Lansing, Michigan The Michigan Department of Natural Resources conducts thorough surveys, collects and analyzes data regarding our state’s forest products industry, and releases this data every few years. Last month, 2022 data was released showing that the forest products industry contributed more than $26 billion to Michigan’s economy. The DNR’s article generated significant media attention, with more than seven news outlets running the story.
While the recent Michigan DNR article highlights positive aspects of Michigan's forest products industry, which I appreciate, it is essential to contextualize the data presented. The figures cited in the article, drawn from 2022, reflect the industry's performance during an anomalous period—one marked by the economic bubble created by unprecedented local, state, and federal spending during the COVID-19 pandemic.
Indeed, Michigan’s forest products industry did see growth during those years, but this was not a sustainable trend. The industry benefited temporarily from the surge in demand for home improvement materials, paper products, and other forest-related goods as people invested in their homes and businesses during the pandemic. However, as we moved into the post-pandemic economy, the situation has shifted dramatically.
Since the peak in 2022, we’ve seen a significant downturn. Many mills across the United States have shut down, and Michigan has not been spared from this trend. Loggers, particularly in northern Michigan and the Upper Peninsula, are facing severe economic challenges. The combination of rising operational costs, declining demand, and an overall economic slowdown has left many on the brink of bankruptcy.
The narrative presented in the DNR’s article, while factually accurate for the years it covers, risks creating a misleading picture of the current state of the industry. The reality is far more complex and concerning. It’s critical that stakeholders, including policymakers, understand the ongoing struggles of those who work in our forests and mills. We must focus on sustainable, long-term strategies to support our vital forest products sector, which remains a cornerstone of Michigan’s economy despite the challenges it now faces.
I’d like to request the following organizations and news outlets to consider this response and reach out to myself or others representing Michigan’s forest products industry as they continue to thoughtfully report on Michigan’s economy.
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