Forestry & Logging
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 8,100 companies in the US forestry and logging industry are involved in natural resource management and harvesting. Companies may own and manage the land and harvest the trees and plants, or provide contracted services to public and private landowners. Over 1 billion trees are planted in the US annually – the equivalent of three plantings for each tree harvested.
Worker Injuries And Fatalities
Despite efforts by the industry to reduce injury rates, logging ranks as the most dangerous occupation in America.
Pest Infestations
The spread of invasive plants, diseases, and insects that target woodlands are growing and destroying timber stands in the US.
Industry size & Structure
The average forestry and logging company operates out of a single location, employs 6 workers, and generates $1-2 million in annual revenue.
- The forestry and logging industry comprises about 8,100 companies that employ about 44,500 workers and generate about $12 billion in annual revenue.
- The industry consists of foresters that maintain woodlands and loggers that harvest timber.
- Over 1 billion trees are planted in the US annually – the equivalent of three plantings for each tree harvested. The US has recorded over 50 consecutive years of net forest growth that exceeds yearly harvest, according to the North American Forest Foundation.
- About one-third of the US is covered in forest; 58% is classified as private land and 42% is public.
- 94% of firms have fewer than 20 employees.
- The industry's gross output is volatile and can change 20% from year to year.
- Large companies include ALRT Corporation, C & C Logging, Huffman-Wright, and the timber operations of vertically integrated companies like Weyerhouser, Mid-South Lumber, Green Diamond Resources, and PotlatchDeltic.
Industry Forecast
Forestry & Logging Industry Growth
Recent Developments
Sep 27, 2024 - Prices and Employment Tumble
- Producer prices for logging companies fell 3.1% in July compared to a year ago after falling 5.2% in the previous July-versus-July annual comparison, according to the latest US Bureau of Labor Statistics data. Meanwhile, employment by logging companies tumbled 16.1% year over year in August, on the heels of a 5.3% increase in the average industry wage to $28.73 per hour in July, BLS data show. Prices and employment are falling amid a decline in sales for wood products companies, which sank 11.2% in the first quarter year over year and 4.4% compared with Q4 2023, Census Bureau data show.
- The Northwest Forest Plan (NFP) Advisory Committee has amended a 30-year-old plan for managing 24.5 million acres of federally managed lands in the Northwest, according to the US Forest Service. The committee of 21 scientists, loggers, conservationists, and tribal and government representatives published 184 recommendations to address changing conditions and guide the future of endangered forests in the Northwest. While 113 recommendations are dedicated to Tribal and Indigenous inclusion – left out in the 1994 NFP – the committee also redefined old-growth forests as any stand established before 1825 and recommended prohibiting logging in those stands. The committee also published 26 fire resilience recommendations, including reintroducing fire on the landscape through controlled burns. The Forest Service said it plans to release the draft Environmental Impact Statement for the amendment to the NFP in October.
- Heat waves are lingering for longer periods, exacerbating the harmful effects of extreme temperatures, The New York Times reports, citing a recently published study in the journal Science Advances. Fueled by global warming, heat waves have increased in frequency, intensity, and duration across many parts of the globe during the past decades, according to the study, with serious consequences for forests, farmland, oceans, and the industries they support. Between 1979 and 2020, the rate at which heat waves travel slowed by about 5 miles per day, the study found. Heat waves also now last about four days longer on average. Life-threatening heat waves dry out soil and vegetation, harm crops, and raise the risk of wildfires. In July, 38 large, uncontained wildfires were burning on roughly 840,000 acres of land in Oregon and Washington, making the Northwest region the top firefighting priority in the US.
- Reforestation efforts in the aftermath of extreme wildfires in the US are being hobbled by a lack of seedlings and workers to plant them, The New York Times reports. According to American Forests, the potential exists to reforest 148 million acres (an area the size of California and Washington combined) in the contiguous US. To reforest those acres, US tree nurseries would need to more than triple production from 1.4 billion seedlings to 5.1 billion seedlings grown annually. Players in reforestation efforts include the federal and some state governments, which are dedicating more money than they have in generations to planting projects. The Replant Act, a major reforestation measure folded into the massive Infrastructure Law, would quadruple funding for the US Forest Service to restore national forests and aid in carbon sequestration efforts. However, tree nurseries are hesitant to ramp up production amid uncertain future demand, NYT reports.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.