Post-pandemic structural change in West Virginia forest products industry: Evidence from 2019-2024 IMPLAN data
Main Article Content
Keywords
economic contribution analysis, forest products industry, IMPLAN, input-output model, labor productivity, pandemic
Abstract
The forest products industry (FPI) is a key component of West Virginia’s economy, yet its response to the COVID-19 pandemic and subsequent recovery remains only partially understood. This study examines the economic contributions and structural evolution of West Virginia’s FPI from 2019 to 2024 using IMPLAN input–output analysis. Economic contributions are evaluated in terms of employment, output, value added, and labor income across seven major sectors spanning upstream (forestry and logging) and downstream (wood manufacturing, furniture, and paper-related industries) activities. Results indicate that the industry experienced a strong post-pandemic recovery in output and value added, exceeding pre-pandemic levels by 2022–2023, while employment continued to decline through 2024. Direct employment decreased by 18.3%, whereas direct value added increased by approximately 36%, accompanied by substantial gains in labor productivity. These trends suggest a structural shift toward more capital-intensive and efficiency-driven production. Sector-level analysis reveals divergent trajectories across the value chain. Downstream sectors, particularly primary and secondary solid wood products, drove growth and productivity gains, while upstream sectors exhibited persistent contraction, raising concerns about long-term supply chain capacity. Paper-related industries showed high productivity but declining economic scale, reflecting ongoing structural changes in product demand. Overall, the findings indicate that the post-pandemic evolution of the FPI reflects structural reorganization rather than a simple return to pre-pandemic conditions. The results highlight the importance of supporting both downstream innovation and upstream capacity, as well as workforce development, to sustain long-term competitiveness in the industry.
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