Forestry top manufacturing industry in S.C.

DARLINGTON — Forestry has emerged as the No. 1 manufacturing industry in the state, contrary to the national trend, according to early economic figures from Palmetto Agri-Business Council’s ongoing study of the impact of South Carolina’s forest and agricultural industry.
Forestry also is expected to become the No. 1 employer and the leader in wages paid to support South Carolina families, according to the study.
“One of the things we looked at were long-term trends,” Tim Adams, an analyst for the forestry commission, said. “We’re experiencing a temporary correction in the housing market nationally, but if you look at long-term trends dating all the way back to the 1920s, there are small corrections like this.”
Forestry provides 44,708 jobs in the Palmetto State, accounting for $2.4 billion annually in labor income, the study shows.
Forest-based businesses include everything from pine-straw raking, mulch-making and pet bedding operations to biomass power plants, hunting preserves and other forest-based recreation. Other businesses include logging, as well as paper mills and sawmills.
Steve Singleton, general manager of New South Lumber Co. of Darlington, said this region is a prime location for the lumber industry at the moment. Canada-based CanFor group closed the deal last November to purchase the Chesterfield Lumber Co. in Darlington through one of its member companies, New South Lumber.
“On the part of CanFor coming in and first purchasing New South as a way to grow in the South, there’s a good timber base here and a market for the products that come from the lumber,” Singleton said. “Now, New South has purchased Chesterfield Lumber and it’s all under the CanFor umbrella.
“We’re excited to be here in Darlington and the housing structure is affecting everything involved with it, including lumber,” he said. “Nationally, that market is way off, but we’re definitely not seeing (a lag) here in the Southeast.”
Nationwide, forestry is lagging and plants are slowing down production of bi-products of lumber, but Adams said there are different reasons, depending on the region.
“The Northwest has had so many regulatory restrictions that have caused a lot of that industry to come down here (to the South),” he said. “If you look at the Appalachian region, they’re experiencing a decline because a lot their forestry is based on furniture production, and a lot of those jobs have gone overseas.”
Adams said South Carolina has more standing timber volume now than ever recorded.
“In South Carolina, we are very fortunate,” he said. “We have recovered from Hurricane Hugo, and we actually have more wood right now than we have ever had in the state since it’s been tracked.”
The study said total forest acreage has remained stable at more than 12 million acres, totaling two-thirds of the state, with 88 percent of it privately owned.
New South Lumber Co. of Darlington specializes in Southern yellow pine and uses it to produce frame construction for the housing market, about 80 million board feet each year.
“In the Southeast, there is still a demand, but nationwide the finished good price is depressed,” Singleton said. “It’s all about supply and demand with the economy. Just looking at South Carolina, (forestry) is really a strong part of the state’s economy.”