Forests are a valuable part of Kentucky’s landscape providing signifi­cant resources and opportunities benefi­ting the Commonwealth. One important and veri­fiable bene­fit is the economic contributions of Kentucky’s forest and wood industries. Analysis of these industries indicated a total economic impact of $12.8 billion and 59,000 jobs in 2013. Kentucky is one of the leading producers of hardwood forest products in the south and exports wood products across the nation and the world. This economic impact was generated from forests located in all 120 counties of the Commonwealth providing resources harvested by over 1,800 logging ­firms and processed at 703 facilities located in 109 counties. These industries include: sawmills, pulp and paper mills, and a wide variety of secondary producers such as cabinet, barrel, and flooring manufacturers. The Kentucky forest industry improved signifi­cantly in 2013 and most sectors and commodities performed better than expected. 2013 saw a reversal of sluggish delivered log prices experienced in 2012 with overall statewide average prices increasing by 11.4% compared to 2012. Analysis indicates that Kentucky will remain the leading producer of hardwood sawlogs in the South and one of the top three in the nation. This report highlights the economic contribution of the forestry sector to Kentucky in 2013 and provides insights to the sectors predicted performance in 2014.

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