Economic Development
The Texas forest sector is vitally important to the state’s economy. In 2024, it provided a total annual economic impact of $54.2 billion and over 187,000 jobs.
We work to support forest-based economic development by collecting data and conducting in-depth resource analyses. We work closely with state and local economic development professionals, forest products industries, prospective investors, and landowners on various economic development initiatives.
Current and historical economic data can be viewed online through the interactive Texas Forest Sector Economic Impact Summary Tool.
In 2023, Texas produced
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591.2M
Cubic feet of timber from forests
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611.9M
Cubic feet of timber from the forest products industry
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$392.8M
In timber stumpage value
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80
Primary wood processing mills in the state
Publications
Economic impact reports
Economic Impact of the Texas Forest Sector, 2021
Economic Impact of the Texas Christmas Tree Industry, 2023
Economic Contribution of Urban Forests in Texas (2019)
Economic Impact of the Texas Forest Sector, 2015
Economic Impact of the Texas Forest Sector, 2012
Economic Impact of the Texas Forest Sector, 2009
Economic Impact of the Texas Forest Sector, 2007
Hardwood lumber
Woody biomass
Spatially Quantifying Woody Biomass in Central and West Texas, April 2010
Biomass from Logging Residue and Mill Residue in East Texas, 2008
Estimation of Woody Biomass Availability for Energy in Texas, December 2008
Biomass from Logging Residue and Mill Residue in East Texas, 2005
Biomass from Logging Residue and Mill Residue in East Texas, 2003
Frequently asked questions
What is the economic impact of forestry in Texas?
The forest sector includes all economic activities that depend on the production of goods and services from forests. It is important to the Texas economy, especially in East Texas where most of the state’s commercial forests are located.
In 2023 Texas produced:
- 591.2 million cubic feet of timber from forests
- 611.9 million cubic feet of timber from the forest products industry
- Timber stumpage value was $392.8 million
- Timber stumpage delivered value was $831.1 million
- 80 primary wood processing mills in the state
Texas imported 80.0 million cubic feet into the state and exported 51.2 million cubic feet out of the state, making it a net importer of roundwood.
In 2024, the Texas forest sector:
- Produced industry outputs worth $27.4 billion including $8.1 billion in value-added products
- Employed 73,096 workers
- Paid $5.4 billion in wages, salaries and benefits
Who owns Texas forests?
In East Texas almost 91% of timberland is privately owned. Family forest landowners are by far the largest group of private owners, accounting for about 58% of all timberland.
In the past two decades most timberland held by corporations that own wood processing facilities has been sold to corporations that do not own wood processing facilities, such as Timberland Investment Management Organizations (TIMOs) and Real Estate Investment Trusts (REITs). These corporations own about 40% of timberland in East Texas.
Other private ownership classes (i.e., nonindustrial corporate excluding TIMOs and REITs, unincorporated, Native American and nongovernmental organizations) account for about 2% of all timberland. Slightly more than 9% of timberland is publicly owned.
What are some economic development opportunities in East Texas?
The 2008 Texas forest inventory showed increased volume and productivity of timberlands in Texas. In the southeastern part of the state, with the closing of several plywood and paper mills, there were excess supplies of both softwood and hardwood. Preliminary analyses showed the existence of timber sources for additional wood conversion facilities in southeast Texas, such as a small pine sawmill, a pine OSB mill and a hardwood sawmill.
The forest products industry also proved its importance during the COVID-19 pandemic, from the hoarding of toilet paper to buying lumber for home do-it-yourself projects. As an integral component of the housing sector, the forest product industry maintains a symbiotic relationship with housing market fluctuations, a connection that became especially pronounced during the COVID-19 pandemic.
Typically, a 2,000 square-foot house requires approximately 16,000 board feet of lumber and 6,000 square feet of structural panels. Under normal circumstances, the average lumber cost for such a house is around $10,000. However, amidst the COVID-19 pandemic, costs surged dramatically, reaching almost $35,000 by mid-2021. You can read more here.
The dynamics of the Texas wood market exemplify its pivotal role within the broader housing sector. As evidenced by the surge in solid wood and wood furniture imports during the COVID-19 pandemic and the subsequent return to pre-pandemic levels, the market’s resilience is apparent. The sustained reliance on imports underscores the insufficiency of local production to meet the region’s robust demand. Looking ahead, the trajectory of future import levels will be shaped not only by market forces but also by evolving trade policies and global dynamics. Adapting to these changes while leveraging logistical advantages and fostering trade relationships will be critical for sustaining the Texas wood market’s growth and resilience in the years to come. You can read more here. You may contact us for more information on this topic.
What is woody biomass and where does it originate?
Woody biomass is wood waste. It is produced when a forest is harvested or when trees are processed at a mill. While most wood in a logging operation is used, some wood remains behind in the form of logging residue such as small or cull trees and unused tree parts like tops and limbs. Young stands of small trees too small to be turned into a product may be thinned to improve health and vigor of the remaining trees, producing wood waste in the process.
Most of the wood delivered to mills is used in making products, but there is usually some amount that does not make its way into the final product. Mill residue is a term applied to that material, and sawdust, chips, shavings and bark are typical forms.
How much woody biomass is in east in East Texas?
East Texas has substantial amounts of biomass in the form of logging and mill residues. A total of 4.1 million tons of logging residue was generated in 2023: 95 percent were softwood and 5 percent were hardwood. Chips accounted for 45% of the total mill residue, followed by bark at 21%. Sawdust and shavings accounted for 25% and 10%, respectively, of the total mill residue produced. Except for stumps, all other biomass from logging and mill residue was available for energy production or chemical extraction.
What kind of help can I get to better manage my timberland?
After the establishment of your timberland, there are many management decisions to be made, such as when to thin and harvest the timber, and how to conduct the sales. Our interactive online tools can help you make timberland management decisions that will improve your financial return from the use of that timberland.
Our bi-monthly Timber Price Trends publication will give you a broad picture of the timber market. You can find wood buyers from the online Directory of the Forest Products Industries in Texas. A list of loggers in your area can be obtained from the Texas Forestry Association.
Need additional information? Reach out for help!
Contact us to learn more about how Texas forests help the economy or for more timber market information.