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Forest Products Profile Photograph of Refinery Plant

Forest Products Industry Profile


1999 Value of Shipments $255.1 billion
1999 Capital Expenditures $10.1 billion
1999 Average Hourly Wages (Production Workers) $14.17
1998 Energy Use 3.3 quads
1999 Production of Total Paper and Board 88.1 million tons
1999 Production of Total Pulp 57.1 million tons
1999 Wastepaper Recovery 42.9 million tons
1999 Wastepaper Consumption 33.8 million tons

Wood and paper products meet the everyday needs of consumers and businesses. They provide materials essential for communication, education, packaging, construction, shelter, sanitation, and protection. The United States produced 88 million tons of paper and paperboard in 1999, over 700 pounds for every man, woman, and child. The forest products industry is also the third-largest industrial consumer of energy, and generates more than 2 billion tons of waste each year – mostly in the form of non-hazardous waste water and sludge. The industry generates 63% of its own energy using its woody waste products and other renewable sources for fuel (bark, wood, and pulping liquor). Since 1972, the industry has reduced its use of fossil fuels and purchased energy by about 2 percent, yet increased its total production by nearly 64 percent. Even so, the forest products industry spent more than $7.6 billion on purchased fuels and electricity in 1998, or just under 3 percent of the value of its shipments that year. For more information, please read the Forest Products Industry Analysis Brief.

The U.S. Forest Products Industry is based on a renewable and sustainable raw material: wood. It practices recovery and recycling in its operations. Its forests help the global carbon balance by taking up carbon dioxide from the atmosphere. The industry also contributes to land management and natural resource conservation. Following decades as a global leader, the industry is increasingly challenged by its traditional competitors (Canada, Scandinavia, Japan) as well as by emerging nations (Brazil, Chile, Indonesia). Technical challenges facing the industry are centered on using recycled materials cost-effectively, meeting environmental regulations, and reducing energy costs. Other pressures include the diminishing amount of land available for tree farms, and a lack of capital for carrying out long-term research and development projects.

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Last updated: 02/02/04