Fundamental Forest Products
Growth in the Mountain State
SAMANTHA CART
While many associate the Mountain State solely with the energy industry , its nickname conjures up a different image . West Virginia ’ s beautiful , forested mountains make it the second-leading hardwood state in the country , ranked third nationally by percentage of forested land . The forest products industry — which is made up of loggers , sawmills , dry kilns , veneer plants and furniture and rustic rail fence producers — generates $ 3.2 billion for the state economy every year and employs more than 30,000 people in highly skilled and technical positions . Companies such as AHF Products , Gat Creek , Weyerhaeuser and Columbia Forest Products , among others , make use of the state ’ s 12 million acres of forestland and 75 billion board feet of timber inventory in an industry that reaches all 55 counties .
While forest products are a significant and successful revenue producer and employer for West Virginia based on renewable resources , the industry is not without its challenges . As with every sector , wood and timber companies were negatively impacted by the COVID-19 pandemic and subsequent workforce shortages , supply chain issues , construction delays , rising material costs and interest rates , as well as more recent international trade barriers .
While wood and timber companies in West Virginia were declared essential businesses by Governor Jim Justice at the onset of the pandemic , allowing them to continue operations , demand for their products fluctuated . While
the industry saw new highs in the demand for lumber in 2021-2022 , today ’ s lumber prices are at an all-time low , according to Joe McNeel , director of the Appalachian Hardwood Center .
“ The last three years for the hardwood industry have seen dramatic highs and lows ,” says Robbie Morris , executive director of the Randolph County Development Authority and member of the Hardwood Alliance Zone . “ During the COVID-19 pandemic , many people decided to remodel their homes and businesses , which drove the need for flooring , moldings , oriented strand board ( OSB ), cabinets and similar products to record highs . This caused near record prices and demand for hardwoods . However , as inflation and the cost of capital have also seen dramatic increases , this has caused the hardwood market to significantly decline in the demand for raw and finished products . The hardwood industry is very dependent on the housing market . As we see reports of the housing market cooling off , that will cause the hardwood industry to cool as well . In addition , global uncertainty with countries like China and Russia is causing major issues with the export market .”
The demand for labor in every industry continues to drive up wages while the prices for raw and unfinished hardwood products decline . According to Morris , this has placed a significant burden on hardwood producers who lack the workforce necessary to operate .
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