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Banner for Economic Profile and Trends for Forest Products Industry
Menu Bar Value of Shipments | Annual Production | Labor Productivity

The U.S. forest products industry makes a strong contribution to the national economy, producing 1.2% of the U.S. GDP. The industry employed almost 1.3 million people in 1997, with average hourly production wages of $16.17 in the pulp and paper sector and $11.43 in lumber and wood products [DOC 1997]. The industries are highly cyclical, being dependent on commodity prices and strong consumer markets. Following a prolonged downcycle in the economic recession of the early 1990s, a time of significant downsizing and industry restructuring, the industry is posting strong production gains in the robust economy of the late 1990s. With continuing recovery of Asian and other key overseas markets, the paper industry is projected to increase product shipments by 2% annually through 2003 [Miller Freeman 1998]. To stay competitive and to develop the products and processes that will be required to comply with environmental regulations, the pulp and paper sector directs about 1% of its sales annually toward R&D on new/improved products and processes. R&D spending for the pulp and paper sector alone was over $1.5 billion in 1996. [AF&PA 1998]


Figure on Industry Economic and Trade Statistics - 1997
Source: DOC 1997, DOC 1994, NSF 1997

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Strong production gains have been posted in the robust economy of the late 1990s
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Annual Production Header
Total primary U.S. paper and paperboard production is about 95 million tons per year
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Labor Productivity Header
The labor productivity of U.S. pulp and paper workers has increased 1% annually over the last decade
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File Last Modified: 05/05/2000

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