Economic Contribution of Forest Sector in Oklahoma in 2020
- Oklahoma’s forest sector directly contributed $3.8 billion in industry output and employed more than 8,900 people with a payroll contribution of $575 million in 2020.
- The state received $1.4 billion directly from the forest sector through payroll, other employee compensation and property taxes.
- Including direct, indirect and induced impacts, the forest sector had a total economic impact of $5.6 billion in industry output and supported more than 18,450 jobs with a payroll of $1.1 billion.
- Every job created in the sector resulted in another 1.07 jobs in the state.
- Every dollar generated in the sector contributed an additional 45 cents to the rest of the state economy.
- In 2020, the forest sector witnessed mixed effects during COVID-19 in Oklahoma. Compared to 2019, industry output and employment were decreased. Averaged over all direct and total impact categories, labor income and value added were slightly increased by 2-4% from 2019 to 2020.
Figure 1. A wood load truck from SE Oklahoma.
- Secondary solid wood and primary paper and paperboard products were the top two employers in the Oklahoma forest sector.
- Almost half (49%) of the forest sector workforce - 4,369 workers - were directly employed in secondary industries.
- The primary paper and paperboard industry produced the largest value added, economic output and the labor income
- Primary paper and paperboard and primary solid wood products were the top two highest-paying forestry industries, based on their labor income to employment ratio.
- The forestry and logging industries together accounted for about 13% of the total employment. However, these were the lowest-paying forestry industries in Oklahoma.
- The loss of economic contribution from other forest sectors were mostly compensated by pulp and paper industries, which witnessed higher demand during the first year of the pandemic.
Figure 2. A forest located in SE Oklahoma.
Table 1. Total economic contribution of forest sector on Oklahoma employment, output and value-added.
|Employment (jobs)||Change from 2019||Labor Income (million $)||Change from 2019||Value Added (million $)||Change from 2019||Industry Output (million $)||Change from 2019|
|Primary solid wood products||1,069||-6%||81.28||-5%||137.16||-3%||399.25||-16%|
|Secondary solid wood products||3,216||-2%||142.77||-4%||181.72||-4%||562.22||-6%|
|Primary paper and paperboard products||2,340||3%||234.49||6%||822.21||7%||2200.33||6%|
|Secondary paper and paperboard products||1,153||8%||83.75||15%||170.13||5%||608.36||7%|
|Primary solid wood products||2,096||-13%||137.66||-11%||230.93||-11%||586.36||-19%|
|Secondary solid wood products||5,042||-4%||235.67||-5%||334.64||-6%||861.56||-8%|
|Primary paper and paperboard products||7,328||5%||525.58||7%||1,311.05||6%||3,182.43||5%|
|Secondary paper and paperboard products||2,558||9%||157.54||13%||292.96||6%||850.59||6%|
|Primary solid wood products||1.96||-7%||1.69||-7%||1.68||-9%||1.47||-3%|
|Secondary solid wood products||1.57||-2%||1.65||-1%||1.84||-2%||1.53||-2%|
|Primary paper and paperboard products||3.13||2%||2.24||1%||1.59||-1%||1.45||-1%|
|Secondary paper and paperboard products||2.22||1%||1.88||-2%||1.72||1%||1.40||0%|
* Economic impacts, based on multi-industry contribution analysis, are reported in 2020 dollars.
** Ripple Effects = SAM Multiplier – 1
- Industry output reveals total value of production or service by industry in a snapshot of time.
- Employment includes all full-time, part-time and selfemployed persons.
- Labor income includes wages, salaries, benefits of the employees (including their tax contributions to the government) and income for the self-employed individuals.
- Value-added is the difference between total output and the costs of its intermediate outputs.
- Direct contributions include forestry sector's own production, value-added, employment and labor incomes.
- Indirect contributions include economic activities in other sectors impacted by forestry sector’s purchase of goods and services.
- Induced contributions are economic activities from consumption of goods and services using incomes generated from direct and indirect contributions.
- Total economic contributions include direct, indirect and induced contributions.