Forests of Ohio

ODNR-Division of Forestry
Ohio State University Extension

Ohio's Forest Products Industry

The forest products industry in Ohio can be described as big business, small companies. It is a diverse group of establishments engaged in growing, processing, and manufacturing products valued in excess of $7 billion. Ohio manufacturing firms employ more than 70,000 people generating approximately $1 billion in payroll.

The wood products manufacturing companies in Ohio can be divided into primary and secondary establishments, depending on the finished product and type of raw material consumed. The primary manufacturing companies, such as sawmills, pulpmills, veneer plants, and logging contractors, use round wood as raw material. Secondary manufacturing companies use lumber, composite wood products, and pulp to produce cabinets, millwork, furniture, pallets, and paper products. In addition, other companies process forest products such as maple syrup, Christmas trees, and firewood. The typical Ohio forest products industry is a small- to medium-size firm with fewer than 20 employees.

The price of Appalachian hardwood lumber is the result of a worldwide market demand. Hardwood lumber is sold in random widths and random lengths based on 1,000 board foot (MBF) quantities. The price paid for hardwood lumber is a composite of value added to the raw material during each phase of the manufacturing process. The figure shown here represents the percentage of value added during each manufacturing operation for five representative tree species. As shown in the graph, the value received by the landowner represents approximately 25 percent to 40 percent of the final lumber price. Individual landowners benefit directly from a timber harvest. In addition, primary and secondary manufacturing of forest product generates economic benefits.