Annual Contribution Estimates
Annual Contribution Estimates
The total Kentucky forest sector contribution was $18.6 billion in 2022 with an estimated $12.6 billion in direct contributions (Figure 1). This increase is largely a result of increased wages throughout all sub-sectors, strength of the stave and cooperage industry, and some changes to industries included within the report—see the methodology section for more information. Inflation, shortage of labor and workforce issues continue to be limiting factors for industries. ForestryWorks Kentucky, is a new initiative underway to address workforce needs in logging, forestry and wood industry careers in the state. The downtrend in hardwood lumber and railway tie
markets within the forest sector are significant, as it is one of the largest sectors in Kentucky. The economic contributions of this sector are important across the state to both rural and urban communities.
Forest industries employed 28,004 people in 2022 with indirect and induced employment resulting in a total of 57,275 Kentucky jobs (Figure 2). The direct labor wages for the Kentucky forest sector were $2.1 billion in 2022 with total labor wages reaching $3.9 billion. Multiple facilities have permanently closed in Kentucky and the surrounding region. Kentucky’s forest industries continue to grapple with weak hardwood lumber and railway tie markets for several key species. Rising inflation, rising wages for labor, finding new export markets to take the place of China, and the retirement of key leadership in the Kentucky forest industry further complicate matters.
2023 Forest Sub-Sectors Economic Contribution Estimates
The 2023 Kentucky forest sector output estimates varied by sub-sector. Some sub sectors, including logging and forestry, primary wood manufacturing and wood residue were down by 9.7%, 4.8%, and 6.4% compared to 2022. Secondary wood manufacturing was slightly up by 1.2%, pulp and paper was up 7.6%, and paper converters were up .5% in 2023 (Table 1). Volatile markets for logs and lumber continue to negatively affect the logging and forestry and primary wood manufacturing sub-sectors, which are also struggling with rising inflation. Widespread generational retirement is occurring in all sectors and is resulting in labor shortages that will remain a significant issue for the forest sector; logging and forestry along with primary wood manufacturing are having the most difficulty in recruiting and retaining skilled labor.
Economic Reports
Kentucky Forest Sector Economic Contribution Reports can be viewed separately at the links to the right.
Click on a link to the right...