Michigan State University Extension
Ag Experiment Station Special Reports - 03319573
07/28/98

Pulp, Paper,Allied Productsand Wood Energy


January 1995     Special Report 73                          

Status and Potential of  Michigan  Natural Resources        

Michigan Agricultural Experiment Station,Michigan State     
University                                                  

SPECIAL REPORT                                              

Pulp, Paper, Allied Products and Wood Energy                

Lead Author: Karen Potter-Witter, Department of Forestry,   
MSU Graduate Assistant: Robert Davis, Department of         
Forestry, MSU                                               

Pulp and Paper                                              
The pulp, paper and allied products industry processes      
wood, wood fiber, wastepaper, cellulose and plastic film    
into products for a broad and strong consumer base. The U   
S  industry has a worldwide reputation for low cost, high   
volume, high quality production. The industry has modern,   
well financed physical plants, renewable and recyclable     
raw materials, and a highly skilled labor force. Within     
the United States, the industry is eighth among             
manufacturing industries in value of shipments and second   
in capital expenditures (USDOC-ITA, 1993). In 1993,         
Michigan's pulp, paper and allied products industry         
exported $133 million worth of goods to 73 countries        
throughout the world. This is up from $127 million and 67   
countries in 1989.                                          

This manufacturing sector includes primary products         
industries (in sectors 261, 262 and 263) that produce       
pulp, paper and paperboard from wood or wood fiber,         
either new or recycled. It also includes secondary paper    
manufacturers, the paper converting sectors (264, 265 and   
266), which include paper coating and glazing, envelopes,   
bags, die-cut paper and paperboard, pressed and milled      
pulp goods, sanitary paper products, stationery             
products,converted paper, paperboard containers and         
boxes, and building paper and board mills. The              
definitions of the SIC sectors are included in the          
glossary. The number codes for some industries were         
changed in 1987-a key to the 1977 and 1987 codes follows    
the glossary. Michigan has 235 pulp and paper and allied    
manufacturing facilities (Table 1). The greatest number     
of firms are secondary manufacturers and are located in     
the southern Lower Peninsula (Figure 1). Primary            
manufacturers, pulp mills and pulp and paper mills, are     
spread more evenly from north to south and are              
concentrated along the Great Lakes. (Figure 2)              

Employment in the entire pulp, paper and allied products    
industry was 20,791 in 1992 (MESC). First quarter total     
wages for 1993 were $193,849,249 for the industry; just     
over $75 million of this was from paper mills.              

Wood Pulp (SIC 2611) and Paper (SIC 2621)                   

Wood pulp is the primary resource used in the manufacture   
of paper and paperboard. It is produced by breaking down    
wood and wood fibers-either mechanically grinding it or     
chemically digesting it-into pulp. Because Michigan's       
pulp mills are largely part of integrated pulp and paper    
products operations, these sectors are treated together.    

Seven mills in Michigan produce pulp as part of             
integrated pulp and paper products manufacturing. Three     
mills are located in the Upper Peninsula (in Escanaba,      
Quinnesec and Ontonagon), two are in the northern Lower     
Peninsula (Filer City and Alpena), and two are in the       
southern Lower Peninsula (Muskegon and Allegan).            
Employment in Michigan's pulp and paper mills was 7,417     
in 1992 and it increased 8 percent from 1982 to 1991        
First quarter wages for 1992 were $83.5 million.            

In 1991, Michigans mills produced 1.3 million short tons    
of wood pulp, twice the 1975 level. Michigan's share of     
regional production grew from 18.6 percent to 27.4          
percent. The North Central region, which increased 35       
percent to 4.7 million short tons, was the fastest          
growing region in the U.S. for pulp production from 1975    
to 1991. Nationally, wood pulp production increased 49      
percent to 64.2 million short tons. (Unless otherwise       
noted, regional information in this report pertains to      
the entire North Central region, which is divided up into   
two subregions, the East North Central and the West North   
Central. The East North Central is made up of Ohio,         
Indiana, Illinois, Michigan and Wisconsin; the West North   
Central is made up of Minnesota, Iowa, Missouri, North      
Dakota, South Dakota, Nebraska and Kansas.)                 

Paper production in Michigan from 1975 to 1991 grew from    
0.8 million short tons to 1.6 million short tons.           
Michigan's share of regional production increased to 18     
percent in 1991. Over that time, production in the North    
Central region increased 82 percent, from 4.9 million to    
8.9 million short tons. The North Central's rate of         
increased production was exceeded only by the South's at    
83 percent. The North Central's increased paper             
production surpassed the Northeast's production to become   
the number two producer of paper in the country. National   
paper production increased 68 percent during this period.   
Trends show all regions increasing their contributions to   
national production except the Northeast.                   


Paperboard (SIC 2631)                                       

Containerboard and boxboard are the two major products in   
the paperboard sector. Containerboard is the larger         
portion of the sector. It consists of manufacturers of      
linerboard and paper for corrugating in the manufacture     
of shipping containers and other corrugated products        
Boxboard (or cardboard) includes paperboard for non-        
corrugated packaging such as cereal and processed food      
boxes, fiber cans and tubes, and paper for construction     
wallboard and automobile panelboard.                        

Michigan's 15 paperboard mills are located mainly in the    
southern Lower Peninsula,with the exception of one large    
mill in Manistee County and another in Delta County.        
Paperboard production in Michigan was 1.5 million short     
tons in 1991, an increase of 52 percent from 1984.          
(Before 1984, Michigan paperboard data are unavailable      
because of disclosure restrictions. Regional data,          
however, are available.) State growth again exceeded        
regional growth (26 percent), bringing the production       
level to 5.3 million short tons. National growth was only   
21 percent. Michigan's share of regional production grew    
to 29 percent. Over the longer period of 1975 to 1991,      
North Central production grew at 60 percent, a lower rate   
than in the South (75 percent) and the West (65 percent).   


Employment in Michigan paperboard mills was 4,224 in        
1991, a decrease of 46 percent from 1982. First quarter     
wages for 1993 were $31.6 million.                          

Converted Paper and Board (SIC 264) and Paperboard          
Containers and Boxes (SIC 265)                              

Michigan has 82 mills that produce coated or glazed         
paper, envelopes, paper bags, die-cut paper and board,      
sanitary paper products, stationery products or other       
converted paper (Table 2). These mills employed 4,390       
people in 1992, an increase of 13 percent from 1982.        
First quarter wages for 1993 were $32.4 million. Die-cut    
paper and board has been the fastest growing sub-sector-empl
converted paper and board mills, however, has declined.     

Michigan's 104 paperboard container and box mills           
employed 6,046 people in 1992, an increase of 13 percent    
from 1982 (Table 2). First quarter 1993 wages were $46.3    
million. Production data for these sectors are              
unavailable.                                                

Economic Trends                                             

Payroll                                                     

Payroll is defined as the gross earnings to all employees   
of a firm (Annual Survey of Manufacturers, 1986).           
Michigan's payroll for SIC 262 of $602.7 million in 1987    
was an increase of 90 percent from 1976. Michigan's share   
of the regional payroll for the sector remained at 13.5     
percent. Over the same period, the South increased its      
share of national payroll for the same sectors to 35        
percent, the West remained steady at 12 percent, and both   
the North Central (27 percent) and the Northeast (25        
percent) saw their shares decrease.                         

Value-Added Manufacturing                                   

In 1987, Michigan's value-added in the paper and allied     
products industry was approximately $1.7 billion, an        
increase of 146 percent from 1976. Michigan's share of      
value-added from the pulp and paper sector for the region   
increased from 12.5 to 13.5 percent.                        

Over the same period, the North Central's value-added       
manufacturing increased 128 percent, maintaining the        
region as the second highest producer, next to the South.   
Nationally, value-added manufacturing increased 145         
percent, to approximately $50.5 billion.                    

Shipment Values                                             

The Annual Survey of Manufacturers defines shipment         
values as "the received or receivable net selling values,   
f.o.b. (freight on board) plant after discounts and         
allowances and excluding freight charges and excise         
taxes" (Annual Survey of Manufacturers, 1986). Shipment     
values for Michigan producers of paper and allied           
products were $3.6 billion in 1987, an increase of 107      
percent from 1976. Regional shipment values were $27.7      
billion, a 110 percent increase. National shipment value    
levels increased 126 percent, to approximately $109         
billion. Michigan's contribution to regional shipment       
values was 13.2 percent. The North Central's value of       
shipments was the second highest, approximately $27.7       
billion, among the four regions in 1987 and is 26 percent   
of U.S. value.                                              

Capital Expenditures                                        

In 1986, Michigan's capital expenditures were $140.3        
million. This is an increase of 111 percent over capital    
expenditures for 1976. Michigan experienced its highest     
capital expenditures in 1984 and 1985, $309.4 and $299      
million respectively. (The Champion International pulp      
mill in Quinnesec began production on December 3,1985.)     

Though data were not disclosed in Michigan for 1987,        
regional data are available. Capital expenditures           
declined slightly from 1985 to 1986 (4.9 percent), and      
more significantly between 1986 and 1987 (19.3 percent).    
This suggests that the trend in capital expenditures for    
Michigan may have continued to fall as well. Trends in      
capital expenditures on the national level are similar to   
those on the state and regional levels, increasing 102.1    
percent from 1976 to 1986.                                  

Future Prospects                                            

Trade                                                       

Trade prospects for U.S. paper and allied products          
continue to be excellent. The total value of Michigan's     
exports of pulp and paper products has risen in the         
1990s. As the U.S.-Canada Free Trade Agreement encouraged   
continued growth of U.S. exports to Canada, the North       
American Free Trade Agreement (NAFTA) is expected to do     
the same for trade with Mexico. Barriers to trade for       
pulp, paper and paperboard are scheduled to be phased out   
over the next five years under NAFTA. The General           
Agreement on Tariffs and Trade (GATT) and U.S.-Japanese     
trade negotiations will further open markets to U.S.        
manufacturers. Exports in pulp and paper products are       
expected to grow faster than domestic consumption (USDOC-   
ITC, 1993). Removal of international trade barriers may     
lead many additional manufacturers into export markets.     

Environmental Issues                                        

Rates of waste recovery and use of recycled fiber           
continue to increase in the industry. The 1993 wastepaper   
recovery rate was 42 percent, and recycled paper made up    
nearly 31 percent of the fiber used at U.S. paper and       
paperboard mills. New U.S. government requirements for      
purchasing paper will continue to encourage use of          
recycled fibers.                                            

The Clean Water Act and the Clean Air Act standards         
continue to be revised. When the proposed new standards     
become regulations in late 1995, there are expected to be   
implications for bleached pulp mills with respect to        
dioxin. The Clean Air Act amendments significantly          
changed emissions standard regulations for sources of       
ozone, carbon monoxide and particulates. This will have     
the largest effect on mills in areas where the ambient      
air does not meet national, health-based, quality           
standards (USDOC-ITA, 1993).                                

Wood Energy Use In Michigan                                 

Wood Energy                                                 

Worldwide, the greatest use of wood is for energy. It is    
also a significant and growing use in Michigan. At least    
578,000 households burn fuelwood and more than 150          
commercial and industrial facilities produce wood energy    
for their own use or for sale.                              

Wood energy in the state comes from solid wood, wood        
chips, wood wastes, wood processing residues, logging       
residues and black liquor from pulp production. Wood fuel   
is produced as a primary product and as a residue from      
roundwood production, primary wood products manufacturing   
and secondary manufacturing.                                

Industrial Wood Energy                                      

Primary production of wood fuel for consumption is          
growing in Michigan - 18 million cubic feet of fuelwood     
were produced in 1992 (Table 3). This is equivalent to 4    
6 trillion Btu. Primary production of industrial fuelwood   
is concentrated in the northern Lower Peninsula, which      
has 99 percent of recorded production.                      

Logging residues are an even greater source of potential    
wood energy. Harvesting operations in Michigan created 82   
6 million cubic feet of residue in 1992 (Table 4). If all   
logging residues were used for energy, they would produce   
21.2 trillion Btu. The Upper Peninsula produces 60          
percent of the logging residue; the northern Lower          
Peninsula produces most of the remainder.                   

Over one-third of the residue from Michigan primary wood    
processing facilities is used for fuel. Residues from       
these facilities yielded approximately 472,500 green tons   
of wood fuel, or 4.6 trillion Btu used for energy in 1992   
(Table 5). Seventy-three percent of the residue is          
hardwood. The northern Lower Peninsula uses two-thirds of   
the residues. Use of these primary processing residues      
for energy grew substantially (34 percent) from 1984 to     
1988 and declined slightly (8 percent) from 1988 to 1992.   


Residential Wood Energy Consumption                         

A total of 518,123 households consumed 869,803 cords of     
wood in Michigan in 1992 (May et al, 1993.) Of these,       
103,610 households use wood as their primary source of      
energy, consuming 397,423 cords of wood. In the southern    
Lower Peninsula, 458,636 households consumed 518,187        
cords. The northern Lower Peninsula was the second          
largest consumer of wood fuel. In this region, 90,817       
households consumed 268,192 cords. In the Upper             
Peninsula, 28,670 households consumed 83,424 cords.         

Wood Energy Facilities                                      

There are 154 known industrial and commercial wood energy   
facilities in Michigan (MDNR, Air Quality Division,         
1990). The Great Lakes Regional Biomass Program Directory   
(1988) lists 90 of these users. Their facilities annually   
use a total of 1,279.5 cords of solid wood and 250,657      
dry tons and 823,768 wet tons of wood chips, wood chunks    
and mill residues. Almost half the facilities are in the    
southern Lower Peninsula. The others are distributed        
almost equally between the Upper Peninsula and the          
northern Lower Peninsula (Figure 3). Many are part of       
primary and secondary wood processing plants. The sizes     
of Michigan's wood energy facilities vary from a small      
operation using 20 wet tons per year to a large mill        
using more than 400,000 wet tons per year.                  

More than half the facilities produce heat, a total of      
824,000 Btu per hour. More than one-third produce steam     
from wood fuel. Production ranges from 20 pounds per hour   
at 1 pound per square inch gauge (psig) to 465,000 pounds   
per hour at 1,500 psig. Thirteen percent use wood fuel      
for electric generation or co-generation. The smallest      
plant produces 400 kilowatts of electricity; the largest    
produces 22,700 kilowatts. The number of wood energy        
facilities increased dramatically in the past decade        
(Figure 4). From 1925 to 1977, development was slow, with   
an average of less than one plant per year beginning        
operations. However, eight plants began operations in       
1980 and 13 began in 1983.                                  

Wood Fuel Prices                                            

Real prices for industrial wood fuel have declined in the   
past five years (Figure 5). For the first two quarters of   
1991, real prices were near their pre-1983 energy crisis    
levels. Prices paid by residue users vary by plant. As      
the cost of landfilling residues increases, however, the    
cost of wood residue energy decreases. The cost to some     
users may even be negative-i.e., as the savings from        
disposal avoided are greater than the additional costs of   
a wood fuel plant.                                          

Given current fuel costs, wood can compete with fuel oil    
and natural gas if it is available at less than $25 per     
ton (Figure 6). To compete with coal, it must cost less     
than $15 per ton. Current wood fuel prices are within       
this range.                                                 

Social Benefits from Wood Energy                            

Fuel prices paid by the users invariably do not reflect     
the total cost to society of production and consumption.    
These additional costs are known as "externalities". They   
include the costs of air pollution from fuel burning,       
water pollution from the disposal of process water,         
impacts on stream flows from water uptake, and hazardous    
and non-hazardous waste disposal (Michigan Council on       
Environmental Quality, 1991). When environmental            
externalities were counted in energy costs, wood fuel       
became even more inexpensive. Estimated environmental       
costs from wood were less than 1 cent per kilowatt hour,    
higher only than solar and wind energy. In 1991, coal's     
environmental costs, by contrast, ranged from 4.5 to 6.5    
cents per kilowatt hour, and nuclear fuel's costs were 3    
cents per kilowatt hour (Figure 7).                         

Wood and other biomass energy production is more labor      
intensive and less capital intensive than oil and gas,      
gas utilities and electrical utility energy production.     
Biomass energy creates three times more direct jobs per     
million dollars invested and twice as many direct and       
indirect jobs than other energy systems (Stanton, 1991).    
In the Great Lakes states, approximately 18,500 people      
are employed in wood energy, where they earn $350 million   
in personal income (Employment Research Associates,         
1985).                                                      

Prospects for Wood Energy                                   

Wood energy in Michigan has good prospects. Use of wood     
for energy is expected to grow 19 percent in the Great      
Lakes states between 1985 and 1995 (Public Sector           
Consultants, 1985). This increase is supported by           
Michigan's overall surplus of timber (though not for        
allspecies and products in all regions). Declining real     
prices indicate that an ample economic supply of            
industrial fuelwood existed over the past decade. The use   
of wood is sensitive to many market factors, notably the    
price of fossil fuels, especially coal. Wood energy will    
be affected by both the cost of acquiring coal and the      
cost of burning it. The greater the emissions               
restrictions for coal, the more costly it is to burn and    
the more attractive wood is as a fuel.                      

Primary wood energy users, however, face challenges to      
supplies. All roundwood users face increased costs          
because of increased demands for environmental              
sensitivity and increased regulation. For example,          
greater restrictions are being placed on areas that may     
be harvested for timber and on harvesting methods. House    
Resolution 434 (Rep.Alley, 1991), which proposed a          
moratorium on clear-cutting on all state lands, is an       
example of societal forces pushing costs upward.            
Indications of timber scarcity are the rising real          
stumpage prices for aspen pulpwood, hard maple sawtimber,   
and oak pulpwood and sawtimber over the past decade.        
Fuelwood production costs may rise with the increase in     
real timber prices. Users of wood residues facea better     
situation. Increasing landfill costs for residue and        
increasing societal pressure to reduce waste will make      
energy production from wood more attractive.                

Users of any wood fuel will continue to be particularly     
challenged by environmental regulations and permitting      
procedures. Obtaining air quality permits for wood          
boilers will continue to be difficult. More research        
needs to be done on emissions from specific fuel and        
specific boiler combinations and the resulting              
information disseminated to regulatory agency personnel     
so that each installation application does not need to be   
researched independently.                                   

Disposal of wood ash will also pose challenges for all      
users. Although agricultural land application of wood ash   
looks promising, many regulatory hurdles must be overcome   
before it is practical.                                     

Public policy will affect the future of wood energy         
Programs such as the Michigan Energy Conservation           
Program, which increased consumer knowledge of wood         
energy technology and economics, have a significant,        
positive influence on wood energy development. Policy       
that increases the availability of loans and grants for     
energy conversions and funds energy research is also        
effective in promoting wood energy development.             

Summary                                                     

Residential fuelwood use, industrial fuelwood production    
and use of wood processing residues for energy are          
significant in Michigan. In addition to the 578,123         
households burning wood, there are 154 commercial or        
industrial wood energy facilities. Though they vary         
greatly in size of operation, many involve substantial      
capital investments in their energy plants.                 

Industrial fuelwood prices have declined recently despite   
rising real prices for many types and species of            
stumpage. Wood can compete well with oil, natural gas and   
coal. The cost to society from fuelwood is significantly    
less per Btu than the cost of fossil fuel or nuclear        
power.                                                      

Primary fuelwood users face the same challenges as other    
solid wood users. Greater restrictions on forest            
management and harvesting practices will decrease wood      
supply. Wood residue users will continue to benefit from    
avoiding increasing landfill costs and see fuel from        
residues become even more competitive. Pollution            
regulation and the permitting process with environmental    
agencies may be the biggest challenge that all fuelwood     
users face. Research and education are needed to help       
shorten the permitting process and to allow beneficial      
uses of wood ash.                                           



Table 1. .  Michigan's pulp and paper industry by sector,   
1992                                                        

                                 Number       Employment    
Industry and SIC Code          of units         1992        
Pulp and paper mills                                        
 -2611 and  2621                  34             7,417      
Paperboard mills-2631             15             2,938      
Paper coating and glazing-2641    15             1,127      
Envelopes-2642                     9               290      
Bags-2643                         16               929      
Die-cut paper & board-2645        17               615      
Sanitary paper products-2647       2               427      
Stationery products-2648           3               330      
Other converted pape- 2649        20               620      
Paperboard containers                                       
 & boxes-265                     104              6046      
Total                            235            20,791      

Note:.   MESC classifications do not match the MDNR Wood    
Products Manufacturers Directory for pulp mills, as.        
SIC rules include non-wood pulp. Pulp mills and paper       
mills are, therefore, treated together in this report       

Source:. Michigan Employment Security Commission, 1993      

Figure 1. Distribution of secondary pulp, paper and         
allied  manufacturing facilities in Michigan  by county     

Figure 2  Distribution of primary pulp, paper and allied    
manufacturing facilities in  Michigan  by county            


Table 2.   Trends in Michigan's paper converting sectors    

                  Employment,                               
                percent change, Number of  Employment,      
Region            1982-1991     Mills 1993   1992           
SIC 264                                                     
Paper coating                                               
 and glazing         25            15       1,127           
Envelopes           -38             9         290           
Paper bags           74            16         929           
Die-cut paper                                               
 and board          290            17         615           
Sanitary paper                                              
  products           54             2         427           
Stationery products -11             3         330           
Other                                                       
converted paper      22            20         672           
 Total SIC 264       13            82       4,390           
SIC 265                                                     
Paperboard, containers                                      
 and boxes           13           104       6,046           


Table 3. Industrial fuelwood production by region,          
1988 and 1992                                               

                        1988                  1992          
                            Million               Million   
Region              Cords   cubic feet  Cords  cubic feet   
Eastern Upper Pen.  2,601    0.17        450     0.03       
Western Upper Pen.    0      0.0       2,875     0.20       
Northern Lower                                              
  Peninsula       322,487   21.66    254,609    17.80       
Southern Lower Pen. 1,889    0.12        0        0         
State             326,977   21.94    257,934    18.03       

Source:  Smith et al., 1988 and MDNR, unpublished           

Table 4  Logging residues from timberland generated         
during roundwood production by region, 1984, 1988, and      
1992                                                        

                    Million      Million      Million       
                  cubic feet,  cubic feet,  cubic feet,     
Region               1984         1988        1992          
Eastern Upper Pen.   15.9         21.4        19.5          
Western Upper Pen.   20 5         26.4        29.7          
Northern Lower Pen.  22.6         26.6        27.8          
Southern Lower Pen.   4.3          4.6         5.6          
State                63.3         79.0        82.6          

Source:.  Smith et al, 1990 and MDNR, unpublished           



Table 5  Wood residue produced at primary wood-using        
mills and used for industrial or domestic fuel, by          
region, 1988 and 1992                                       

                      1988            1992                  
Region         Softwood Hardwood Softwood Hardwood          
                   (thousand tons green weight)             
Eastern Upper Pen. 17.97  163.20  14.63   38.28             
Western Upper                                               
 Peninsula         12.32   68.87   6.66   63.65             
Northern Lower Pen.67.80  137.59 103.88  199.28             
Southern Lower Pen. 2.50   51.50   0.77   45.36             
State total residues                                        
 for energy       100.59  421.16 125.94  346.57             
State total                                                 
  residues        279.6 1,132.7  299.62 1,005.73            

Source:  Blyth et al., 1988 and MDNR, unpublished           

Figure 3..  Wood energy facility regional distribution,     
1988, by region                                             

Source:.  Compiled from Michigan Department of Natural      
Resources, Air Quality Division, 1988                       

Figure 4.  Trends in wood energy facility startup,          
1925-1990                                                   

Source:.  Compiled from the Great Lakes Regional Biomass    
Energy Program, 1988                                        

Figure 5.  Real hog fuel prices, FOB, 1981-1991             

Source:.  Timber Marts North and Producer Price Index       

Figure 6.  Cost comparisons for alternative fuels           

Glossary                                                    

F.O.B. Freight on board, usually referring to the value     
of the product when delivered to the mill.                  

PAYROLL.  Gross earnings to all employees of a firm.        

S.I.C. Standard industrial classification as designated     
by the Office of Statistical Standards, Executive Office    
of the President, Bureau of the Budget. The number codes    
for some industries were changed in 1987. A key to the      
1977 and 1987 codes follows the glossary.                   

S.I.C. 2611. Pulp mills. Establishments primarily           
engaged in manufacturing pulp from wood or from other       
materials, such as rags, linters, wastepaper and straw      
Logging camps operated by pulp mills and not separately     
reported are also included in this industry.                

S.I.C. 2621. Paper mills. Establishments primarily          
engaged in manufacturing paper (except building paper)      
from wood pulp and other fibers, which may also             
manufacture converted paper products. Pulp mills combined   
with paper mills and not separately reported are also       
included in this industry. Types of products include bag    
paper, sanitary tissue stock,wrapping paper stock, lining   
paper, news tablet paper and writing paper.                 

S.I.C. 2631. Paperboard mills. Establishments               
primarily engaged in manufacturing paperboard-including     
paperboard coated on the paperboard machine-from wood       
pulp and other fibers, which may also manufacture           
converted paperboard products. Pulp mills combined with     
paperboard mills and not separately reported are            
included. Products include kraft, corrugating and           
container-board, boxboard, cardboard, folding boxboard      
and paperboard.                                             

S.I.C. 2641. Paper coating and glazing. Establishments      
primarily engaged in manufacturing coated, glazed or        
varnished paper from purchased paper. Products include      
bread wrappers,cellophane adhesive tape, coated paper,      
gummed tape, labels, masking tape, tarpaper,                
thermoplastic coated paper, waxed paper and wrapping        
paper.                                                      

S.I.C. 2642. Envelopes. Establishments primarily            
engaged in manufacturing envelopes of any description       
from purchased paper and paperboard.                        

S.I.C. 2643. Bags. Establishments primarily engaged in      
manufacturing bags from purchased paper, cellophane,        
acetate polyethylene, and similar sheet or film materials   


S.I.C. 2644. Wallpaper                                      

S.I.C. 2645. Die-cut paper, paperboard. Establishments      
primarily engaged in die-cutting purchased paper and        
paperboard and in manufacturing cardboard by laminating,    
lining or surface coating paperboard. Products include      
cardboard panels and cut-outs, egg cartons, filing          
folders, and index and other cut cards.                     

S.I.C. 2646. Pressed and molded pulp goods.                 
Establishments primarily engaged in manufacturing all       
kinds of pressed and molded pulp goods. Products include    
fiber conduits, cups, dishes, egg cartons, papier-mƒch‚     
articles, and utensils.                                     

S.I.C. 2647. Sanitary paper products. Establishments        
primarily engaged in manufacturing, from purchased paper,   
sanitary paper products such as facial tissues, table       
napkins, toilet paper, towels, sanitary napkins and         
tampons.                                                    

S.I.C. 2648. Stationery, tablets and related paper          
products.                                                   

S.I.C. 2649. Converted paper and paperboard not             
elsewhere classified. Establishments primarily engaged in   
manufacturing, from purchased paper or paperboard,          
miscellaneous converted paper or paperboard products not    
elsewhere classified. Products include laminated building   
board and paper, confetti, corrugated paper, crepe paper,   
desk pads, gift wrappers, looseleaf fillers and reamed      
paper, newsprint tablets and pads, and bound notebooks.     

S.I.C. 2651. Folding paperboard containers and boxes.       
Establishments primarily engaged in manufacturing folding   
paperboard boxes from purchased paperboard.                 

S.I.C. 2652. Set-up paperboard boxes. Establishments        
primarily engaged in  manufacturingset-up paperboard        
boxes from purchased paperboard.                            

S.I.C. 2653. Corrugated and solid fiber boxes               
Establishments primarily engaged in manufacturing           
corrugated and solid fiber boxes from purchased             
paperboard or fiberstock. Products include corrugated and   
solid fiber boxes, display items, hampers, pads, pallets,   
partitions, and corrugated or fiberboard sheets             

S.I.C. 2654. Sanitary food containers. Establishments       
primarily engaged in manufacturing food containers from     
purchased special food board. Products include milk         
containers, cups, dishes, drinking straws, pails, plates,   
spoons and utensils.                                        

S.I.C. 2655. Fiber cans, tubes, drums and similar           
products. Establishments primarily engaged in               
manufacturing fiber cans, tubes, drums and similar          
products without metal ends from purchased materials.       
Products include fiber cans, cores, hampers, mailing        
cases, reels, tubes and wastebaskets.                       

SHIPMENT VALUES. The received or receivable net selling     
values, f.o.b. plant, after discounts and allowances and    
excluding freight charges and excise taxes.                 



Figure 7.  Environmental cost summary for alternative       
fuels                                                       

Source:.  Pace University                                   



Key to 1977 and 1987 SIC classifications                    

                  1977 industry                             
Code               Short Title                              

2611            Pulp mills                                  
2621            Pulp mills, except building paper           
                 Pulp and paper mills, primarily pulp       
                 Other paper mills                          
2631            Paperboard mills                            
                Pulp and paperboard mills primarily         
                 pulp                                       
                 Other paperboard mills                     
2641            Paper coating and glazing                   
2642            Envelopes                                   
2643            Bags, except textile bags                   
2645            Die-cut paper and board                     
2646            Pressed and molded pulp goods               
2647            Sanitary paper products                     
2648            Stationery products                         
2649            Converted paper products, not elsewhere     
                 classified (nec)                           
2651            Folding paperboard boxes                    
2654            Sanitary food containers.                   
                 Folding                                    
                 Other sanitary food containers             
2661            Building paper and board mills              
                 Insulation board                           
                 Paper                                      

                 1987 industry                              
Code               Short Title                              
Part  2611      Pulp mills                                  
Part  2611      Pulp mills                                  
Part  2621      Paper mills                                 
Part. 2611      Pulp mills                                  
Part  2631      Paperboard mills                            
      2671      Paper coated and laminated packaging        
      2672      Paper coated and laminated, nec             
      2677      Envelopes                                   
      2674      Bags: uncoated paper and multiwall          
      2673      Bags: plastics, laminated and coated        
      2675      Die-cut paper and board                     
Part  2679      Converted paper products nec                
      2676      Sanitary paper products                     
      2678      Stationery products                         
Part  2679      Converted paper products nec                
      2657      Folding paperboard boxes                    
Part  2657      Folding paperboard boxes.                   
      2656      Sanitary food containers                    
Part  2493      Reconstituted wood products                 
Part  2621      Paper mills                                 


References                                                  

American Paper Institute. 1979. Statistics of Paper,        
Paperboard and Wood Pulp. New York, NY, 81 pp               

American Paper Institute. 1980. Statistics of Paper,        
Paperboard and Wood Pulp. New York, NY, 79 pp               

American Paper Institute. 1981. Statistics of Paper,        
Paperboard and Wood Pulp. New York, NY, 73 pp               

American Paper Institute. 1983. Statistics of Paper,        
Paperboard and Wood Pulp. New York, NY, 76 pp               

American Paper Institute. 1984. Statistics of Paper,        
Paperboard and Wood Pulp. New York, NY, 76 pp               

American Paper Institute. 1985. Statistics of Paper,        
Paperboard and Wood Pulp. New York, NY, 76 pp               

American Paper Institute. 1986. Statistics of Paper,        
Paperboard and Wood Pulp. New York, NY 76pp.                

American Paper Institute. 1987. Statistics of Paper,        
Paperboard and Wood Pulp. New York, NY, 76 pp               

American Paper Institute. 1988. Statistics of Paper,        
Paperboard and Wood Pulp. New York, NY, 76 pp               

American Paper Institute. 1989. Statistics of Paper,        
Paperboard and Wood Pulp. New York, NY, 80 pp               

American Paper Institute. 1990. Statistics of Paper,        
Paperboard and Wood Pulp. New York, NY, 80 pp               

American Paper Institute. 1991. Statistics of Paper,        
Paperboard and Wood Pulp. New York, NY, 80 pp               

American Paper Institute. 1992. Statistics of Paper,        
Paperboard and Wood Pulp. New York, NY, 80 pp               

American Paper Institute. 1993. Statistics of Paper,        
Paperboard and Wood Pulp. New York, NY, 80 pp               

Blyth, J  E  , A  K. Weatherspoon and W  B. Smith. 1998.    
Michigan Timber Industry - An Assessment of Timber          
Product Output and Use. Forest Service Resource Bulletin    
NC-109. USDA. 55 pp                                         

Employment Research Associates. 1985. Biomass Resources:    
Generating Jobs and Energy. Madison, Wis  : Great Lakes     
Regional Biomass Energy Program, Council of Great Lakes     
Governors. 16 pp                                            

Great Lakes Regional Biomass Energy Program. 1988           
Biomass Energy Facilities, 1988 Directory of the Great      
Lakes Region. Chicago, IL, 941 pp                           

May, D.M., A.K. Weatherspoon and R.L. Hackett. 1993.        
Residential Fuelwood Consumption and Production in          
Michigan, 1992. Forest Service Resource Bulletin NC-148.    
29 pp                                                       

Michigan Council on Environmental Quality. 1991. Energy     
and Environment Project, Findings and Recommendations       
Lansing, MI, 39 pp                                          

Michigan Departments of Commerce and Natural Resources      
1986. Michigan Wood Energy Development Plan. An Addendum    
to Michigan's Forest Resources: A Statewide Forest          
Resources Plan. Lansing, MI, 25 pp                          

Michigan Department of Natural Resources, Air Quality       
Division. 1990. Boilers Burning Wood in Michigan for        
Calendar Year 1988. Unpublished computer printout. 17pp     

Michigan Department of Natural Resources, Forest            
Management Division. 1982. Fuelwood Use in Michigan         
Homes: 1981-82 Survey Results. Lansing, MI, 24 pp           

Michigan Employment Security Commission. 1993. Employment   
Data for 1992. Unpublished                                  

Producer Price Indexes Data for 1981 through 1991. U  S.    
Department of Labor, Bureau of Labor Statistics             
Washington, DC.                                             

Smith, W.B., A.K. Weatherspoon and J. Pilon. 1990           
Michigan Timber Industry - An Assessment of Timber          
Product Output and Use, 1988. Forest Service Resource       
Bulletin NC-12. USDA. 67 pp.                                

Stanton, T. 1991. Wood Energy Environmental and Economic    
Impacts. Paper presented at the Energy from Wood Residue    
Workshop, April 23, Alberta, MI                             

Timber Marts. 1981-1991. Timber Mart North Price Reports.   
Highlands, N.C.:F.W. Norris                                 

U.S. Department of Energy, Energy Information               
Administration. 1990. State Energy Data Report 1960-1989.   
Washington, DC.                                             

Michigan Employment Security Commission. 1982, 1987,        
1991, 1992. Employment Data. Lansing, MI                    

U.S. Department of Commerce, Bureau of the Census. 1988.    
1986 Annual Survey of Manufacturers (ASM). Washington,      
DC, 47 pp.                                                  

U.S. Department of Commerce, International Trade            
Administration. 1993. National Trade Data Bank. U.S.        
Industrial Outlook-Chapter 10, Paper and Allied Products.   
Washington, DC.                                             


Reports on the Status and Potential of Michigan Natural     
Resources                                                   

This special report is one of a series (listed below)       
prepared for a project of the Michigan Agricultural         
Experiment Station (MAES) called the "Status and            
Potential of Michigan Natural Resources" (SAPMINR).         

The project was designed to take an inventory of the        
current status of Michigan natural resources, identify      
emerging trends, and appraise future opportunities. The     
purpose was to assist MAES in establishing priorities and   
planning programs.                                          

Both overview and focused topic assessments have been       
made. The overview reports provide background information   
on the political, economic, and social environments         
influencing Michigan natural resources. The focus reports   
examine specific resources, including timberland            
resources, fisheries and wildlife resources, parks and      
recreational resources, and land and water resources.       

The SAPMINR project began in early 1993. At that time,      
interdisciplinary teams of MSU faculty members, graduate    
students, federal and state government officials, and       
others collaborated to develop preliminary reports. In      
March 1994, a SAPMINR conference took place during MSU's    
Agriculture and Natural Resources Week. The objective of    
the conference was to provide a public forum for            
discussion of the preliminary reports. Based on             
interaction with conference participants, the authors       
prepared the final drafts of the special reports (SR).      

This report should not be considered final. Efforts to      
analyze the past and forecast the future are ongoing.       
Even so, this report is a base for dialogue on both the     
status and potential of Michigan natural resources.         

To receive any of the reports listed below, contact: MSU    
Bulletin Office, Room 10B Agriculture Hall, Michigan        
State University, East Lansing, MI 48824-1039.              

Status and Potential of Michigan Natural Resources List     
of Reports                                                  

Overview Reports                                            
SR 67 --SAPMINR Highlights                                  
SR 68 --Michigan Natural Resources Policy                   
SR 69 --Demographic, Social and Economic Trends             
SR 70 --Integrated Natural Resource Systems                 

Focus Reports                                               
SR 71 --Timber and Timberland Resources                     
SR 72 --Lumber, Furniture, Composition Panels and           
Other Solidwood Products                                    
SR 73 --Pulp, Paper, Allied Products and Wood Energy        
SR 74 --Fisheries                                           
SR 75 --Wildlife                                            
SR 76 --Tourism                                             
SR 77 --Boating and Underwater Recreation                   
SR 78 --Camping, Trails and Dispersed Recreation            
SR 79 --Water Resources                                     
SR 80 --Land Resources                                      
SR 81 --Nonrenewable Resources                              
SR 82 --Natural Resources and Communities                   

Acknowledgements                                            

The following individuals provided helpful reviews of       
this publication. The authors, as usual, bear the final     
responsibility for content.                                 

Robin Bertsch, Michigan Department of Natural Resources     
Larry Pedersen, Michigan Department of Natural Resources    
Carl W. Ramm, Michigan State University                     
James Stevens, Michigan State University                    
The authors are also grateful to research assistant         
Robert Morikawa, Department of Forestry, Michigan State     
University                                                  


The Michigan Agricultural Experiment Station is an equal    
opportunity employer and complies with Title VI of the      
Civil Rights Act of 1964 and Title IX of the Education      
Amendments of 1972.                                         

printed on recycled paper using soy based ink               

New_1:95_  75M_TCM_CW                                       
Go To Top of File        MSU Extension Home Page        Main Page for this Data Base

This information is for educational purposes only. References to commercial products or trade names does not imply endorsement by MSU Extension or bias against those not mentioned. This information becomes public property upon publication and may be printed verbatim with credit to MSU Extension. Reprinting cannot be used to endorse or advertise a commercial product or company. This file was generated from data base SR on 07/28/98. Data base SR was last revised on 07/28/98. For more information about this data base or its contents please contact cook@msue.msu.edu . Please read our disclaimer for important information about using our site.