Iowa\u27s timber-based economy: an economic analysis

The decade of the \u2780s brought economic difficulties to the state of Iowa. Demand for its traditional products such as corn, soybean, and farm machinery fell sharply. At the moment, there appear to be considerable improvements in the economy relative to previous years in the \u2780s. Nevertheless, concerns still remain that the economic conditions for the \u2780s could be repeated. These concerns have generated discussions regarding ways to prepare the state against similar economic recession in its traditional sectors. Prominent among these discussions is the idea of diversifying and expanding the state\u27s economy beyond its traditional products;It was hypothesized that the timber-based economy of Iowa was a viable option for economic diversity and expansion in the state. To substantiate this hypothesis, information regarding the characteristics and the economic importance of the timber-based economy were necessary. Data regarding roundwood production, imports, and exports were collected using a questionnaire. Other necessary data were collected from public sources. An input-output model emphasizing the timber-based economy of Iowa was developed using a computer-based system called IMPLAN. The model developed was used to assess past and future economic impacts of roundwood production in Iowa;In 1982, the timber-based economy of Iowa employed 8,525 persons and accounted for 309 million and 423 million in payroll and value added, respectively. Relative to all manufacturing sectors in the state, these figures represented 4 percent, 5 percent and 5 percent contributions to employment, payroll, and value added, respectively;Sawlog and veneer log production between 1985 and 1987 increased. Veneer log export to foreign countries between the same period also increased. Results from the input-output analysis show that Iowa\u27s timber-based economy sectors, such as Logging Camps and Contractors, Prefabricated Wood Buildings, and wood Office Furniture, have output and value added multipliers comparable to output and value added multipliers of major Iowa sectors such as Farm Machinery, Feed Grains, and Oil Bearing Crops. Results from impact analysis indicate that if Iowa can utilize 25 million cubic feet of its projected removals (44.30 million cubic feet) for the year 2003, at least 1,750 jobs will be supported throughout the economy, and 100 million, 25 million, and 40 million will be realized for gross output, payroll, and value added, respectively