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- Title
Changes in Montana's secondary wood products industry, 1990 to 1999.
- Authors
Keegan III, Charles E.; Gebert, Krista; Chmelik, John
- Abstract
Poor economic performance and concerns over declines of Montana's largest manufacturing industry, the wood and paper products industry, have spurred interest in adding more value to the state's natural resources. With over 90 percent of the output of the timber processing industry being shipped out of state for further processing, performing more of this work within the state could be a way to increase employment and payroll. To assess whether the interest in value-added manufacturing over the last two decades has led to growth of Montana's secondary wood products industry, a census of Montana's secondary wood products manufacturers was conducted in 2000. Results of this census were compared to those of a previous census conducted in 1991. Comparisons show that sales in Montana's secondary wood products industry, when adjusted for inflation, increased 31 percent over the period, to around $211 million (in 1999 dollars). This growth in sales was associated with an increase in employment of 11 percent and a 17 percent increase in inflation-adjusted payroll per employee. These are encouraging signs; however, the secondary wood products sector does not seem to offer a panacea for Montana's low payroll and per-capita income performance. Montana markets accounted for nearly all the sales growth, though out-of-state sales in some categories increased significantly. Results do, however, show growth, increased average real wages, and a modest, but perhaps increasing, potential to improve economic well being by adding value to primary wood products.
- Subjects
MONTANA; UNITED States; FOREST products industry; PAPER products industry; MANUFACTURING processes; WOOD products; FOREST products
- Publication
Forest Products Journal, 2004, Vol 54, Issue 4, p25
- ISSN
0015-7473
- Publication type
Article