The pulp and paper industry is only one of two manufacturing industries in which the United States maintains its role as the dominant global producer. Serious thought needs to be given about whether we wish to maintain a dominant global position and, if so, what we need to do to maintain its strength. With recent dramatic changes in federal timber policy, coupled with rising demand for forest products, domestic companies and foreign governments are questioning whether the United States can remain the leader in forest products production. Domestic companies are investing abroad at an accelerated rate. Countries like Chile, Brazil, New Zealand, and Indonesia see the strategic importance of the industry and have developed an array of programs of research, extension, and financial incentives to encourage further industrial growth.
Forests are important to the economies of large parts of rural America.
Because of the economic importance of forests, changes in harvest levels or production can dramatically affect local and state economies. In many rural communities throughout the nation, forestry and forest products represent the largest source of employment and earnings. Unlike other agricultural commodities, forests are themselves critical components of the environment upon which we all depend. No other resource shares this dual role of being a commodity and, at the same time, directly defining the quality of the environment. Virtually all rivers and streams originate in forests, so the quality and quantity of our water supplies directly depend upon how our forests are managed.