood lumber. FII also runs specific programs for China and the domestic
Canadian market."
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Knowledge Development and Dissemination: e.g. an
effort to understand macro and micro trends impacting the
sector and/or effective dissemination to constituents
"Trend Analysis in Export Markets reports are issued quarterly and annually. Each report provides the latest
data on major international markets for wood products and BC’s relative position in major markets around the
world. Reports provide an overview of supply and demand, consumption, imports and exports, (where such
information is available) as well as BC’s market share, economic indicators, and competition trends."
Infrastructure: e.g. provision of a support system to foster
creativity and innovation in the sector; new physical
infrastructure to provide opportunities for constituents
"Most of FII’s programs are delivered through funding arrangements with research institutes, trade associations
and universities. More than 95% of the budget goes to international research, market access, product
development, and marketing activities." "FII provides the BC forestry sector with an extensive library of
research/analysis reports on major and emerging markets for BC forest products."
(http://www.bcfii.ca/industry_resources/market_research.htm)
Innovation: e.g. new business practices; R&D
"The Business Innovation Partnership is a new program that officially launched in December 2007 that provides
business development services to the Value Added wood products industry in British Columbia.....a partnership
between BC Wood and FP Innovations (Forintek).....funded through Forestry Innovation Investment."
(http://www.iforwood.com/)
Project Descriptors
Name of entity, address, website link (if available) and
principal contact and contact information.
Forestry Innovation Investment Ltd., Suite 1200 - 1130 West Pender Street, Vancouver, BC V6E 4A4, Canada;
phone: 604-685-7507; fax: 604-685-5373; website: http://www.bcfii.ca/about_fii/overview.htm; email:
info@bcfii.ca
Mission/goal statement or guiding principles (if available)
"Forestry Innovation Investment’s mandate is to support an environmentally sustainable and prosperous forest
economy in British Columbia."
Industry area and target clientele (incl. fee range)
BC forest product industry & its market
Scale and profile of business (amenities, age, number of
products or services available)and future areas of growth
Educates international markets about BC’s forest management practices; promotes BC wood products in major
markets like the United States, Japan, China, and Europe; introduces BC wood products to growing markets
like Korea, Taiwan and Australia; develops new products and uses for wood; researches better ways of milling
and manufacturing wood products; helps the forest sector deal with major issues like the Mountain Pine Beetle
outbreak.'
Kisis Tech
Description
143
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Leadership: e.g. provision of effective
leadership within and for the industry
on the local, regional, and/or state
level for this industry area; effective
advocacy for constituents
Policy: e.g. developing and/or
advancing policies to support and
grow the sector and support
constituents
Investment: e.g. providing or
attracting investment in the sector
from multiple stakeholders (private
and public)
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities
for constituents
Innovation: e.g. new business
practices; R&D
"The technological process used is non-polluting and does not release any pollutants in to the environment. The
materials remain entirely natural since no chemical additives are used."
Project Descriptors
Name of entity, address, website link
(if available) and principal contact and
contact information.
Kisis Technologies Inc., 112 av. de l'Église, bur. 204, Dolbeau-Mistassini QC G8L 4W4; phone: (418) 276-7551; fax:
(418) 276-8302; email: info@kisistechnologies.com; website : www.kisistechnologies.com
Mission/goal statement or guiding
principles (if available)
"Using the process of thermotransformation of wood, we transform and shape raw materials (wood) in order to obtain
a material that is more durable, more stable, aesthetic and ecological."
Industry area and target clientele (incl.
fee range)
'Although numerous species of deciduous trees and conifers can be thermotransformed and shaped, the species
mainly used is quaking aspen.'
144
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Scale and profile of business
(amenities, age, number of products
or services available)and future areas
of growth
Materials are sold to hardware stores, construction contractors, and manufacturers of furniture, decorative
mouldings, etc.
Advanced Biorefinery
Description
Leadership: e.g. provision of effective
leadership within and for the industry on
the local, regional, and/or state level for
this industry area; effective advocacy for
constituents
Policy: e.g. developing and/or advancing
policies to support and grow the sector and
support constituents
Investment: e.g. providing or attracting
investment in the sector from multiple
stakeholders (private and public)
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
Infrastructure: e.g. provision of a support
system to foster creativity and innovation in
the sector; new physical infrastructure to
provide opportunities for constituents
Innovation: e.g. new business practices;
R&D
Project Descriptors
145
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Name of entity, address, website link (if
available) and principal contact and
contact information.
Advanced BioRefinery Inc., 1391 Normandy Crescent, Ottawa, ON K2C0N4, Canada; contact: Peter Fransham;
email: pfransham@advbiorefineryinc.ca; website: http://www.advbiorefineryinc.ca/home/
Mission/goal statement or guiding
principles (if available)
"Our Goal is to develop and market technology used to produce energy and bio products from waste biomass creating a reliable source of
income while preventing the waste from becoming landfilled. Our knowledge and experience in this field has allowed us to develop many
innovative solutions which provides benefits for both the customer and environment."
Industry area and target clientele (incl. fee
range)
"We have also provided specialized components for diverse applications such as dryers for biomass projects and equipment for pelleting
operations. We are also currently involved in research into the gasification of biomasses for direct energy generation and have preformed
testing and consulting for many clients."
Scale and profile of business (amenities,
age, number of products or services
available)and future areas of growth
"Much of our focus has been on the production of Bio Oil, an energy dense liquid derived from biomass through the process
of pyrolysis. We are able to provide solutions for virtually any type or amount of feedstock and are flexible to suit many
different applications. Some of our previous projects have included 50 tones per day production systems for wood waste and
1/2 tone per day systems for small applications and research."
FTP
Leadership: e.g. provision of effective
leadership within and for the industry
on the local, regional, and/or state
level for this industry area; effective
advocacy for constituents
Description
"The High-Level Group (HLG) is the decision body of the project and steers the activities of the platform. At present, the HLG comprises six high-level persons
from companies and the three confederations plus the chairman of the Advisory Committee and the chairman of the Scientific Council. The European
Commission (DG Research and DG Enterprise and Industry) is involved in the HLG as an observer."
Policy: e.g. developing and/or
advancing policies to support and
grow the sector and support
constituents
Investment: e.g. providing or
attracting investment in the sector
from multiple stakeholders (private
and public)
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
:The FTP's Communication group has as major tasks to promote awareness of and involvement in the platform and to undertake day-to-day activities concerning
the FTP's communication. The group deals both with internal and external communications. It brings together communication officers of the NSGs,
confederations and the three major international research organisations within the sector, i.e. EFI (for forest research), EFPRO (for pulp and paper) and
Innovawood (for wood products).:
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Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities
for constituents
The FTP's project database offers an important tool for monitoring progress in implementation of the platform's Strategic Research Agenda (SRA). By
incorporating projects under the "FTP umbrella", it helps identify SRA areas where activities are ongoing, as well as topics where more efforts are needed.
European and national stakeholders can obtain an overview of planned and ongoing projects, while researchers can benefit from having their projects listed, for
example as potential users of their work can contact them.
Innovation: e.g. new business
practices; R&D
During February 2006, after nearly one year of thinking, writing and debate involving an estimated investment of 3.4 million EUR, over 700
proposals were condensed into a Strategic Research Agenda (SRA) for the Forest-based Sector Technology Platform (FTP). The SRA is based
on proposals from across Europe, encompassing the full range of complexity and variety the sector represents, from paper to packaging, from
building with wood to bio-energy from wood, from trees to new trends. Through joint innovative R&D activities, the FTP will strengthen the
competitiveness of the sector and contribute to the improvement in the quality of life of European citizens.
Name of entity, address, website link
(if available) and principal contact and
contact information.
Forest-Based Sector Technology Platform – FTP, The European Forestry House, 66 Rue du Luxembourg,BE-1000 Brussels; Phone:
+32 2 239 23 01; Fax: +32 2 219 21 91; website: http://www.forestplatform.org/; Chair of FTP Communication group: Teresa Presas,
phone: +32 2 627 4920; e-mail: t.presas(at)cepi.org
Mission/goal statement or guiding
principles (if available)
"The FTP has as its vision (for the year 2030): The European forest-based sector plays a key role in a sustainable society. It comprises
a competitive, knowledge-based industry that fosters the extended use of renewable resources. It strives to ensure its societal
contribution in the context of a bio-based, customer-driven and globally competitive European economy."
Industry area and target clientele (incl.
fee range)
European forest-based sector
Scale and profile of business
(amenities, age, number of products
or services available)and future areas
of growth
"In 2004, the European Confederation of Woodworking Industries (CEI-Bois), the Confederation of European Forest Owners (CEPF) and the Confederation of
European Paper Industries (CEPI) took the initiative to set up a Technology Platform for the forest-based sector. This platform aims at defining and implementing
the sector’s R&D roadmap for the future and is supported by a wide range of stakeholders. The Forest-Based Sector Technology Platform is an industry-driven
process, embedded in industry reality, and supporting the sector’s strategy."
Project Descriptors
EFORWOOD
Leadership: e.g. provision of effective
leadership within and for the industry
on the local, regional, and/or state
level for this industry area; effective
advocacy for constituents
Description
"The aim of the project is to provide methods and tools that will, for the first time, integrate Sustainability Impact Assessment of the whole
European Forestry‐Wood Chain (FWC), by quantifying performance of FWC, using indicators for all three pillars of sustainability;
environmental, economic and societal."
147
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Policy: e.g. developing and/or
advancing policies to support and
grow the sector and support
constituents
Investment: e.g. providing or
attracting investment in the sector
from multiple stakeholders (private
and public)
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
"The Decision Support Tool ToSIA (Tool for Sustainability Impact Assessment) is the predominant product of EFORWOOD. It
represents a dynamic sustainability impact assessment model that is analysing environmental, economic, and social impacts of
changes in forestry-wood production chains, using a consistent and harmonised framework from the forest to the end-of-life of
final products."
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities
for constituents
Innovation: e.g. new business
practices; R&D
Project Descriptors
Name of entity, address, website link
(if available) and principal contact and
contact information.
EFORWOOD ; Uppsala Science Park, SE - 751-83 Uppsala, Sweden; phone: +46 18 188560; fax +46 18 188600; website:
http://87.192.2.62/eforwood/default.aspx; Coordinator: Kaj Rosen; email: kaj.rosen@skogforsk.se
Mission/goal statement or guiding
principles (if available)
"The objective of EFORWOOD is to develop a quantitative decision support tool for Sustainability Impact Assessment of the
European Forestry-Wood Chain (FWC) and subsets thereof (e.g. regional), covering forestry, industrial manufacturing,
consumption and recycling."
Industry area and target clientele (incl.
fee range)
"the whole European Forestry-Wood Chain"
Scale and profile of business
(amenities, age, number of products
or services available)and future areas
of growth
"EFORWOOD is a four-years (November 2005-October 2009) integrated project, funded under the EU 'Global change and
ecosystems' research activity of the Sixth Framework Programme. Project includes 38 organisations in 21 countries, with total
estimated budget of €20 million - of which the European Commission contribution is approximately €13 million."
148
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Finish Fors. Industries
Description
Leadership: e.g. provision of effective
leadership within and for the industry on
the local, regional, and/or state level for
this industry area; effective advocacy for
constituents
"The Finnish Forest Industries Federation works to improve the competitiveness and profitability of the forest-based sector by
strengthening its operating conditions and building its positive image in Finland and abroad."
Policy: e.g. developing and/or advancing
policies to support and grow the sector and
support constituents
"The Finnish Forest Industries Federation strives to influence decision-making in Finland and the EU in matters that affect the
forest branch. We promote entrepreneurship and healthy forms of business. We also negotiate collective agreements in the
branch."
Investment: e.g. providing or attracting
investment in the sector from multiple
stakeholders (private and public)
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
"Paper & Wood Insights" (website: http://www.forestindustries.fi/Pages/default.aspx) is a wide-ranging source of information
about the Finnish forestry & forest-products sector.
Infrastructure: e.g. provision of a support
system to foster creativity and innovation in
the sector; new physical infrastructure to
provide opportunities for constituents
The research strategy of the Finnish forest cluster outlines seven research priorities for future development: a biorefinery
that utilizes wood diversely; added value from wood biomass; customer solutions for the future; intelligent and resourceefficient production technologies; intelligent wood and fiber products; new products manufactured from wood-based
materials; and sustainable forest management and research.'
Innovation: e.g. new business practices;
R&D
R&D website:
http://www.forestindustries.fi/tietopalvelu/pages/teema.aspx?ThemeId=080a73e2-0ce6-4441-92fa-25cafc9505d3
Project Descriptors
Name of entity, address, website link (if
available) and principal contact and contact
information.
Finnish Forest Industries Federation, POB 336 FI-00171, Helsinki, Finland; phone: +358 9 132 61; fax +358 9 132 4445;
website: http://www.forestindustries.fi/esittely/Pages/default.aspx; email: etunimi.sukunimi@forestindustries.fi
Mission/goal statement or guiding
principles (if available)
"The Finnish Forest Industries Federation's aim is for Finland to remain the most competitive and innovative operating
environment for the forest-based sector from the viewpoint of production, employment and investments."
Industry area and target clientele (incl. fee
range)
"Our membership covers the entire pulp, paper and paperboard industries and about 80% of the sawmilling, plywood and
wood products industry in Finland."
149
Status of Northern Forest Region States’ Forestry and Forest Products Industry
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Scale and profile of business (amenities,
age, number of products or services
available)and future areas of growth
"In 2008 the Finnish Forest Industries Federation will focus special attention on resource issues - wood and energy. Another
key objective is the renewal of paper industry working life practices through collective agreements. Strengthening the forest
industries' innovation capabilities and long-term competitiveness is also a priority."
BEOLOGIC
Description
Leadership: e.g. provision of effective
leadership within and for the industry
on the local, regional, and/or state
level for this industry area; effective
advocacy for constituents
Policy: e.g. developing and/or
advancing policies to support and
grow the sector and support
constituents
Investment: e.g. providing or
attracting investment in the sector
from multiple stakeholders (private
and public)
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities
for constituents
Innovation: e.g. new business
practices; R&D
Project Descriptors
Name of entity, address, website link
(if available) and principal contact and
contact information.
BEOLOGIC nv, Jolainstraat 44, 8554 SINT-DENIJS (ZWEVEGEM), BELGIUM; phone: +32 56 73 53 25; fax +32 56
73 53 20; website: http://www.beologic.com/
150
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Mission/goal statement or guiding
principles (if available)
"Beologic is a Belgian manufacturer of "Ready to Use" compounds for Wood-Polymer Composite production (WPC). These
compounds are filled with 25 up to 85% of conditioned wood fibres in a matrix of PVC , PP or PE."
Industry area and target clientele (incl.
fee range)
Scale and profile of business
(amenities, age, number of products
or services available)and future areas
of growth
'Some advantages of WPC: no deformation, does not crack or slit, & does not rot; machinable with traditional wood-tools; antibacterial & anti-fungal; water & moisture-resistant; available in several colors; painting, gluing & varnishing possible in some
formulations; reduced weathering; feels like wood; higher stiffness; anti-slip; recyclable; low maintenance; adjustable technical
properties; hollow & complex profiles possible; some formulations screwable & nailable.'
Välinge
Innovation
Description
Leadership: e.g.
provision of
effective leadership
within and for the
industry on the
local, regional,
and/or state level
for this industry
area; effective
advocacy for
constituents
Policy: e.g.
developing and/or
advancing policies
to support and grow
the sector and
support
constituents
Investment: e.g.
providing or
attracting
investment in the
sector from multiple
stakeholders
(private and public)
151
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Knowledge
Development and
Dissemination:
e.g. an effort to
understand macro
and micro trends
impacting the
sector and/or
effective
dissemination to
constituents
Infrastructure: e.g.
provision of a
support system to
foster creativity and
innovation in the
sector; new
physical
infrastructure to
provide
opportunities for
constituents
Innovation: e.g.
new business
practices; R&D
"Nearly all of the company's 40 employees work in R&D. In addition, Välinge uses a wide range of consultants and partners world-wide mainly in
the fields of patents, litigation and product technology…..In 2008 further investments in Välinge's R&D centre are planned. The facilities will be
doubled in size to 17 000 sq m and advanced equipment will be installed which considerable increase Välinge's capacity to support it's licensees
with prototyping and test production."
"Välinge's licensees have successfully introduced a wide range of products based on the company's technology, starting in 1996 with the revolutionary Alloc@
Flooring. Since then, Välinge has focused on the work to increase the patent activities, expand the patent portfolio, develop new technologies and form strategic
partnerships."
Project Descriptors
Name of entity,
address, website
link (if available)
and principal
contact and contact
information.
Mission/goal
statement or
guiding principles (if
available)
Välinge Innovation AB, Apelvägen 2, S-260 40 Viken, Sweden; phone: +46 42 23 78 15; fax: +46 42 23 78 45; President/CEO:
Darko Perván; email: info@valinge.se; website: http://www.valinge.se/company.lasso
"Välinge's mission is to provide new technology and services in the field of glue-free flooring, to flooring producers world-wide."
Industry area and
target clientele
(incl. fee range)
"Välinge is a world leading innovation company in the field of flooring technology. In 1993 Välinge developed the world´s first
mechanical locking system for laminate and wood flooring, which changed the way people install and use floorings."
Scale and profile of
business
(amenities, age,
number of products
or services
available)and future
areas of growth
"Välinge's business is completely based on R&D. In spite of deep and extensive knowledge within the flooring field, the company is
not involved in flooring production and will not compete against its licensees. The license income is used to develop new
technology in order to further support the licensees."
152
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Coed
Description
Leadership: e.g. provision of effective
leadership within and for the industry
on the local, regional, and/or state
level for this industry area; effective
advocacy for constituents
Policy: e.g. developing and/or
advancing policies to support and
grow the sector and support
constituents
Investment: e.g. providing or
attracting investment in the sector
from multiple stakeholders (private
and public)
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities
for constituents
Innovation: e.g. new business
practices; R&D
Project Descriptors
Name of entity, address, website link
(if available) and principal contact and
contact information.
Coed Derwen Joinery (Abergavenny)LLP, Unit 4, Gilchrist Thomas Industrial Estate, Blaenavon, Torfaen, NP4 9RL (Wales);
phone: 01495 792103; fax: 01495 792705; email: enquiries@coedderwen.co.uk; website:
http://www.coedderwen.co.uk/index.phtml
Mission/goal statement or guiding
principles (if available)
"Established in December 2005, ….. Coed Derwen Joinery (Abergavenny)LLP produce a range of environmentally
friendly cost effective hardwood windows and doors."
153
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Industry area and target clientele (incl.
fee range)
Scale and profile of business
(amenities, age, number of products
or services available)and future areas
of growth
"Based on an original idea by Coed Cymru, Coed Derwen Windows and Doors are made by laminating a small section of prime
qualilty Welsh Oak or Welsh Sweet Chestnut converted from sustainable FSC approved timber, supplied by Coed Cymru at
Wentwood Forest The Wye Valley, Monmouthshire. The manufacturing process produces strong stable sections with minimal
machining and waste, therefore enabling high levels of labour and material optimisation."
WW Technology
Description
Leadership: e.g. provision of effective
leadership within and for the industry
on the local, regional, and/or state
level for this industry area; effective
advocacy for constituents
Policy: e.g. developing and/or
advancing policies to support and
grow the sector and support
constituents
Investment: e.g. providing or
attracting investment in the sector
from multiple stakeholders (private
and public)
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
"The WW Technology team works closely with clients to test the process on various materials and develop
applications. Our main assets are several years of experience, developed skills and know-how in the context of the
WoodWelding® technology as well as an established global network of industry partners."
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities
for constituents
Innovation: e.g. new business
practices; R&D
154
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Project Descriptors
Name of entity, address, website link
(if available) and principal contact and
contact information.
WW Technology AG, Schlieren/ZH, Main Office, Wagistrasse 6, CH-8952 Schlieren/ZH (Zurich, Switzerland); phone: +41-(0)44204 61 21; fax: +41-(0)44-204 61 20; email: info@woodwelding.com ; website: http://www.woodwelding.com
Mission/goal statement or guiding
principles (if available)
“We are the skills center for a new innovative fixation technique called ‘WoodWelding® technology’. We have spent more than 10 years in
research, development and engineering to be able to offer a highly competitive opportunity for industrial applications.”
Industry area and target clientele (incl.
fee range)
"WW Technology AG is a development company of WoodWelding SA. WW Technology AG's focuses on further development and refinement of
the WoodWelding® technology, as well as product development for external customers and WoodWelding SA licensees."
Scale and profile of business
(amenities, age, number of products
or services available)and future areas
of growth
"WoodWelding® technology is an innovative fixation technique that uses ultrasonic energy to form a bond in porous materials. To achieve this,
thermoplastic elements in the form of e.g. a nail, dowel or seal are used as joining or connection elements. The technology offers a substitute to
traditional fixation solutions such as nails, screws, adhesives etc. "
Business Development & Innovation
Description
Leadership: e.g. provision of effective leadership within and for the
industry on the local, regional, and/or state level for this industry area;
effective advocacy for constituents
Policy: e.g. developing and/or advancing policies to support and grow
the sector and support constituents
Investment: e.g. providing or attracting investment in the sector from
multiple stakeholders (private and public)
Knowledge Development and Dissemination: e.g. an effort to
understand macro and micro trends impacting the sector and/or
effective dissemination to constituents
155
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Infrastructure: e.g. provision of a support system to foster creativity
and innovation in the sector; new physical infrastructure to provide
opportunities for constituents
Innovation: e.g. new business practices; R&D
Project Descriptors
Name of entity, address, website link (if available) and principal
contact and contact information.
Mission/goal statement or guiding principles (if available)
Business Development & Innovation: Heinrich Firgo; phone: +43 7672 701 2383; fax: +43 7672 918 2383; e-mail:
h.firgo@lenzing.com; Marketing Americas: David Adkins; phone: (251) 679-2831; fax: (251) 679-2883; e-mail:
d.adkins@lenzing.com; website: http://www.lenzing.com/en/index.jsp
"The Lenzing Group is a world leader in marketing and manufacturing man-made cellulose fibers. TENCEL®,
Lenzing Modal® and Lenzing Viscose® fibers are primarily used in the textile industry, special fibers made by
Lenzing are used for hygiene as well as technical applications."
Industry area and target clientele (incl. fee range)
"Lenzing fibers can be used for many applications. In addition to using viscose for home textiles, viscose has
primarily gained a place in the fashion industry. It creates features in textiles and fabrics that end consumers - but
also fashion designers - appreciate: brilliant colors, high wearing comfort, breathability, and a smooth flow."
Scale and profile of business (amenities, age, number of products or
services available)and future areas of growth
"However, Lenzing does more for its customers. We commission fashion experts and trend researchers worldwide
to identify the fashion trends of future seasons and to present them to you as quickly as possible. After all, Lenzing
does not only provide the necessary lead over competitors when it comes to producing fibers."
LC Energy
Description
Leadership: e.g. provision of effective
leadership within and for the industry
on the local, regional, and/or state
level for this industry area; effective
advocacy for constituents
Policy: e.g. developing and/or
advancing policies to support and
grow the sector and support
constituents
156
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Investment: e.g. providing or
attracting investment in the sector
from multiple stakeholders (private
and public)
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities
for constituents
Innovation: e.g. new business
practices; R&D
Project Descriptors
Name of entity, address, website link
(if available) and principal contact and
contact information.
LC ENERGY, Weston Yard, Albury, Guildford, Surrey GU5 9AF, UK; phone: +44 (0)1483 205659; fax: +44 (0)1483
202510; website: http://www.lcenergy.co.uk/index.php; email: enquiries@lcenergy.co.uk
Mission/goal statement or guiding
principles (if available)
"We are a leading provider of low carbon heat energy services and wood fuel supply to domestic, commercial,
community and public organisations across the South East of England."
Industry area and target clientele (incl.
fee range)
'Our business specializes in offering a low cost alternative to gas or oil with renewable fuel sources & guaranteed reductions in CO2; secure
wood fuel supply contracts; complete low carbon heating schemes; consultancy on biomass systems, wood fuel supply & funding; project
management for turnkey wood fuel installations; and local & sustainable wood fuel supply chain set-up.'
Scale and profile of business
(amenities, age, number of products
or services available)and future areas
of growth
‘Our solutions have been built using long established wood fuel technology which has been proven throughout Europe over 40 years. We have
a detailed knowledge & understanding of the wood fuel sector offering our clients bespoke solutions to their heat energy requirements. In
partnership with the L& & Water Group, we aim to deliver: 10% reduction in fuel costs (compared with natural gas); 40% reduction in fuel costs
(compared with heating oil); 50% of your energy use as carbon neutral; and 100% use of sustainable wood fuel.’
CRC for Wood
Description
157
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Leadership: e.g. provision of
effective leadership within and
for the industry on the local,
regional, and/or state level for
this industry area; effective
advocacy for constituents
Policy: e.g. developing and/or
advancing policies to support
and grow the sector and
support constituents
Investment: e.g. providing or
attracting investment in the
sector from multiple
stakeholders (private and
public)
Knowledge Development and
Dissemination: e.g. an effort
to understand macro and micro
trends impacting the sector
and/or effective dissemination
to constituents
Infrastructure: e.g. provision
of a support system to foster
creativity and innovation in the
sector; new physical
infrastructure to provide
opportunities for constituents
Innovation: e.g. new business
practices; R&D
"CRC Wood Innovations has ground floor opportunities for investment in technologies with commercial potential in several different
markets. We invite interested companies with appropriate experience in product development and market understanding to connect
with us in developing these products."
"Postgraduate training research opportunities are available with Masters and PhD scholarship placements in all our research
programs. CRC staff provide an Advanced Diploma in Wood Management course, offered through The University of Melbourne,
providing professional development for timber industry employees."
"Our technologies are protected by international patents, and available to industry via our commercialisation program."
Project Descriptors
Name of entity, address,
website link (if available) and
principal contact and contact
information.
CRC for Wood Innovations, Swinburne University of Technology, Building A, 144 High Street, Prahran Victoria 3181, Australia; phone:
+61 3 9214 6088; CEO Professor Tom Spurling; email: TSpurling@swin.edu.au; website:
http://www.crcwood.unimelb.edu.au/index.html
Mission/goal statement or
guiding principles (if available)
"We research, develop and deliver microwave technologies aimed at streamlining timber processing and significantly adding value to
wood products. Our research is conducted in collaboration with industry partners and directed at meeting the needs of industry."
Industry area and target
clientele (incl. fee range)
"Our objective is to successfully transfer our technologies as on-line processes to the wood processing and furniture industries…..We
investigate processing of softwoods as well as Australia’s unique hardwood timbers."
158
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Scale and profile of business
(amenities, age, number of
products or services
available)and future areas of
growth
"Our technologies offer processing efficiencies and economic benefits in the areas of wood drying, wood preservation, and shaping
wood components. We also research modified wood materials that add value to low value timbers, improved adhesives and surface
coatings for wood products, and new engineering and design concepts for furniture."
EU-China
Leadership: e.g. provision of effective
leadership within and for the industry
on the local, regional, and/or state
level for this industry area; effective
advocacy for constituents
Description
"The Community Development (CD) component plays a very important role in the NFMP because it deals with the human side of
natural forest policy and management. This component aims at enabling villagers in the project townships and villages to improve
their livelihood base and to develop land use practices more compatible with sustainable development while achieving
environmental stability."
Policy: e.g. developing and/or
advancing policies to support and
grow the sector and support
constituents
Investment: e.g. providing or
attracting investment in the sector
from multiple stakeholders (private
and public)
Knowledge Development and
Dissemination: e.g. an effort to
understand macro and micro trends
impacting the sector and/or effective
dissemination to constituents
"EU-China Natural Forest Management Project (NFMP) is a kind of technical assistance project in support of the ongoing Natural
Forest Protection Program (NFPP)."…..the "ITD component provides professional support services on 'training and
communication to the other three components."
Infrastructure: e.g. provision of a
support system to foster creativity and
innovation in the sector; new physical
infrastructure to provide opportunities
for constituents
"The Project Management and Institution Building (PMIB) Component is responsible for the overall management, co-ordination
and administration of the NFMP Technical Assistance (TA) activities and also for helping the State Forestry Administration (SFA)
to build and strengthen its institutional capacity to be able to cope effectively and efficiently with the future demands that will be
placed upon them."
Innovation: e.g. new business
practices; R&D
"The Natural Forest Management (NFM) component of the NFMP deals with two main aspects of work: planning and practical
management related to natural forests."
Project Descriptors
Name of entity, address, website link
(if available) and principal contact and
contact information.
EU-China Natural Forest Management Project, Room 6006-6007, Sanli Building, 208 Andingmenwai Avenue, Dongcheng
District,100011 Beijing, P.R China; phone: (86-10) 51236751; fax: (86-10) 51236750; website:
http://www.nfmp.cn/english/index.asp; email: pmobeijing@yahoo.com
159
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Mission/goal statement or guiding
principles (if available)
"The Overall Objective of NFMP is “to improve the natural and human environment through sustainable management of natural
forest resources in China” and the Project purpose is 'to contribute to environmental stability and sustainable development of
local communities by testing and demonstrating an increased range of options for sustainable management of natural forest
resources for a variety of beneficiaries'."
Industry area and target clientele (incl.
fee range)
"The project is testing, demonstrating and promoting approaches and technologies for scientific management of natural forests
covering 58 villages located in twelve townships in six counties of Sichuan, Hunan and Hainan provinces. Four State Forest
Enterprises (SFE) and two Forest Farms are also covered under the project."
Scale and profile of business
(amenities, age, number of products
or services available)and future areas
of growth
"The “EU-China Natural Forest Management Project” (NFMP) started in July 2003 for duration of five years with a total financial
outlay of € 22.50 million (225 million RMB) from the European Union and the Government of China."
160
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
161
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
8. Conclusions
The forest products industry in the Northern Forest states of Maine, New Hampshire, Vermont and
New York, is large, a significant portion of the economy of the states and especially the northern
region of the four states and, most importantly, in a state of change.
Change can be both a blessing and a curse and in recent years the region has been experiencing both
within this long standing industry. On the positive side, the forest products industry has ample
timber resource to draw its raw material from. The forests of the region are growing in volume and
area, with growing standing inventories of wood on the stump being seen in all the Northern Forest
states but especially in New York, Vermont and New Hampshire. Sustainable forestry, with its
focus on assuring that future generations have the full suite of benefits from our forests as the
current one, is fully embraced in the region. This phenomenon bodes the region and its “wood”
future well.
The region is also blessed with its close proximity to substantial markets for its products in the
megalopolis stretching from Portland, ME and Manchester, NH through Boston and to New York
City and New Jersey. Whereas the northern part of the Northern Forest is home to some of the
lowest population densities in the U.S., the southern end of this area stretching to New Jersey and
beyond, contains some of the highest densities in North America. These people need and want
wood products, something the Northern Forest area can provide in a full-range of variation and
sources.
The region is, however, also experiencing global competition and cheap imports as it has never seen
before. Competition from producers of wood-based products from Asia, the Pacific Rim, Russia,
South America and Africa, will continue to make in-roads into the markets so valued by the
Northern Forest producers. Even with the recent downturn in imports due to the weakening of the
dollar worldwide, the Northern Forest region can expect continued significant competition for
markets.
Forests, forestry and the forest products industry have, for over 150 years, been an integral part of
the economy and social fabric of the Northern Forest region and its communities. It will continue
to be, though not without significant changes, for many years to come.
162
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
163
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008
Sources
2005 Land Trust Census Report, Land Trust Alliance 2006
2005 National Land Trust Census Report, Land Trust Alliance, Washington, D.C., 2006
Alvarez, M., State of America’s Forests, Society of American Foresters, 2007
Alvarez, Mila “State of America’s Forests” unpublished presentation to New England Society of
American Foresters, 2007
Annual Progress Report and Scorecard, Governor’s Steering Committee on Maine’s Natural Resourcebased Industry, 2006
Birch, Thomas, Private Forest-Land Owners of the Northern United States, USDA Forest Service Resource
Bulletin NE-136, 1994
Brooks, R., Abundance, Distribution, Trends, and Ownership Patterns Of Early Successional Forest in the
Northeastern United States, Forest Ecology and Management, Vol. 185 2003 pp 65-74
Butler, B., and Leatherberry, E., America’s Family Forest Owners, Journal of Forestry, 2004
Butler, Brett and Leatherberry, Earl, “America’s Family Forest Owners,” Journal of Forestry 2004
Butler, Brett, J., Leatherberry, Earl C., USDA Forest Service, Forest Inventory & Analysis National Woodland Owner
Survey 2004 Preliminary Results, 2005
Chicago Climate Exchange (CCX). 2006 Rulebook. CCX, Chicago, IL. 179p.
Collins, Sally, Darr, David, Wear, David, Brown, Hutch, Global Markets and health of America’s
Forests: A Forest Service Perspective, Journal of Forestry, January/February 2008
Community Forests, A Community Investment Strategy, A report by the Community Forest Collaborative,
Aug, 2007
Community Forests, A Community Investment Strategy, Community Forest Collaborative, 2007
Economic Importance and Wood Flows from the Forests of Maine, New Hampshire, Vermont and New York,
2007, North East State Foresters Association
Fidel, Jamey, “Roundtable on Parcelization and Forest Fragmentation,” Vermont Natural Resources
Council, 2007
Fidel, Jamey, Roundtable on Parcelization and Forest Fragmentation, Vermont Natural Resources Council,
2007
Finding Common Ground: Conserving the Northern Forest, Northern Forest Lands Council, 1994
Finding Common Ground: Conserving the Northern Forest, Northern Forest Lands Council, 1994
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Germain et al “Forestland Parcelization in Upstate New York Despite Economic Stagnation and a
Declining Population, Northern Journal of Applied Forestry 2006
Germain, R., Anderson, N., and Bevilacqua, E., The Effects of Forestland Parcelization and Ownership
Transfers on Non-industrial Private Forestland Stocking in New York, Journal of Forestry, Dec 2007
Germain, R., Brazill, K., and Stehman, S., Forestland Parcelization in Upstate New York Despite Economic
Stagnation and a Declining Population, Northern Journal of Applied Forestry, Vol 23, No. 4 2006
Germain, Rene, Anderson, Nate, and Bevilacqua, Eddie, “The Effects of Forestland Parcelization
and Ownership Transfers on Nonindustrial Private Forestland Forest Stocking in New York,”
Journal of Forestry, Dec 2007
Hagan, J., Whitman, A., and Irland, L., Changing Landownership in the Northern Forest: Effects on
Biodiversity, GTR-NE-325, 2005
Historical references to the beginning of the pulp and paper industry in the US http://www.pasty.com/copperrange/pulpmill.htm
Hodgdon, Benjamin, Tyrrell, Mary, An Annotated Bibliography on Family Forest Owners, Yale Program
on Private Forests, 2003
Ikenson, Daniel, Talk about industry's demise just a manufactured myth, Cato Institute, November,
2007
Innovative Natural Resource Solutions LLC, Maine Future Forest Economy Project: Current Conditions and
Factors Influencing the Future of Maine’s Forest Products Industry, March 2005
James Cathcart, R. Alec Giffen, Steven Ruddell, R. Neil Sampson, Matt Smith, John Hagan, Daniel
Sosland, John Godbee, John Heissenbuttel, Stephen Lovett, John Helms, William Price and Robert
Simpson, The Role for Sustainably Managed Forests in Climate Mitigation, The Journal of Forestry,
September, 2007
James Sewall Company, Timberland Ownership and Forest Industry Changes in the U.S. Northeast,
Timberland Report Vol. 9 No. 2. 2007
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Kingsley, E., Levesque, C., and Peterson, C., The Northern Forest of Maine, New Hampshire, Vermont and
New York: A look at the Land, Economics and Communities 1994-2004, 2004
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Hampshire, Vermont and New York: A look at the land, economies and communities 1994-2004, unpublished
2004
Kyoto Protocol summary, United Nations, http://unfccc.int/kyoto_protocol/items/2830.php
Malmsheimer, R., Bentley, W., and Floyd, D., Conserving the Northern Forest – A Report Card on State
and Federal Implementation of Recommendations of the Northern Forest Lands Council, Journal of Forestry,
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New Hampshire’s Changing Landscape, SPNHF, 2005
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Northern Forest Lands Council 10th Anniversary Forum Final Report, 2004
Northern Forest Lands Study, U.S. Forest Service, 1990
Northern Forest Lumber Production 1839-2005 - US Census, Lumber Production in the United
States 1839-1946, Henry Steer, USDA; Andrew Jones and Don Seville, Sustainability Institute,
North East State Foresters Association
Numerous (hundreds) of website addresses.
Pellet Fuels Institute, www.pelletheat.org
Population Estimates, U.S. Census Bureau website
R. Neil Sampson, “ America’s Family Forest Owners, Implications for Forest Production,” Journal
of Forestry 2004.
Sampson, N., and DeCoster, Lester, Forest Fragmentation, Implications for Sustainable Private Forests,
Journal of Forestry, March 2000
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Forests,” Journal of Forestry March 2000
Sherman, A., Vermont Fuel Supply Study, Biomass Energy Resource Center, July 2007
Smith, B., Miles, P., Vissage, J., and Pugh, S., Forest Resources of the United States 2002., U.S.D.A. F.S.
NCRS, 2004
Society for the Protection of NH Forests, “ New Hampshire’s Changing Landscape,” 2005
The Economic Importance of the Northeast’s Forests, North East State Foresters Association, 2004
The Forests of Maine: 2003, USDA USFS NERS, NE-164, Sept. 2005
Thorne, S., and Sundquist, D., New Hampshire’s Vanishing Forests: Conversion, Fragmentation and
Parcelization of Forest in the Granite State, Report of the Land Base Study, SPNHF, 2001
Thorne, Sarah and Sundquist, Dan, “New Hampshire’s Vanishing Forests: Conversion,
Fragmentation and Parcelization of Forests in the Granite State,” Society for the Protection of New
Hampshire Forests, 2001
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OF THE
STATES
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US Census of Manufacturers, 2006 - Published 2007
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3, 1 August 2002 , pp. 459-470(12)
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167
Status of Northern Forest Region States’ Forestry and Forest Products Industry
May 31, 2008