WISCONSIN S FOREST PRODUCTS

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1 WISCONSIN S FOREST PRODUCTS

2 WISCONSIN S Sustainable Forest Resources F orestproductswi.com Wisconsin s quality resources are an advantage to new and expanding forest product industries. There are 16 million acres (46 percent of the State s land area) featuring diverse high-quality hardwoods and softwoods. Wisconsin is a national leader in the size of its thriving commercial forests. The northern part of the state comprises the bulk of the resource with a predominance of sugar maple, red maple, northern red oak, and aspen. In the south, white oak, red maple, sugar maple and northern red oak are the dominant species. Wisconsin s forests are very healthy. Wisconsin has been managing its forests in a sustainable manner since the 1930 s. Major threats like fire, insect infestation, and tree diseases are well controlled. While Wisconsin s rich forest resource base supports a $22 billion annual forest products industry, there is plenty of room for expansion since the annual forest harvest is less than 70 percent of the net annual forest growth. Wisconsin s forestlands actually gained over 640,000 acres in a recent twelve-year period. The net volume of growing stock increased 12 percent during this same time period. Wood There is 18.5 billion cubic feet of wood in Wisconsin s forests. The annual wood growth exceeds harvest for most species. Growth Each year Wisconsin s forests grow approximately 490 million cubic feet of additional wood. If this wood was put in cubic foot blocks, end to end, it would circle the equator 3.3 times. Removals Each year we remove 332 million cubic feet of wood, allowing our available forest inventory to continue to grow. Net Increase We are experiencing an increase of standing wood! Of every 1,000 live trees over ten feet tall in Wisconsin, only four will be harvested by loggers this year and 98 new trees will grow past the ten foot mark during the year. Most forests are privately owned in Wisconsin, unlike many western states where forestlands are largely in the hands of the federal government or large forest industries. Ownership 57% Private individuals landowners 30% Public owned 11% Private corporations/forest industries 2% Native American Tribes Wisconsin paper companies are committed to practicing and promoting sustainable forestry. Their commitment, the Green Guarantee, focuses on company owned and managed land with an outreach program to loggers and other wood suppliers, including private, non-industrial landowners. This outreach program combines reforestation, managing, growing, nurturing and harvesting trees for useful purposes. Sustainable forestry also conserves soil, air and water quality, wildlife and fish habitat, and aesthetics. The strength of innovation in the industry is underscored by a long history of inventing several market leading products. Bill Ward, Public Affairs, P&G Paper Products Co.

3 Wisconsin s Forest Industry... Left: Wisconsin s primary mill locations Above: Wisconsin s forest acreage...growing Strong In the United States, Wisconsin s forest industry ranks first in fine papers, first in sanitary paper products, first in high quality juvenile furniture, first in millwork, and third in hardwood veneers. Wisconsin also leads the nation in forest product manufacturing capital expenditures, ranks second in annual payroll, and second in total forest products employment, which is growing significantly faster than the national average. Forest products industry jobs account for 16.5% of all manufacturing employment in Wisconsin with an annual payroll in excess of 3.2 billion dollars.

4 Wisconsin is #1 for a Reason... Papermaking Industry Over the past 150 years, Wisconsin s paper industry has grown into an economic dynamo. With more than 5.3 million tons of paper and over 1.1 million tons of paperboard produced annually, Wisconsin is the #1 papermaking state in the nation. Moreover, Wisconsin has held this distinction for over 50 years. Wisconsin s forest products industry employs more than 103,000 people with papermaking representing the largest component. This total includes timber producers (loggers and transporters), plus people employed in sawmills and businesses producing lumber, furniture and related products. Wisconsin employs one out of every 12 United States paper industry workers or 8.3 percent of the nation s total paper employment. In Wisconsin, paper and allied firms account for one in every 11 manufacturing jobs or 9 percent of the total. Pulp, paper and allied firms provide more than 53,000 high quality jobs in which the pay is 60 percent higher than the state average. While paper employs only 1.7 percent of the State s total workforce, the industry s wages constitute nearly 3 percent of all wages paid to Wisconsin workers. Convenient access to quality Wisconsin-made paper is a very influential factor for the State s vigorous and growing paper industry. More than 52,700 printing firms, one-half of which are located in Milwaukee and southeast Wisconsin, provide an additional $1.8 billion in wages annually. According to the Department of Urban and Regional Planning at the University of Wisconsin Madison, papermaking indirectly supports jobs for 125,350 people in Wisconsin. This translates to almost $4.4 billion of economic benefit in the state from paper as the industry s workforce earnings are spent on goods and services such as food, clothing, personal items, medical care and recreation. New equipment and technology, combined with outstanding management and a talented workforce, have helped to improve productivity 109 percent during the time frame Meanwhile, employment increased 32.4 percent, while production of paper and paperboard increased 177 percent. The value of shipments from Wisconsin s paper companies alone is more than $12.4 billion annually. A Solid Foundation Converted Paper 203/11% Paper Mills 25/1% Pulp Mills 10/1% Paper Manufacturing 254/14% Sawmills 341/19% Wood Products 985/53% Total Forest Product Companies = 1,834 Veneer, Plywood 16/1% Favorable Tax Climate Wisconsin s low total corporate tax burden for forest product manufacturing is among the most favorable in the nation. Wisconsin employers pay the lowest allowable unemployment costs because of the system s well-capitalized reserve fund. Wisconsin s pioneering workers compensation system offers reasonable benefits, efficient service delivery, and low costs to employers. Since 1993, rates have declined by 30%. Business Tax Exemptions and Credits Exempt Manufacturing Machinery and Equipment Research Expenditures Manufacturing Inventories Pollution Abatement Equipment Research Facilities Computer Equipment & Software Sales Tax for Machinery & Equipment Sales Tax for Manufacturing Energy Sales Tax for Pollution Abatement Equipment and Materials Credit

5 F orestproductswi.com Industry Assistance TECHNICAL ASSISTANCE Division of Forestry Wisconsin Department of Natural Resources Phone: (608) FOREST PRODUCTS MARKETING Department of Forest Ecology and Management University of Wisconsin-Madison Phone: (608) FOREST PRODUCTS MANAGEMENT College of Natural Resources University of Wisconsin-Stevens Point Phone: (715) PULP, PAPER & ALLIED INDUSTRY ASSISTANCE The Wisconsin Paper Council Phone: (920) ECONOMIC DEVELOPMENT/ SITE SELECTION Forward Wisconsin Phone: (608) Success Through Partnerships Nowhere else in the country is there such a pool of public, private, basic & applied research and technology transfer available to the forest industry as in Wisconsin. Forest products planning, manufacturing, and marketing assistance is available in Wisconsin from a number of sources, including the following: Fox Valley Technical College Appleton, Oshkosh The wood technology services at the Fox Valley Technical College features customized on-site machine operator instruction, assistance with new process investigation, safety and training seminars. The highly trained staff offers businesses services to improve woodworking employee productivity. The training emphasizes a hands-on approach and can be customized to organizational needs. ( USDA Forest Service Forest Products Laboratory Madison For more than seven decades, this Madison-based institution has been the nation s leading research institute in the wood utilization of forest resources. It is recognized both nationally and internationally as the unbiased technical authority on wood science and use. ( University of Wisconsin Madison Department of Forest Ecology and Management UW-Madison is a national leader in forest science. Forestry programs at the University of Wisconsin have operated for more than 50 years providing assistance in technology transfer with an emphasis on marketing. The department s primary strengths have been in the forest biological, forest management, and wood and fiber sciences. ( University of Wisconsin Stevens Point The College of Natural Resources The College of Natural Resources provides assistance in technology transfer, with an emphasis on business management. This includes financial analysis of investments and business planning for forest product firms. ( The Department of Paper Science The Department of Paper Science is committed to educating the best professionals in the paper industry. The department s fully operational paper machine provides real-world training for students and represents over $3 million in investment and support from private industry. ( Wisconsin Department of Natural Resources Division of Forestry The DNR forestry program encourages sustainable, forest ecosystem development through a variety of partnership programs with other forest landowners. Through these partnership efforts, the DNR forestry program encourages management for commercial forest crops and recognizes property owner s rights as well as society s needs for a variety of products from the forest. ( Wood Industry Directories Primary - provides a statewide listing of the primary wood using industries in Wisconsin and aids manufacturers and landowners in the marketing of their products. ( Secondary - provides a statewide listing of the secondary wood using industries in Wisconsin and aids these manufacturers in the marketing of their products. (

6 Forward Wisconsin Forward Wisconsin is your entry to Wisconsin s forest industry investment opportunities. As Wisconsin s economic development marketing corporation, Forward Wisconsin works effectively and cooperatively with public and private agencies to support, develop, promote, and assist your commercial and industrial development and expansion in Wisconsin. (ForwardWI.com) An Exhilarating Place to Live, Work, Play & Learn Located in the heart of the Great Lakes region, the 16 million acres of forests significantly contribute to the quality of life in our state. Wisconsin s forests are important for their beauty, recreational opportunities, biodiversity, products and a variety of other values. Discover the great quality of life available in Wisconsin: Time is valuable. In Wisconsin, you can be out on a golf course, a lake or ski hill, or attending the theatre or a sporting event in a matter of minutes. With 10 state forests, two national forests, numerous recreation areas and state parks, Wisconsin is open to many recreational and educational opportunities. Wisconsin is quality living at an affordable price. Energy, health care, housing, and insurance costs are lower than the national average. Because of Wisconsin s commitment to quality education, the state s high school students outperform the U.S. average in mathematics and reading skills, and continue to top the nation in ACT college entrance exam scores. 201 West Washington Avenue, Suite 500 Madison, WI ForestProductsWI.com ForwardWI.com SitesWI.com Funding for this project was provided by the Eau Claire Area Economic Development Corporation, WEDI and WPS.

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