The Economic Impact of Minnesota’s Forestry‐Related Industries on the State of Minnesota

Abstract

This project estimates the economic impacts of logging, forest products manufacturing, and related industries in the state of Minnesota. The economic modeling data and software used was IMPLAN. The study used IMPLAN’s economic multiplier analysis and input/output modeling, Version 3.0, created in Minnesota by the Minnesota IMPLAN Group, Inc. Data was the most recent IMPLAN data, which is for year 2008. The Minnesota Department of Natural Resources (DNR) asked the University of Minnesota Duluth Labovitz School Bureau of Business and Economic Research (BBER) to estimate this impact using state and county data for impact models for value added, employment, and output measures. 1 The DNR asked BBER for baseline primary and secondary forestry industry sector modeling to assist with the DNR’s update of their 2004 "Economic Impact of Forest Industries" report. BBER’s deliverables are as follows: An economic impact analysis of forest products industries and related sectors in order to quantify the economic importance of these sectors in terms of employment, value of shipments (output), contribution to gross state product, and taxes paid.