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Economic Contribution of Forest Sector in Oklahoma in 2024

Highlights

  • The forest sector directly contributed approximately $4.95 billion in industry output and employed 8,972 people, generating more than $615 million in labor income (Table 1).
  • The sector directly generated approximately $1.70 billion in value added to the economy through labor income, business income, property income and taxes (Table 1).
  • Including direct, indirect and induced impacts, the forest sector contributed approximately $7.37 billion in total industry output and supported 19,808 jobs, while generating nearly $1.32 billion in labor income (Table 2).
  • Every direct job in the forest sector supported an additional 1.21 jobs elsewhere in the economy, resulting in an overall employment multiplier of 2.21 (Table 3).
  • Every dollar of industry output generated directly by the forest sector contributed an additional $0.49 in economic activity across the broader economy, resulting in an output multiplier of 1.49 (Table 3).

Key Definitions

  • Industry output reveals the total value of production or service by industry in a snapshot of time.
  • Employment includes all full-time and part-time employees and self-employed persons.
  • Labor income includes wages, salaries, benefits of the employees, including their tax contributions to the government and income for self-employed individuals.
  • Value added is the difference between total output and the costs of its intermediate inputs.
  • Direct contributions include the forestry sector’s own production, value added, employment and labor income.
  • Indirect contributions include economic activities in other sectors impacted by the forestry sector’s purchase of goods and services.
  • Induced contributions are economic activities from the consumption of goods and services using incomes generated from direct and indirect contributions.
  • Total economic contributions include direct, indirect and induced contributions.

Industry Analysis

  • Primary paper and paperboard product industry and the secondary solid wood product industry were the two largest employers within the forest sector (Tables 1 and 2).
  • Over one-third (33.4%) of all directly employed forest sector workers were employed in secondary solid wood products, accounting for 3,000 jobs (Table 1).
  • The primary paper and paperboard products industry generated the highest labor income, value added and industry output of any forest sector industry, contributing approximately $254 million in labor income, $895 million in value added and $2.43 billion in direct industry output (Table 1).
  • Primary paper and paperboard products and secondary paper and paperboard products were the highest-paying industries in the forest sector based on labor income per employee (Table 1).
  • Forestry and logging combined accounted for approximately 15% of direct forest sector employment (1,355 jobs). These sectors also reported the lowest labor income per employee among the major forest sector industries (Table 1).
  • When indirect and induced effects are included, primary paper and paperboard products remained the largest contributor to the forest sector economy, supporting 7,494 jobs and generating approximately $3.64 billion in total industry output (Table 2).
  • Secondary solid wood products ranked second in total employment contribution, supporting more than 5,070 jobs and contributing more than $1.22 billion in total industry output (Table 2).

A blue logging truck loaded with freshly cut logs drives along a rural road, surrounded by tall trees and green grass.

Figure 1. Forestry and logging combined accounted for approximately 15% of direct forest sector employment.

Table 1. Economic contributions (direct contribution) of the forest sector in Oklahoma in 2024.
Sector Employment (jobs) Labor Income (million $) Value Added (million $) Industry Output (million $)
Forestry 256 6.21 12.98 13.54
Logging 1,099 20.97 26.90 45.59
Primary Solid Wood Products 1,098 71.31 288.16 874.37
Secondary Solid Wood Products 3,000 162.77 245.50 799.46
Primary Paper and Paperboard Products 2,284 253.90 894.47 2,247.76
Secondary Paper and Paperboard Products 1,235 99.89 230.29 785.34
Total 8,972 615.00 1,698.30 4,946.06


Table 2. Economic contributions (total contribution) of the forest sector in Oklahoma in 2024.
Sector Employment (jobs) Labor Income (million $) Value Added (million $) Industry Output (million $)
Forestry 280 7.50 15.47 17.94
Logging 1,229 27.34 38.62 66.90
Primary Solid Wood Products 2,679 182.23 478.78 1,257.97
Secondary Solid Wood Products 5,074 287.29 465.56 1,220.73
Primary Paper and Paperboard Products 7,494 604.19 1,517.77 3,643.15
Secondary Paper and Paperboard Products 3,052 210.74 425.63 1,159.32
Total 19,808 1,319.29 2,941.84 7,366.01
Table 3. Ripple effects of forest sector contribution to the Oklahoma economy in 2024.
Sector Employment (jobs) Labor Income (million $) Value Added (million $) Industry Output (million $)
Forestry 1.09 1.21 1.19 1.33
Logging 1.12 1.30 1.44 1.47
Primary Solid Wood Products 2.44 2.56 1.66 1.44
Secondary Solid Wood Products 1.69 1.77 1.90 1.53
Primary Paper and Paperboard Products 3.28 2.38 1.70 1.50
Secondary Paper and Paperboard Products 2.47 2.11 1.85 1.48
Total 2.21 2.15 1.73 1.49

Note: Economic contributions, based on multi-industry contribution analysis, are reported in 2024 dollars. Ripple effects=SAM Multiple-1

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