The South Carolina timber industry, a cornerstone of the state’s economy, is navigating a period of intense disruption following the closure of major paper and wood product mills. With the recent shutdowns of the International Paper mill in Georgetown and the WestRock facility in Charleston, forestry stakeholders are confronting declining pulpwood markets, logistical hurdles, and rising economic pressure on local loggers and landowners.
Contributing over $23 billion annually to the state’s economy, forestry has historically been the largest employer in South Carolina by payroll. However, the recent mill closures have dramatically reduced the demand for pulpwood—wood harvested for the manufacturing of paper and other fiber-based materials. Without active markets for pulpwood, forest owners face significant challenges in maintaining viable timber operations.
Role of Pulpwood in the Forestry Ecosystem
Pulpwood plays a foundational role in forest management. It provides a market for smaller, less valuable trees, which are often removed during thinning processes to promote healthy forest growth. When markets for pulpwood vanish, landowners lose a vital revenue stream and may be unable to justify future investment in sustainable forest cultivation.
With no outlet for pulpwood, timberland becomes harder to manage economically, and the overall health and productivity of the forest ecosystem may suffer. This, in turn, affects the supply chain that includes loggers, haulers, sawmills, and export businesses reliant on a steady flow of raw materials.
Economic and Job Impact
The ripple effects of mill closures are being felt across South Carolina’s rural communities. Logging crews, who depend on consistent demand for pulpwood, are experiencing decreased workloads and shrinking profit margins. Without immediate alternatives, many face the risk of shutting down operations altogether. These losses not only affect individual businesses but also undermine the economic fabric of communities that rely on forestry for employment and tax revenue.
According to recent data from the Bureau of Economic Analysis, the value of forest-related agricultural products in South Carolina has dropped by 85%, underlining the urgency of finding solutions to sustain the industry. This downturn threatens a highly interconnected economic sector where job loss in one area—such as trucking or equipment supply—can impact the entire system.
Barriers to Export and Infrastructure Challenges
One proposed solution to the market shortfall is the expansion of export infrastructure, particularly through the Charleston port. However, efforts to adapt the port to handle wood products such as wood chips or pulpwood have encountered institutional resistance. Efficient shipping access is critical, as international markets may offer new demand for South Carolina’s timber products.
In the absence of robust domestic markets, being able to export surplus pulpwood at competitive rates could alleviate pressure on local producers. But without port upgrades or logistical investments, these global opportunities remain difficult to tap into.
Biomass Energy: A Potential Lifeline
Amidst the economic uncertainty, industry leaders are exploring alternative uses for pulpwood, including its potential conversion into biomass energy. Biomass plants, which generate power from organic material, could serve as a local market for low-value wood. Repurposing the now-vacant International Paper site into a biomass facility is currently under discussion, offering a possible new avenue to absorb the pulpwood surplus and provide regional energy benefits.
While biomass energy is not a silver bullet, it represents a meaningful step toward creating a more diversified and resilient timber economy. It would not only preserve jobs but also align with renewable energy initiatives at the state and federal levels.
What Can Be Done?
Revitalizing the South Carolina timber industry requires a combination of strategic planning and public-private cooperation. Below are key steps to mitigate the current crisis and support future growth:
- Invest in port infrastructure to enable bulk export of wood products
- Promote the development of biomass plants as local pulpwood consumers
- Offer financial support or tax incentives for logging businesses and landowners
- Facilitate partnerships between forestry companies and renewable energy sectors
- Enhance research into alternative uses of pulpwood beyond traditional paper manufacturing
Looking Ahead for the South Carolina Timber Industry
The challenges facing South Carolina’s forestry sector are complex but not insurmountable. By recognizing the economic importance of pulpwood, supporting industry innovation, and addressing critical infrastructure gaps, the state can preserve one of its most valuable natural resources and secure livelihoods for thousands of workers. As the industry pivots toward new opportunities, adaptability and collaboration will be key to sustaining the long-standing legacy of the South Carolina timber industry.