Tree Frog Forestry News

Louisiana State University economist estimates paper mill shutdown will lead to loss of nearly 2,800 jobs in ripple effect

By Timothy Boone
The Advocate
January 11, 2019
Category: Business & Politics
Region: US East, United States

Georgia-Pacific’s decision to stop producing office paper at its Port Hudson mill and lay off 650 people could ripple into an estimated loss of nearly 2,150 other jobs across Louisiana, an economic model produced by an LSU AgCenter economist shows. The layoffs will result in the loss of nearly $188 million in labor income and nearly $22.8 million in tax revenue for state and local governments, said Shaun Tanger, a forest economist at the AgCenter. “This is a conservative number,” Tanger said. The figures don’t capture the ripple effects into nearby Mississippi, where some people live and work in the timber/paper industry and could be doing the lion’s share of their business in Louisiana, he said. …Along with the loss in jobs and tax revenue, the prices that nearby landowners will get for their hardwood and pulpwood is expected to fall because of the reduced demand from Georgia-Pacific. 

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