The development of West Virginia’s forest products sector has been advanced by its abundant and diverse forest resource and its close proximity to a majority of the US population. Likewise, it is accessible to global markets through several reasonably close international ports. This resource has supported a vibrant forest products industry for over 100 years, which has been very beneficial to the citizens of West Virginia.
Forest-based industries are an integral part of West Virginia’s economy. As recently as 2005, prior to the economic downturn, the forest products sector accounted for approximately $4 billion of the state's economy annually and was responsible for the employment of more than 30,000 West Virginians. Each of the state's 55 counties has some segment of the wood industry serving as an employer. The forest products sector is the largest employer in many of these counties. Due to the importance of this industry to West Virginia and many of its residents, it is vital that both the industry and the forest resources remain healthy and sustainable well into the future.
The WVDOF also recognizes the importance of the forest product sector. One of its statutory responsibilities is to encourage and assist with the expansion and continued viability of the forest industry in the state. The WVDOF Director is also charged with pursuing research and
education related to forest resources and their multiple uses. This includes management and utilization, the manufacture and marketing of forest products, forest protection and the
establishment of technical advisory committees to assist with all or any aspects of forestry. The Director is also charged with advising the Governor and the Legislature about what is needed to improve the business climate for forest industries in West Virginia. This includes advice about: the economic potential of forestry in the state; how to improve the forest resources of the state; forestry research and data need; and how to improve the transportation system for efficiently moving wood products.
In 2007, West Virginia’s forests consisted of about 12.0 million acres, approximately the same amount that it has had since 1989 (Figure 8.1). From 1949 – 1989, total acreage of forest land increased from under 10 million acres to the 12 million acres found today. Ownership of this resource is also diverse. Of the 12 million acres of forest land, 60 percent is considered family forest land and 27 percent is under other private ownership, which includes wood products companies, TIMOs, coal companies, REITs, and various other private corporations, partnerships, and other entities (Figure 8.2). Approximately 13 percent of the state’s forests are publically owned.
Figure 8.1: Area of forest land, West Virginia, 1949, 1961, 1975, 1989, 2000, and 2007 (Widmann et al., 2007).
Figure 8.2: West Virginia forest land ownership by major class in 2007 (Widmann et al., 2007).
0 2 4 6 8 10 12 14 1949 1961 1975 1989 2000 2007
Forest Land
National Forest acres 1,072,896 9%
Other public acres 491,504 4%
Other private acres 3,266,200 27% Family forest acres
7,174,000 60%
As noted, forest land acreage in West Virginia has remained fairly constant since 1989; however, total resource volumes have increased from 62.4 billion board feet to 79.9 billion board feet over that same time period (Figure 8.3).
Figure 8.3: Total growing stock volumes 1945-2007 in West Virginia (Widmann et al., 2007).
Photo courtesy of Shawn Grushecky, WVU AHC.
17.5 28.8 36.1 62.4 71.4 79.9 0 10 20 30 40 50 60 70 80 1945 1955 1965 1975 1985 1995 2005 B il li o n B o a rd F e e t Year
This increase has helped spur the continued development of the forest-based industry in West Virginia. The forest-based industrial sector has many segments, including forest resource owners, professional foresters, loggers, primary processors, and secondary manufacturers and is spread evenly across the state (Map 8.1). It is up to this total supply chain to effectively manage West Virginia forest resources. This management must be done in such a way as to encourage and support forest-based industries, while at the same time continuing to improve the state’s forests through professionally based, scientifically sound, and sustainable forest management.
Map 8.1: Location of West Virginia Forest Products Industry. (Data from WVDOF and WVU Appalachian Hardwood Center, 2006).
Recently, the West Virginia forest products industry has been experiencing large declines in employment and production (Figure 8.4). These declines can be mainly attributed to the decline in the health of the overall US economy. A collapse in the domestic housing market has
especially impacted hardwood producers, since a large portion of the production is used for new home construction, as well as for remodeling activities. Although traditional markets for
hardwoods have struggled, new opportunities are developing that have the potential to increase the use of the forest resource. Energy price increases, as well as a long-term reliance on foreign fuel sources, have forced the US to develop a more domestic-based energy portfolio. Renewable energy sources, including woody-biomass, have played into this portfolio diversification. As new opportunities develop for woody biomass use, traditional forest products companies will have access to new markets that will help ensure the continued reliance on West Virginia’s forest resource.
Figure 8.4: Change in primary forest products industry between February 2005 and Feburary 2009. Data from West Virginia Division of Forestry
Currently, there are a number of issues that have the potential to impact the utilization and marketing of West Virginia’s forest resource. Of these, six were identified as being of critical importance to the continued development of this industrial sector. The continued development of the forest-based industry will help ensure the importance of the forest resource to the citizens of West Virginia.
Sub-Issue 1: Infrastructure/Transportation
The State of West Virginia lacks sufficient funding and resources to continue the expansion of a vital transportation system to further develop the forest products industry. The state also lacks industrial real estate properties suitable for development due to topography and lack of utilities. There is also some resistance to expansion of forest based industries from current residents, landowners, and the environmental community.
Road systems in West Virginia limit the continued development of forest based industries. Being a rural state, West Virginia lacks upgraded roads capable of sustaining good transportation flow in many rural areas, especially the coal fields of the southern counties. Another concern with the transportation network is the number of low-weight bridges and low-weight roads that reduce travel options for forest based industries. In order to reduce transportation costs, forest- based industries must move large loads of products from the forest to a processing facility and then to market destinations. Weight limits on many of West Virginia’s roadways hinder this movement and force forest products companies to allocate more resources to transportation than companies in other hardwood producing states. Most primary hardwood producing facilities try to locate within 50 miles of their resource base. This is very important when transporting raw products from the forest to processing sites. Many forest areas of West Virginia are greater than 30 minute haul time to a sawmill (areas in blue in Map 8.2). Likewise, when the 30 minute drive times for all primary processors are calculated, there is a large percentage of the state that is underserved (areas in white in Map 8.3). These added transportation costs put the state’s forest products businesses at a competitive disadvantage.
Another transportation issue that has become more of a problem in recent years is the lack of rail infrastructure, especially rail siding facilities. As West Virginia begins to compete in a more global forest products market, rail lines will be extremely important for the efficient
transportation of products to intermodal port facilities. Recently, many producers in West Virginia have cited rail infrastructure as a critical need to the future success of their companies.
Map 8.2: Calculated drive times to sawmills in West Virginia. Drive times calculated in minutes using ESRI Network Analyst (Harouff et al., 2008).
Map 8.3: Thirty-minute drive times for all WV primary industry locations and posted low weight bridges. Drive times calculated using ESRI Network Analyst (Harouff et al., 2008).