'Woods-to-Wake' life cycle assessment of residual woody biomass based jet-fuel

The residual woody biomass (a.k.a harvest slash) produced during forest harvest operations in the Pacific Northwest, is generally burned in the forest or left on the forest floor to decompose. Drop-in biofuel production from these residual cellulosic feedstock can provide an alternative to utilizing this unused resource and simultaneously displace fossil based fuels. Utilizing a ‘woods-to-wake’ (WTWa) Life Cycle Assessment (LCA) methodology, which is comparable to well-to-wake for its fossil based counterpart, this paper assesses the environmental implications of recovering these harvest residues to produce woody biomass based bio-jet fuel. The woody biomass to bioconversion process presented in this paper uses a milder version of bisulfite pre-treatment of the feedstock liberating the C6 sugars which then go through enzymatic hydrolysis, saccharification and fermentation producing isobutanol (iBuOH). The isobutanol is then converted to bio-jet fuel (iso-paraffinic kerosene, IPK) using a proprietary biocatalytic fermentation and oligomerization processes. The woods-to-wake environmental impacts of woody biomass jet-fuel are then compared to WTWa impacts of fossil based jet-fuel. The results indicate that the woods-to-wake global warming impact of wood based bio-jet fuel represents a 60% or greater reduction as compared to WTWa of traditional jet fuel. Video available at https://www.youtube.com/watch?v=YK-IcYqQjDY

CINTRAFOR Working Paper 108

The United States residential construction industry, traditionally the largest end-use market for softwood lumber, has been undergoing a period of change for more than a decade. Builders’ acceptance of substitute materials and new innovations has increased, providing a unique challenge to softwood lumber producers. In such a situation, understanding the ways in which residential builders specify and use softwood lumber and lumber substitutes is essential to the success of any softwood lumber manufacturer. The Center for International Trade in Forest Products (CINTRAFOR) completed its first study on material substitution in 1995 (CINTRAFOR Working Paper No. 57), providing a benchmark for softwood lumber use in structural applications in residential construction. This was followed by surveys looking at material use in 1998 (CINTRAFOR Working Paper No. 73) and 2001 (CINTRAFOR Working Paper No. 93). The current study, undertaken in 2005, represents the fourth in this series and is intended to describe the trends in material use and substitution in the residential construction industry in 2004. The 2005 survey also explores builders’ awareness, usage and perceptions of certified softwood lumber and sets a baseline for tracking certified lumber usage in residential construction. In 2004, single family construction accounted for over three-quarters of construction firms’ revenue. The larger firms reported a high proportion of new single family housing than their smaller counterparts. Additionally, there appears to be a negative relationship between firm size and the amount of revenue generated from repair and remodel activities. These findings are consistent with previous survey findings. The 2005 survey also reveals that the larger firms are more involved in non-residential construction. Builders in the southwest region of the US reported significantly less involvement in the repair and remodeling sector and significantly more involvement in the non-residential sector. The share of single family construction reported by builders was found to be consistent across all regions. A longitudinal analysis (from 1998 to 2004) of substitute material usage revealed that the largest changes occurred in the usage of glulam beams, LVL, steel framing, wood I-joists, open-web trusses, and structural insulated panels, with wood I-joists, LVL, steel framing and glulam beams recording significant decreases between 2001 and 2004. In contrast, structural insulated panels, panelized wall systems and open-web trusses have experienced an increase in use since 2001. Survey respondents in the southeast and southwest regions of the country reported a steady increase in their usage of finger jointed lumber between 1998-2004. However, the usage of finger jointed lumber nationally was found to be constant over this period. The usage of glulam beams decreased substantially in the eastern US while remaining fairly constant in the western US. Nationally, glulam beams recorded the largest drop in reported use (12.6%). Use of wood I-joists declined across all regions, with the exception of the northwest, as solid wood joist prices moderated. In addition, use of Parallam TM remained relatively constant between 1998 and 2004, whereas the use of TimberStrandTM lumber increased in the western US while declining in the eastern US. The use of non-wood material substitutes (steel framing and reinforced concrete) generally declined in the southern regions and increased in the northeast. An analysis of material usage within specific end-use applications revealed that softwood lumber use has either increased or remained relatively constant in all applications with the singular exception of load bearing walls. For headers, wall framing and roof framing applications, softwood lumber remained the dominant material with a market share of more than 70% in each application. For floor framing, the market is split between softwood lumber, wood I-joists and open-web trusses. However, it should be noted that for all structural applications, softwood lumber recorded the largest market share. The market share for softwood lumber increased in floor and roof framing applications, remained constant in header and non-load bearing wall applications and declined in load bearing wall applications. In wall framing applications, none of the substitute materials had a market share of more than 6% whereas softwood lumber (both solid sawn and finger-jointed studs) enjoyed a market share of approximately 88.3% and 80.9% in non-load bearing and load bearing wall applications, respectively. The usage of softwood lumber in floor framing increased from 39% in 2001 to 43% in 2004, making softwood lumber the primary material for floor joists. Significantly, the market share for wood I-joists in flooring applications (its major market) declined by almost 12%. The use of wood trusses for roof framing has experienced a steady increase since 1995, rising from a market share of 46% in 1995 to 53% in 2004. Builders rated strength, straightness, lack of defects and the availability of softwood lumber as the most important attributes of softwood lumber; a result that has been consistent over the course of the four surveys. The importance ratings for two attributes, price and price stability, have begun to decline in importance. On a positive note, home builders consistently expressed higher satisfaction levels with all of the softwood lumber attributes in the 2005 survey. A review of the data shows that the respondents consistently recorded higher satisfaction levels for all the softwood lumber material attributes between 2001 and 2004. The 2005 survey also marks the first time that builders indicated satisfaction with two important softwood lumber quality attributes: lumber straightness and lack of defects. In all of the previous surveys, builders had consistently indicated dissatisfaction with both of these attributes. The fact that straightness and lack of defects are ranked as two of the most important lumber attributes, combined with the large increase in the satisfaction ratings for both of these attributes, suggests that builders have begun to view softwood lumber as a much better value over the past several years. It appears that builders are becoming more conscious of the environment and that this is beginning to influence the types of materials specified by some builders. Unfortunately, builders are receiving mixed messages about the environmental performance of non-wood materials. The results of this survey suggest that builders perceptions of the environmental performance of non-wood materials improved slightly between 2001 and 2004 whereas it decreased substantially for wood-based structural materials. With the exception of SIP’s, all of the substitute materials are considered to be more enviromentally friendly than softwood lumber. This result sugggests that it is important that the forest products industry in general, and softwood lumber manufacturers in particular, continue to educate builders about the environmental benefits of using wood relative to non-wood materials. A new section of the 2005 survey considered home builders awareness and use of certified lumber. The results of the survey showed that only 40% of homebuilders indicated that they were aware of certified wood. On average, only about 14% of homebuilders indicated that they have used certified wood. Among the users of certified lumber, the average percentage of homes framed with certified lumber was approximately 50%. Almost 15% of the builders who have used certified wood reported that they framed all of their houses with certified lumber. Further, in considering builders’ awareness and use of certified wood within individual states, the survey data suggest that awareness of certified wood was higher among builders located in the eastern US (42.7%) and along the west coast (45.2%) than in the central US (32.2%). However, among those builders who were aware of certified wood, the percentage of builders who reported using it was much higher on the west coast (50%) than in either the eastern US (29.2%) or the central US (38.1%). Previous research has shown that the willingness of customers to pay higher prices for certified wood plays a major role in the usage of certified lumber. This research shows that only 17% of the respondents in the eastern states and 29% of the respondents in the central states believe that their customers would be willing to pay higher prices for homes built using certified wood products. The percentage for respondents in the west coast states was higher at 50%. These survey results suggest that the awareness and usage of environmentally certified wood among builders is much higher on the west coast relative to the rest of the country. The survey results suggest that in the future large home builders may well lead the effort to increase the use of certified wood in building homes. This observation is based on the fact that 67% of large builders have heard of certified wood (this represents the largest segment for this question), 43% have used certified wood to build homes (this is the second largest segment for this question), 50% think that their customers would be willing to pay a premium for a home built from certified wood (this represents the largest segment for this question) and 75% expect that their use of certified wood will increase in the future (this represents the largest segment for this question). Further research is needed to understand home builders’ motivation for using certified wood and to explore the relationship between the use of certified wood and regulatory factors (such as green building codes and efforts to improve the energy efficiency of residential homes)

CINTRAFOR Working Paper 105

The economic liberalization policies initiated in 1991 have led India along the path of increased economic growth and greater macroeconomic stability. Real GDP growth averaged 6% over the period 1997-2001, exceeded 8% from 2002-2005 and is projected to be about 9.2% in 2006. This rapid economic growth has been supported by a loosening of trade restrictions which have contributed to a rapid increase in both imports and exports. Between 2000 and 2005, imports increased from $US50 billion to$US149 billion while exports increased from $US36 billion to$US103 billion. Future economic growth may be tempered by rising inflation, which is projected to be almost 7% in 2006, and rapidly increasing wage rates for skilled labor. For example, food price inflation rose by 10% in 2006. In addition, poor infrastructure (especially roads, ports and electrical power distribution), restrictive labor laws and poor quality public services (especially in education and health) also pose serious challenges to continued high levels of economic growth in India. It is estimated that almost 40% of India’s fruit and vegetable harvest rots before reaching market due to inadequacies in the transportation and electrical distribution infrastructure. India will continue the process of opening its economy due to the fact that it must create on the order of 15 million new jobs every year simply to provide employment for young people entering the job market. However, future economic growth is dependent on reducing (and eventually eliminating) subsidies and providing improvements in the road and electrical distribution infrastructure, particularly in the rural areas of India. The forest cover in India is estimated to be 637,293 km2; 19.4% of the total land area. India’s forests are mostly state owned; only 10% of the forests are classified as community or private forests. A recent survey by domestic and international organizations revealed a moderate increase in India’s forest cover. Forest plantations play a very important role as a source of raw material to the domestic wood-based industry. Since adopting the National Forest Policy of 1988 (NFP), there has been a ban on the felling of trees in all forests located above an altitude of 1,000 meters. In addition, high priority has been given for planting fuelwood and deciduous fodder producing trees in government forests. Finally, industrial wood production was restricted to farms and wastelands. As a result, there was a drastic reduction in timber harvest volumes as a number of states stopped timber harvesting and a ban was announced on all harvest operations in the national parks and protected sanctuaries. The NFP emphasized meeting the fuelwood, fodder and small timber needs of local communities rather than the raw material requirements of the wood-based industry. It should be noted than even before the NFP was implemented in 1988, the existing forest policy was more conservation oriented than industry oriented. The raw material crisis for the wood-based industries became more acute following the adoption of the NFP. As a result, the forest-based industries have had to increase their dependence on private forests and bamboo from natural forests (bamboo harvesting from natural forests is permitted) for their raw material supply. Though large reforestation programs were proposed in conjunction with the NFP budget, constraints prevented the forestry department from meeting the reforestation targets. To meet the community demand for fuelwood, small timber plantations were designed which provided timber products that were less useful for industry. In order to improve the availability of raw materials, the NFP proposed the liberalization of log, chips and pulp imports. The Indian forest products industry, both the wood products sector and the paper and paperboard sector, have been constrained by severe raw materials shortages. This raw material shortage for the forest products industry has been further accentuated as a result of a Supreme Court ruling limiting the felling and movement of timber within the country. In an effort to alleviate the raw material shortage, the forest products industry is increasingly relying on imported logs, chips, wood pulp and waste paper. Hence, for the wood-based industries, imports have become a very important component of their raw material mix. The graduated structure of tariffs applied on wood product imports clearly indicates that the Indian government encourages the import of unprocessed lumber that can be used by the wood-based industries as raw material inputs. Higher tariff rates are imposed on imported finished and value added products to protect the less efficient domestic manufacturers from international competition. In addition to the basic import tariffs, India also imposes duties such as surcharges, additional customs duties and special additional duties. Other additional levies can be imposed on imported wood products depending on the nature of the product. These additional levies include countervailing duties, anti-dumping duties and safeguard duties. Other non-tariff barriers include state taxes, which can be as high as 18% of the value of imports and various port of entry restrictions which might add up to a large mark-up on imported items. Such tariff and non-tariff barriers by the government make imported products less competitive in India. Over the past decade the tariff rates and the non tariff barriers have been reduced dramatically and India has started importing large volumes of forest products. Indian trade in forest products has increased tremendously over the period 1999-2005. This is in response to both the decline in the domestic timber harvest as well as the increased demand for wood products within the domestic wood processing industry. Over the period 2000-2005 Indian exports of wood products jumped from $US30 million to$US99 million, a 230% increase. In contrast, imports of wood products went from $US528 million to$US957 million, an 82% increase over the same period. As a result, India saw its balance of trade in wood products worsen from $US498 in 2000 to$US858 million in 2005. It is important to note that over 88% of India’s wood imports were logs, primarily from Malaysia and Myanmar. Housing has long been neglected in India’s national 5-year plans. The unfulfilled demand for housing was estimated to be approximately 50 million units in 2001 and was projected to be increasing at a steady rate. This housing shortage stems from a lack of government funding and the inadequacy of financial institutions, coupled with an increase in building material, labor and land costs. In the tenth five-year plan, from 2002 – 2007 special emphasis has been given to the housing sector and some state governments have announced a target of achieving “shelter for all” by 2012. Efforts have also been made to reform the allied institutions in an attempt to provide support to the housing sector. The government is beginning to view the housing sector as a very important driver of economic expansion and increased employment. These new initiatives by the government and the huge latent demand for housing, coupled with an expanding economy, should result in higher housing starts in the country over the next decade. The middle class population in India, which is almost the size of the US population, is becoming more exposed to the western life-style and is showing an interest in western style doors, windows and kitchen cabinets. India has a centuries old tradition of wood use, particularly for interior design and furniture. Although structural wood is rarely used for construction, outside observers have noted that India uses more interior wood than Japan. Recent estimates suggest that the market for high end imported value-added wood products is increasing steadily as a result of continuing economic prosperity in India. This represents one of the largest emerging markets for value-added wood products in the world. New residential construction, primarily multifamily units, are increasingly going to standardized sizes for doors, windows, and interior fittings. This has led to an increased demand for imported doors, windows and cabinets. The total annual demand for furniture in India is estimated to be $US1.25 billion of which 90$US37 million and growing at an annual rate of 15%. Imports of wood products into India have been growing rapidly, although the demand for wood products is heavily skewed towards raw materials such as logs, chips and pulp. While the middle class in India is growing and becoming more open towards using imported value-added wood products, much work needs to be done to take advantage of this demand. For example, India must accelerate their rationalization of import tariffs and remove those non-tariff barriers designed to protect inefficient domestic manufacturers from international competition. This will not only ensure compliance with their WTO obligations but will also force the domestic processing industry to invest in more efficient processing technologies. In addition, there remain long-term opportunities to introduce North-American wood frame construction technology in India. The combination of a severe housing shortage and interest in developing energy efficient housing both provide impetus for working to gain acceptance for wood frame construction. However, in order to achieve the successful introduction and adoption of wood frame construction it is important that the US government and industry associations work with the Indian government to develop and adopt wood frame building codes. Finally, acceptance of wood frame construction technology is dependent on increasing the familiarity and understanding of this construction technology within the architect and construction communities. A key element to gaining this acceptance could be in educating architects and residential builders on the superior environmental performance and energy efficiency of North-American wood frame construction technology

A Categorical Modeling Approach to Analyzing the Impacts of the Lacey Act 2008 Amendment on Chinese Companies’ Export Cost and the Implications on Their Sourcing Behaviors

The US Lacey Act 2008 Amendment (LAA) is a timber legality regulation which requires US importers to monitor and minimize the risk of illegally harvested wood products within their supply chains. This paper empirically examines the effect of the LAA on Chinese companies’ export costs to the US. The study uses 138 responses from two surveys in Shanghai, China in 2013, 5 years after the LAA was implemented. Given the high proportion of zero export increase indicated by the Chinese companies, a zero-inflated ordered-probit model was used to model Chinese companies’ export cost increases to the US. The research results demonstrate that pre-LAA raw material sourcing patterns are primary indicators of the respondents’ export cost increase to the US as a result of the LAA. From the results it can be inferred that log and lumber importers from suspect regions are taking additional measures, by changing their procurement practices, to ensure the legality of their raw material which is adding to their cost structure. The results also indicate that smaller companies, given their flexibility with raw material procurement, were less likely to experience a post-LAA cost increase relative to their larger counterparts.The accepted manuscript in pdf format is listed with the files at the bottom of this page. The presentation of the authors' names and (or) special characters in the title of the manuscript may differ slightly between what is listed on this page and what is listed in the pdf file of the accepted manuscript; that in the pdf file of the accepted manuscript is what was submitted by the author

Effects on Global Forests and Wood Product Markets of Increased Demand for Mass Timber

This study evaluated the effects on forest resources and forest product markets of three contrasting mass timber demand scenarios (Conservative, Optimistic, and Extreme), up to 2060, in twelve selected countries in Asia, Europe, North America, and South America. Analyses were carried out by utilizing the FOrest Resource Outlook Model, a partial market equilibrium model of the global forest sector. The findings suggest increases in global softwood lumber production of 8, 23, and 53 million m3 per year by 2060, under the Conservative, Optimistic, and Extreme scenarios, respectively, leading to world price increases of 2%, 7%, and 23%, respectively. This projected price increase is relative to the projected price in the reference scenario, altering prices, production, consumption, trade of forest products, timber harvest, forest growth, and forest stock in individual countries. An increase in softwood lumber prices due to increased mass timber demand would lead to the reduced consumption of softwood lumber for traditional end-use (e.g., light-frame construction), suggesting a likely strong market competition for softwood lumber between the mass timber and traditional construction industries. In contrast, the projected effect on global forest stock was relatively small based on the relatively fast projected biomass growth in stands assumed to be regenerated after harvest

Life Cycle Assessment (LCA) of Cross-Laminated Timber (CLT) Produced in Western Washington: The Role of Logistics and Wood Species Mix

The use of cross-laminated timber (CLT), as an environmentally sustainable building material, has generated significant interest among the wood products industry, architects and policy makers in Washington State. However, the environmental impacts of CLT panels can vary significantly depending on material logistics and wood species mix. This study developed a regionally specific cradle-to-gate life cycle assessment of CLT produced in western Washington. Specifically, this study focused on transportation logistics, mill location, and relevant wood species mixes to provide a comparative analysis for CLT produced in the region. For this study, five sawmills (potential lamstock suppliers) in western Washington were selected along with two hypothetical CLT mills. The results show that the location of lumber suppliers, in reference to the CLT manufacturing facilities, and the wood species mix are important factors in determining the total environmental impacts of the CLT production. Additionally, changing wood species used for lumber from a heavier species such as Douglas-fir (Pseudotsuga menziesii) to a lighter species such as Sitka spruce (Picea sitchensis) could generate significant reduction in the global warming potential (GWP) of CLT. Given the size and location of the CLT manufacturing facilities, the mills can achieve up to 14% reduction in the overall GWP of the CLT panels by sourcing the lumber locally and using lighter wood species

Global Warming Mitigating Role of Wood Products from Washington State’s Private Forests

Similar to standing trees in the forests, wood products play an important role in enhancing the global sequestered carbon pool, by retaining the atmospheric carbon in a sequestered form for the duration of the functional life of the wood products. This study uses a temporal radiative forcing analysis along with the functional half-life of different wood products to evaluate the impacts of wood products on global warming, including carbon storage and life cycle greenhouse gas production/extraction emissions. The methodology is applied to Washington State’s aboveground biomass and timber harvest data, and to the State’s comprehensive wood products mix. A moderate harvest rate simulation within Washington Biomass Calculator is used to estimate state harvest level, and statewide wood products manufacturing data is used for developing wood product mix estimates. Using this method, we estimate that the temporal carbon storage leads to a global warming mitigation benefit equivalent to 4.3 million tCO2eq. Even after factoring in the greenhouse gas emissions associated with the harvest operations and wood products manufacturing processes, within the temporal model, the results show a net beneficial impact of approximately 1.7 million tCO2eq, on an annual basis. It can further be noted that Washington State’s annual biomass growth in its private forests exceeds its annual harvest, by a significant margin. This net yearly accumulation of biomass in the State’s private forests leads to additional global warming mitigation benefits equivalent to 7.4 million tCO2eq. Based on these results, we conclude that Washington’s private forestry industry is a net global warming mitigator for the State, equivalent to 12% of the State’s greenhouse gas emissions in 2015

CINTRAFOR Working Paper 118

Overview The demand for decking and fencing materials is driven by several factors, including the macroeconomic environment, demographics, construction expenditures, and the repair and remodel sector. In addition, competition within the decking and fencing markets has recently been significantly altered by regulatory constraints on the forest products industry that have restricted harvest levels, by increasing imports of softwood lumber and by expanding competition from non-wood substitute materials. These last two factors are likely to have the greatest impact on the specification and use of decking and fencing materials in the mid to long term as the markets adjust to the changing regulatory environment and changing consumer perceptions and preferences. This report will explore the extant literature related to the demand for decking and fencing materials in the residential, non-residential, public and non-building segments of the construction industry. US Decking Market The demand for decking products is projected to increase from 4.7 billion board feet (bbf) in 2000 to 5.6 bbf in 2010, a 19.3% increase over the ten year period. This market expansion will not be distributed evenly across the three major types of deck materials, however. Whereas wood-plastic composite decking (WPC) is expected to increase by an astronomical 491% and plastic decking by a healthy 152%, the demand for wood decking is expected to decline by 8.5%. Further, the demand for redwood is projected to decline by over 15% between 2000-2010, although the decline in the demand for redwood lumber is attributed to supply constraints rather than declining demand. These demand outlooks are driven by two fundamental end-user attributes: durability (long-deck life) and low maintenance. Very little consideration was paid to price and price sensitivity of either new home builders or home owners. As a result, these demand estimates are more heavily weighted towards the higher priced substitute materials than the actual market situation might otherwise justify, particularly in the 2005-2010 period. The primary construction application for decking is repair and remodel (approximately 86%) followed by new home construction (approximately 14%). While the demand for decking products in new construction is expected to experience strong growth between 2000 and 2010, the sheer size of the repair and remodel market make it a much more attractive market segment for producers. In addition, new home builders are a much more price sensitive set of buyers compared to home owners given the nature of the project expenditures. In addition, decks on new homes tend to be smaller than repair and replacement deck projects. Residential construction is the primary market for decking materials, followed by non-building projects (docks, marinas, park structures, etc.) and non-residential construction. The demand for decking materials in the residential market is expected to grow by 24.3% between 2000 and 2010 while demand is expected to grow by just 6.9% in the non-building market. Again, contractors in the non-building segment are much more price sensitive given the nature of the bidding process in these types of projects. Almost 80% of decking material is installed by professionals as opposed to homeowners (DIY). While demand is expected to grow substantially in both segments, the highest growth is projected to occur within the DIY segment (27.7%) rather than the professional segment (15.9%). Given the profit constraints facing most professional installers, this segment of the market tends to be more price sensitive than the DIY segment. Finally, the deck market can be segmented into deck platforms versus rails and accessories (benches, stairs, planters, etc). It is important to note that only 59% of the total demand for decking materials is derived from the construction of deck platforms. The remaining demand can be attributed to deck rails and accessories, suggesting that overall demand for a specific product may be influenced to a substantial degree by the availability of rails and accessory products manufactured from the same material. Growth in both of these market segments is expected to be strong. The projections indicate that the largest demand region for decking products is the US south while the US west is the smallest demand region. Interestingly, the largest growth in demand for decking materials is expected to come from these two regions

Lignin-Modified Carbon Nanotube/Graphene Hybrid Coating as Efficient Flame Retardant

To reduce fire hazards and expand high-value applications of lignocellulosic materials, thin films comprising graphene nanoplatelets (GnPs) and multi-wall carbon nanotubes (CNTs) pre-adsorbed with alkali lignin were deposited by a Meyer rod process. Lightweight and highly flexible papers with increased gas impermeability were obtained by coating a protective layer of carbon nanomaterials in a randomly oriented and overlapped network structure. Assessment of the thermal and flammability properties of papers containing as low as 4 wt % carbon nanomaterials exhibited self-extinguishing behavior and yielded up to 83.5% and 87.7% reduction in weight loss and burning area, respectively, compared to the blank papers. The maximum burning temperature as measured by infrared pyrometry also decreased from 834 °C to 705 °C with the presence of flame retardants. Furthermore, papers coated with composites of GnPs and CNTs pre-adsorbed with lignin showed enhanced thermal stability and superior fire resistance than samples treated with either component alone. These outstanding flame-retardant properties can be attributed to the synergistic effects between GnPs, CNTs and lignin, enhancing physical barrier characteristics, formation of char and thermal management of the material. These results provide great opportunities for the development of efficient, cost-effective and environmentally sustainable flame retardants

CINTRAFOR Working Paper 116

Investment by value-adding wood industries is critical to sustaining forestland ownership. An increasingly complex array of forest owners and investors suggests a business climate that views forests as a financial, rather than an industrial, asset. However, maintaining the ecological, environmental and economic health of the forests in Washington requires a vibrant and competitive forest products industry. The lack of a diversified and competitive forest products industry to process the logs, small diameter timber and thinnings removed from the forest undermines the ability to manage forests in Washington in a sustainable manner and reduces the range of management options available to forest managers in the state. The lack of competitive markets for intermediate forest products derived from forest management operations undermines the economic rationale of forest management, adversely affects forest health and ultimately results in increased fire risks. At the same time, the forestry and forest products industries make significant contributions to the economy of Washington State, particularly in rural, timber dependent communities. The analysis of the economic data suggests that the forestry and wood products manufacturing sectors have played an increasingly important role in the economy of Washington State since 2001. Not only did this sector provide over 45,000 jobs in 2005 but it also generated approximately $16 billion in gross business revenue, paid out over$2 billion in wages and over $100 million in tax receipts. As a result, the forestry and wood products sector of the state economy employed 1.43$1 million in tax increases to replace lost trust revenue from reduction in timber harvests from the state forestlands. Further public benefits derived from DNR timber sales through the generation of state and local, and federal tax revenues were calculated to be 11% and 19% respectively, of the Gross State Product, in 1996