Amid challenges, Maine's forest products industry remains an $8.3B 'powerhouse', report shows

Drone above a forest in UMaine mapping activities

Photo / Courtesy University of Maine A report released Monday shows that Maine's forest industry supports 29,000 jobs and contributes $1 out of every $29 to the state's GDP. This photo shows the University of Maine testing the use of drones for forest mapping.

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By Renee Cordes

From logging to paper manufacturing, Maine’s forest products industry contributed $8.3 billion to the state's economy and employed 29,000 people in 2024, a report shows.

The 36-page industry snapshot, released Monday by the Maine Forest Products Council in collaboration with the Maine Department of Economic and Community Development, tracks industry changes through a "tumultuous" five years. Setbacks during that time include the pandemic, unpredictable weather and, more recently, ever-changing policies on tariffs and trade and instability in domestic and global markets driven by high inflation and interest rates.

The report comes two years after the closure of a paper mill in Jay that resulted in 230 job losses.

“Considering the number of once-in-a-lifetime type events that occurred during this period of time, it is truly impressive that this industry remains an $8.3 billion powerhouse in the state of Maine,” said Krysta West, executive director of the Augusta-based Maine Forest Products Council.

“Even during the chaos of this time period, significant investments in our industry continued. These investments are diversifying the industry, adding resilience and making operations more efficient,” she added.

Industry in flux

Between 2019 and 2024, employment in Maine’s forest products sector fell by 7%. The industry remains in flux, with paper manufacturing sales down by 41% but wood product manufacturing sales up by 45%.

In addition, digital transformation has reduced the demand for printing papers that were once the backbone
of Maine’s paper industry, yet the shift to online advertising and sales has also opened new opportunities, especially in packaging and specialty papers, according to the report.

Despite the ups and downs, the sector as a whole remains a cornerstone of Maine’s economy, generating 3.45% of the state’s gross domestic product or $1 out of every $29 in domestic output. The sector also saw more than $1.5 billion invested between 2019 and 2024.

Offering a bullish outlook, West said her organization “remains optimistic that all signs point to this being a time of transition and a temporary decline. The forest products industry will continue to be vital to the fabric of our state."

Mike Duguay, Maine’s commissioner of the Department of Economic and Community Development, said, “These findings demonstrate the success of collaborative efforts between state, academic and private sector partners to strengthen this sector through targeted investments and innovation.”

About the Maine Forest Products Council

The Maine Forest Products Council, founded in 1961, represents pulp and paper mills, sawmills, secondary wood processors, forester and truckers, as well as commercial landowners managing more than eight million acres of forestland.

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