Economic Analysis of Forestry in Kershaw County, SC
A comprehensive examination of the forestry industry's economic impact, recent challenges, and future opportunities in Kershaw County, South Carolina.
Industry Overview & Economic Significance
Small but Vital Sector
Forestry employs 300-400 people in Kershaw County, representing under 2% of the workforce but providing quality jobs with wages about 10% above average.
Economic Output
The sector generates $80-100 million in annual output and contributes millions in tax revenue, with significant multiplier effects throughout the local economy.
Manufacturing Presence
Canfor's Camden sawmill serves as the county's flagship forestry employer with over 125 workers, recently receiving a $40 million upgrade to increase capacity by 50%.
Employment & Wage Trends
Historical Stability
Forestry employment in Kershaw County has remained relatively flat over the past two decades, with approximately 300-400 jobs consistently maintained. While this represents less than 2% of the county's workforce, these positions provide stable income for rural communities.
Competitive Wages
Forestry jobs pay well compared to county averages. Sawmill workers earn $15-25 per hour, while equipment operators and foresters can make $20-30 hourly. The sector provides quality blue-collar employment opportunities that don't require college degrees.
Indirect Employment
For every 10 direct forestry jobs, approximately 8 additional jobs are created in the county through supply chain effects and induced spending, bringing the total employment impact to 500-600 jobs.
Economic Multiplier Effects
Direct Impact
Jobs and income in forestry companies, sawmills, and wood product manufacturers
Indirect Impact
Business-to-business purchases creating revenue in supplier industries
Induced Impact
Household spending by forestry workers supporting local businesses
Community Benefits
Tax revenue, environmental services, and recreational opportunities
The forestry industry's impact on Kershaw County's economy extends far beyond direct outputs. Every $1 million in forestry sector output creates an additional $310,000 in other sectors through supply chain purchases. This multiplier effect means forestry's economic footprint is disproportionately large compared to its employment size.
Recent Industry Decline
1
2020
International Paper's Georgetown Mill closes, marking an inflection point for the industry and sending shockwaves through local economies.
2
2022
Sonoco Hartsville Mill transitions to 100% recycled fiber, effectively stopping purchases of virgin wood pulp from local sources.
3
2023
WestRock Paper Mill in North Charleston closes, eliminating 500 jobs and removing a major buyer of pulpwood from the market.
4
2023-2024
Pulpwood prices drop up to 50% in some areas as mill closures create an oversupply of 2.6 million tons, making 2023 "the most challenging year" for South Carolina loggers.
Market Dynamics & Price Trends
Pine Sawtimber
Pine Pulpwood
The forestry industry has experienced significant price volatility in recent years. Pine sawtimber prices spiked in early 2022 but fell sharply by late 2023, while pulpwood prices dropped dramatically following mill closures. This price decline has forced many landowners to postpone harvests, hoping for market recovery.
The situation reflects both regional challenges (mill closures) and broader market shifts, including changes in global demand, competition from recycled materials, and fluctuations in housing construction that affect lumber demand.
Global & National Market Connections
Global Pulp Market
Shifting demand from China and competition from South America affect local mills
Housing Market
Lumber demand tied to construction cycles and interest rates
Recycling Trends
Mills shifting to recycled fiber reduce demand for virgin pulpwood
Export Opportunities
Wood pellet exports to Europe offer potential new markets
Kershaw County's forestry sector is deeply connected to national and international markets. South Carolina exports about $1.4 billion in forest products annually, making global demand shifts directly impact local operations. The strong U.S. dollar in 2022-2023 made exports more challenging, while domestic oversupply of sawmill capacity has depressed lumber prices.
Local Business Perspectives
Mill Operators
"The Camden facility has always been one of our top-performing mills," noted a Canfor executive. Despite market challenges, the company's $40 million investment reflects confidence in long-term lumber demand and the mill's strategic importance.
Logging Contractors
"We've got plenty of wood to cut, but nowhere to take it," lamented one Kershaw logger. With mill closures, hauling distances have increased dramatically—turning 50-mile hauls into 120-mile trips and transforming profitable jobs into breakeven operations.
Forest Landowners
Many landowners are choosing to "wait it out," hoping prices recover. Some planted pines years ago to fund children's education, but current market conditions have disrupted these plans. There's concern that persistent low prices could lead to forestland conversion.
Challenges & Opportunities
Innovation
New products like sustainable aviation fuel and mass timber
Collaboration
Industry partnerships and Forestry Recovery Task Force
Resource Abundance
Millions of tons of sustainably grown timber available
Despite current challenges, Kershaw County's forestry sector has significant opportunities for recovery and growth. The region's abundant timber resources provide a foundation for new markets and products. The Forestry Recovery Task Force is exploring innovative uses like wood pellet exports to Europe and sustainable aviation fuel production from woody biomass.
Local stakeholders emphasize that while the present is difficult, the industry has weathered downturns before. As one forester noted, "We have tremendous forest resources here in South Carolina; the key is finding a way to use them."
Investment Trends
Mill Modernization
Canfor's $40M Camden mill upgrade increased capacity by 50%
Workforce Development
Technical training programs to build skilled labor pipeline
New Market Exploration
Research into biofuels and sustainable wood products
Investment in Kershaw County's forestry industry shows a mixed picture. While some facilities have closed regionally, significant capital has flowed into modernizing existing operations. Canfor's investment made its Camden facility "our highest-producing facility in the Southern U.S." according to company executives.
Looking forward, investment focus is shifting toward developing alternative wood-product industries and improving efficiency to remain competitive in challenging markets. The industry's ability to attract capital for innovation will be crucial for its long-term viability.
Equine Industry: A Complementary Rural Economy
1,336
Horses & Ponies
In Kershaw County as of 2017 census
$29M
Annual Revenue
From equine-related activities
358
Equine Farms
Supporting local agricultural economy
While forestry faces challenges, Kershaw County's equine industry provides economic diversification in the rural economy. The county is a prominent equine center in South Carolina, hosting major events like the Carolina Cup steeplechase and the South Carolina Equine Park.
This sector generates significant revenue through training facilities, events, and supporting businesses. During winter training season alone, approximately 1,500 thoroughbred racehorses relocate to Camden, creating seasonal employment and boosting local spending.
Future Outlook & Recommendations
Develop New Markets
Explore emerging opportunities in sustainable aviation fuel, mass timber construction, and wood pellet exports to Europe. These markets could utilize excess timber supply and create new revenue streams for the industry.
Support Logging Infrastructure
Implement programs to help logging contractors weather the current downturn, potentially including cost-share programs, low-interest loans, or transportation subsidies to offset increased hauling distances.
Enhance Workforce Development
Continue investing in technical education and training programs to ensure a skilled labor pipeline for both current operations and future industry growth. Focus on making forestry careers attractive to younger workers.
Promote Sustainable Management
Encourage landowners to maintain forests through sustainable management practices, potentially with incentives that recognize the environmental and recreational benefits of forestland beyond timber production.
Kershaw County's forestry industry is at a crossroads but has the potential to emerge stronger through innovation and adaptation. The sector's fundamental strengths—abundant forests, skilled workforce, and strategic location—remain intact. With strategic investments and market development, forestry can continue as a vital contributor to the local economy for generations to come.