Regional Drivers of Primary Wood Processing Mills in the Western Southeast US

In the Western Southeast (WSE), states such as Arkansas and Louisiana saw a decreasing trend in the number of primary wood processing mills (PWPMs), which fell by 20 percent and 24 percent, respectively, from 2018 to 2023. A combination of market shifts, policy changes, and transportation costs is contributing to the decline in number of mills. Although factors such as infrastructure, labor availability, and resource accessibility are critical for establishing the mills, the impact of these variables tends to vary across different regions. Thus, this study aimed to assess resource availability and several other factors influencing the establishment of PWPMs in the WSE. Data on PWPMs were obtained from the Forisk Database, 2024. Data analysis depicted that the softwood-using primary wood processing mills (SWPMs) were observed to dominate in the WSE, whereas the hardwood-using primary wood processing mills (HWPMs) were relatively few. Poisson regression findings indicated that annual average weekly wage and average annual merchantable removal were significantly positive for PWPM location, whereas average railway proximity to the PWPM was negatively significant. Similarly, average railway proximity was significantly negative to SWPM; in contrast, the population (less than high school) and average annual merchantable net growth were significantly positive. These results are crucial, offering actionable insights for policymakers and industry stakeholders to improve resource utilization and strengthen the resilience of forest products sector in the WSE. The study findings can be helpful in furnishing information that encourages sustainable resource use, enhances forest management, and guides targeted infrastructure investments to facilitate mill establishment.