Pulp and paper industries are multi-billion dollar contributors to Mississippi\u27s economy each year. Pulp and paper manufacturers employ over 9,000 people in the state, and these jobs pay nearly $44,000 per year on average. They\u27re among the highest paying jobs of any industry in Mississippi. According to the latest  Survey of Manufacturers  by the U.S. Department of Commerce, Bureau of the Census, pulp and paper industries accounted for 4% of manufacturing employment in Mississippi in 1994, but 6% of manufacturing payroll

Bullard, Steven H

Munn, Ian A.

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Stephen F. Austin State UniversitySFA ScholarWorksFaculty Publications Forestry1997Pulp and paper industries - multibillion dollarcontributors to Mississippi’s economyIan A. MunnSteven H. BullardStephen F. Austin State University, Arthur Temple College of Forestry and Agriculture, bullardsh@sfasu.eduFollow this and additional works at: http://scholarworks.sfasu.edu/forestryPart of the Forest Sciences CommonsTell us how this article helped you.This Article is brought to you for free and open access by the Forestry at SFA ScholarWorks. It has been accepted for inclusion in Faculty Publicationsby an authorized administrator of SFA ScholarWorks. For more information, please contact cdsscholarworks@sfasu.edu.Recommended CitationMunn, Ian A. and Bullard, Steven H., "Pulp and paper industries - multibillion dollar contributors to Mississippi’s economy" (1997).Faculty Publications. Paper 164.http://scholarworks.sfasu.edu/forestry/164Pulp and Paper Industries - Multi-billion Dollar Contributors to Mississippi's Economy by ian Munn, Assistant Professor and Steve Bullard, Professor Department of Forestry, Forest and Wildlife Research Center, Mississippi State University Pulp and paper industries are multi-billion dollar contributors to Mississippi's economy each year. Pulp and paper manufacturers employ over 9,000 people in the state, and these jobs pay nearly $44,000 per year on average. They're among the highest paying jobs of any industry in Mississippi. According to the latest "Survey of Manufacturers" by the U.S. Department of Commerce, Bureau of the Census1, pulp and paper industries accounted for 4% of manufacturing employment in Mississippi in 1994, but 6% of manufacturing payroll. Besides high-paying jobs, pulp and paper industries have another, very important characteristic that results in a strong economic impact in Mississippi each year. High outlays for manufacturing facilities and equipment are a necessity for efficient production in these industries, and in 1994 pulp and paper industries accounted for nearly half of all "new capital expenditures" for forest products industries in Missis-sippi1. Such expenditures, plus the induced effects of household spending by pulp and paper industry workers, resulted in a total economic impact of $2.6 billion in the state in 1993. Because of the high "multi-plier effect" of pulp and paper manufactur-ing, there were nearly 22,000 total jobs directly and indirectly b~sed on these industries in the state in 1993 - over twice the 9,000 workers directly employed in the industries that year. "Value added" is the difference between total industry output and the cost of purchased inputs - it reflects the income created by an industry, and is a good measure of an industry's direct and indirect economic contribution in a state. The pulp and paper industries' $1.13 billion of total value added and $1.03 billion in total impact on wages and salaries dearly reflect the industry's economic importance in Mississippi. Wholesale, retail, and service businesses, construction industries, and chemical and utility industries are among those heavily affected by income created through pulp and paper manufacturing in Mississippi. An important contribution of the pulp and paper industries in Mississippi is in providing a market for pulpwood. In 1995, 4.8 million cords of pine pulpwood and 3.9 million cords of hardwood pulpwood were harvested in the state. This resulted in payments of$175.7 million dollars to Mississippi forest landowners. In summary, Mississippi's pulp and paper industries have a multi-billion dollar impact on the state's economy each year. These industries provide over 9,000 jobs that have an average salary that's more than double the state's average annual wage for industrial workers. The total economic impact of these industries is much greater, however, than the direct effects of the industries' output and employment. Pulp and paper manufacturers have very high "multiplier" effects, and their purchases and wages and salaries are multi-billion factors throughout the Mississippi economy. (see table on facing page) 1 Bureau of the Census. 1996. Annual Survey of Manufacturers. U.S. Department of Commerce, Washington, D.C. 2 Munn, I.A. and S.H. Bullard. 1997. Logging-One of Mississippi's Most Important Industries. Tree Truk19(1),13-14. BENNETT & PETERS, INC. Forestry Consultants and Appraisers Baton Rouge, LA (504) 927-3500 Loranger, LA (504) 878-6731 Poplarville, MS (601) 795-2286 Timber Management + Inventories + Marketing + Mapping Appraisals + Rural Real Estate +Wood Based Feasibility Studies 12- TREE TALK I Spring 1997--Pulp and paper industries in Mississippi in 1993: Total Economic Impact: $2.60 Billion Background This is the second in a series of articles on the economic contribu-tions of various segments of the forest products industries to Mississippi's. economy. A previous article' emphasized the logging industry, and future articles will highlight lumber and other wood-based industries. These articles report findings of an analysis of the state's economy conducted by members of the Department of Forestry at Mississippi State Uni-versity. In the present article, "pulp andpaper industries" includes pulp mills, paper and paperboard mills, and manufacturers of paperboard containers and boxes, converted paper and paperboard products and other related paper products. How the analysis was done IMPLAN.-an input-output computer model for IMpact PLANning devel-oped by the USDA Forest Service-was used to assess the economic contributions of various industries in Mississippi. The most recent data available was for 1993, and more recent changes in the forest products industries in the state are therefore not reflected by the results. For each industry segment examined, "direct," "indirect," and "induced" effects were estimated. Their combined impacts on the state's economy are reported here. TABLE - Pulp and paper industrie.• have signil'i"""t diredt effects on ~i's e<:<m<>mJI, !bunt llhe totllDU imJI"'d: of lllue indOLWJI is much greater Ibm the direct effects alone,. ( Direct) Effects (the pulp and paper indusby only) ••• ..... Total output Value= $1.67 billion ..... Value Added = $653.8 million ..... Employment= 9,062 (full and part-time jobs) ..... Wages and Salaries = $398.1 million . Pulp and paper inilustries are capital inteaBsiwe. Their direct mdput walue of $1.67 billioll is ,,,m~:y $185,000 penworlk:er . TTltdr awerage salary •was nearly $44,000 iu 1993- f111!11ong the highest <if all industries in Mississippi. As shown belmw, . howewer, tbe pulp and paper indu•tries' total effecl/s are much higher than their direct eJfects aloue . ( Total ) Effects ( direct effects + indirect effects + induced effects ),. ~ ~ ~ As shown above, these include only finn• directly involved in pulp and paper. Indirect effects talre in!o account the industry"s purchase of fuel, chemicals. etc .• from finns in Mississippi Induced effects are genemed by the increased consu.mer spending made possible by !be wages a..ocialed with pulp and paper's direct and indirect effects. ..... Total Output Value,. $2.60 billion -. Value Added • $1.13 billion -. Employment • 21,693 (full ood pllfl.!lmo job•) -. Wages and Salaries • $1.03 billion Pulp and puper manufacturing impacts many industries in Mississippi. Examples are construction, petrolt!lmr, and trans-portation industries. Many other industri£S are also affected by the wages and salaries earned in pulp and paper manrifactur-ing. Examples include service industries, financial and real estate industries, and health services. Total effects are more than double the direct effects in wages and salaries. INSULATION & REFRACTORIES SERVICES, INC. IINCI HlOO • 402 DECATUR, MEMPHIS, TENNESSEE 38105·2498 fii=I~N[g; ((:l01) ~~~·~~~~ • FAX: (~01) S~~-~~7~ • WATS: (800) 346·2545 Contracting Services Distribution Representatives ltrvlng tht Pulp, Paptr and Wood Products Industries llnct1888 

Pulp and paper industries - multibillion dollar contributors to Mississippi’s economy

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Pulp and paper industries - multibillion dollar contributors to Mississippi’s economy

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