Despite facing challenges such as mill closures and market uncertainty in housing and wood products, North Carolina’s forest sector—which includes forestry operations, logging, sawmills, furniture mills, and pulp and paper industries—continues to play a crucial role in the state’s economy. According to the latest 2024 economic report, the forest sector continues to have a significant impact on the North Carolina economy.
The $41 Billion Impact
In 2024, the forest sector’s direct industry output reached $25.4 billion, accounting for nearly 2% of the entire state’s economic output. When you account for the broader impact—including indirect and induced impacts—the total economic contribution reached about $41.7 billion. This marks a 3.1% increase in industry output over 2023.
Jobs and Livelihoods
The forest sector ranks as the second-largest manufacturing sector in North Carolina, slightly behind food manufacturing. In 2024, the sector directly employed about 66,508 people and had a payroll of nearly $4.8 billion. However, its reach goes much further:
- Employment: When considering the whole supply chain, the sector supports approximately 140,919 full-time and part-time jobs and accounts for a total payroll of about $9.9 billion.
- Economic Multipliers: For every job created in the forest sector, an additional 1.12 jobs are generated elsewhere in the state.
Growth and Global Reach
While the overall economic output grew, the industry did experience some shifts. Total employment saw a slight decrease of 1.9% from the previous year, primarily due to losses in solid wood product industries. However, forestry operations and secondary paper/paperboard industries saw notable gains, helping the total value-added production (Gross State Product) rise by 1.3% to $16.4 billion.
Internationally, North Carolina’s wood and paper products are also in high demand. International exports from North Carolina’s forest sector totaled about $1.6 billion.
Impact on the Public Sector
The forest sector is also a vital contributor to tax revenue. In 2024, it directly generated roughly:
- $59.3 million in county taxes
- $197.9 million in state taxes
- $1.1 billion in federal taxes
In Summary
The 2024 data highlights the strategic importance of the forest sector to North Carolina’s economic well-being. Its ability to adapt to a shifting market while expanding its economic footprint highlights its important role in North Carolina’s prosperity. As North Carolina continues to grow, the forest sector will remain an essential engine for both rural and urban prosperity. For more information on the industry's impact, check out the full publication.
