Assessing the business environment for the forest products industry in the northeast

Recent research identified business environment as a critical issue impacting the forest products industry. This study examined the stringency of regulatory policies in New York, Pennsylvania, Vermont, and Maine and measured differences in how these policies were perceived by loggers and sawmillers in these states. A conceptual model of business environment was developed that defined it as a function of land use policy, property taxes, transportation regulations, workers' compensation costs, and energy costs. Two methods were used to measure business environment based on this conceptual model. An index was developed to compare the stringency of each state's policies regarding these issues. A mail survey was used to measure perceptions of business environment. Because survey and index results are subject to different types of bias, results were triangulated to determine areas of convergence and dissonance between measures of business environment. Index and survey results indicated that primary forest products firms in New York face a more stringent business climate than industries in other states.