By Katie David M ichigan’s forest products industry remains on track to transform into a robust and sustainable market, but industry experts say the sector’s future expansion will depend on establishing a manufac- turing base to produce new and innovative wood-based products, including paper and timber. “We have more wood we can add to the market, but if we want to add jobs, we have to add manufacturing,” said Mark Rudnicki, professor of practice in biomaterials at Houghton-based Michigan Technological University. “To do that, you have to have a product somebody wants and there’s a lot of competition. You need innovation.” Rudnicki believes establishing an advanced forest mate- rials manufacturing supply chain and attracting com- panies developing biomaterial technology are key to growing the state’s forest products industry. While the industry already provides a multitude of materials, inter- national scientists are developing a range of related new products, including forest-derived carbon-fiber compos- ites, plastics and chemicals. “The bottom line is anything you can make out of oil — all the plastics, polymers and chemicals — you can make out of trees,” “The bottom line is anything you can make out of oil — all the plastics, polymers and chemicals — you can make out of trees,” Rudnicki said. “It’s not a fossil resource. It’s not a million-year-old resource, but a 50- or 80-year-old resource.” While countries in Europe and Canada have invested heavily in developing these biomaterials, the U.S. to date has largely lagged behind. The companies in the U.S. that do work in biomaterials focus more on the products generated from agriculture rather than the forest, according to Rudnicki. “They haven’t realized the forest is another significant source for the biomaterials market for these advanced materials,” he said. “We’re kind of behind, but that’s the opportunity. That’s why we’re trying to get Michigan out in front. Right now, there are a lot of opportunities for these emerging markets and that’s what the institute is really focused on — how we get Michigan to capitalize on these opportunities.”
forest products industry, according to a recent report by Michigan State University that shows the state surpass- ing the targets laid out by Gov. Snyder during a Forest Products Summit in 2013. The Forest Products Summit in 2013 called for three targets: A $20 billion increase in the industry’s economic impact, a 10-percent increase in forestry jobs and a 50-percent increase in the export of “value-added” forestry products, as benchmarked to the industry’s 2012 output. The Forest Products Summit goals where to be achieved by 2018. As of 2014, the forest products industry contributed to $20.3 billion in economic impact, exceeding target. At the same time, employment in the industry grew by 12 percent from 34,204 jobs in 2012 to 38,291 jobs in 2014, also exceeding target. While exports from the industry rose to $505 million as of 2014, they are still short $221 million of their 2018 goal of $726 million, something that a strong U.S. dollar and increase exports from Canada could be impacting. Manufacturers, universities and the state plan to continue pushing Michigan’s forest materials industry forward. Earlier this year, Holland-based Haworth Inc. partnered with Michigan Tech to develop 3-D printing technology that uses wood pulp instead of plastic resin to make com- ponents such as door handles. For its part, the Michigan Forest Biomaterials Institute is currently drumming up support to build a tall wood building, defined as being higher than 10 stories, most likely in Grand Rapids, Rudnicki said. The organization hosted a meeting in early August to determine the viabil- ity and possible locations for the building, which would primarily be constructed from cross-laminated timber, an engineered wood product that can be used in place of concrete and steel. The building would still use steel and concrete in key structural areas and would have non- flammable skin over it. Wooden buildings cost approximately 15 percent less than a traditionally-constructed structure, according to Rudnicki. Establishing a tall wood building in Grand Rapids could spawn a manufacturing base primarily for the wood products needed in construction and could serve to catalyze further growth in the industry, Rudnicki said. “It’s going to take collaboration to work together toward this goal from a lot of different sectors,” Rudnicki said. “It’s a sober assessment; this isn’t going to easy.”
Michigan has already made strides in improving its
“It’s going to take collaboration to work together toward this goal from a lot of different sectors,”
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SEPTEMBER 2016 • SPOTLIGHT ON BUSINESS
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