Maine forest products industry contributes $8.1 billion, 31,822 jobs

The Maine Forest Products Council commissioned an economic impact study —  Statewide Economic Contribution of Maine’s Forest Products Sector —  that was recently completed by Megan Bailey, research associate for the Margaret Chase Smith  Policy Center. 

“Despite the challenges of past few years, the Maine forest products industry still has an enormous impact on our state’s economy, especially in rural communities,” said MFPC Executive Director Patrick Strauch.


●  The estimated overall annual (2019) economic contribution of Maine’s forest products sector, including multiplier effects, was an estimated $8.1 billion in output, over 31,000 jobs, and $1.7 billion in labor income (Table 2).

●  The total employment impact of 31,822 jobs in 2019 is equivalent to about 4 percent of the jobs in Maine. Put another way, roughly 1 out of 25 jobs in Maine is associated with the forest products sector.

●  The total economic contribution of Maine’s forest products sector in 2019 was associated with an estimated fiscal impact of $276 million in state and local taxes. This tax impact is equivalent to 3.4 percent of the forest product sector’s total (output) economic contribution.

●  Maine’s forest products sector had a total, including multiplier effects, value-added impact of an estimated $2.8 billion. This is equivalent to 4.14 percent of the state’s gross domestic product in 2019. Put another way, about $1 out of every $25 in Maine gross state product is associated with the forest products industry.

●  The Maine forest products sector impacts businesses across the entire state through the activities of forest products companies (organizations and individuals) and the purchases that they (and their employees) make. The total employment impact varies from an estimated 121 jobs in Sagadahoc County to 5,225 jobs in Aroostook County (see Table 4).

●  The forest products sector in Maine impacts businesses of all types through the purchases made by forest product sector companies (organizations and individuals) and their employees. For example, the 19,604 full- and part-time jobs counted in the forest product industry’s multiplier effects includes 644 jobs in real estate, 589 jobs in full-service restaurants, and 552 jobs in hospitals.

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