Idaho’s Forest Products 

Industry and Timber 

Harvest, 2006

Jason P. Brandt, Todd A. Morgan, Charles E. Keegan, III, 

Jon M. Songster, Timothy P. Spoelma, Larry T. DeBlander

United States

Department

of Agriculture

Forest Service

Rocky Mountain

Research Station

Resource Bulletin

RMRS-RB-12

January 2012
Brandt, Jason P.; Morgan, Todd A.; Keegan, Charles E., III; Songster, Jon M.; Spoelma, Timothy P.; DeBlander, Larry T. 

2012. Idaho’s forest products industry and timber harvest, 2006. Resour. Bull. RMRS-RB-12. Fort Collins, CO: U.S. 

Department of Agriculture, Forest Service, Rocky Mountain Research Station. 45 p.

Abstract

This report traces the flow of Idaho’s 2006 timber harvest through the primary wood-using industries; describes the 

structure, capacity, and condition of Idaho’s primary forest products industry; and quantifies volumes and uses of wood fiber. 

Wood products industry historical trends and changes in harvest, production, employment, and sales are also examined.

Keywords: forest economics, mill residue, timber processors, wood utilization

Authors

Jason P. Brandt is a contract specialist with the National Interagency Fire Center, Boise, Idaho.

Todd A. Morgan is the Director of Forest Industry Research, and Charles E. Keegan is a Research Associate 

at the Bureau of Business and Economic Research, Gallagher Business Building, The University of Montana, 

Missoula, Montana.

Jon M. Songster is a Program Assistant with U.S. Department of Agriculture, Natural Resource Conservation 

Service, Coudersport, Pennsylvania.

Timothy P. Spoelma is a Silviculturist with the Montana Department of Natural Resources, Forest Management 

Bureau, Missoula, Montana.

Larry T. DeBlander is a Forester, U.S. Department of Agriculture, Forest Service, Rocky Mountain Research 

Station, Forestry Sciences Laboratory, Ogden, Utah.

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FAX (970) 498-1122

E-mail rschneider@fs.fed.us

Web site http://www.fs.fed.us/rm/publications

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Rocky Mountain Research Station

240 West Prospect Road

Fort Collins, CO 80526
Highlights

•	 A total of 97 timber-processing facilities were identified as active in Idaho

during 2006:

•	 35 Sawmills

•	 3 Plywood / veneer plants

•	 24 Log home facilities

•	 12 Residue related products facilities

•	 7 Cedar product mills

•	 16 Post, pole, and log furniture manufacturers

•	 Idaho’s total timber harvest in 2006 was just under 1,121 million board feet

(MMBF) Scribner, approximately 11 percent higher than the timber harvest

in 2001.

•	 Saw and veneer logs made up over 91 percent of the total harvest. Clearwater, Shoshone, and Benewah counties were the largest contributors to the

state’s total harvest in 2006.

•	 Idaho was a net importer of nearly 30 MMBF Scribner of timber in 2006.

About 89 MMBF of timber harvested in Idaho was shipped outside of the

state for processing, and nearly 119 MMBF of timber harvested in other

states was processed in Idaho.

•	 Idaho sawmills recovered 1.89 board feet lumber tally per board foot Scribner of log input, about a 2 percent increase in recovery from 2001.

•	 The number of Idaho sawmills has declined by 76 percent since 1979, while

total capacity has fallen 37 percent to 1,304 MMBF Scribner of timber annually.

•	 Idaho mills with annual capacity of more than 50 MMBF accounted for

over 80 percent of Idaho’s sawtimber processing capacity in 2006 compared

to 61 percent in 2001 and just 39 percent in 1995.

•	 Timber harvested in Idaho is being transported greater distances to primary

processors in the state. Since 1985, the portion of timber received by primary processors that was harvested in the county where it was processed

declined by 18 percent as receipts from other counties increased by 13 percent.

•	 Idaho’s primary forest products industry shipped products valued at $1.6

billion (f.o.b. the producing mill) in 2006. Lumber and plywood/veneer

contributed 48 percent of total sales while residue related products such as

pulp and paper, and particleboard represented 47 percent.

•	 Idaho’s 35 sawmills produced over 1.8 billion feet of lumber, which when

combined with the plywood and veneer facilities generated over 1.5 million

bone-dry units of wood residue.
Contents

Highlights.................................................................................................................iii

Introduction .............................................................................................................1

Forest Industries Data Collection System.............................................................1

The Operating Environment of Idaho’s Forest Products Industry.........................1

Idaho’s 2006 Timber Harvest, Products, and Flow ..............................................4

Idaho Timberlands ................................................................................................4

Harvest Trends 1947 through 2006 ......................................................................5

Harvest by Geographic Source.............................................................................6

Harvest by Ownership and Product Type .............................................................8

Harvest by Species...............................................................................................9

Movement of Timber Products............................................................................ 11

End Uses of Idaho’s Timber................................................................................14

Structure of Idaho’s Forest Products Industry...................................................15

Structure and Location........................................................................................15

Sales Value of Primary Wood Products ..............................................................17

Timber Received by Idaho Mills..........................................................................20

Sawmill Sector....................................................................................................21

Changes in Lumber production...........................................................................22

Residue-Related Products Sector ......................................................................26

Plywood, Veneer, and OSB ................................................................................27

Other Primary Manufacturers .............................................................................27

Plant Capacity .......................................................................................................28

A Definition of Production Capacity ....................................................................28

Capacity in Units of Raw Material for Sawtimber Processors.............................28

Industry’s Capacity to Process Sawtimber, 1979 through 2006..........................29

Sawtimber Capacity and Utilization by Sector....................................................30

Markets for Primary Wood Products...................................................................30

Market Areas by Finished Product Type.............................................................33

Mill Residue: Types, Quality, and Use.................................................................33

Supply of Mill Residue ........................................................................................34

Residues from Other Manufacturers...................................................................36

The Forest Products Industry and the Idaho Economy ....................................36

Trends in Forest Products Employment and Labor Income................................37

The Forest Products Industry and Idaho’s Economic Base................................40

References.............................................................................................................43
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 1

Introduction

The purpose of this report is to describe the utilization of Idaho’s 2006 timber

harvest and the conditions, structure, and operations of the state’s primary forest

products industry. Primary forest products manufacturers are firms that process

timber into manufactured products such as lumber, and facilities such as pulp and

paper mills and particleboard plants that use the wood fiber residue directly from

timber processors. This report also describes recent and historical trends in use

of the state’s timber resources including raw material sources, inventory, growth,

and harvest. Other topics covered in the report include the extent and efficiency

of Idaho’s processing infrastructure and the volume and value of finished products

and residues.

Information in this report is primarily generated through a periodic, statewide

census of manufacturers of primary forest products. The census also includes firms

in adjacent states that utilized timber harvested in Idaho during the 2006 calendar

year. This census is conducted by the University of Montana’s Bureau of Business

and Economic Research (BBER) in cooperation with the USDA Forest Service,

Interior West Forest Inventory and Analysis (IW-FIA) program.

Forest Industries Data Collection System

The Forest Industries Data Collection System (FIDACS) was developed by the

BBER in cooperation with the FIA programs in the Rocky Mountain and Pacific

Northwest Research Stations to collect, compile, and report data from primary forest products manufacturers.

Primary forest products firms were identified through the use of various directories, industry associations, internet searches, and through previous censuses.

Questionnaires are distributed by mail, fax, or email and are administered over the

telephone when necessary. A single questionnaire is completed for each processing

facility, and includes the following information:

•	 Plant production, capacity, and employment

•	 Volume of raw material received, by county and ownership

•	 Species mix and proportion of standing dead timber received

•	 Finished product volumes, types, sales value, and market locations

•	 Utilization and marketing of manufacturing residue

Similar censuses have been conducted periodically in the Pacific Coast and

Rocky Mountain States for over 30 years by the BBER and Forest Service research stations. Previous FIDACS censuses were completed for Idaho in 1979,

1980, 1985, 1990, 1995, and 2001 (Godfrey and others 1980; Keegan and others

1982, 1988, 1992, 1997; Morgan and others 2004). Information collected through

FIDACS is stored at the University of Montana’s BBER. Additional information is

available by request; however, individual firm-level data are confidential and will

not be released.

The Operating Environment of Idaho’s Forest Products Industry

Since the late 1970s, the forest products industry has been characterized by

extreme changes in markets and operating conditions. Driven by a strong U.S.

economy that included annual housing starts averaging 1.8 million units (fig. 1),
2 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012

the late 1970s was a period of high prices for wood products (WWPA 1964-2010),

as well as a period of relatively abundant timber in Idaho. A recession began in

the last quarter of 1979, and the first few years of the 1980s saw the most difficult

operating conditions since the Great Depression. Official recessions occurred periodically between 1980 and 1982, with low levels of construction activity, particularly in 1982. From 1983 to 1985, there were near record levels of forest products

consumption in the United States but low prices for lumber (Random Lengths

1976-2009).The low prices were due primarily to the high value of the U.S. dollar,

leading to declines in export and increases in imports, channeling large volumes of

foreign wood and paper products into U.S. markets.

Not until the last half of the 1980s did markets begin to improve, with prices of

wood products increasing due to a strong economy and lower U.S. dollar. Because

of low timber harvest during the early 1980s, Idaho timber processors had substantial volume under contract that yielded a temporary abundance of timber in the late

1980s; harvest and output reached record or near record levels.

Restricted timber availability throughout the western United States and global

market conditions both have had major impacts on the forest products industry

since the early 1990s. Declines in harvests from Federal timberland (primarily

National Forests) in the western United States led to capacity losses throughout the

west and spurred expansion in other regions. Most pertinent to U.S. markets were

expansions in eastern Canada and the southeastern United States.

The decline in timber harvests on National Forests across the West and in Idaho

during the 1990s resulted from numerous constraints on harvesting timber on

Federal lands, including threatened and endangered species protection, appeals and

litigation of timber sales, and cumulative impacts of past harvesting on resources

such as wildlife, aesthetics, and fisheries (Haminishi and others 1995). Harvest

from Federal timberlands in the western United States fell by approximately 8 billion board feet, a decline of about 80 percent. This volume is equivalent to about

Figure 1—United States housing starts 1976 through 2009 (source: U.S. Census Bureau 2009).
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 3

14 percent of the U.S. harvest of softwood timber. Idaho’s National Forest timber

harvest volume fell sharply following 1990. The 2004-2006 average timber harvest was only 16 percent of the 1990 level, with the total harvest across all ownerships falling 35 percent since 1990.

Global economic conditions were also important to the forest products industry in the 1990s. A recession occurred after the first Gulf War due to a variety of

factors, which led to low lumber prices. However, in 1993 and much of 1994, the

market swung to the other extreme. Lumber prices rose to near record levels due

to high demand, driven by strengthening U.S. and global economies and significant reductions in the Federal timber supply. Markets weakened modestly in 1995,

stemming from slowing U.S. and international economies. Additionally, rising imports of Canadian lumber became an increasingly contentious issue as consumption slackened in 1995 and the Canadian dollar weakened. In 1996, the United

States and Canadian governments agreed to a 5-year quota on Canadian timberproducing provinces. This led to strong lumber prices until mid-1997, when a severe economic decline in Japan and other Asian countries weakened the demand

for wood products.

In 1999, markets improved considerably due to the U.S. economy’s strong performance and some improvements in the global economy. However, the situation

changed dramatically again in 2000, as a drop in housing starts in the United States

and Japan, and a strong U.S. dollar led to low softwood lumber prices. With a U.S.

recession in 2001 (exacerbated by the September 11 World Trade Center terrorist

attacks), the renegotiation of the U.S.-Canada Softwood Lumber Agreement, and

a continuously strengthening dollar, prices for lumber and other wood and paper

products dropped to their lowest levels since the 1991 recession.

Low lumber prices persisted despite low interest rates and record high U.S. lumber consumption, topping 56 billion board feet in 2002 (Random Lengths 1976-

2009; WWPA 1964-2010). Prices for lumber and panel products rebounded in late

2003 when U.S. housing starts surged as a result of relaxed lending practices,

declining interest rates, and the weakened value of the dollar (fig. 1). Prices for

lumber continued to rise during 2004 and 2005.U.S. housing starts exceeded two

million, demand for wood products was strong, and prices reached their highest

level since the late 1990s. Strong global markets and hurricanes in the southeastern

United States brought on additional demand for wood products. During 2006, a

decline in the U.S. housing market led to sharp decreases in prices for most wood

products. High fuel costs during the summer months also led to higher logging and

transportation costs.

Since 2006, conditions for Idaho’s forest industry have deteriorated further

(Morgan and others 2011). Timber harvest and lumber production volumes have

dropped by more than 25 percent and 35 percent, respectively. Through 2009, domestic lumber consumption and new housing starts remained at recessionary lows,

prices for finished lumber dropped more than 30 percent, and total wood products

sales from Idaho’s forest industry declined by more than 25 percent (Brandt and

others 2010; WWPA 2010). In 2010, lumber consumption in the United States

remained at historically low levels; however, softwood lumber exports increased

by more than 50 percent. Annual U.S. housing starts fell to 554,000 units during

2009—their lowest level in more than six decades—but were up slightly to just

under 590,000 units for 2010. Despite the low level of housing starts, there was a

jump in lumber prices in 2010. In response to curtailed production at mills throughout North America, rising exports, and a slight uptick in housing starts, lumber

prices were approximately 27 percent higher than the very low levels experienced
4 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012

in 2009. Expectations are for gradual improvement in markets through 2011 and

2012 with substantial improvements after 2012 as U.S. home building recovers

and global demand continues to increase. This should lead to a substantial rise in

the output of Idaho’s wood and paper products industry.

Idaho’s 2006 Timber Harvest, Products, and Flow

Idaho Timberlands

About 40 percent of the total land area in Idaho is covered by 21.4 million acres

of forest. Almost 3.6 million acres of Idaho forest lands are reserved through statute or administrative designation, such as National Forest Wilderness areas and

National Parks and Monuments, and not available for timber production. The remaining 17.8 million acres are non-reserved forest land, of which 16.6 million acres

is considered non-reserved timberland available for timber production. Based on

the Idaho 2004-2009 Forest Inventory and Analysis (FIA) data, the USDA Forest

Service’s National Forest System manages nearly 74 percent of the state’s nonreserved timberlands (table 1). However, more than 8 million acres are National

Forest roadless areas that are unlikely to be developed for timber production. The

remaining non-reserved timberlands are divided between nonindustrial private

owners including tribal (8.6 percent), Idaho state endowment lands (7.1 percent),

industrial private lands (6.8 percent), Bureau of Land Management (3.7 percent),

and other public ownership (0.1 percent).

Ownership of industrial private timberlands in Idaho has undergone major

changes since 2001. Many large forest products companies that once sought a

high level of vertical integration to reduce operating costs have reorganized their

timberlands into real estate investment trusts (REITs) or sold them to timberland

investment management organizations (TIMOs), which now control over 1 million acres of land in Idaho. In addition to managing forests for the sale of timber,

REITs and TIMOs evaluate land parcels for their real estate potential on the open

market and generate revenue through the sale of recreation permits to allow access

to timberlands.

Table 1—Idaho non-reserved timberland by ownership class.

Ownership class

Acres -(2004-

2009)

Percentage of 

non-reserved 

timberland

National Forest 12,226,687 73.6

Undifferentiated private 2,571,621 15.5

State 1,183,182 7.1

Bureau of Land Management 613,787 3.7

Other public 21,543 0.1

All owners 16,616,821 100.0
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 5

Harvest Trends 1947 through 2006

The USDA Forest Service has kept comprehensive annual harvest data by ownership in Idaho since 1969. Other sources of information were used to develop

harvest numbers for 1947 through 1969 (fig. 2). While detailed harvest by ownership could not be developed for all years, the harvest estimates are reasonable

representations of total harvest and harvest trends. Total harvest and non-National

Forest harvest were estimated for 1947 through 1958; harvest data for private land,

National Forests, and other public land have been produced for subsequent years.

Idaho’s timber harvest climbed from about 1,150 MMBF Scribner in 1947 to about

1,800 MMBF in the late 1960s. The major factor change in harvest during this period was the increase in National Forest harvest, from 250 MMBF in 1947 to an all

time high of more than 1 billion board feet annually in 1968, 1969, and 1976. Post

World War II public policy encouraged increased harvest on Federal lands to meet

the strong national demand for building materials. As a result, the share of Idaho’s

harvest from the National Forests increased from less than 30 percent in the 1940s

to 60 percent in the late 1960s.

Timber harvest levels increased further in the 1970s, and the peak harvest for

Idaho occurred in 1976 at 1.9 billion board feet Scribner. National Forest harvest in

the late 1970s was slightly below the late 1960s; the increase in total harvest came

primarily from private timberlands. In the late 1970s, National Forests provided

about half of Idaho’s timber harvest. Private lands provided about 40 percent of the

Figure 2—Idaho’s timber harvest by ownership, 1947 through 2008 (source: Brandt and others 2009).
6 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012

harvest in the late 1970s versus 33 percent in the late 1960s. Most of the remaining harvest in the 1970s was from Idaho State lands. During the recession years

of the early 1980s, harvest fell sharply, but rebounded in the last half of the 1980s

to an average level of 1,635 MMBF. By the late 1980s, harvest from National

Forest lands had slipped to 45 percent, and harvest from private lands increased to

about 45 percent. Harvest from Idaho Department of Lands and Bureau of Land

Management forest lands made up the remaining 10 percent.

Throughout the 1990s and into the 2000s, Idaho’s total timber harvest declined

steadily because of a dramatic decline in harvest from National Forest lands. In

2001, the National Forest harvest for Idaho was the lowest since WWII and only

11 percent of what it was in 1990. The National Forest harvest declined by 629

MMBF from 1990 to 2001 and during that time accounted for 94 percent of Idaho’s

total harvest decline (673 MMBF). The volume of timber harvested from Idaho’s

private timberlands remained stable throughout the 1990s and into the new century; however, the proportion of the harvest coming from private lands increased

steadily from 45 percent (732MMBF) in 1990 to 72 percent (750 MMBF) in 2001

and 74 percent (834 MMBF) in 2006. Harvest from Idaho’s other public lands has

followed a similar trend, with harvest volumes remaining fairly stable, but the proportion of the total harvest increasing from 14 percent (259 MMBF) in 1990 to 21

percent (179 MMBF) in 2001 and 19 percent (208 MMBF) in 2006. In 1998, the

harvest volume from other public lands in Idaho surpassed the volume harvested

from Idaho’s National Forests for the first time on record. Timber harvested from

state lands accounted for approximately 18 percent (201 MMBF) of Idaho’s total

harvest in 2006 and about 97 percent of harvest from “other public” lands. Harvest

from Bureau of Land Management (BLM) lands remained a small fraction of harvest from “other public” lands in 2006.

Harvest by Geographic Source

Counties north of the Salmon River supplied 87 percent of the 2006 timber

harvest and 13 percent came from counties south of the Salmon River (table 2).

During 2006, Shoshone County’s harvest exceeded the Clearwater County harvest

and led the state at 200 MMBF—about 18 percent of total harvest. Other leading

timber-producing counties were Clearwater with 174 MMBF; Benewah with 144

MMBF; Latah with 125 MMBF; Kootenai with 100 MMBF; and Bonner with

93 MMBF. Together, these six counties in northern Idaho supplied 75 percent of

Idaho’s timber harvest.

Valley County had the largest harvest in southern Idaho at 65 MMBF, which

was 6 percent of the state’s harvest. Valley, Adams, and Boise counties contributed

a combined 11 percent of the state’s harvest. Harvest volumes in 2006 for both

northern and southern Idaho were higher than the 2001 census but lower than the

1995 census. Since 1979, the harvest has declined by 434 MMBF (31 percent) in

northern Idaho and 295 MMBF (67 percent) in southern Idaho. Compared to 2001,

the harvest was up 8 percent in northern Idaho and 8 percent in southern Idaho.

Northern Idaho’s most dramatic county-level changes from 1979 to 2006 occurred in Clearwater and Idaho counties where the combined harvest dropped by

495 MMBF (67 percent)—370 MMBF in Clearwater county and 125 MMBF in

Idaho County. From 1979 to 1990, the harvest in Clearwater county fell by 182

MMBF (56 percent) from private lands and 89 MMBF (66 percent) drop in the

National Forest harvest. Since 1990, Clearwater County’s harvest has declined

on National Forest lands by 84 percent, 48 percent decline on state lands, and
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 

7

Table 2—Idaho timber harvest (MMBF, Scribner) by county, selected years (sources: Keegan and others 1982,1988,1992,1997; Morgan and others 2004).

1979 1985 1990 1995 2001 2006

County MMBF Scribner Percent of total MMBF Scribner Percent of total MMBF Scribner Percent of total MMBF Scribner Percent of total MMBF Scribner Percent of total MMBF Scribner Percent of Total

Northern Idaho 

Clearwater 544 29.0 335 21.0 267 16.0 234 17.0 182 18.0 174 15.6

Shoshone 206 11.0 217 14.0 183 11.0 194 14.0 172 17.0 200 17.8

Idaho 190 10.0 156 10.0 174 10.0 113 8.0 65 6.0 65 5.8

Bonner 142 8.0 175 11.0 197 12.0 139 10.0 124 12.0 93 8.3

Benewah 100 5.0 94 6.0 152 9.0 117 9.0 129 13.0 144 12.9

Boundary 94 5.0 80 5.0 86 5.0 69 5.0 57 6.0 53 4.8

Kootenai 65 4.0 80 5.0 152 9.0 114 8.0 81 8.0 100 8.9

Latah 57 3.0 89 6.0 84 5.0 96 7.0 70 7.0 125 11.2

Nez Perce 8 0.0 12 1.0 17 1.0 8 1.0 4 0.0 10 0.9

Lewis 4 0.0 13 1.0 20 1.0 17 1.0 14 1.0 12 1.1

Northern Idaho 1,410 76.0 1,254 79.0 1,332 79.0 1,100 80.0 899 89.0 976 87.1

 Southern Idaho 

Valley 107 6.0 88 6.0 52 3.0 67 5.0 39 4.0 65 5.8

Boise 84 4.0 67 4.0 127 8.0 93 7.0 20 2.0 25 2.2

Adams 52 3.0 66 4.0 87 5.0 28 2.0 25 2.0 30 2.7

Washington 4 b 9 1.0 4 b 6 b - b c b

Elmore 25 1.0 14 1.0 5 b 38 3.0 7 1.0 c bOther counties 20 1.0 3 b 6 b 11 1.0 1 b 6 0.5

Southwestern Idaho 292 16.0 247 16.0 281 17.0 242 18.0 91 9.0 126 11.3

Fremont 76 4.0 43 3.0 20 1.0 2 b 3 b 1 0.1

Lemhi 34 2.0 11 1.0 16 1.0 6 b 1 b 1 0.1Clark 10 1.0 10 1.0 16 1.0 - b 1 b 6 0.6Caribou 4

b

10 1.0 3 b 5 b 5 b 4 0.3

Other counties 24 1.0 19 1.0 24 1.0 15 1.0 7 1.0 7 0.6

Southeastern Idaho 148 8.0 93 6.0 79 5.0 27 2.0 17 2.0 19 1.7

Southern Idaho 440 24.0 340 21.0 360 21.0 269 20.0 108 11.0 145 12.9

Idaho Total 1850 100.0 1594 100.0 1692 100.0 1,370 100.0 1,007 100.0 1,121 100.0

aPercentage detail may not sum to 100% due to rounding.bLess than 0.05 percent.cLess than 1 MMBF
8 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012

4 percent on industrial lands. In Idaho County, the harvest from National Forest

lands fell 90 percent since 1990 and by 30 percent from other ownerships during

that time.

Southern Idaho’s most dramatic harvest decreases occurred in the southwestern

counties of Adams, Boise, and Valley, where timber harvest has decreased by 146

MMBF since 1990 (table 2). Virtually all of these reductions can be attributed to

sharply declining harvest levels from National Forest lands, which dropped by

approximately 87 percent since 1990. The harvest from other ownerships has remained essentially unchanged over the same period.

Harvest by Ownership and Product Type

Total timber harvest in Idaho increased by approximately 10 percent to 1.121

billion board feet Scribner from 2001 to 2006. Harvest increased across all ownerships except on tribal lands. Harvest on public lands increased by 11percent in

2006 compared to 2001. Harvest in Idaho from public lands has drastically declined since 1990 (table 3).

About 91 percent of Idaho’s harvest is processed into lumber and plywood.

Private lands continue to be the primary source of saw and veneer logs, providing

76 percent (776 MMBF) of the total supply in 2006 (table 4). Private lands accounted for about 76 percent (726 MMBF) in 2001 and 59 percent (711 MMBF)

in 1995. Prior to 1995, private lands provided less than half of Idaho’s saw and veneer log harvest (Keegan and others 1997; Morgan and others 2004). During 2006,

National Forests provided just 6 percent (63 MMBF) of Idaho’s saw and veneer

log harvest, compared to 7 percent (71 MMBF) in 2001, 23 percent (272 MMBF)

in 1995, and over 40 percent prior to 1995.

Idaho’s pulpwood harvest increased from 3.4 MMBF in 2001 to 51.3 MMBF

in 2006. Strong pulpwood markets often occur at infrequent and unpredictable

intervals, usually when lumber production is down and paper markets are strong.

Idaho’s major industrial timberland owner has been reorganized as a REIT, and

a spin-off firm operates the only pulp and paper mill in the state; presumably the

two firms are in a mutually advantageous position to recognize and immediately

respond to pulpwood market opportunities. The pulp and paper sector typically

relies on private lands for a large portion of their roundwood receipts. Private

Table 3—Proportion of Idaho timber harvest (MBF, Scribner) by ownership class, selected years (sources: 

Keegan and others 1982,1988,1992,1997; Morgan and others 2004).

Ownership class 1979 1985 1990 1995 2001 2006

- - - - - - Thousand board feet, Scribner - - - - - -

Private 808,749 779,109 754,978 829,417 750,357 833,797

 Industrial 455,721 467,474 364,178 467,518 443,029 485,590

 Non-industrial private 353,028 311 390,800 361,899 295,704 343,237

 Tribal a a a a 11,857 4,970

Public 1,041,719 814,787 937,560 540,296 256,704 286,813

 National Forest 866,455 631,003 700,715 301,277 77,863 78,613

 Other publicb 175,264 183,784 236,845 239,019 178,841 208,200

All ownersb 1,850,468 1,593,896 1,692,538 1,369,713 1,007,061 1,120,610

a

Tribal harvest included in non-industrial private b

Other public refers to state owned timberlands and Bureau of Land Management timberlands
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 9

timberlands supplied 77 percent (41 MMBF) of the pulpwood harvest in 2006, 80

percent (3 MMBF) in 2001, 84 percent (88MMBF) in 1995, and 64 percent (29

MMBF) in 1990. The difference in the private harvest of pulpwood among census

years is a reflection of the strength of the pulp market during those years.

In 2006, the harvest for cedar products, house logs, posts, poles, rails, and other

products combined totaled 46 MMBF. Harvest of this group of products was 43

MMBF in 2001 and 65 MMBF in 1995. Public timberlands provided 63 percent

of the harvest for this group of products in 2006. This is a greater proportion than

in 2001 (52 percent) or in 1995 (53 percent). The total harvest of cedar products

in 2006 (22.6 MMBF) decreased from the 2001 harvest (29.5 MMBF) while the

total harvest for post, poles, and rails increased from 7.3 MMBF in 2001 to 8.4

MMBF in 2006. Public land provided 43 percent of the harvest for cedar products

and 59 percent of the harvest for posts, poles, and rails. The largest increase among

these products was for the purpose of house log products. Harvest of material for

house logs more than doubled during this time from 6.5 MMBF in 2001 to over 14

MMBF in 2006. National Forests continued to supply the majority of house logs,

increasing from 82 percent in 2001 to nearly 88 percent in 2006.

Harvest by Species

True firs (Abies spp.)—grand fir (Abies grandis (Doug. Ex D. Don) Lindl.)

and subalpine fir (Abies lasiocarpa (Hook.) Nutt.)—represented the largest species component of Idaho’s 2006 timber harvest at 34 percent (table 5). Douglas-fir

(Pseudotsuga menziesii (Mirb.) Franco) was the second largest species component

of the 2006 harvest, despite a 2 percent proportional increase in the Douglas-fir

harvest from the 2001 census. The increases in proportion of both species groups

offset losses of western hemlock (Tsuga heterophylla (Raf.) Sarg.) and western

larch (Larix occidentalis Nutt.) harvest reductions in 2006. The decline in western white pine (Pinus monticola Dougl. ex D. Don) harvest has been the greatest

change in harvested timber species composition in Idaho over the last 30 years.

The white pine harvest was about 343 MMBF and accounted for 19 percent of

Idaho’s timber harvest in 1969; by 2001 the white pine timber harvest had dropped

to just 4 percent or 39 MMBF. By 2006 western white pine harvest had further

Table 4—Idaho timber harvest by ownership class and timber product 2006.

Ownership class Saw and 

veneer logsb House logs Cedar 

products

Other 

timber 

productsa

All 

products

- - - - - - - - - - - - - - - - - - - - - - Thousand board feet, Scribner - - - - - - - - - - - - - - - - - - - - - - - - -

Private timberlands 775,929 832 12,909 44,127 833,797

 Industrial 441,501 60 9,289 34,740 485,590

 Non-industrial private 330,378 772 3,620 8,467 343,237

 Tribal 4,050 - - 920 4,970

Public timberlands 246,281 13,349 9,710 17,473 286,813

 National Forest 62,965 12,439 500 2,709 78,613

 Other public 183,316 910 9,210 14,764 208,200

All owners 1,022,210 14,181 22,619 61,600 1,120,610

a

Other timber products include logs used for pulpwood, posts and poles, firewood, furniture logs, and energywood 

logs.

b

Saw and veneer logs combined to prevent disclosure of firm level data.
10 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012

declined to just 1 percent of the total. This change is the result of several interacting factors including mortality caused by white pine blister rust and bark beetles,

high-grade logging, and changes in forest species composition related, in part, to

fire suppression. By far the biggest blow to white pine has been dealt by white pine

blister rust, an exotic disease introduced to the United States from Europe in the

early 1900s. Blister rust had reached epidemic levels in the 1940s and has significantly damaged the white pine resource throughout the Inland Northwest (Fins and

others 2001).

In 2006, all of Idaho’s species groups were used to produce lumber. As in 2001,

true firs were the species most frequently harvested for saw and veneer logs, comprising 34 percent of the saw and veneer log harvest, while Douglas-fir accounted

for 31 percent (table 6). Western redcedar (Thuja plicata Donn ex D. Don) and

ponderosa pine (Pinus ponderosa Dougl. ex Laws.) represented 9 percent and 7

percent of the saw and veneer log harvest in Idaho, respectively. This is a shift

from the 2001 census when Douglas-fir, true firs, western hemlock, and western

Table 5—Proportion of Idaho timber harvest by species, selected years (sources: Setzer and Wilson 1970; Morgan 

and others 2004).

Species 1969 1979 1985 1990 1995 2001 2006

- - - - - - - - - Percentage of harvest (MBF, Scribner)- - - - - - - - -

True firs 24 22 27 23 25 24 34

Douglas-fir 18 20 21 22 27 26 28

Western hemlock b 1 3 3 4 12 4

Western redcedar 7 11 10 11 9 10 13

Western larch 6 6 6 6 6 10 5

Ponderosa pine 14 13 12 18 17 7 7

Lodgepole pine 4 8 10 10 6 5 5

Western white pine 19 8 6 5 3 4 1

Spruces a 3 5 3 2 2 2

Other speciesa 8 9 1 0 2 0 1

All speciesb 100 100 100 100 100 100 100

a

Western hemlock and Englemann spruce were included in the other species group in 1969.

b

Percentage detail may not sum to 100%. 

Table 6—Idaho timber harvest by species and timber product, 2006.

Species Saw and veneer 

logsa House logs Cedar products Other timber 

productsb All products

- - - - - - - - - - - - - - - - - - - - - - Thousand board feet, Scribner - - - - - - - - - - - - - - - - - - - - - - - - - - - -

True firs 350,044 37 - 28,400 378,481

Douglas-fir 314,879 2,972 - 467 318,318

Cedar 95,148 137 22,619 23,587 141,491

Ponderosa pine 71,389 1,987 - 216 73,592

Larch 59,488 82 - - 59,570

Lodgepole pine 49,046 3,387 - 5,563 57,996

Western hemlock 44,390 - - 400 44,790

Spruce 20,941 5,564 - 419 26,924

Western white pine 15,813 8 - - 15,821

Other softwoods 402 - - 2,521 2,923

Hardwoods 670 7 - 27 704

All species 1,022,210 14,181 22,619 61,600 1,120,610 a

Saw and veneer logs combined to prevent disclosure of firm level data. b

Other timber products include logs used for pulpwood, posts and poles, firewood, furniture log, and energywood.
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 11

larch were the four most harvested species. This change in the saw log species mix

parallels species trends of the 1995, 1990, and 1979 censuses.

Changes in products harvested other than saw and veneer logs can be attributed

to the influence of the pulpwood market, which was stronger in 2006 than in 2001,

but weaker than in 1995. The 2006 (62 MMBF) harvest of other timber products,

including pulpwood, posts and poles, furniture log, energy wood, and noncommercial firewood, was primarily made up of true firs (46 percent), western red cedar

(38 percent), and lodgepole pine (Pinus contorta Dougl. Ex Loud.) (9 percent). In

2001, Idaho’s pulpwood harvest was just 3 MMBF; true firs accounted for 73 percent of this, followed by Douglas-fir (11 percent), and western larch (11 percent).

Cedar products harvest was 23 MMBF in 2006, a slight decrease from 2001 (29

MMBF). Similar to 2001, spruce, mostly Engelmann spruce (Picea engelmannii Parry ex Engelm.) (39 percent), lodgepole pine (24 percent), and Douglas-fir

(21 percent) were the most common species harvested for house logs, though the

proportion of lodgepole pine was greater than Douglas-fir in 2006. The primary

species harvested for post and pole products were western redcedar (61 percent)

and lodgepole pine (36 percent).

Movement of Timber Products

The concentration of production at fewer and larger facilities has created manufacturing centers that draw timber from large geographic areas. Thus, large volumes of timber cross county and state lines. Because many counties, especially

in southern Idaho, now have only one or two timber processing facilities, timber

movement is described by three broad geographic regions—northern Idaho, southwestern Idaho, and southeastern Idaho—to avoid disclosure of firm-level information concerning timber receipts.

Movement across state lines—In 2006, 8 percent of Idaho’s harvest (89

MMBF) was shipped for processing outside of the state (table 7). Idaho’s primary

wood products manufacturers received 119 MMBF of timber that was harvested

outside of Idaho, making the state a net importer of nearly 30 MMBF of timber

in 2006. Idaho imported about 32 MMBF in 2001. Previously, Idaho had net exports ranging from 7 to 39 MMBF. None of the timber harvested in Idaho during

2006 was shipped to other countries for processing. Idaho mills did receive over

9 MMBF of timber from Canada in 2006, compared to 28 MMBF in 2001. In

2006, 72 percent (85 MMBF) of Idaho’s timber imports came from Washington,

19 percent (22 MMBF) came from Montana, and the balance (3MMBF) came

from Wyoming, Utah, Oregon, and Canada.

Table 7—Timber flow into and out of Idaho 2006.

Timber products

Log flow 

into Idaho

Log flow out 

of Idaho

 Net imports 

(net exports)

- - - - - Thousand board feet, Scribner - - - - -

Saw and veneer logs 110,428 81,682 28,746

House logs 3,045 225 2,820

Cedar products 2,000 1,000 1,000

Other productsa 3,511 6,536 (3,025)

All products 118,984 89,443 29,541 a

Other products include logs for pulpwood, posts and poles, log furniture, and 

industrial fuelwood.
12 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012

Southern Idaho counties supplied 62 percent (55 MMBF) of Idaho’s timber exports to other states in 2006, with southwestern Idaho counties accounting for the

majority (46 MMBF) of that volume and northern Idaho counties were the source

of the remaining 45 percent (34 MMBF) of timber exports to other states. Saw and

veneer logs were the major component of timber harvest flowing into and out of

Idaho. In 2006, Idaho sawmills and plywood/veneer mills imported 110 MMBF of

saw and veneer logs, while 82 MMBF of saw and veneer logs were exported. Over

3 MMBF of house logs were imported in 2006—2 MMBF for cedar products,

along with almost 4 MMBF of logs for other products.

Movement within Idaho—Ninety-two percent (1,031 MMBF) of Idaho’s 2006

timber harvest was processed within the state (table 8). Timber movement among

Idaho’s three regions is somewhat varied. In northern Idaho, 95 percent of timber

harvested was processed in the region of harvest. However, in southeastern Idaho,

46 percent of the timber harvested was processed in the region of harvest, and in

the southwestern region only 20 percent of timber harvested was processed within

the region. Timber movement among counties within the same region showed an

increase from 2001 to 2006. Seventy-three percent of the timber harvested in 2006

was processed in a county other than the county of harvest, compared to 68 percent in 2001.These data indicate that timber is traveling a greater distance to be

processed and reflects the loss of timber processing capacity in southern Idaho.

Since 1985, the portion of timber processed in the county of harvest declined by 18

percent and receipts from other counties increased by 13 percent (fig. 3).

Northern Idaho: The 10 counties north of the Salmon River are the center of

Idaho’stimber harvesting and processing activities. The total harvest in these counties was about 975 MMBF, or 87 percent of the state’s harvest. Ninety-five percent

(928 MMBF) of the timber harvested in northern Idaho was processed in northern

Idaho, while the remaining 5 percent (48 MMBF) was processed in another region

or state. Only 13 MMBF of timber harvest in northern Idaho was processed south

of the Salmon River. Thirty percent of timber harvested in northern Idaho was

processed in the county of harvest. Fifty-one percent was processed in counties

adjacent to (sharing a county line with) the county of harvest, and 15 percent was

processed in counties not adjacent to the county of harvest.

Southwestern Idaho: Just over 126 MMBF of timber—11 percent of the

state’s total harvest—was harvested in the 10 southwestern counties in 2006.

Approximately 36 percent (46 MMBF) was processed outside the state. Of the

64 percent (81 MMBF) that was processed in Idaho, 25 MMBF were processed

in southwestern Idaho. Thirty-nine percent (49 MMBF) of the southwestern harvest was processed in northern Idaho, with only 5 percent (7 MMBF) processed

in southeastern Idaho. Within southwestern Idaho, 8 percent (10 MMBF) of the

timber was processed in the county of harvest, while 92 percent (71 MMBF) was

processed in other counties. About 51 MMBF (40 percent) was processed in counties adjacent to the county of harvest, and 20 MMBF (15 percent) were processed

in counties not adjacent to the county of harvest.

Southeastern Idaho: Southeastern Idaho accounted for the smallest percentage of volume harvested in Idaho in 2006, with 19 MMBF (2 percent). Less than

half of this volume (9.2 MMBF) was processed in Idaho; 9.5 MMBF was processed outside the state. Of the 9.2 MMBF processed in Idaho, 93 percent stayed
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 13 Table 8--Intra-state and inter-state timber flow of 2006 Idaho timber harvest. Intra-state timber flow Inter-state timber flow Region of harvest Delivered to county of harvest Delivered to adjacent county Delivered to non-adjacent county Total delivered to northern Idaho Total delivered to southwestern Idaho Total delivered to southeastern Idaho Total delivered to Idaho Total delivered out-of-State Total harvest - - - - - - - - Thousand board feet, Scribner - - - - - - - - Northern Idaho 290,476 501,013 149,507 927,762 13,234 - 940,996 34,347 975,343 Southwestern Idaho 10,437 50,926 19,572 49,169 25,136 6,630 80,935 45,566 126,501 Southeastern Idaho 2,805 5,825 600 600 - 8,630 9,236 9,530 18,766 Idaho total 303,718 557,764 169,679 977,531 38,370 15,260 1,031,167 89,443 1,120,610 - - - - - - - - Percentage of total harvest - - - - - - - - Northern Idaho 30 51 15 95 1 - 96 4 87 Southwestern Idaho 8 40 15 39 20 5 64 36 11 Southeastern Idaho 15 31 3 3 - 46 49 51 2 Idaho Total 27 50 15 87 3 1 92 8 100 Figure 3—Movement of timber in Idaho. 
14 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012

in southeastern Idaho for processing while the remaining 7 percent was processed

in northern Idaho. Of the timber harvested in southeastern Idaho that remained instate for processing, 63 percent was processed in counties adjacent to the county

of harvest, and 30 percent was processed in the county of harvest. The remaining 7

percent was processed in counties not adjacent to the county of harvest.

End Uses of Idaho’s Timber

In this section, we trace the flow of Idaho’s timber harvest through the state’s

primary manufacturing sectors. Because both mill residue and products are displayed, volumes are presented in cubic feet rather than board feet Scribner. The

following conversion factors were used to convert board foot Scribner volume to

cubic foot volume:

•	 4.7 board feet per cubic foot for saw and veneer logs

•	 5.1 board feet per cubic foot for house logs

•	 3.4 board feet per cubic foot for cedar logs

•	 3.1 Board feet per cubic foot for post, pole, and log furniture logs

•	 2.4 board feet per cubic foot for pulpwood and other timber products

During 2006, Idaho’s timber harvest was approximately 259 million cubic

feet (MMCF), exclusive of bark (fig. 4). Of this volume, 233 MMCF went to

sawmills and plywood plants, 16 MMCF to pulp, 5 MMCF to cedar mills, 3

MMCF to log home manufacturers, and 2 MMCF to posts, poles, and log furniture manufacturers. These figures refer to Idaho’s timber harvest and include

timber products shipped to out -of-state mills; they do not include timber harvested in other states and processed in Idaho.

Of the 233 MMCF of wood fiber received by sawmills and plywood plants

for manufacturing, 120 MMCF (52 percent) became finished lumber, other sawn

products, or plywood and veneer products, and 6 MMCF were lost to shrinkage.

The remaining 107 MMCF of wood fiber became mill residue. About 93 MMCF

of sawmill residue were used as raw material by pulp mills and board plants; 14

MMCF were sold or used internally as hogfuel to generate energy; small volumes of residue were unused.

Pulp and paper mills and other residue using plants, both in Idaho and in other

states, received approximately 111 MMCF of wood fiber from Idaho timberlands

to be used as raw material for manufacturing products. Only 16 MMCF of that

was furnished from timber delivered to pulp and paper mills in round form. Saw

and veneer mills supplied 93 MMCF of mill residue to pulp and board manufacturers, and cedar mills and log home manufacturers each added 1 MMCF of

residue.

Cedar mills received approximately 5 MMCF of timber, of which 3 MMCF

became cedar products. The remaining 2 MMCF were used for hogfuel (1

MMCF), pulp, board, or other residue utilizing plants. Log home manufacturers

received 3 MMCF, of which 2 MMCF became house logs, 1 MMCF of residue

were utilized by pulp, board, or other residue utilizing plants. Post, pole, and log

furniture manufacturers received 2 MMCF of timber with only small volumes

utilized for other purposes. Mills in this sector seldom supplied residue for use

in other sectors. Most of the residue from this sector was used as firewood, livestock bedding, and mulch.
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 15

Structure of Idaho’s Forest Products Industry

Structure and Location

In 2006, timber-processing facilities operated in 26 of Idaho’s 44 counties,

while timber was harvested in 28 counties. Idaho’s 10 northern counties contain

the greatest concentration of the primary forest products industry (fig. 5), which

includes plants that manufacture:

•	 Lumber and other sawn products

•	 Veneer/plywood

•	 Posts, utility poles, small poles, stakes, and roundwood furniture

•	 House logs and log homes

Figure 4—Idaho’s timber harvest and flow, 2006.
16 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012

•	 Cedar products—shakes, shingles, and split rail fencing

•	 Other products including pulp and paper, particleboard, chips, decorative bark,

wood fuel pellets, and energy from biomass

During 2006, 97 timber-processing facilities operated in Idaho (table 9), 12

fewer than the 2001 census and a decrease of 145 since 1979. The log home sector,

which increased by 3 facilities, was the only sector that had growth in the number

of facilities since 2001. The number of sawmills in Idaho remained the same while

the industry saw losses in all other sectors since 2001. Several large facilities have

closed since the last census; these closures are addressed in more detail in the individual sector discussions.

Figure 5—Location of Idaho’s active primary forest products manufacturers, 2006.
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 17

Sales Value of Primary Wood Products

Periodic industry censuses (Godfrey and others 1980; Keegan and others

1982,1988,1992,1997; Morgan and others 2004) provide the most complete estimates of sales values for Idaho’s primary forest products industry. Various other

sources were used to estimate sales values for the non-census years between 1977

and 2007 (Random Lengths 1979-2009; WWPA 1964-2010). All sales are reported

free on board (f.o.b.) the producing mill.

Sales by Idaho’s primary forest products industry totaled $1.63 billion in 2006

(table 10); estimates for 2007 indicate sales decreased by about $50 million in

2006 dollars and 2008 experienced a much larger decrease of nearly $170 million in 2006 dollars (Brandt and others 2009). Average annual sales for 1977

Table 9—Active Idaho primary wood products facilities by county and product during 2006 and other years (sources: Keegan and others 

1997; Morgan and others 2004).

County Lumber Veneer/plywood Post, poles, and 

log furniture

Log 

homes

Cedar 

products

Residue-related 

productsa All products

Ada 1 2 1 4

Adams 1 2 3

Bear Lake 1 1

Benewah 4 1 2 7

Blaine 2 2

Boise 2 2 4

Bonner 7 1 3 2 1 14

Boundary 2 3 1 1 7

Canyon 1 1

Caribou 1 1

Clearwater 3 1 1 5

Custer 1 1

Fremont 1 1

Gooding 1 1

Idaho 3 2 4 9

Jefferson 1 1

Kootenai 4 1 4 2 2 13

Latah 2 1 1 4

Lemhi 1 1 1 3

Lewis 2 2

Madison 1 1 2

Nez Perce 1 3 4

Payette 1 1 2

Shoshone 1 1

Teton 1 2 3

Valley 1 1

2006 Total 35 3 16 24 7 12 97

2001 Total 35 4 22 21 10 17 109

1995 Total 62 6 32 32 15 15 162

1990 Total 80 6 27 22 26 11 172

1985 Total 90 7 26 20 25 6 174

1979 Total 133 8 35 15 44 7 242

a

Residue-related products include particleboard, chips, pulp and paper products, bioenergy products, and decorative bark.
18 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012

through 2007 were approximately $1.83 billion in 2006 dollars. In 1978, sales

totaled about $2.19 billion, followed by 1979 at almost $2.14 billion, and 1993

and 1994 at about $2.1 billion each (fig. 6). Total annual sales from Idaho’s forest industry declined significantly, to around $1.5 billion, during 2008 and 2009

because of weak domestic housing and lumber markets and reduced consumption of other wood products during the recession (Brandt and others 2009,2010).

About 95 percent of primary wood products sales are concentrated in three

sectors of the industry: sawmills, structural panels (i.e., plywood), and residuerelated products. Residue-related products include particleboard, chips, pulp and

paper products, bioenergy products, decorative bark, and mill residues. Sales

values for residue-related products also include mill residue sold to users within

Idaho as well as outside the state.

High sales values in the late 1970s were due in large part to strong lumber

markets and high prices. Inflation-adjusted lumber sales from Idaho sawmills in

the late 1970s exceeded $1 billion in 1977, and peaked in 1978 at nearly $1.5

billion. Sales values collapsed in the early 1980s with a severe recession, low

production, and weak prices. Driven by 1982 lumber sales of just over $500 million, sales of all primary products that year totaled approximately $1.3 billion. In

the last half of the 1980s, lumber sales moved back above $700 million and total

sales was more than $1.6 billion.

Even though timber availability in Idaho limited production, 1993 and 1994

marked the first time since the late 1970s that total sales exceeded $2 billion and

lumber sales exceeded $1 billion. As indicated earlier, 1993 and 1994 also had

high wood product prices due to a strong U.S. economy and constrained timber

availability on Federal lands throughout the Western United States. Sales value

in the remainder of the 1990s fluctuated between $1.9 and $2.1 billion as lumber markets fluctuated. Consistently declining sales since 1999 have been due

to lower per-unit prices as well as curtailments and closures. The lumber sales

value of nearly $772 million in 2001 was the lowest since 1985 ($727 Million).

To prevent disclosure of firm level information, sales data for lumber and other

sawn products were combined with plywood and veneer sales totaling over $780

million dollars in 2006.

Total sales of all primary processors have been buoyed and stabilized to a degree

by the expansion of the residue-utilizing sector. This sector has shown substantial

increases in sales over the past 25 years and has become an increasingly important

Table 10—Sales value of Idaho's primary wood products, 1979 through 2006 (sources:Keegan and others 1982,1988,1992,1997; Morgan and others 

2004).

Product 1979 1985 1990 1995 2001 2006

- - - - - - - - - Million 2006 dollars - - - - - - - - -

Lumber, timbers, other sawn products 1,295.2 727.4 789.6 897.9 771.8 780.9b

Residue-related productsa 624.7 657.2 810.7 866.6 912.1 767.4

Plywood and veneer 219.5 137.6 152.9 216.3 78.5 b

House logs and log homes 20.1 5.6 14.8 26.3 28.6 37.9

Cedar products 33.7 13.7 20.5 17.6 34.1 33.5

Posts, poles, and log furniture 42.4 21.4 38.4 32.9 24.9 14.8

All products 2,235.5 1,563.1 1,827.1 2,057.5 1,849.8 1,634.5 a

Residue-related products include particleboard, chips, pulp and paper products, bioenergy products, decorative bark, and mill residues sold within and 

outside the state.

b

Plywood and veneer sales included with lumber to prevent disclosure of firm level data.
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 19

sector of Idaho’s forest products industry. In order to avoid disclosure of firmlevel data, published information was used to estimate a sales value for Idaho’s

residue-utilizing sector (DeKing 2004; Potlatch Corporation 2007; RISI 2007).

Inflation-adjusted sales were about $625 million in 1979, versus $767 million in

2006. Sales by residue utilizing manufacturers currently account for about 47 percent of Idaho’s forest industry sales, versus 28 percent in the late 1970s (fig. 6).

Structural panel sales, on the other hand, have contributed proportionately less

to total sales than lumber. Structural panel sales peaked in 1978, with revenues of

about $252 million. High prices brought sales to over $224 million in 1993 and

1994. Since 1997, weak plywood and veneer markets and a lack of available timber have led to plant closures. Only three plywood and veneer facilities remained

in Idaho in 2006, the fewest since industry censuses began in 1979.

Sales by the remaining sectors of Idaho’s primary wood products industry

totaled over $86 million, the highest for any census year since the $96.5 million

reported in 1979. While sales of cedar products and post and poles fell from 2001

to 2006, house log sales increased by nearly 8 percent.

Figure 6—Sales value of Idaho’s primary forest products, 1977 through 2007 (source: WWPA 1977-2007; Brandt and others 

2009).
20 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012

Timber Received by Idaho Mills

Idaho mills received over 1,150 MMBF Scribner of timber for processing during 2006. Timber receipts refer to the volume of timber delivered to Idaho mills

from in-state and out-of-state sources. Timber receipts for Idaho mills differ from

the state’s timber harvest because some timber harvested in Idaho was processed

in other states, and some of the timber processed in Idaho was harvested outside

the state.

Saw and veneer logs constituted the vast majority (91 percent) of Idaho’s timber

receipts, while logs used for other timber products— posts and poles, log furniture,

pulpwood, and industrial fuelwood—accounted for 5 percent of receipts in 2006.

The remaining 4 percent of timber receipts consisted of logs used in cedar products

and house logs used by log home manufacturers.

Private lands supplied the majority of each timber product category, except

house logs; National Forests were the leading supplier of timber to Idaho log home

manufacturers (table 11). Industrial lands were the leading supplier of saw and veneer logs (480 MMBF) and also provided the majority of volume (32 MMBF) for

other products in 2006. The majority, over 80 percent, of the timber received for

other products was timber used in the manufacture of pulpwood and utility poles.

True firs were the leading species received by Idaho mills in 2006, accounting

for 33 percent of receipts followed by Douglas-fir, which accounted for 30 percent

of Idaho’s timber receipts (table 12). True firs accounted for the largest proportion

of sawlogs and veneer logs, as well as other products, while Spruce provided the

largest proportion of house log receipts. Saw and veneer log receipts were the largest volume for each species.

Table 11—Idaho timber receipts by ownership class and product, 2006.

Ownership class Saw and veneer logsa House logs Cedar products Other productsb All products

- - - - - - - - - - - - - - - - - - - - - - Thousand board feet, Scribner - - - - - - - - - - - - - - - - - - - - - - - - -

Private 797,044 1,526 13,909 39,002 851,481

 Industrial 480,373 285 8,789 31,922 521,369

 Non-industrial private 313,391 1,241 5,120 6,160 325,912

 Tribal 3,280 - - 920 4,200

Public 229,995 13,450 9,710 17,872 271,027

 National Forest 52,610 12,526 500 3,924 69,560

 Other public 177,385 924 9,210 13,948 201,467

Canadian and unspecifiedc 23,918 2,024 - 1,701 27,643

All owners 1,050,957 17,000 23,619 58,575 1,150,151 a

Saw and veneer logs combined to prevent disclosure of firm level data.

b

Other products include logs used for pulpwood, posts and poles, log furniture, and industrial fuelwood.

c

Includes timber receipts from Canada and unspecified out-of-state sources.
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 21

Sawmill Sector

Sawmills are the major component of Idaho’s forest products industry in terms

of sales output, plant numbers, and timber volume processed. In 2006, Idaho’s 35

active sawmills continued to process the majority of the timber in the state and

produced 1.8 billion board feet of lumber and other sawn products, representing

4.9 percent of the total U.S. production of softwood lumber (5.1 percent in 2001)

and about 2.9 percent of the nation’s softwood lumber consumption (3.4 percent

in 2001).

The most common species used by Idaho’s sawmill sector are Douglas-fir, true

firs, western hemlock, western larch, western red-cedar, ponderosa pine, lodgepole

pine, western white pine, and Engelmann spruce. High quality select and shop

grades of lumber are produced, as are small volumes of structural timbers, but

approximately 87 percent of production is dimension and stud lumber used for

construction.

Table 12—-Idaho timber receipts by species and product, 2006.

Species Saw and veneer logsa House logs Cedar products Other productsb All products

- - - - - - - - - - - - - - - - - - - - - - Thousand board feet, Scribner - - - - - - - - - - - - - - - - - - - - - - - - -

True firs 356,455 132 - 27,600 384,187

Douglas-fir 338,529 3,374 - 67 341,970

Cedar 97,398 306 23,619 23,733 145,056

Larch 66,338 125 - - 66,463

Lodgepole pine 54,327 4,025 - 6,460 64,812

Ponderosa pine 49,077 2,758 - 683 52,518

Western hemlock 51,892 - - - 51,892

Spruce 19,905 6,198 - 19 26,122

Western white pine 16,163 30 - - 16,193

Other speciesc 873 51 - 13 3,672

All species 1,050,957 17,000 23,619 58,575 1,150,151

- - - - - - - - - - - - - - - - - - - - - - Percentage of receipts - - - - - - - - - - - - - - - - - - - - - - - - - - - -

True firs 31.0 0.0 - 2.4 33.4

Douglas-fir 29.4 0.3 - 0.0 29.7

Cedar 8.5 0.0 2.1 2.1 12.6

Larch 5.8 0.0 - - 5.8

Lodgepole pine 4.7 0.3 - 0.6 5.6

Ponderosa pine 4.3 0.2 - 0.1 4.6

Western hemlock 4.5 - - - 4.5

Spruce 1.7 0.5 - 0.0 2.3

Western white pine 1.4 0.0 - - 1.4

Other speciesc 0.1 0.0 - 0.0 0.3

All species 91.4 1.5 2.1 5.1 100.0

a

Saw and veneer logs combined to prevent disclosure of firm level data.

b

Other products include logs used for pulpwood, posts and poles, log furniture, and industrial fuelwood.

c

Other species include: redwood, red alder, quaking aspen, and other unknown species. 
22 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012

Changes in Lumber production

Driven by strong markets and increasing timber harvest, the period from 1947

to 1960 showed steady growth in lumber production. Harvest levels in Idaho prior

to World War II on both public and private lands were relatively low in relation to

timber inventories (Wilson and Spencer 1967). After World War II, public policy

encouraged increased harvest on Federal lands to meet the strong national demand

for building products, and improved markets also increased harvest on private

lands (Flowers and others 1993). From 1947 to 1960, the volume of timber harvested from Idaho timberlands increased from under 1 billion board feet to nearly

1.5 billion, and virtually all of that timber was processed by sawmills (Setzer and

Wilson 1970).

During the 1960s, lumber production showed little year-to-year variation, ranging from 1.6 to 1.7 billion board feet. Market conditions during that period were

relatively stable with a strong U.S. economy and no recessions between 1960

and 1970. Lumber production remained stable despite the expansion of Idaho’s

plywood industry that used an increasing amount of timber that could have been

processed into lumber. In less than 10 years, the plywood industry’s timber use

increased from less than 25 million board feet (MMBF) Scribner in 1960, to more

than 250 MMBF in the last half of the 1960s. Lumber production was sustained

during this period primarily by an increase in harvest levels. The total harvest in

Idaho increased from 1.6 billion board feet at the beginning of the decade to over

1.8 billion board feet in the late 1960s.

Idaho’s lumber production (fig. 7) clearly shows the influence of markets with a

peak in the late 70’s of nearly 2 billion board feet, followed by a sharp decline during the double dip recession of the early 1980s. However, Idaho lumber production

was highest in 1989, at a time when markets were actually weaker than the in late

1970s. A 16 percent increase in lumber recovery per unit of log input between 1979

and 1990 was a major contributing factor to 1989’s output of more than 2.1 billion

board feet of lumber.

In the early 1990s, timber availability emerged as a major concern for the industry. Timber harvest fell nearly 15 percent by 1993 and lumber production was

down nearly 10 percent from just over 2 billion board feet in 1990 despite very

strong markets in 1993 and 1994. Prices in 1995 fell from the levels of the previous 2 years, and production fell to 1.67 billion board feet. In 1996, higher lumber

prices increased production to 1.8 billion board feet. Prices continued to increase

throughout the late 1990s, resulting in production of 1.86 billion board feet in

1999. Declining prices and further reductions in National Forest timber offerings

led to decreased production in 2000 and 2001, with 2001 annual production totaling 1.8 billion board feet the lowest since 1996 (fig. 7).

Lumber production in 2006 was 1.85 billion board feet, 10 percent lower than

production in 1990 (2.03 billion board feet) and 10 percent higher than in 1995

(1.66 billion board feet). Following 2006, Idaho’s lumber production continued to

decline and by 2008 had fallen 27 percent, producing just over 1.3 billion board

feet. Idaho’s estimated 2009 lumber production was 1.1 billion board feet. A number of factors impact lumber production from Idaho mills including:

•	 fluctuating housing and lumber markets

•	 timber availability

•	 increased recovery of lumber per board foot of log input
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 23

•	 decisions by the industry to produce other products such as plywood instead of

lumber, and

•	 log flows.

The combined harvest of saw and veneer logs in 2006 was 1,022 MMBF

Scribner, 15 percent lower than in 1995 and 35 percent lower than in 1990. It

is necessary to consider sawlogs and veneer logs when examining the impact of

timber harvest on lumber production, because the plywood industry uses timber

that also could be processed into lumber. Processing advancements between 1990

and 2006 allowed for increased lumber production per unit of log input thereby reducing the impact of declining harvest levels on lumber output. However, as total

harvest has declined since 1990, the increased proportion of timber harvest utilized

for lumber production has been the primary factor that has sustained lumber production in Idaho; this shift in timber allotted to lumber production is related to a

commensurate reduction in timber available for plywood production.

Finally, demand for dimensional lumber weakened in 2006 following the recent

housing boom that peaked in 2005 with new construction starts for single-family

units (fig. 1). U.S. composite softwood lumber prices fell 16 percent from 2005 to

an average annual price of 327 dollars per thousand feet of lumber tally in 2006,

and continued to fall throughout 2007 and 2008 (Random Lengths 2009). Many

Idaho sawmills have been negatively impacted by the falling lumber prices as a

result of the downturn in housing. Stimson Lumber shut down its Atlas mill located in Coeur d’Alene in 2005 and later closed the DeArmond mill in 2008 citing

poor market conditions related to the downturn in the housing market (Kramer

2005,2008). North central Idaho also lost a sawmill in 2008 when Three Rivers

Timber in Kamiah announced plans to shut down operations indefinitely due to

low lumber prices and falling sales (Associated Press 2008).

Changes in lumber recovery—Between the 1979 and 1990 censuses, the volume of lumber recovered from 1 board foot Scribner of log volume increased from

Figure 7—Idaho lumber production, 1947 through 2007 (source:WWPA 1964-2007).
24 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012

1.34 to 1.56 board feet lumber tally (table 13). Lumber recovery in Idaho has since

increased to 1.89 board feet in 2006. Increases in recovery are due primarily to

advances in technology and to decreased log diameter. The Scribner Decimal C log

rule, which is used in Idaho, increasingly underestimates the amount of lumber that

can be recovered as log diameter decreases, thus exaggerating lumber recovery per

board foot of timber for smaller logs. Advances in production technology increase

lumber recovery through computerized log scanning capabilities that identify optimum sawing patterns. Likewise, using thinner kerf saws and scanning equipment

to edge and trim lumber have reduced the portion of the log that becomes sawdust.

Lumber production by geographic area—Information on lumber production

at the sub-state level is currently available only through the ongoing censuses of

Idaho’s industry conducted by the BBER. Lumber output by county and region

is discussed for census years, with an emphasis on recent changes, particularly

since 1990. Idaho lumber production was 3 percent higher in 2006 than the previous census in 2001, 7 percent higher than 1995, and about 12 percent lower than

in 1990 (table 14). The increased production since 1995 has been concentrated in

the northern 10 counties while lumber production has continued to decline in the

southern part of Idaho. The record high lumber production in northern Idaho is primarily due to increased recovery through technology upgrades at the mills and the

decline of the plywood industry in northern Idaho. Since 1995, lumber production

in Idaho’s 10 northern counties has increased by 17 percent to 1.74 billion board

Table 13—Idaho lumber recovery, selected years (sources: Keegan and others 

1982,1988,1992,1997; Morgan and others 2004).

Year Timber processed Lumber produced Recovery

MBFa Scribner MBFa Lumber tally

1979 1,441,791 1,932,001 1.34

1985 1,224,540 1,665,375 1.36

1990 1,317,019 2,054,550 1.56

1995 1,074,090 1,643,359 1.53

2001 945,564 1,758,750 1.86

2006 953,432 1,805,113 1.89

a

MBF = thousand board feet.

Table 14—Idaho lumber production by geographic area, census years 1979 through 2006 (sources: 

Keegan and others 1997, Morgan and others 2004).

County group 1979 1985 1990 1995 2001 2006

- - - - - - - - - - - - - - - - - - -MBFa, lumber tally - - - - - - - - - - - - - - - - - - - -

Bonner, 

Boundary 462,481 358,064 552,426 408,988 661,509 622,541

Benewah, 

Kootenai, 

Shoshone 467,965 490,866 629,129 613,014 563,482 591,446

Latah, Lewis, Nez 

Perce 360,847 198,633 262,148 213,610 274,990 290,619

Clearwater, Idaho 248,917 228,792 255,336 209,176 156,298 241,444

Northern Idaho 1,540,210 1,276,355 1,699,039 1,444,788 1,656,279 1,746,050

Southern Idaho 391,791 389,020 355,511 228,571 102,471 59,063

Idaho Total 1,932,001 1,665,375 2,054,550 1,673,359 1,758,750 1,805,113

a

MBF = thousand board feet.
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 25

feet of lumber as production from mills in southern Idaho decreased by 74 percent

to 59 million board feet.

County-level lumber production data are withheld to avoid disclosure of firmlevel information. Bonner and Kootenai continued to be Idaho’s top lumber producing counties in 2006, combining for over 809 MMBF of lumber production.

Benewah, Nez Perce, and Idaho counties also accounted for a large portion of

Idaho’s lumber production, each producing over 180 MMBF, for a total of 591

MMBF in 2006.

Timber harvest on lands in northern Idaho increased by 8 percent since 2001,

with a 14 percent increase in imports of saw and veneer logs from Canada and

adjacent states. In addition, the decline of Idaho’s plywood industry has increased

the proportion of timber available to the sawmill sector.

The lumber industry in southern Idaho continued the downward trend that began in the late 1980s with a number of sawmill closures. Production in southern

Idaho fell 42 percent from 2001 to 2006, 74 percent since 1995, and 83 percent

since 1990. Mills in southern Idaho, which received more than 75 percent of their

timber from National Forests in 1990 and over 60 percent in 1995 (Keegan and

others 1992,1997), were more vulnerable to sharp declines in National Forest timber availability. Boise Cascade permanently closed its timber processing facilities

during 2001, citing declines in Federal timber availability as the primary reason for

the closures (Boise 2001).

Number and size of mills—The number of sawmills operating in Idaho has

continued to decline over the last 50 years as production has become increasingly

concentrated in a smaller number of large mills. The average output per mill continued to increase since the 2001 census and has increased nearly 10 fold since 1956,

with the 2006 average annual output per mill at nearly 52 MMBF (table 15). The

average annual output of Idaho mills nearly doubled between 1995 (27 MMBF)

and 2001 (50 MMBF). Idaho timber processors with a capacity of over 50 MMBF

accounted for over 94 percent of Idaho’s timber processing capacity in 2006, compared to 61 percent in 2001, and just 39 percent in 1995. At the height of the postWorld War II housing boom, there were more than 300, mostly small, sawmills in

Idaho. Since then, the total number of mills had consistently declined until 2001.

The 2006 census identified the same number of sawmills as 2001.

Although the total number of millsstayed the same in 2006, six fewer mills were

identified in the 10 to 50 MMBF output size class and six additional mills were

found to have produced less than 10 MMBF of lumber. The loss of several large

Table 15--Number of active Idaho sawmills by production size class and average annual 

lumber production, 2006.

Lumber production 

size class

Number 

of mills

Percentage of 

production

Lumber 

production

Average 

production per 

mill

MBFa MBFa

Over 100 MMBF 9 73.8 1,333,067 148,119

50 to 100 MMBF 5 20.3 367,218 73,444

10 to 50 MMBF 3 3.9 71,268 23,756

1 to 10 MMBF 9 1.8 31,675 3,519

Less than 1 MMBF 9 0.1 1,885 209

Total 35 100.0 1,805,113 51,575 a

Production volume in thousand board feet (MBF) lumber tally.
26 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012

processors was the result in-part of declining harvest on National Forest lands.

Most of the small mills opened in southern Idaho since the 2001 census. These

small mills represent less than 2 percent of the state’s lumber production and are

primarily supplied by timber from small scale forest management activities occurring locally on private lands. The 2006 census identified only 17 mills producing

more than 10 MMBF annually—the fewest in the last 50 years (table 16).

As lumber production has become increasingly concentrated into larger facilities, ownership of the facilities has also consolidated as a result of several mergers of large forest products companies in Idaho. In 2001, the five largest forest

products companies in Idaho produced 67 percent of the state’s lumber production

compared to 79 percent in 2006. Since 2006, these largest companies have further

merged, and are currently controlled by just three entities.

Residue-Related Products Sector

In addition to products such as lumber and plywood, the processing of timber

generates substantial volumes of wood fiber by-products. These by-products, referred to as mill residue, are the raw material source for the residue-related products sector. The 2006 census identified a total of 12 facilities in this sector, five

fewer than in 2001. These included a pulp and paper mill and associated tissue

plant, a particleboard plant, two wood fuel pellet producers, three facilities generating steam or electricity, and four facilities producing bark-related products such

as decorative and landscape bark.

The total sales from the residue-related sector were $767 million in 2006, down

nearly 16 percent from 2001 ($912 million), and down nearly 12 percent from1995

($867 million). Although this sector has slightly declined since 2001, it remains a

substantial part of Idaho’s forest products industry, accounting for approximately

47 percent of Idaho’s primary forest products sales in 2006, compared to just 28

percent in 1979. Increased sales in this sector are primarily from expansion of

the pulp and paper component. There has also been growth in other residue using

products in Idaho such as pelletized fuel, decorative bark, and residue used for

generating steam or electricity.

Idaho has only one particleboard plant and one pulp and paper mill, which produces Kraft pulp, paperboard, and tissue. Published information was used to report

production at these facilities. Particleboard production in 2006 was slightly higher

than the previous census year at 68 million square feet (MMSF, 3⁄4-inch basis)

versus 67 MMSF in 2001, 68 MMSF in 1995, and 60 MMSF in 1990 (Keegan

and others 1992; Potlatch 2007). Production of paperboard and tissue in Idaho

was 542,000 tons compared to 533,000 tons in 2001, 424,000 tons in 1995, and

411,000 tons in 1990 (Keegan and others 1992; Morgan and others 2004).

Several Idaho firms operate plants producing electricity for sale through the

burning of wood residue. These plants are associated with timber processing facilities and historically produced steam energy for in-house use. Many of these plants

began to produce electricity for sale to outside markets in the early 1980s. There

are other firms in Idaho that produce wood fuel pellets and bark products from the

residues generated by timber processing facilities. Since 1988 the University of

Idaho has been using sawmill residues to produce steam to heat the main campus

in Moscow (Latah County), saving Idaho taxpayers upwards of $2 million per

year, depending on the price of natural gas.
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 27

Plywood, Veneer, and OSB

In 2001, one of the four plywood/veneer plants operating in Idaho closed. To

prevent disclosure of firm level information, production and sales information pertaining to the remaining three facilities operating in 2006 will not be reported.

Production in 2001 was approximately 254 MMSF (3/8-inch basis) of plywood

and veneer and had a total sales value of $69.9 million.

During the late 1950s and early 1960s, two plants producing plywood and veneer operated in Idaho with combined total production of less than 50 MMSF

annually. The industry began to expand dramatically in the mid-1960s, with the

construction of four new plants. Production reached 603 MMSF in 1967, which

remained the highest level of production until the late 1980s. Slight expansion

continued throughout the 1970s, and industry output remained between 500 and

600 MMSF annually. By 1979, eight plants producing structural panels or veneer

were operating in Idaho. Production of structural panels decreased 200 MMSF

during the recession years of the early 1980s and by 1985 two plywood plants and

one plystran plant had closed. However, in 1984 an oriented strand board (OSB)

plant was opened, raising the number of active plants in Idaho to six. The industry

rebounded quickly from the recession and production increased to pre-recession

levels by 1985, and peak production occurred in 1988 at 639 MMSF. The period

from 1985 to 1995 was marked by stability in both the number of plants operating

and production levels. All six plants operating in 1985 were still operating in 1995,

and production remained stable at approximately 600 MMSF per year. In 1995,

production approached the peak levels of 1988 at 637 MMSF.

In the late 1990s, the structural panel sector began a period of significant decline. The OSB plant closed in 1997, and a plywood plant closed in 2000, reducing

the number of active structural panel plants operating in Idaho to four. Another

plywood plant closed in 2001. The closures since 1995 were due to reduced timber

availability, as well as increased competition from OSB producers elsewhere in

North America and overseas.

Other Primary Manufacturers

The 2006 census identified 47 other active primary manufacturers processing

timber into cedar products, log homes, utility poles, posts, and other small roundwood products such as corral poles, tree stakes, and roundwood log furniture. In

1995 and 2001, there were 79 and 53 facilities, respectively (table 9).

Posts, poles, and log furniture—In 2006, 16 plants in Idaho manufactured

various types of roundwood products, such as utility poles, posts, corral poles,

and log furniture. These plants had sales of $14.8 million from an output of nearly

1.5 million pieces, a decrease from 2001, when sales were $24.9 million from

an output of approximately 2.3 million pieces and 22 facilities were operating

(table 9 and 10). Sales of these products in 1995 were $32.9 million, and production was 3.7 million pieces with 32 plants operating.

Cedar products—Cedar product manufacturers processed nearly 24 MMBF

Scribner of logs in 2006, down 26 percent from the 34 MMBF in 2001. Since

1979, the number of manufacturers for cedar products such as cedar shakes, shingles, split rail fencing, and fence lath in Idaho has steadily declined from 44 facilities to 26 in 1990, 10 in 2001, and 7 in 2006. Cedar product sales experienced a
28 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012

decline from nearly $34 million in 1979 to under $14 million in 1985, $20.5, million in 1990, and $17.6 million in 1995. However, cedar product sales rebounded

and reached their highest level ever at $34.1 million dollars in 2001 and declined

slightly in 2006 to $33.5 million after adjusting for inflation. Most of this growth

was in split cedar posts and rails and fence lathe as a result of higher prices and

increased production of these products.

Log homes—The 2006 census identified 24 log home manufactures, an increase of three since 2001 and the only sector to see an increase in the number of

facilities from 2001 to 2006. Idaho’s log home sector recorded the highest level

of sales on record with nearly $38 million dollars compared to the previous record of $28.6 million in 2001. While the log home industry still only accounts for

just over 2 percent of Idaho’s primary forest product industry sales, it has grown

substantially since 1979. The 2006 census identified 24 log home manufacturers,

producing over 3.2 million lineal feet of house logs. This compares to 1995 sales

of $26.3 million and production of 3.7 million lineal feet. Sales and production

in 1979 were $20.1 million and 4 million lineal feet, respectively. Sales increases

from 1995 to 2006 were due to additional processing of house logs into complete

building shells or homes, the use of higher value logs, and the design and production of higher value homes.

Plant Capacity

This section estimates the timber-processing capacity and the proportion of that

capacity utilized by Idaho’s primary forest products manufacturers in 2006. This

analysis focuses on plants processing sawtimber: sawmills, plywood and veneer

plants, house log plants, and utility pole plants. Capacity and utilization for the

non-sawtimber processing manufacturers are discussed in less detail.

A Definition of Production Capacity

Mills were asked to specify production capacity—volume of finished product

the facility is capable of producing both per eight-hour shift and annually given

sufficient supplies of raw materials and firm market demand for products. Most of

the larger mills estimated annual capacity based on two 8- or 10-hour shifts daily

for a 220 to 260 operating days per year. A few facilities estimated annual capacity equivalent to operating 24 hours per day for 220 to 250 days per year. Smaller

mills reported annual capacity at only one shift per day for not more than 250

operating days per year.

Capacity in Units of Raw Material for Sawtimber Processors

Sawtimber processors reported production capacity in a variety of units.

Sawmills reported production capacity in thousand board feet lumber tally, while

plywood capacity was reported in thousand square feet on a 3/8-inch basis. Utility

pole production capacity was reported in numbers of pieces of a given size, and

house log capacity in lineal feet. To combine the production capacity figures from

different sectors and estimate the industry’s total capacity to process sawtimber,

production capacity was converted to units of timber input (MMBF Scribner) on
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 29

a mill-by-mill basis, using each facility’s product recovery factor. Sawmill capacity figures were adjusted to MMBF of timber by dividing production capacity in

lumber tally by each mill’s lumber recovery per board foot Scribner of timber processed. Plywood and veneer capacity figures were converted to MMBF Scribner

by dividing production capacity in square feet by each mill’s plywood recovery.

Utility pole and house log capacities were adjusted to MMBF Scribner by multiplying capacity in the given finished product unit by an average Scribner board

foot volume per piece or per lineal foot.

Industry’s Capacity to Process Sawtimber, 1979 through 2006

Estimates of capacity to process sawtimber and the utilization of total capacity

for 1979, 1985, 1990, 1995, 2001, and 2006 are based on complete censuses of

Idaho’s industry. For non-census years, mill capacities and utilization were estimated using information from industry directories, trade associations, and industry

consultants (Ehinger 2009; Keegan and others 2006; Random Lengths 2001-2010;

Spelter and others 2009; WWPA 1964-2010). Detailed capacity information is not

available prior to the 1979 census. Idaho’s sawtimber processing capacity has declined by 37 percent since 1979, with most of the decline occurring after 1990

(fig. 8). Between 1979 and 1990, capacity declined 14 percent and fell 27 percent

to 1,294 MMBF by 2001. In 2003, several mill closures reduced capacity to less

than 1,150 MMBF. Census data for 2006 indicates Idaho’s sawtimber processing capacity to be approximately 1,300 MMBF. Capacity to process sawtimber in

Idaho declined during 2007 and 2008, falling to approximately 1,100 MMBF, the

lowest capacity in the past three decades.

Figure 8—Idaho sawtimber processing capacity and sawtimber processed, 1979 through 2006 (source: Brandt and others 2009; 

Keegan and others 1997; Morgan and others 2004).
30 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012

Sawtimber Capacity and Utilization by Sector

Although capacity to process sawtimber increased slightly from 2001 to 2006,

utilization stayed about the same. Idaho mills processed 1,030 MMBF of saw

timber, utilizing 79 percent of the state’s capacity, the lowest level of utilization

recorded since 1985 (table 17). Utilization peaked in 1990 at 90 percent before

dropping to 83 percent in 1995 and 80 percent in 2001. During 2007 and 2008,

utilization was approximately 79 percent and more mill closures are likely (Brandt

and others 2009, 2010).

Idaho’s overall capacity and utilization trend closely with the state’s sawmill

industry which accounted for 88 percent of sawtimber processing capacity in 2001

and a greater portion in 2006. The 2001 closing of an Idaho plywood plant required

that estimates of plywood capacity and utilization be combined with sawmills to

prevent disclosure of firm level information. The combined sawtimber capacity of

sawmills and plywood and veneer plants in 2006 was 1,293 MMBF, slightly higher

than the combined capacities in 2001 of 1,266 MMBF but 36 percent lower than

in 1979. Utilization among these facilities in 2006 was about the same as in 2001

(about 80 percent) and in 1979 (81 percent). The increase in capacity in 2006 was

the result of the addition of a northern Idaho sawmill. This was followed by the

closing of two large sawmills in 2008, reducing the state’s total capacity to less

than 1,150 MMBF.

Idaho’s plywood and veneer sector has experienced a significant decline since

1995. This sector’s capacity fell from 202 MMBF in 1995 to 126 MMBF in 2001

as utilization dropped from 91 percent to just 57 percent. These estimates were the

lowest on record and were indicative of a significant decline in Idaho’s structural

panel sector. The addition of an OSB plant and the closure of a plywood plant

caused capacity to initially increase from 1979 to 1985, and then fall from 1985 to

1995. Since 1995, the structural panel sector has seen the closure of the OSB plant,

and a plywood plant, reducing the sector’s capacity by 76 MMBF. Capacity utilization for these facilities was 91 percent in 1995. Plywood and OSB plants tend to

run at a higher rate of capacity utilization because they are more capital-intensive

than the average sawmill, and their manufacturing processes are not easily shut

down. A large part of the decline in capacity utilization in 2001 was due to one

plant operating for less than half of the year and then closing permanently.

The annual timber processing capacity of Idaho’s utility pole and house log sectors in 2006 was 11 MMBF, significantly lower than the 2001 census despite the

increase in the number of house log plants. The decrease since 2001 was mainly

due to the decline in the use of sawlogs to produce house logs, which can be made

from logs of a lower quality. In 2006, 55 percent of sector capacity was utilized,

which is somewhat lower than utilization levels from 2001 but higher than previous census years.

Markets for Primary Wood Products

This chapter examines the markets for Idaho’s primary forest products industry

and compares 2006 survey results with 1995 and 2001. Respondent mills summarized their 2006 shipments of finished wood products, providing information

on volume, sales value, and geographic destination (fig. 9). Mills usually distributed their products through their own distribution channels or through independent
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 31

wholesalers and selling agents. Because of subsequent wholesale and retail transactions, the geographic destination reported may not precisely reflect final delivery

points of shipments. Market destination for the residue sector could not be released

without revealing firm-level information.

Excluding mill residues and sales by the residue-utilizing sector, sales from

Idaho’s primary wood products industry totaled $867 million in 2006, down 8

percent from the 2001 sales total (table 18). Between 2001 and 2006, inflation

adjusted sales decreased in every region except the Rocky Mountain States and

North Central States.

Sales to purchasers in the Rocky Mountain States increased from $215 million in 2001 to $235 million in 2006, while export sales to North Central States

increased from $185 million to $200 million for the same period. A comparison of

sales values from 2006 to values from 2001 shows decreases in sales to all regions

except for the Rocky Mountain and North Central, with substantial declines in

Idaho (12 percent), Northeast States (39 percent), and the Far West (19 percent).

The major market areas for Idaho’s primary wood products remain the Rocky

Mountain and Far West States, as well as the North Central States. Nearly 85 percent of Idaho’s 2006 primary wood product sales occurred in four market areas:

Idaho, Far West, Rocky Mountain, and North Central (table 18). Sales to the Rocky

Mountain States increased from 23 percent of total sales in 2001 to 27 percent in

2006 and from 20 percent to 23 percent in North Central States. Sales decreased

from 24 percent to 21 percent in the Far West and from 10 percent to 7 percent in

the Northeast.

Figure 9—Shipment destinations for Idaho’s primary wood products. Regions are Idaho (1), Far West (2), Rocky Mountain 

(3), North-Central (4), South (5), and Northeast (6).
32 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 Table 18—Destination and value of Idaho's 2006 primary wood products salesa. All values in 2006 dollars.(sources: Keegan and others 1982,1988,1992,1997; Morgan and others 2004). Product Idaho Rocky Mountain Far West North- Central Northeast South Other countries Unknown Total - - - - - - - - - Sales value in thousand 2006 dollars- - - - - - - - - Lumber, timbers, other sawn products, plywood and veneerb 102,986 211,176 167,197 187,605 54,739 48,597 8,652 - 780,953 Posts, poles, and log furniture 3,626 1,077 7,488 947 7 7 1,612 - 14,764 House logs and log homes 9,619 17,577 3,948 4,654 1,225 397 444 - 37,864 Cedar products 1,868 4,952 3,279 6,865 1,532 14,970 39 - 33,505 2006 All products total 118,099 234,782 181,912 200,071 57,503 63,971 10,747 - 867,086 2001 Total 133,566 215,045 225,674 184,553 94,971 69,485 14,462 - 937,758 1995 Total 229,977 263,199 212,698 263,578 113,223 96,787 11,472 - 1,190,935 1990 Total 135,469 132,038 194,946 245,295 161,927 108,009 16,418 22,217 1,016,319 1985 Total 95,421 162,993 128,228 190,095 119,921 111,411 2,180 95,601 905,849 1979 Total 171,940 327,691 145,245 408,411 165,775 168,514 16,139 207,116 1,610,831 - - - - - - - - Percentage of total sales value by product - - - - - - - - Lumber, timbers, other sawn products, plywood and veneerb 13 27 21 24 7 6 1 - 100 Posts, poles, and log furniture 25 7 51 6 0 0 11 - 100 House logs and log homes 25 46 10 12 3 1 1 - 100 Cedar products 6 15 10 20 5 45 0 - 100 2006 All products total 14 27 21 23 7 7 1 - 100 2001 Total 14 23 24 20 10 7 2 0 100 1995 Total 19 22 18 22 10 8 1 0 100 1990 Total 13 13 19 24 16 11 2 2 100 1985 Total 11 18 14 21 13 12 0 11 100 1979 Total 11 20 9 25 10 10 1 13 100 aDoes not include mill residue sales or sales by the residue-utilizing sector. bLumber, timbers, and other sawn products includes plywood and veneer sales value to prevent disclosure of firm level data.
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 33

Market Areas by Finished Product Type

Sales of Idaho’s plywood, veneer, lumber, timbers, and other sawn products

totaled just under $781 million in 2006; with sales to the Rocky Mountain States

accounting for 40 percent of all sales—13 percent in Idaho and 27 percent to other

Rocky Mountain States. Sales figures for these products were combined to prevent

disclosure of firm level information. In 2001, these states accounted for 37 percent

of sales for this product group. The Far West and North Central States accounted

for 21 and 24 percent of 2006 sales, respectively. Sales to the Northeast decreased

by 33 percent while sales to the South, and to other countries remained relatively

stable since 2001.

The majority of Idaho’s 2006 post, pole, and log furniture product sales were

in Idaho and the Far West, accounting for 25 and 51 percent of post, poles, and

log furniture sales, respectively. In 2001 sales to Idaho were slightly higher at 27

percent of sales while sales to the Far West States only accounted for 29 percent.

Sales in other Rocky Mountain States remained stable, dropping from 8 percent in

2001 to 7 percent 2006.

Log home and house log manufacturers generated about $37.8 million in sales

in 2006. Idaho and the other Rocky Mountain States, as well as the North Central

States, were the major markets for these products, comprising 83 percent of total

sales. Compared to 2001, sales increased in Idaho by 3 percent, by 4 percent in

North Central States, and by 7 percent in other Rocky Mountain States. Sales decreased 12 percent in Far West States from 2001 to 2006. Sales of cedar products

(including cedar shakes, shingles, and split rail fencing) generated about $33.5

million. The major markets for cedar products were the South and North Central

States, with 45 percent of cedar sales going to the South and 20 percent to the

North Central States. These two areas were also the major markets in 2001, accounting for 41 percent of cedar sales in the South and 22 percent of sales in the

North Central States. Cedar exports, as well as sales to the Northeast States, have

declined considerably since 1995, when those two market areas represented a combined 12 percent of total sales.

Mill Residue: Types, Quality, and Use

This chapter details the volumes and uses of mill residue generated by these

plants. Wood fiber residue from primary wood products manufacturers (mill residue) is the major source of raw material for Idaho’s pulp and paper and board

industry, and an important source of fuel for all major sectors of the wood products industry. If not used, wood residue can create difficult and expensive disposal

problems. Sawmills and plywood plants generate nearly 95 percent of the mill

residue produced by Idaho’s forest products industry.

Three general types of wood fiber residue are generated by Idaho’s sawmills

and plywood plants. Coarse or chippable residue consists of slabs, edgings, and

trimmings from lumber manufacturing, log ends, pieces of veneer not suitable for

manufacturing plywood, and plywood peeler cores not sawn into lumber. Fine

residue consists of planer shavings and sawdust from sawmills and sander dust

from plywood plants. And bark is the third general type of residue.
34 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012

Respondents to the 2006 census provided information on volume of residue

generated, sales value, and uses. Residue volumes were reported in bone-dry units.

A bone-dry unit equals 2,400 pounds of wood, oven-dry weight. In addition to residue quantity and disposition, statewide residue factors, which quantify the number

of bone dry units of residue generated per MBF of lumber produced, were updated

for Idaho sawmills based on the 2006 census (table 19).

Supply of Mill Residue

Idaho sawmills and plywood plants generated an estimated 1,519 thousand

bone-dry units (MBDU) of manufacturing residue in 2006 (table 20), compared

to 1,755 MBDU in 2001, and 1,822 MBDU in 1995 (table 21). The decrease in

residue generated since 1990 has resulted from a combination of decreasing volumes of timber being processed and improving technology. With computer guided

saws, thinner kerf saws, better planers, and better plywood lathes, technological

improvements have led to lower residue factors through time (table 19).

The proportion of manufacturing residue that is utilized has increased dramatically since 1969, largely because of pulp and paper industry expansion and the

opening of particleboard plants in the region, but also because of the increasing use

of wood residue as a fuel to dry lumber and veneer and to generate electricity. In

1969, only 63 percent of mill residues in Idaho were used, increasing to 89 percent

in 1979, 94 percent in 1985, 98 percent in 1990, 99 percent in 1995, and nearly 100

percent in 2001 and 2006 (table 21).

Table 19—Idaho sawmill residue factors, selected years (source: Keegan and others 1982,1988,1992,1997; 

Morgan and others 2004).

Type of residue 1979 1985 1990 1995 2001 2006

- - - - - - - - - BDU per MBF lumber tallya - - - - - - - - - -

Coarse 0.47 0.53 0.43 0.45 0.42 0.39

Sawdust 0.25 0.21 0.18 0.18 0.17 0.15

Planner shavings 0.22 0.20 0.15 0.15 0.13 0.09

Bark 0.30 0.19 0.18 0.18 0.20 0.20

Total 1.24 1.13 0.94 0.96 0.92 0.82

a

Bone-dry unit (BDU = 2,400 lb of oven-dry wood) of residue generated for every 1,000 board feet of lumber 

manufactured.

Table 20—Volume of wood residue generated by Idaho sawmills and plywood/veneer plants,2006.

Wood residue Percentage of type

Residue 

type Used Unused Total Used Unused

Percentage 

of total

- - - - - - - - - Bone-dry unitsa - - - - - - - - - - - - - - - - - - - Percent of total - - - - - - - - -

Coarse 734,009 95 734,104 99.99 0.01 48

Fineb 427,927 36 427,963 99.99 0.01 28

Bark 356,789 214 357,003 99.94 0.06 24

Total 1,518,725 345 1,519,070 99.98 0.02 100 a

Bone-dry unit (BDU = 2,400 lb of oven-dry wood) of residue generated for every 1,000 board feet of lumber manufactured.

b

Fine residue includes sawdust and planer shavings.
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 35

Table 21—Production and disposition of residues by sawmills and plywood/veneer plants, Idaho 2006 (sources: 

Keegan and others 1997; Morgan and others 2004).

Type of residue

Total 

utilized

Reconstituted 

products Hogfuel

Other 

uses Unused Total

- - - - - - - - - - - - - - - Thousand Bone Dry Unitsa - - - - - - - - - - - - - - -

Coarse

1979 987 957 10 20 21 1,008

1985 976 930 28 18 14 990

1990 1001 988 0 13 5 1,006

1995 885 872 3 10 1 886

2001c 806 773 30 3 3 810

2006 735 639 86 10 b 735

Sawdust

1979 399 197 164 38 58 457

1985 308 176 115 17 22 330

1990 365 175 167 23 13 378

1995 306 158 133 15 4 310

2001 237 80 148 9 – 237

2006 266 224 40 2 b 266

Planer Shavings

1979 340 215 112 13 20 360

1985 288 128 155 5 17 305

1990 310 221 88 1 9 319

1995 250 130 113 7 8 258

2001 307 193 113 1 b 307

2006 161 125 34 2 b 161

Bark

1979 473 – 429 44 174 647

1985 282 – 263 19 73 355

1990 395 – 344 51 19 414

1995 358 – 343 15 10 368

2001 401 – 384 17 b 401

2006 357 – 333 24 b 357

Total

1979 2,199 1,369 715 115 273 2,472

1985 1,854 1,234 561 59 126 1,980

1990 2,071 1,384 599 88 46 2,117

1995 1,799 1,160 592 47 23 1,822

2001c 1,751 1,046 675 30 3 1,755

2006 1,519 988 493 38 b 1,519

a

Bone dry unit = 2,400 lb of ovendry wood.

b

Less than one thousand bone dry units.

c

Numbers do not sum to total due to rounding.
36 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012

Coarse residue comprised the largest share of residues in 2006. Mills produced

734.1 MBDU, with nearly 100 percent (734.0 MBDU) utilized. Pulp and paper

mills in Idaho and other states received 639 MBDU, with 95 MBDU going to other

uses, primarily internal energy use. Less than 1 MBDU of coarse residue was unused in 2006 (table 21).

Of the 428 MBDU of fine residue used, over 80 percent (349 MBDU) went to

pulp and paper mills or board plants for use as a raw material, 74 MBDU were consumed as fuel, and 5 MBDU went for other uses such as animal bedding, mulch,

and raw material for other products. Table 21 further divides fine residues into

planer shavings and sawdust. Planer shavings totaled 161 MBDU, while saw and

sander dust totaled 266 MBDU.

Use of bark has increased dramatically since 1969 when only 39 percent was

utilized; nearly 100 percent was utilized in 2006. Of the 357 MBDU produced in

2006, 333 MBDU were consumed as fuel (table 21), 2 MBDU were used for miscellaneous products including decorative bark, livestock bedding, and mulch; less

than 1 MBDU was unused.

Residues from Other Manufacturers

The manufacture of utility poles, house logs, cedar products, posts, small poles,

and roundwood furniture generates several types of residue, including bark, shavings and peelings, log ends, cull portions of logs, and slabs from log home manufacturers. In 2006, just over 14 MBDU of these residues were produced, and nearly

100 percent of this volume was used. Uses of these residues include livestock bedding, garden mulch, firewood, or other fuel.

The Forest Products Industry and the Idaho Economy

This section discusses employment and worker earnings trends in Idaho’s primary and secondary forest products industry as well as the industry’s place in the

economy of Idaho and northern Idaho. This analysis focuses on 2006 and 2007 (the

most recent years for which comprehensive state and county economic data are

available) and previous years. However, a dramatic downward shift in wood and

paper markets occurred in 2006 with further steep declines and very poor markets

in 2007 to 2009. The collapse of the U.S. housing industry and related global financial crisis in 2008 had a substantial negative impact on Idaho’s forest products

industry. For this reason, statewide employment and labor income estimates are

provided at the state level for 2008 and 2009.

The primary forest products industry includes: logging; processing logs into

lumber and other wood products; processing wood residues into outputs such as

paper or electricity; and private-sector timber management services. The secondary industry, as defined in this report, includes the further processing of the outputs

from the primary industry manufacturers either from Idaho or elsewhere. Portions

of the secondary industry, such as truss and cut-stock manufacturers are directly

linked and highly integrated with Idaho’s primary industry. Other componentssuch

as mobile home manufacturers have limited links to and dependence on Idaho’s

primary industry.

Data from several sources were used to identify employment and labor income

for Idaho’s primary and secondary forest products industry, including the U.S.
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 37

Department of Commerce, Regional Economic Information System (REIS) (U.S.

Department of Commerce 2009), along with wage and salary data from the U.S.

Department of Labor, Bureau of Labor Statistics (U.S. Department of Labor 2009),

the U.S. Census Bureau’s County Business Patterns (U.S. Census Bureau 2009a),

Idaho Department of Labor and information from the periodic censuses of the

industry done by the Bureau of Business and Economic Research as part of the

FIDACS system (Keegan and others 1982,1988,1992,1997; Morgan and others

2004).

Most of the primary and secondary industry is reported in four North American

Industrial Classification (NAICS) sectors, as defined by the U.S. Office of

Management and Budget (OMB 1998):

	 113	 forestry and logging;

	 1153	 support activities for forestry;

	 321	 wood products manufacturing; and

	 322	 paper manufacturing.

These classifications were used to estimate total employment and workers’

earnings (labor income) in Idaho’s forest products industry. This grouping of industry categories provides a conservative measure of the forest products or wood

and paper products industry. However, a number of activities are not included in

these classifications, including the hauling of logs by independent truckers; hauling of finished products by truck, rail or barge; and forest management activities

by government employees. Additionally, a portion of the secondary industry—the

manufacturing of wood furniture—is found in NAICS 337.

Based on these classifications, approximately 15,400 workers, earning over

$750 million (in 2006 dollars), were employed in the forest products industry in

Idaho in 2006. The primary sectors accounted for approximately 9,400 workers,

while the secondary sectors employed the remaining 6,000.

Trends in Forest Products Employment and Labor Income

Thissection focuses on trendsin Idaho forest industry employmentsince 1990; a

discussion of longer term trends is in Morgan and others (2004). Note that the U.S.

Department of Commerce used a different system prior to 2001 —the Standard

Industrial Classification (SIC) system—to report economic statistics such as employment by industry (OMB 1987). SIC categories differ somewhat from the current NAICS categories, and employment and labor income prior to 2001 are not

exactly comparable to post 2001.

The U.S. Department of Commerce developed a time series beginning in 1990

that translates the SIC data to NAICS classifications and this data series is used in

this trend analysis. The reader should be aware that the trend in the 1990s under

the modified NAICS data differs somewhat from the trend observed under the

SIC system and reported in Morgan, and others (2004). The authors think that the

combined NAICS and SIC data set does accurately reflect general changes in employment and labor income from the 1990s to the present and is used as the basis

for this discussion of trends in employment and labor income. The years 1990 and

2006 offer fairly consistent points of comparison around which to frame a discussion of the forest products industry’s impact on the Idaho economy and trends

in employment and labor income. Both were years of modest but deteriorating

demand for wood and paper products. Both years were followed by official recessions with the 1991 recession being relatively mild and short lived and followed
38 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012

by very strong market years through much of the 1990s, especially 1993 and 1994.

The recession which began in 2007 and continued into 2009 has been the most

severe and long lasting of the post-WW II recessions.

Employment—The wood and paper products industry is a substantial and relatively high paying industry in Idaho. Even with the severe economic conditions of

the last several years Idaho’s industry directly employed nearly 11,000 workers in

2009. The operations of the industry and spending and re-spending by its workers

support an equal number of workers in other sectors of Idaho’s economy (Cook

and O’Laughlin 2006). In addition to generating considerable employment in other

sectors, wood and paper workers earned an average of $49,000 in labor income for

2009; this is substantially more than the state average of $38,100 per worker.

Between 1990 and 2007, the number of workers in Idaho’s wood and paper

products industry declined by approximately 3,400 workers, from 18,440 in 1990

to 15,050 workers in 2007 (fig. 10). With the collapse of the U.S. housing industry

and the related 2008 global financial crisis, employment in Idaho’s wood and paper products industry dropped to an estimated 12,600 in 2008 and approximately

11,000 in 2009.

Idaho’s primary and secondary industries had substantially different trends in

employment. Primary employment dropped from 15,122 in 1990 to 9,300 in 2005

and 2006 and then to 8,100 in 2008. The major factors leading to the long term decline in primary industry employment was the nearly 35 percent reduction in timber harvest between 1990 and 2006 driven by an 80 percent decline in the Federal

timber sale program in Idaho. The collapse of the U.S housing market impacted

Idaho’s primary industry beginning in 2006 and was the primary factor leading to

the further fall off in employment in 2007 and 2008.

Both the primary and secondary industry benefited when generally strong economic performance globally, nationally, regionally, and in Idaho yielded strong

demand for wood products through much of the 1990s and in 2004 and 2005.

However, the secondary industry did not suffer from the sharply constricted raw

material supply that plagued the primary industry. Most of the secondary industries

use wood products manufactured by Idaho’s or the region’s primary industry as

their input, but it only consumes a fraction of what the regional primary industry

produces. Additionally, the secondary industry can more easily acquire raw materials from elsewhere. It is, therefore, not as susceptible to local declining timber

availability as is the primary industry.

Overall wood and paper products employment actually increased from 1990 to

1999 from 18,442 to 19,314. The overall increase in the 1990s came about because

secondary wood and paper employment increased by nearly 70 percent from 3,300

to 5,600 workers. At the same time, declines in the primary segments in the 1990s

were proportionately less than the reduction in timber harvest with a 23 percent

drop in timber harvest involving only a 10 percent decline in primary employment

(15,100 to 13,700 in 1999). The increased labor intensity in the primary industry

was due to a mix of factors including a number of very strong market years, which

allowed expanded use of lower quality timber and increased utilization of processed logs.

The increase in employment per unit volume of timber harvested in Idaho’s

primary industry that occurred in the 1990s did not continue into the 2000s and

primary employment dropped by one-third between 2000 and the high market year

of 2005, while harvest volumes in Idaho declined by 6 percent over that period.

Much weaker markets led to further declines in employment in 2006 to 2008, with
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 39Figure 10—Idaho forest industry employment, 1990 through 2007 (source: U.S. Department of Commerce 2009).
40 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012

primary employment falling to under 9,000 in 2008. The secondary industry continued to increase employment after 2000 to approximately 6,000 workers in 2006

and 2007. With much poorer economic conditions in 2008, secondary employment

declined to an estimated 5,400 workers.

Labor Income—Labor income, or workers earnings, is the compensation that

is financial compensation for work effort; including labor earnings, employerprovided benefits, taxes paid to the government on behalf of employees, and the

portion of entrepreneurial income that is a return to labor. In this analysis labor

income is used as a measure of the economic output of the state and counties or

county groups within Idaho. Gross county product data are not readily available

for Idaho, and labor income provides a consistent measure of economic activity at

both the state and sub-state level. Labor income by industry group is available for

each county and has proved to be a reasonable proxy for gross state and county

product (Polzin 1990,2006; Polzin and others 1988). Because of the construction

of the data sources it is not possible to distinguish between labor income earned

by workers in the primary and secondary industry and, therefore, the discussion

will deal with the entire wood and paper products industry. Similar to employment,

labor income increased in the 1990s from $823 million to $1.0 billion in 1999 and

with the accelerated loss of primary forest industry workers, labor income declined

steadily from 2000 through 2008 dropping to $793 million in 2007 and approximately $700 million in 2008 (fig. 11).

The Forest Products Industry and Idaho’s Economic Base

The structure of the Idaho and northern Idaho economies are reported in the

context of an economic base approach. The economic base of a region consists of

industries whose economic activity is dependent on factors external to the state or

local economy. These “basic” industries are important to an economy because they

have the potential to inject new funds by way of payrolls, taxes, and purchases of

local goods and services. Changes in these industries have a strong influence on

trends in the overall economy because they also stimulate changes in the derivative

or non-basic sectors (Polzin 1990, 2006; Polzin and others 1988).The derivative

sectors are composed of firms that depend largely on local business conditions,

that is, they sell their products to local households, businesses, and individuals.

Almost all local services (like drycleaners, grocery stores, and restaurants) are

identified as non-basic because they depend almost entirely on local factors. Basic

industries tend to be more insulated from local economic fluctuations since their

products or services are generally sold in outside markets or they are otherwise

dependent on outside funds.

By necessity, this analysis of the economic base is done on an industry basis; a

more detailed analysis would require firm-level data to make reasonable geographic allocations of sales to identify basic components of the derivative industries.

Available data do not allow for a perfect delineation of basic and derivative sectors, and in some cases this leads to an understatement of the economic base. For

example, construction is not included as a basic industry at the state level. Much

of construction is a derivative activity as illustrated by home building by Idaho

residents. Portions of construction, such as federal highway funding, second home

construction by non-residents, and plant construction or expansion by basic industries would be basic construction activities. There are also basic components of the

service sectors, such as retail trade, finance, insurance, and real estate (F.I.R.E.)

selling goods, services and real property to buyers outside of Idaho.
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 41Figure 11—Idaho’s forest industry adjusted labor income, 1990 through 2007 (source: U.S. Department of Commerce 2009).
42 USDA Forest Service Resour. Bull. RMRS-RB-12. 2012

The need to identify basic industries at a fairly broad scale can also result in

some derivative activities being classified as basic, for example, products manufactured in Idaho that are sold at the retail level to Idaho residents. On balance,

the directions of the basic industries identified in this report have been a major

determinant of the direction of Idaho’s and northern Idaho’s economy over the past

several decades (Polzin 1990, 2006; Polzin and others 1988).

The major basic industries in Idaho are agriculture, manufacturing (which is

presented as food and kindred products), wood and paper products (much of which

is also manufacturing), and all other manufacturing, nonresident travel, mining and transportation, and the Federal government. In 2007 over 70 percent of

Idaho’s economic base was natural resource related industries (agriculture, wood

and paper products, non-resident travel, food processing) and/or manufacturing,

both of which are components of the forest products industry (U.S. Department of

Commerce 2009). Manufacturing, other than wood and paper products, and food

processing, accounts for about 32 percent of Idaho’s basic labor income, agriculture accounts for 18 percent, wood and paper products, food processing, and nonresident travel account for 8 percent each. The Federal government (civilian and

military) is about 18 percent of earnings in basic industries with mining and transportation combined accounting for about 11 percent. The contribution of the wood

and paper products industry to Idaho’s economic base has declined proportionately

over the last two decades from about 13 percent in 1990 to 8 percent in 2007. The

proportionate decline has come about due to the modest drop in wood and paper

products labor income from 1990 of about $35 million 2006 dollars, coupled with

labor income increases of $1.9 billion in other manufacturing and a $600 million

labor income increase in Federal government.

Northern Idaho’s Economic Base—The forest products industry is substantially

more important in the ten Idaho counties north of the Salmon River (Benewah,

Bonner, Boundary, Clearwater, Idaho, Kootenai, Latah, Lewis, Nez Perce, and

Shoshone counties) than in the state as a whole. Measured by labor income, less

than 20 percent of the state’s economic activity is in northern Idaho, however, $420

million out of $743 million in forest industry labor income (57 percent) is in these

northern Idaho counties. Further, 87 percent of Idaho’s timber harvest is from these

counties, and virtually all of the wood and paper industry in northern Idaho is part

of the primary forest products industry and directly engaged in harvesting, managing and processing timber products.

In addition to the state-level basic industries of agriculture, non-wood and paper

products manufacturing, the forest products industry, nonresident travel, mining

and transportation, and the Federal government, net retirement income and earnings of commuters living in northern Idaho but working elsewhere contribute measurably to the economic base in these ten counties. Despite declines in the last two

decades, the forest products industry remains a major economic force in the region

and remains the largest component of northern Idaho’s economic base with labor

income of $420 million in 2006 accounting for just over 23 percent of total worker

earnings in basic industries (U.S. Department of Commerce 2009). In 1990 the forest products industry accounted for 39 percent of labor income in basic industries.

The reduced share of northern Idaho’s economic base is attributable to a decrease

in the forest products industry labor income of about $93 million (constant 2006

dollars) and substantial increases in other manufacturing, net retirement income,

and earnings of commuters, particularly those in the Kootenai County area working in eastern Washington.
USDA Forest Service Resour. Bull. RMRS-RB-12. 2012 43

Other manufacturing increased from $109 million in 1990 to $267 million in

2006 and northern Idaho residents working outside the area generated an inflow

of $252 million in labor income in 2006, up from $57 million in 1990. Retirement

payments represented a net inflow of over $213 million in 2006, or 12 percent of

the economic base, up from $45 million in 1990 and 3.5 percent of the economic

base.

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Western Wood Products Association [WWPA]. 1964-2010. Statistical yearbook of the

western lumber industry. Portland, OR: Western Wood Products Association.

Wilson, A.K.; Spencer, J.S., Jr. 1967. Timber resources and industries in the Rocky

Mountain States. Resour. Bull. INT-7. Ogden, UT: U.S. Department of Agriculture,

Forest Service, Intermountain Forest and Range Experiment Station. 63 p.

The Rocky Mountain Research Station develops scientific information 

and technology to improve management, protection, and use of the 

forests and rangelands. Research is designed to meet the needs of 

the National Forest managers, Federal and State agencies, public and 

private organizations, academic institutions, industry, and individuals. 

Studies accelerate solutions to problems involving ecosystems, range, 

forests, water, recreation, fire, resource inventory, land reclamation, 

community sustainability, forest engineering technology, multiple use 

economics, wildlife and fish habitat, and forest insects and diseases. 

Studies are conducted cooperatively, and applications may be found 

worldwide.

Station Headquarters

Rocky Mountain Research Station

240 W Prospect Road

Fort Collins, CO 80526

(970) 498-1100

Research Locations

Reno, Nevada

Albuquerque, New Mexico

Rapid City, South Dakota

Logan, Utah

Ogden, Utah

Provo, Utah

The U.S. Department of Agriculture (USDA) prohibits discrimination in all of its 

programs and activities on the basis of race, color, national origin, age, disability, 

and where applicable, sex (including gender identity and expression), marital 

status, familial status, parental status, religion, sexual orientation, political 

beliefs, genetic information, reprisal, or because all or part of an individual’s 

income is derived from any public assistance program. (Not all prohibited bases 

apply to all programs.) Persons with disabilities who require alternative means 

for communication of program information (Braille, large print, audiotape, etc.) 

should contact USDA’s TARGET Center at (202) 720-2600 (voice and TDD).

To file a complaint of discrimination, write to: USDA, Assistant Secretary for Civil 

Rights, Office of the Assistant Secretary for Civil Rights, 1400 Independence 

Avenue, S.W., Stop 9410, Washington, DC 20250-9410. Or call toll-free at 

(866) 632-9992 (English) or (800) 877-8339 (TDD) or (866) 377-8642 (English 

Federal-relay) or (800) 845-6136 (Spanish Federal-relay). USDA is an equal 

opportunity provider and employer.

www.fs.fed.us/rmrs

Flagstaff, Arizona

Fort Collins, Colorado

Boise, Idaho

Moscow, Idaho

Bozeman, Montana

Missoula, Montana

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