Forestry & Wood Products Industry

Oregon is the largest lumber producer in the U.S. With 30.5 million acres of forestlands, about 50% of the total landmass of the state is covered in forest. An internationally-recognized leader in wood product manufacturing, Oregon combines accessible raw materials with cutting-edge innovation to produce a diverse range of high quality, value-added wood products that are exported to every corner of the globe.

Innovation is imperative for Forestry and Wood Products to maintain its competitive position in the marketplace. Modern mills use nearly every fiber of wood. Laser scanning ensures the most productive use of the wood, while the rest is recovered and used in the production of engineered wood products, biomass power, or other secondary wood products. Technological advances allow for the use of smaller logs to create products that would have required larger logs decades ago.

Forestry and Wood Products employment is more concentrated in rural Oregon than any other of our Target Industry Groups. It is an important source of high-paying jobs for many rural communities, and the support and development of this industry group is vital to the economic prosperity of many rural Oregonians.

city scape

2,142
Establishments

people

47,163
Employment

airplane

$843,425,636
Exports

money

$55,214
Average Wage

Forestry

Logging and support activities for forestry form the base of Oregon's forestry industry. Forestry has the largest location quotient of any industry in Business Oregon's Targeted Industry Groups, meaning it is very concentrated here and is, perhaps, the industry most unique to Oregon. It also is an industry that is significant to rural communities in Oregon, as forests tend to be located in rural parts of the state.

Oregon is known worldwide for its high-quality softwoods, predominantly, Douglas fir, Oregon's official state tree. Most Oregon logs are purchased by wood product manufacturers in Oregon. As a result, demand for logs is tied to demand for wood products. Oregon's timber harvest today comes primarily from private timberlands. In 2018, 77% of Oregon's timber harvest came from private lands. Some logs from private lands are exported, but that market represents a very small share of total logs harvested in Oregon.

Wood Products

From dimensional lumber to plywood to ready-to-install windows and doors, Oregon's value-added wood products are world-renowned. Demand for Oregon wood products remains strong. Oregon is home to many leading wood and paper product manufacturers, including Weyerhaeuser, Georgia-Pacific, Roseburg Forest Products, and The Collins Companies.

Oregon's wood product manufacturers are continually innovating and creating more efficient processes and better products to meet modern needs. One example is the work of D.R. Johnson in Riddle to bring cross laminated timber (CLT) products to market. D.R. Johnson is the first U.S. certified manufacturer of CLT in the country. CLT is an engineered wood product made of several layers of lumber, stacked crosswise, and glued and pressed together. CLT is strong enough that it can be used as an alternative to concrete, masonry, and steel in many commercial construction applications. Similarly, Lyons-based Freres Lumber has successfully developed its own mass plywood panel for large-format, commercial applications.

Industry Snapshot

2018 Annual Data

Forestry & Wood Products Forestry Wood Products Total
´╗┐Establishments994 1,148 2,142 
Employment10,677 36,487 47,163 
Location Quotient (Oregon/U.S.)12.12 2.27 2.79 
Rural Location Quotient (Rural Oregon/Oregon)2.60 2.42 2.46 
Average Wage$ 50,648 $ 56,550 $ 55,214 
Exports$ 105,640,377 $ 737,785,259 $ 843,425,636 

Source: Business Oregon with data from 1) Bureau of Labor Statistics, Quarterly Census of Employment & Wages, 2) U.S. Census Bureau, Foreign Trade Division, 2012 Economic Census, and Annual Survey of Manufacturers, 3) Oregon Employment Department Quarterly Census of Employment & Wages, and 4) Oregon Department of Forestry, log prices and Oregon timber harvest data, and 5) D&B Hoovers.