Alabama’s forest industry now generates $37.5 billion in economic activity and supports more than 123,000 jobs across the state, according to a new economic-impact study.

The study, commissioned by the Forest Workforce Training Institute and conducted by the Public Affairs Research Council of Alabama, found the industry contributes $8.9 billion in labor income.

More than 53,000 Alabamians are directly employed in forestry and forest-products manufacturing, with additional jobs supported through businesses and industries connected to the sector.

The new estimate represents a $1.1 billion increase in total economic output from the previous study conducted in 2022.

“Alabama’s abundant forests, business-friendly environment and skilled workforce create a strong foundation for the forest products industry,” Alabama Forestry Association President and CEO Chris Isaacson said.

“The industry’s impact reaches well beyond its own operations, supporting economic activity and communities across the state.”

The study also estimated that forestry and forest-products manufacturing generate $340 million in local taxes and $2.9 billion in total tax revenue.

The economic footprint is particularly significant in rural Alabama, where forestry-related operations provide jobs while supporting logging, transportation, manufacturing and other businesses tied to the industry.

Alabama has approximately 23 million acres of forestland, according to the report, with 93% held in private ownership.

State Forester Rick Oates said maintaining that resource is central to sustaining the industry’s long-term economic impact.

“The scale of this economic impact speaks to the value of Alabama’s natural resources and the people who work within our forestland,” Oates said. “Sustainable forest management allows us to create economic opportunity today while maintaining a healthy, productive resource for the future.”

The Forest Workforce Training Institute, founded in 2018, focuses on building the workforce pipeline for forestry and forest-products manufacturing through its ForestryWorks initiative.

The updated economic-impact study comes a year after Alabama’s forest industry was estimated to contribute more than $36 billion annually to the state economy.

Sawyer Knowles is a state and political reporter for Yellowhammer News. You may contact him at [email protected].