Oregon’s Forestry and Logging Industry: From Planting to HarvestNovember 14, 2016 Oregon is one of the world's great tree-growing areas. The state's soils and climate provide ideal conditions to grow such commercially viable species as Douglas fir and ponderosa pine. Forests cover more than 30 million of Oregon's 62 million acres – almost half of the state's landmass.
The Oregon Department of Forestry (ODF) estimates logging harvests totaled 3.8 billion board feet in 2015. While much of this timber feeds Oregon's wood products industry, creating jobs and income, many jobs are also created planting, growing, and harvesting this resource.
Forestry and Logging Industry Employment
Firms in the forestry and logging sector grow and harvest timber on a long production cycle, generally of 10 years or more. Timber production requires natural forests or suitably large areas of land that are available long term. Oregon's often mountainous and remote terrain, in both public and private ownership, provides that land base.
- The forestry and logging subsector is made up of three industries:
- Timber tract operations
- Forest nurseries and gathering of forest products
Employment was in slow decline between 2005 and 2009 and has since leveled off and started into a recovery, varying seasonally in a band around 10,000 jobs.
Of the 2015 annual average total, 6,511 are employed in the private sector while 3,441 are employed in government. Most of the government employment is in federal government at 3,147 while the rest is in state government.
Covered employment is a count of workers covered by Oregon's unemployment insurance (UI) program. Self-employed individuals are generally not included in the program and, therefore, not counted. However, the U.S. Census Bureau produces nonemployer statistics. A nonemployer business is one that has no paid employees, has annual business receipts of $1,000 or more, and is subject to federal income taxes. In addition to covered employment, the forestry and logging industry had 1,563 nonemployers in Oregon in 2015. Gross income for these companies was $104 million. Although there is no further industry breakout, it is likely that many of these self-employed are involved in timber tract operations and the gathering of forest products.
Forestry and logging is a highly seasonal industry. Employment generally grows throughout the spring and peaks in August. Employment often stabilizes for a month or two in the fall before dropping off as winter rains begin.
The forestry and logging sector is dominated by logging companies, which totaled 639 reporting units and 6,003 employees in 2015. The logging industry, with a statewide annual average wage of $48,372 in 2015, pays about the same as the average wage of $48,320 for all industries. Major occupations in this industry include loggers, equipment operators, truck drivers, and fallers and buckers. A few companies in the logging industry use heavy-lift helicopters.
Logging shows a similar seasonality to the overall sector except, with less volatility.
The second-largest group of employment in forestry and logging is timber tract operations, employing 3,709 on an annual average basis in 2015. Timber tract operations employment is dominated by government employment. In 2015, 3,148 federal workers and 185 state workers managed government forest lands. The remaining 377 were in the private sector. In addition to forest workers, many occupations in this industry are managerial or professional and require a high level of education. Wages, therefore, are relatively high – $71,365 on an annual average basis in 2015.
The industry with the least employment in the forestry and logging subsector is forest nurseries and gathering of forest products, with only 14 reporting units and covered employment of 140. Many of the occupations in this industry are seasonal nursery work, which contributes to the low annual average wage of $29,510. The covered employment numbers for this industry may be low since many of the entities that gather forest products are sole proprietors or family operations that are not covered by UI law.
After a Decline, Recovery from the Great Recession
After a period of relative stability earlier in this decade, the forestry and logging industry continued a slow decline that began in the early 1990s. From 1990 to 2000, private sector forestry and logging declined from 15,774 jobs statewide to 12,887, a loss of 2,887 jobs or 18 percent. During that period, timber harvests in Oregon declined from 6.2 billion board feet to 3.9 billion board feet.
The decline was due largely to environmental concerns and the resulting decrease of harvests from public lands. In 1990, the ODF reported 48 percent of timber cut for the lumber and wood products industry came from public lands. Over time, restrictions took a toll, and the harvest from public lands in Oregon dwindled to 18 percent of the total in 2007.
Due to low interest rates and a record level of housing starts in the western U.S., the 2004 timber harvest level of 4.5 billion board feet was the highest since 1993. Since then, western housing starts have declined due to a nationwide recession. Timber harvest levels declined along with building permits to 3.8 billion board feet in 2007. Correspondingly, employment in forestry and logging dropped 1,886 jobs, or 15 percent from 2004 to 2008.
With the end of the Great Recession in 2009, the industry stabilized, largely due to increased exports to China. Since then, logging employment has grown slowly, going from annual average employment of 5,260 in 2009 to 6,003 in 2015.
Some of the long-term decline in employment was due to increased mechanization. A simple way to look at the efficiency created by mechanization is to look at the volume of timber harvested per logging worker. There was an average of 550,000 board feet harvested per logging worker in 1990. By 2015, that figure had risen to 631,000.
Support Activities for Forestry
The high level of forestry activity in Oregon also creates demand for a support activities industry (NAICS 11531). In 2015, support activities had covered employment of 4,082 and provided $165 million in payroll. In addition, there were 569 nonemployer businesses with gross income of $29 million in 2014. Included in this industry are firms that replant forests, fight forest fires, thin forests, and provide information to the timber industry.
Annual average covered wages in this industry were below the all-industry average, at $40,497 in 2015. Seasonal, sporadic, and part-time work are prevalent, bringing down the annual average.
Employment in these support activities has been relatively stable with average annual employment increasing slightly recently, going from 3,432 in 2012 to 4,065 in 2015.
Like forestry and logging, the support activities industry is highly seasonal. The year usually starts with tree planting in the late winter and into spring, depending on the slope and elevation. Firefighting then picks up in the summer, usually peaking around August.
The support activities industry has become very mobile and flexible, with Oregon companies planting trees, thinning brush, and fighting forest fires throughout the Pacific Northwest and beyond. Some Oregon companies in this industry take part in all three of these activities, often far from Oregon. As Cassandra Moseley of the University of Oregon's Ecosystem Workforce Program points out, "A company can do all three in an area once they have the transportation and people that are willing to work hard."
Another major portion of the support activities industry is replanting forests after logging. In 1971, Oregon enacted the Oregon Forest Practices Act, making it the first state in the nation to set rules to ensure a continuous harvest of timber. As a result, according to the Oregon Forest Resources Institute, between 30 and 40 million trees are planted in Oregon each year.
Employment Department projections show that the logging industry is expected to increase by about 200 jobs, or 3 percent, in Oregon between 2014 and 2024. As the current recovery matures, job growth is expected to slow, and with it job growth in logging. The expected 2024 level of 6,300 is lower than the prerecession level of about 7,000 in 2007. Other industries within timber production, such as timber tract operations and support activities for forestry do not have published Oregon Employment Department forecasts.