Partnership in Proof
How GFC and GA Tech Validate Georgia Forestry’s Punch
Spring 2024
By Stasia Kelly
What do persimmon seeds, tarot cards and the placement of the stars have in common?
They’ve all been used by humans seeking answers to what the future may hold. Of course, statistics proving the outcome of these pursuits are, predictably, ambiguous.
Today’s business-forecasting tools are much more reliable, and likely to include formulas that have dependable track records for predicting outcomes. When dollars are on the line, no matter how many, trends matter.
The Georgia Forestry Commission (GFC) relies on numerous tools to measure and address the many forest characteristics that affect timber growth and output. One of the most highly anticipated reports is the annual “Economic Benefits of the Forest Industry in Georgia,” co-produced by the GFC and the Georgia Institute of Technology’s Enterprise Innovation Institute. In great detail, the report quantifies the economic activity of forestry and its impact on the state of Georgia. The GFC’s Forest Services, Utilization and Marketing (SUM) Department has been working with Georgia Tech to produce this information since 2002.
“The forest products industry is one of the leading manufacturing industries in the state, in terms of employment and job compensation,” said Devon Dartnell, GFC’s director of forest services, utilization and marketing. “This report provides a way of demonstrating that value to the Georgia legislature and federal entities that can support our industry through funding and policies.”
The report is also of great benefit to Georgia’s economic-development ambassadors and their business prospects. Statistics that quantify industry output and employment conditions in Georgia — recognized as the “Number One Forestry State in the Nation” — are critical to decision makers at every juncture.
They’ve all been used by humans seeking answers to what the future may hold. Of course, statistics proving the outcome of these pursuits are, predictably, ambiguous.
Today’s business-forecasting tools are much more reliable, and likely to include formulas that have dependable track records for predicting outcomes. When dollars are on the line, no matter how many, trends matter.
The Georgia Forestry Commission (GFC) relies on numerous tools to measure and address the many forest characteristics that affect timber growth and output. One of the most highly anticipated reports is the annual “Economic Benefits of the Forest Industry in Georgia,” co-produced by the GFC and the Georgia Institute of Technology’s Enterprise Innovation Institute. In great detail, the report quantifies the economic activity of forestry and its impact on the state of Georgia. The GFC’s Forest Services, Utilization and Marketing (SUM) Department has been working with Georgia Tech to produce this information since 2002.
“The forest products industry is one of the leading manufacturing industries in the state, in terms of employment and job compensation,” said Devon Dartnell, GFC’s director of forest services, utilization and marketing. “This report provides a way of demonstrating that value to the Georgia legislature and federal entities that can support our industry through funding and policies.”
The report is also of great benefit to Georgia’s economic-development ambassadors and their business prospects. Statistics that quantify industry output and employment conditions in Georgia — recognized as the “Number One Forestry State in the Nation” — are critical to decision makers at every juncture.
Georgia Pacific Pulp and Paper, from Andrews Island Causeway, Brunswick.
A Multi-Faceted Business
Georgia’s forest industry components interact with all other sectors of the economy in complex ways. Specifically, the purposes of the annual analysis are to: (1) quantify the level of economic activity conducted by the components of the forest industry, (2) estimate economic activity supported in all Georgia sectors by the industry’s activities, (3) compare the level of activity in the forest industry with other industries, and (4) quantify the economic activity of forest industry sectors within each of the 12 regional commissions in Georgia.
NINE SECTORS COMPRISE THE FOREST INDUSTRY TODAY:
• Forest Management & Logging
• Bioenergy
• Lumber & Wood Preservation
• Veneer, Plywood, Reconstituted & Engineered Wood
• Prefabricated Wood Buildings & Manufactured Housing
• Pulp & Paper Products
• Woodworking & Paper Industries Machinery
• Wooden Furniture, Cabinets, Custom Arch & Millwork, Windows & Doors
• Containers, Showcases, Partitions & Shelving
Georgia’s forest industry components interact with all other sectors of the economy in complex ways. Specifically, the purposes of the annual analysis are to: (1) quantify the level of economic activity conducted by the components of the forest industry, (2) estimate economic activity supported in all Georgia sectors by the industry’s activities, (3) compare the level of activity in the forest industry with other industries, and (4) quantify the economic activity of forest industry sectors within each of the 12 regional commissions in Georgia.
NINE SECTORS COMPRISE THE FOREST INDUSTRY TODAY:
• Forest Management & Logging
• Bioenergy
• Lumber & Wood Preservation
• Veneer, Plywood, Reconstituted & Engineered Wood
• Prefabricated Wood Buildings & Manufactured Housing
• Pulp & Paper Products
• Woodworking & Paper Industries Machinery
• Wooden Furniture, Cabinets, Custom Arch & Millwork, Windows & Doors
• Containers, Showcases, Partitions & Shelving
Pine sawmill in Georgia.
Juli Golemi holds a strategy and planning meeting with her team.
The GFC’s SUM Department regularly connects with representatives in these sectors and stays abreast of any company changes, such as product types, which may lead to sector reclassification. It also tracks new businesses added or company closures to be removed. These updates are shared with Georgia Tech analysts, as they prepare to work on the upcoming economic impact report.
Juli Golemi is an economist by trade and has been with Georgia Tech for 12 years. Other than managing reports on the aerospace industry in Georgia, Golemi’s primary focus is forestry.
“Not many people would ever think about the huge impact certain forestry sectors have on the state’s economy,” Golemi said. “Putting together all the numbers, filtering, going through all the data. In the end we can show how many people forestry impacts in the state of Georgia — the jobs it supports and the income it generates.”
In addition to the updates provided by the GFC, Golemi relies on an enormous data set from the Georgia Department of Labor. Georgia forest industry data is categorized under a nationally recognized six-digit code by the North American Industry Classification System (NAICS). The NAICS classifies business establishments by code for the purpose of collecting, analyzing and publishing statistical data related to the U.S. business economy. Special input/output software, called IMPLAN, is used that combines data and analytics to yield greater understanding of economic impacts.
“When we get data from the Georgia Department of Labor, we receive data that is specific for each sector,” Golemi said. “We use ‘employment’ as input for the economic model for the state of Georgia and estimate the impact of the industry sectors that way.”
Golemi said the data collection and validation steps are huge. “We spend a lot of time on that data,” she said. “The GFC contacts plants to get employment numbers and that’s how we calculate the economic impact. A fiscal impact model calculates tax revenue generated for the state.”
‘Mountains and Mountains of Data’
For economic impacts, Golemi said the focus is on employment, earnings and output, or the production of the companies. For fiscal impacts, the focus is on tax revenue, sales and income. The annual study captures both impact types.
“We go through mountains and mountains of data,” Golemi said. “Our team works closely together. We brainstorm ideas and talk about different ways to capture and measure the impacts of non-traditional data. Bioenergy is one sector that was added in recent years.”
The data used for the forest economic impact report is typically available to Golemi by October of the following year. A first draft of the report is usually completed by mid-November, when the GFC team reviews it and makes any necessary changes. The final report is completed by early December.
“It’s exciting to see the growth of forestry in Georgia from year to year,” Golemi said. “And I am always very excited to call GFC when the trend is up!”
GFC Utilization & Marketing Specialist Jonathan Brown is an integral part of the agency team that works in tandem with Golemi at Georgia Tech.
“This report is so important in helping those outside of our industry to understand the forest industry’s impact more clearly,” Brown said. “From supporting the implementation of cost-share assistance for forest landowners to creating regulations that benefit the forest industry, these statistics offer support to sustain Georgia forestry. There are just so many ways this data can be used to benefit our industry and our state,” Brown said.
Despite the disruption caused by COVID and changing geopolitical conditions, Georgia’s forest industry continues to have a sizable impact on our state. In 2022, the industry’s nine sectors delivered $25 billion in direct impacts, provided the state with $807 million in tax revenue, and employed 57,228 workers with an annual compensation of $4.4 billion. In rural communities, where mills are a primary source of income, impacts are felt most deeply.
It’s been said that numbers don’t lie. When it comes to Georgia’s forest economic punch, it’s clear that honesty is the very best policy of all. ■
Stasia Kelly is a media relations specialist with the Georgia Forestry Commission. She is focused on telling the story of forestry and exploring the immense impact of the industry on Georgia’s environment, economy and heritage.
Juli Golemi is an economist by trade and has been with Georgia Tech for 12 years. Other than managing reports on the aerospace industry in Georgia, Golemi’s primary focus is forestry.
“Not many people would ever think about the huge impact certain forestry sectors have on the state’s economy,” Golemi said. “Putting together all the numbers, filtering, going through all the data. In the end we can show how many people forestry impacts in the state of Georgia — the jobs it supports and the income it generates.”
In addition to the updates provided by the GFC, Golemi relies on an enormous data set from the Georgia Department of Labor. Georgia forest industry data is categorized under a nationally recognized six-digit code by the North American Industry Classification System (NAICS). The NAICS classifies business establishments by code for the purpose of collecting, analyzing and publishing statistical data related to the U.S. business economy. Special input/output software, called IMPLAN, is used that combines data and analytics to yield greater understanding of economic impacts.
“When we get data from the Georgia Department of Labor, we receive data that is specific for each sector,” Golemi said. “We use ‘employment’ as input for the economic model for the state of Georgia and estimate the impact of the industry sectors that way.”
Golemi said the data collection and validation steps are huge. “We spend a lot of time on that data,” she said. “The GFC contacts plants to get employment numbers and that’s how we calculate the economic impact. A fiscal impact model calculates tax revenue generated for the state.”
‘Mountains and Mountains of Data’
For economic impacts, Golemi said the focus is on employment, earnings and output, or the production of the companies. For fiscal impacts, the focus is on tax revenue, sales and income. The annual study captures both impact types.
“We go through mountains and mountains of data,” Golemi said. “Our team works closely together. We brainstorm ideas and talk about different ways to capture and measure the impacts of non-traditional data. Bioenergy is one sector that was added in recent years.”
The data used for the forest economic impact report is typically available to Golemi by October of the following year. A first draft of the report is usually completed by mid-November, when the GFC team reviews it and makes any necessary changes. The final report is completed by early December.
“It’s exciting to see the growth of forestry in Georgia from year to year,” Golemi said. “And I am always very excited to call GFC when the trend is up!”
GFC Utilization & Marketing Specialist Jonathan Brown is an integral part of the agency team that works in tandem with Golemi at Georgia Tech.
“This report is so important in helping those outside of our industry to understand the forest industry’s impact more clearly,” Brown said. “From supporting the implementation of cost-share assistance for forest landowners to creating regulations that benefit the forest industry, these statistics offer support to sustain Georgia forestry. There are just so many ways this data can be used to benefit our industry and our state,” Brown said.
Despite the disruption caused by COVID and changing geopolitical conditions, Georgia’s forest industry continues to have a sizable impact on our state. In 2022, the industry’s nine sectors delivered $25 billion in direct impacts, provided the state with $807 million in tax revenue, and employed 57,228 workers with an annual compensation of $4.4 billion. In rural communities, where mills are a primary source of income, impacts are felt most deeply.
It’s been said that numbers don’t lie. When it comes to Georgia’s forest economic punch, it’s clear that honesty is the very best policy of all. ■
Stasia Kelly is a media relations specialist with the Georgia Forestry Commission. She is focused on telling the story of forestry and exploring the immense impact of the industry on Georgia’s environment, economy and heritage.
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Georgia Forestry Magazine is published by HL Strategy, an integrated marketing and communications firm focused on our nation's biggest challenges and opportunities. Learn more at hlstrategy.com
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