1. Forest Products – Log Uses Log Use Data largely from the Washington Mill Survey 2012 (published February 2014) Key Categories of Log Consumption –Lumber –Veneer & Plywood –Log Export –Pulp and Paper

2. Source: 2012 DNR Washington Mill Survey

3. Source: 2012 DNR Washington Mill Survey

4. Source: 2010 DNR Washington Mill Survey

5. Source: 2012 DNR Washington Mill Survey

6. 865 63982 138 6 213 69 16 <5 22 319 45 341 11 79 3 Excludes Log Exports

7. Manufacturing Location Principles Assume: Profit Maximization Profit = Revenues - Costs Which elements of revenues and costs are variable in space? – Input factors, labor, land, energy, services, taxes, …. Other? – Transport costs on inputs and products Outcomes: (1) Resource Orientation, (2) Market Orientation, (3) Footloose industry

8. Forest Products: Historically a Quintessential Resource Oriented Industry Oregon Data from 1955-57: 30% of a typical tree is left in the woods Of the balance: – Bark 16% – Sawdust 13% – Coarse Residue 17% – Shavings 8% – LUMBER - 46%

9. Historical Factors Mill Locations Transportation technologies - oxen & skids; steam donkeys & railroads; internal combustion engines; balloons & helicopters. Lumber mills Plywood mills Pulp Mills

10. Early Mills: Puget Sound & Willamette Valley

11. The Great Boom & Railroads 1883-1929 Northern Pacific Land Grant

12. Completion of Northern Pacific Railroad Connection, 1883

13. Northern Pacific Early Route NP Arrives in Seattle in 1884, 1 year after Tacoma

14. Great Northern Route – Seattle Terminus completed in 1893

15. Lots of smaller logging railroads by the turn of the century. Have not located a comprehensive map of them. Mill locations start to shift inland to tap timber supplies away from tidewater

16. Logging Railroad at Barlow Pass, Turn of the Century

17. Lumber Production 1850-1929

19. Note the general decrease in the number of mills by county between 1957 and 1964

20. Shifting Markets for Western Lumber Producers 1938-1954

21. Market Locations - Rail Lumber Shipments 1953-1955

22. Shifting Output and Markets for British Columbia Lumber 1947-1958 Output - mbf 2025 2587 544 2229

23. Changing Levels of Lumber Production 1947-1996

24. Lumber Production 1850-2007 2011

25. Share of Lumber Production 2011

26. B.C. Coastal vs. Interior Lumber Production 2011

27. Share of Lumber Production by Region 1947 - 2003 Total Output - mbf 13376 15816 25616 23136 2012 - %’s similar to 1996; output down to 20730

28. Plywood & Paper Mills Plywood invented in early 20 th Century; historic dependence on old-growth “peeler” logs Pulp and Paper – locations determined by wood supply, pulping technology, wood supplies Technological change has allowed smaller trees to be peeled into veneer, and has shifted wood supplies to pulp mills to be primarily residuals from lumber and plywood manufacture

29. Source: 2012 DNR Washington Mill Survey

33. Source: 2008 DNR Washington Mill Survey

35. Source: 2012 DNR Washington Mill Survey

37. Source: 2010 DNR Washington Mill Survey

38. Source: 2008 DNR Washington Mill Survey

39. Source: DNR 2010 Washington Mill Survey

40. Source: 2008 & 2010 DNR Washington Mill Survey

41. Log Export Bidding Markets Mill 1 Mill 2 National Forest Mill 1 Mill2 National Forest Owned by Mill 2

42. Source: 2008 DNR Washington Mill Survey

43. Source: 2010 DNR Washington Mill Survey

44. Forest Products Industrial Complex Chips &

45. Source: WA State Dept. of Natural Resources

46. Source: DNR 2012 Mill Survey Legend covers the pulp mill at Wallula

47. Recent Trends in Timber Harvest and Lumber Production