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Forest products economy
Forest products economy
Michigan's forest economy
More than half of Michigan is forested, and 95 percent of that forest land can be used for the production of timber, a renewable and sustainably-managed resource. The State of Michigan manages 21 percent of forest land. Forests in Michigan are managed for timber production, wildlife habitat, watershed protection, biodiversity conservation and recreation.
Based on 2023 data, we estimate that Michigan's forest products industries provide direct employment to over 42,477 people, leading to $16.8 billion in direct economic output. That same year, direct labor income was $3.4 billion and direct value-added was $4.6 billion. In total contributions (direct, indirect, and induced), these industries support over 92,966 jobs, $6.8 billion in labor income, $10.8 billion in value-added and over $27 billion in total output. Since 2017, the direct jobs in forest products industries increased by 4.2%, direct output increased by 10.3%, value-added increased by almost 16.1%, labor income increased by 3.7%, and the average labor income per job decreased by 0.6%. Productivity, measured as output per job, rose from approximately $374,718 per worker in 2017 to $396,535 per worker in 2023, a 5.8 percent gain over the six-year period.
In 2023, the forest products industries in Michigan represents about 30.4 percent of total employment across the four major natural resource-based sectors. Employment in the forest products sector was more than double that of mining, oil, and gas production (20,834 jobs) and significantly greater than commercial fishing, hunting, and trapping (1,129 jobs).