Texas Forest Industry Remains Steady With Large Economic, Ecological Impact

SARAH FULLER

COLLEGE STATION, TEXAS

The Texas forest industry continues on a steady trajectory thanks to ongoing demand for new housing and construction, as well as other manufacturing sectors that rely on renewable wood fibers, said a Texas A&M Forest Service expert.

“We’re a huge state that is home to eight of the 15 fastest-growing cities in the nation,” said Aaron Stottlemyer, Ph.D., Texas A&M Forest Service Forest Analytics Department head and adjunct professor in the Texas A&M College of Agriculture and Life Sciences Department of Ecology and Conservation Biology. “That growth, and the need for housing in particular, places demand on the forest sector for wood construction materials.”

While Texas is home to more than 55 million acres of forestland, it is the roughly 12 million acres of timber-producing pine forests across 43 East Texas counties that fuel the state’s forest industry.

Stottlemyer said the value of harvested timber consistently ranks among Texas’ top 10 agricultural commodities. According to a Texas A&M Forest Service report, in 2024 the Texas forest sector directly contributed $27.4 billion in industry output and employed over 73,000 people.

Texas forest sector reaches beyond state lines

Stottlemyer said around 85 sawmills currently operate in Texas, transforming raw timber into products like dimensional lumber, plywood and oriented strand board.

“We’re one of the top wood panel producing states in the nation,” he said.

While Texas is considered a net importer of forest products, the state maintains a healthy rate of international and domestic exports.

In 2024, Texas’ international forest product exports totaled $2.1 billion.

“Our two biggest trade partners, both in terms of imports and exports of finished goods, are Mexico and Canada,” he said.

Secondary forest products contribute to economic impact, industry stability

Although primary forest products like lumber and wood panels may be the most recognizable elements of the industry, Stottlemyer said Texas’ secondary forest products manufacturing sector is exceptionally important and provides stability from fluctuations in the housing market that affect demand for solid wood products such as lumber and panel.

“These secondary manufacturers take wood pulp and turn it into value-added products like paper and paperboard products,” he said. “Those companies comprise a huge market share of the Texas forest sector.”

He said these facilities, located primarily in the northern and central parts of the state, account for more than 65% of the state’s forest sector economy.

Stottlemyer said there is also growing interest in the use and construction applications of engineered wood products like mass timber, which includes cross-laminated timber and glue-laminated timber, known as glulam.

Family forests support industry but face challenges of scale

More than 90% of timberland in East Texas is privately owned, with family forest landowners accounting for 58% of that ownership.

Stottlemyer said compared to other crops, timber is a long-term investment of 20-30 years that offers a relatively stable return for landowners. Thanks to management activities like thinning operations during growing cycles, forests can produce revenue throughout the full crop rotation.

Despite the stability, challenges persist, especially for small-scale forest owners.

“An issue across the entire nation is an oversupply of small-diameter pine trees and lack of new markets,” he said. “We’ve seen an unprecedented closure of pulp and paper mills across the South, and we’re not seeing investments in new facilities or manufacturers to take the place of those that we’ve lost.”

Due to a combination of factors, including improved tree genetics, advanced silvicultural practices and improved sawmilling efficiency, Stottlemyer said East Texas is growing nearly 300% more wood volume than is being harvested annually.

Another challenge facing small-scale landowners — typically 100 acres and less — relates to an “economy of scale.”

“The minimum acreage depends on the timber harvester, but for most, there is a threshold where they can’t financially justify moving their equipment and operations around to harvest smaller timber parcels,” he said.

Environmental goods and services and nontraditional markets

Stottlemyer said Texas A&M Forest Service is actively working to develop solutions and find market opportunities to resolve these challenges.

“There’s a lot of interest in biochar and its potential uses, from amending soil to agricultural and bioremediation applications,” he said. “Other market opportunities could be sustainable aviation fuel from forest biomass, carbon and ecosystem service markets, and wood pellets for renewable energy.” 

There is also growing recognition of the valuable non-timber resources Texas forests provide, including recreation, wildlife habitat, carbon sequestration, improved air quality, and water quality and quantity.

“We cannot talk about water without talking about forests and what the forestry sector does in terms of ensuring that the citizens of our state continue to have access to clean drinking water,” Stottlemyer said.

Texans can learn more about the state’s forest resources and access a diverse portal of landowner tools, interactive reports and more at texasforestinfo.tamu.edu.   ∆

SARAH FULLER

TEXAS AGRILIFE