Status of Michigan's Forest Products Industry in the Changing Market Environment

Abstract

The forest products industry plays a large role in Michigan's economy. It is one of the largest manufacturing sectors in the state, employing more than 29,000 individuals with an annual payroll of $1.2 billion. However, due to extended economic downturns, the industry is currently facing an adverse business environment, threatening its performance and even the retention of existing mills in some cases. Given this situation, an emerging bioenergy market could provide new opportunities for the struggling industry and help regain its vitality. However, this is possible only if sufficient resources are made available for both the traditional forest products industry, as well as new bioenergy facilities. Failure to do so will weaken already vulnerable forest products sectors. This study uses a mail survey of Michigan's primary forest products industry to provide insight into the state's forest products sector, with the aim of helping stakeholders make informed decisions for promoting bioenergy facilities while strengthening the existing operations within the state. Our findings suggest that there is a positive attitude among Michigan primary mills toward the introduction of wood-energy facilities in their wood basket, and hence there is evidence for a conducive environment for promoting bioenergy. However, careful consideration must be given to existing resource conditions, industry infrastructure, and strategies for maintaining sustained wood availability for promoting bioenergy industry that complements, rather than competes against, the traditional forest products sector.