MONTGOMERY — With more than 23 million acres of forestland and an industry that supports nearly 40,000 jobs while generating an estimated $36 billion in annual economic impact, Alabama is one of the nation’s leading forestry states. Now, lawmakers are taking a closer look at a critical piece of that industry they say faces growing economic challenges.
The newly created Study Commission on Alabama Forest Products Retention and Pulp & Paper Mill Stability held its inaugural meeting this week at the State House, bringing together lawmakers, forestry officials and industry representatives to begin examining ways to retain existing pulp and paper mills, encourage future investment and strengthen Alabama’s forest products industry.
Supporters of the commission say while Alabama continues to grow abundant timber, fewer nearby pulp and paper mills have made it more difficult for landowners to profit from lower-value wood products, particularly pine pulpwood.
State Rep. Marcus Paramore, R-Troy, who helped sponsor the legislation creating the commission, said the impact of losing a mill extends well beyond the community where it’s located.
“One plant, I think, closed over in Georgia, which was right over the state line from Dothan in Houston County, but it affected thousands of people that lived in Houston County and Henry County who went to work there every day,” Paramore said.
Pike County Commissioner Russell Johnson, who also serves on the study commission and co-owns Coastal Plain Land & Timber, said transportation costs and a shrinking number of mills have significantly reduced the value of pine pulpwood in parts of southeast Alabama.
“There are only a half a dozen counties in southeast Alabama that pine pulpwood has no value,” Johnson said. “If you wanted it taken off of your property and moved to a mill, we’re at a point to where the landowner would have to pay to make up the difference that’s being lost to move that wood.”
Johnson said the issue is not a shortage of timber but a lack of nearby markets capable of processing it economically. He warned that while some believe new technologies may eventually reshape the industry, Alabama must focus first on protecting the manufacturing capacity it already has.
“You know, some people will say that what’s happened in our industry is a sign of the times,” Johnson said. “Some people will say that there’s other technologies coming 7 to 10 years down the road that’ll save all this, but we’ve got to get down the road 7 or 10 years. We’ve got to maintain, retain what we have currently.”
Rick Oates, Alabama’s State Forester, told commission members there are also reasons for optimism. While the industry has faced challenges in recent years, he said larger mills continue investing in their Alabama operations.
“Our larger mills we’re seeing investments in, and that gives us a little bit of hope that at least those facilities are probably not on the chopping block anytime soon,” Oates said.
Oates said broader economic trends continue to influence the industry. He pointed to changes in consumer demand, including companies using less packaging material, and slower housing construction, both of which affect demand for paper products and lumber.
The commission was created by the Legislature to study issues affecting Alabama’s forest products industry, including mill retention, workforce development, transportation, infrastructure and economic competitiveness. Members are expected to continue meeting over the coming months before making recommendations to lawmakers.
For supporters, the commission’s work comes down to preserving one of Alabama’s cornerstone industries.
“Forestry has been an economic engine for this state for generations,” Paramore said. “Now the challenge is making sure Alabama remains competitive enough to keep those jobs, those mills and those markets here for decades to come.”
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