The U.S. forest products industry is divided into two major categories: Paper and Allied Products (SIC 26) and Lumber and Wood Products (SIC 24). These industries are often grouped together because both rely on the nation's vast forest resources for raw material. In addition, many companies that produce pulp and paper also produce lumber and wood products in integrated operations. With a timberland base of about 490 million acres, the forest products industry harvested close to 19 billion ft³ of softwood and hardwood timber in 1998 [Miller Freeman 1998]. Almost half of the wood harvested is used for construction and building materials, and close to 30% of the wood is used to make pulp and paper [TAPPI PRESS 1998].

The United States is the world's leading producer of lumber and wood products used in residential construction and in commercial wood products such as furniture and containers. The United States is also the leader in the pulp and paper business, producing about 34 percent of the world's pulp and 29 percent of total world output of paper and paperboard [Miller Freeman 1998]. Fueling this large manufacturing sector is consumption; as the world's leading consumer of paper and paperboard products, the United States consumed close to 99 million tons in 1997 or about 738 pounds per capita [Miller Freeman 1999]. In 1997, exports totaled $14.4 billion dollars, only $123 million less than imports [AF&PA 1998].

The forest products industry is a multinational enterprise with plantations and mills around the world. With over 44,000 facilities in the United States alone (6,541 in Pulp and Paper and 37,471 in Lumber and Wood), the industry produced shipments valued at close to $262 billion in 1997. As a strong contributor to the nation's economy, the industry employs close to 1.3 million people in all regions of the country and ranks among the top 10 manufacturing industries in 46 states. Although the industry self-generated more than 56% of its energy needs in 1996, it is still the third largest user of fossil energy in the U.S. manufacturing sector. [AF&PA 1998, MECS 1994]

Forest products industry shipments are close to $262 billion annually.

The forest products industry is the third largest industrial user of energy.

Wisconsin, California, and Georgia are the nation's top three forest products producers.

Forest products industries employ a variety of physical and chemical processes.

Almost 2,500 energy audits were performed at forest products establishments in 1994.

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