Once Oregon’s largest manufacturing sector, the wood product manufacturing industry has faced significant declines since the early 1990s. However, it remains one of the largest sectors in the state, particularly in rural areas. Despite falling behind industries like computer and electronic manufacturing and food production in terms of employment, wood product manufacturing continues to play a vital role in Oregon’s economy.
Employment Trends in Wood Product Manufacturing
Between 1990 and 2020, the wood product manufacturing industry in Oregon experienced a significant reduction in its workforce. Key subsectors within the industry, such as sawmills, plywood, and engineered wood products, all faced declines in jobs. Despite these losses, there was a brief period of growth during the national housing boom from 2003 to 2005, when employment saw an uptick.
However, the Great Recession significantly impacted the industry, leading to substantial job losses. The recovery after the recession was slow, but by 2019, the industry had seen some rebound, driven by an increase in housing starts and demand for wood products.
In 2020, the industry experienced another decline due to the COVID-19 pandemic, although this was less severe than other sectors. Housing starts continued to grow, which helped to boost lumber demand and prices. By 2022, employment had returned to pre-pandemic levels, although a slight decrease was observed in 2024.
Factors Contributing to Decline: Timber Harvest, Technology, and Economies of Scale
Several factors have contributed to the long-term decline in employment within the wood product manufacturing industry. The reduction in timber harvests, particularly from federal lands starting in the early 1990s, had a direct impact on the availability of raw materials for mills. This drop in harvests significantly reduced the workforce required to process lumber.
Another major shift was the adoption of new technologies that reduced the labor intensity of lumber mills. Automation and advanced machinery increased production efficiency, which resulted in fewer workers needed to produce the same amount of lumber. This trend continued even during periods of housing construction booms in the mid-2000s.
Efficiency improvements are also reflected in lumber production per worker. Lumber production per worker has steadily increased, especially in the early 2000s, and continued high levels of production were maintained even through economic downturns.
The closure of smaller mills, coupled with economies of scale, contributed to higher production rates as remaining mills became larger and more efficient. This shift reduced the overall number of mills but improved the industry’s ability to produce more with fewer workers.
Continued Importance of Wood Products
Despite the decline in employment, wood product manufacturing remains a significant sector in Oregon, especially in rural areas. As of 2024, the industry employed 22,400 people, with a total payroll of approximately $1.5 billion. While it accounts for just 1.1% of total employment statewide, its concentration is much higher in rural counties. For instance, in Curry County, wood product manufacturing made up 8.1% of total employment and 11.7% of total payroll.
In many rural counties, wood product manufacturing jobs offer higher wages than the average for the region. This industry continues to provide well-paying opportunities, particularly in areas where other employment options may be limited.
Wood Product Manufacturing Jobs: Wages and Opportunities
Wood product manufacturing jobs in Oregon generally pay medium wages but require relatively low levels of formal education. Many of the top occupations in the industry—such as machinery mechanics, electricians, and production workers—only require a high school diploma or less. Some technical roles, like industrial machinery mechanics, can command annual wages above $70,000, providing excellent opportunities for individuals who may not pursue a college degree.
Looking Ahead: The Future of Wood Product Manufacturing in Oregon
According to employment projections from the Oregon Employment Department, wood product manufacturing is expected to gain 700 jobs (3%) between 2023 and 2033. The plywood and engineered wood products subsectors are expected to grow by 3%, while sawmills and wood preservation are anticipated to experience a slight decline. The industry’s aging workforce, particularly as older employees retire, will create demand for replacement workers, contributing to the expected growth in employment.
Over the next decade, it is also expected that roughly 8,900 job openings will occur due to retirements and workers leaving the industry. As such, there will be continued demand for skilled workers, making wood product manufacturing an important industry for Oregon’s rural workforce.
Key Trends in Oregon’s Wood Product Manufacturing Industry
- Long-term decline: The industry has experienced significant job losses since the early 1990s.
- Housing boom recovery: The industry saw a brief period of growth during the housing boom from 2003 to 2005.
- Great Recession impact: The recession led to major job losses, followed by a slow recovery.
- COVID-19 impact: Employment declined in 2020 but rebounded by 2022.
- Technology and efficiency: Automation and larger mills have contributed to a decline in employment despite increased production.
- Rural impact: Wood product manufacturing remains vital in rural Oregon, offering higher wages and job opportunities.
Final Thoughts
While the wood product manufacturing industry in Oregon has experienced significant declines, it remains an essential part of the state’s economy, especially in rural areas. The sector continues to offer well-paying jobs with opportunities for those without advanced education. As technology, efficiencies, and housing demand shape the industry’s future, Oregon’s wood products sector is expected to play a critical role in both the state’s employment landscape and rural development.
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About the picture
This picture is an rendering of how a sawmill in Oregon may have looked in the early 1900’s.