Status and Trends of Georgia s Forests

1. 1 Status and Trends of Georgia’s Forests

2. 2 Southern Timber TrendsKey Issues Globalization Abundant timber supplies Hardwood ? Quality logs? Consolidation and dis-integration Forest land ownership shifts

3. 3 Know Your BusinessFamous Prognostications “Louis Pasteur’s theory of germs is ridiculous fiction” “Everything that can be invented has been invented.” “This ‘telephone’ has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.” “Who the hell wants to hear actors talk?” “That rainbow song’s no good. Take it out.”

4. 4 Know Your BusinessFamous Prognostications “Television won’t matter in your lifetime or mine.” “We don’t like their sound, and guitar music is on the way out.” “I think there is a world market for maybe five computers.” “There is no reason anyone would want a computer in their home.” “640 K ought to be enough for anybody.”

5. 5 Forested Regions of the World

6. 6 World Markets

7. 7 Forest Resources: Growing Stock

8. 8 U.S. Private Timberland Production Average Annual Volume by County

9. 9 United States in World Context, 2000

10. 10 U.S. South in World Context, 2000

11. 11 Sino-US furniture trade: US side Chinese share of US market increasing rapidly Chinese furniture exports to US 2000: $1.7 billion 2002: $2.9 billion Anti-dumping investigation requested by 28 American furniture manufacturers in November 2003 US furniture industry earnings down 70% US furniture workforce down 34,000

12. 12 Sino-US furniture trade: Chinese side 60% of China’s furniture exports are “American” furniture Produced by US-owned companies US wood US technology and styles Advantage for US manufacturers is low manufacturing costs Labor Energy Taxes

13. 13 Commercial Timberland Transactions Over 22 million acres of industrial timberland has changed ownership in the past five years (in large transactions) The traditional vertically integrated forest products companies have been the sellers and institutional investors have been the purchasers Trends are evident by region (NE, South, Lake States, PNW) Trends appear to be continuing with additional asset sales by integrated forest products companies. If any are left ??

14. 14 Top Ten Industrial Timberland Owners 2000 and 2007 in Million Acres

15. 15 Ten TopTimberland Investment Management Organizations U. S Timberland 2007 As of April 2007 Added TimberStar (says they are not a TIMO) at about 1.2 million acres Fallen off the list Forest Systems, Campbell and Molpus, each with about .5 million acres under management.As of April 2007 Added TimberStar (says they are not a TIMO) at about 1.2 million acres Fallen off the list Forest Systems, Campbell and Molpus, each with about .5 million acres under management.

16. 16 two GA’s exists. Urban and rural. The Governor annoucned at the E&Issues breakfast earlier this month that GA’s population has reached 9 million. The majority live in urban areas and they don’t understand the rural economy or practices that we all do. With that problems arise. two GA’s exists. Urban and rural. The Governor annoucned at the E&Issues breakfast earlier this month that GA’s population has reached 9 million. The majority live in urban areas and they don’t understand the rural economy or practices that we all do. With that problems arise.

17. 17 The reality of the pressures on Georgia’s forest products manufacturing sector REMAINDER OF SLIDES FOCUS ON INDUSTRY/MARKETS – WITHOUT MARKETS FOREST WILL NOT REMAIN. Don’t get caught up in the detail fo this slide – this is a slide that I borrowed from the GFC. What is shows is that from 1990 to 2004 our Georgia doesn’t have as many green dots and red triangles. All jokes aside, GA has seen two paper mills shut down and 60 other primary manufacturing facilities close since 1990. What this doesn’t show you is that in this same period several mills have reduced capacity – International Paper in Savannah and Weyerhaeuser in Port Wentworth. WHY? Is this is a bad thing? Yes we have lost some jobs and manufacturing facilities – our industry collectively has made some transitions that were in fact probably needed that are allowing GA’s forest products industry to compete globally which is a good thing for landowners and timber growers – without a market for the trees they are growing, there value would not be there.REMAINDER OF SLIDES FOCUS ON INDUSTRY/MARKETS – WITHOUT MARKETS FOREST WILL NOT REMAIN. Don’t get caught up in the detail fo this slide – this is a slide that I borrowed from the GFC. What is shows is that from 1990 to 2004 our Georgia doesn’t have as many green dots and red triangles. All jokes aside, GA has seen two paper mills shut down and 60 other primary manufacturing facilities close since 1990. What this doesn’t show you is that in this same period several mills have reduced capacity – International Paper in Savannah and Weyerhaeuser in Port Wentworth. WHY? Is this is a bad thing? Yes we have lost some jobs and manufacturing facilities – our industry collectively has made some transitions that were in fact probably needed that are allowing GA’s forest products industry to compete globally which is a good thing for landowners and timber growers – without a market for the trees they are growing, there value would not be there.

18. 18 Waycross Fire, GA 2007

19. 19 Waycross Fire, GA 2007

20. 20 This is what the paper and small diameter using forest manufacturing industry looks like – JOBS, JOBS, JOBS, Local taxes, civic responsibilities, local regulations affect our industryThis is what the paper and small diameter using forest manufacturing industry looks like – JOBS, JOBS, JOBS, Local taxes, civic responsibilities, local regulations affect our industry

21. 21 Forestland Ownership in Georgia 2003 Private landowners own Georgia’s forest. Private landowners own Georgia’s forest.

22. 22

23. 23 Sources UGA Center for Forest Business Timber Mart-South UN FAO China Forest Products Market Information Forest Products Annual Marketing Analysis Jon Caulfield U.S. Government Hancock Timber Resources Group RISI Temperate and Boreal Forest Resources Assessment 2000