logging and sawmills; and $10 to wood furniture and fix- 
tures. In the Southeast region, the corresponding contribu- 
tions were $27 from pulp, paper, and paperboard mills; $24 
from converted paper and paperboard products; $22 from 
wood furniture and fixtures; $17 from plywood, veneer, 
and other. solid wood products; and $11 from logging and 
sawmills. 
Among individual States in the South, North Carolina 
employed the most people in the forest industries in 1982— 
122,000, or 22 percent of the Southwide total. North 
Carolina had the largest employment for furniture manu- 
facturing and for logging contractors in the South. Texas and 
Georgia each accounted for 11 percent of total employment, 
with over 60,000 employees apiece. Georgia ranked first in 
manufacturing jobs in converted paper and paperboard 
products. Texas, as the leading producer in the South for 
millwork, kitchen cabinets, softwood plywood, mobile 
homes, and prefabricated wood buildings, headed employ- 
ment in the plywood, veneer, and other solid wood products 
category. The leading State for employment in pulp, paper, 
and paperboard mills was Alabama. Collectively, forest 
industry wages and salaries in these four States totaled $4.4 
billion, over 50 percent of the income derived from these 
industries Southwide. The value added by the manufacture 
of forest products in each State exceeded $2.0 billion. 
Recent Trends for Forest Industries in the South 
Forest industries have long been an important component of 
the South’s economy, evolving with changes in the forest 
resource. The South’s ‘‘first forest’’ supplied lumber, fuel- 
wood, naval stores, and other products from colonial times 
into the second decade of the 20th century. Lumber produc- 
tion in the South peaked in the early 1900’s and then grad- 
ually declined as lumber companies closed or moved west, 
having depleted supplies of old-growth timber and leaving 
extensive areas of cutover lands. In response to this situa- 
tion, Federal, State, and private forestry programs were initi- 
ated to provide fire protection and encourage regeneration 
on timberlands. During the 1930’s, the establishment of the 
South’s ‘‘second forest’’ accelerated as millions of acres 
were planted by the Civilian Conservation Corps and regen- 
erated naturally on cutover and idle cropland and pasture. 
This second forest supported the development and growth of 
the pulp and paper industries in the South, following tech- 
nological advances in sulfate pulping of southern pines. By 
providing a market for small trees, these new industries 
made plantations and other forest management practices eco- 
nomically viable and promoted regeneration of a “‘third 
forest’? (Southern Forest Resource Analysis Committee 
1969). This forest will be supplying timber for forest indus- 
tries until the turn of the century. 
The expansion of pulp and paper manufacturing over the 
past four decades has significantly changed the composition 
of the forest industry sector in the South. Manufacturers of 
lumber and wood products still employ more people than 
the pulp and paper products industry (app. table 1.10). 
Between the 1947 and 1982 Censuses of Manufactures, 
however, their total employment declined sharply, whereas 
employment in pulp and paper products manufacturing 
steadily increased to record levels (fig. 1.11). Since the 
mid-1950’s, wages and salaries and value added in the pulp 
and paper products industry have surpassed those in lumber 
and wood products (fig. 1.12). Between 1947 and 1982, 
income generated and value added by pulp and paper 
products manufacturing in the South expanded by 360 
percent in constant dollars (app. tables 1.11 and 1.12). 
New products also emerged in the lumber and wood prod- 
ucts industry during this period, most notably southern pine 
plywood in the 1960’s. Manufacturing activity in lumber 
and wood products, which had been declining, began a new 
period of expansion in that decade, reaching record levels 
for wages and salaries and value added (in constant dollars) 
with peaks in housing demand in 1972 and 1977. Although 
the 1982 Census of Manufactures data reflect the general 
decline in manufacturing activity during the 1981-82 
recession, estimates from the 1985 Annual Survey of Manu- 
factures indicate increased activity in the lumber and wood 
products sector in the following years, with employment 
up 4 percent, wages and salaries up 9 percent, and value 
added up 24 percent between 1982 and 1985 (app. table 
1.13). In the pulp and paper products industry, the 1985 
estimates indicate a slight increase in total employment, a 
9-percent increase in wages and salaries, and a 12-percent 
increase in value added Southwide. 
