ABSTRACT
This chapter examines the structural change in the industry, reflecting both how these companies responded to economic and technological forces and how a reordered industry affected economic stability of forest-dependent communities and the region. Structural change in the forest products industry and the decisions of individual companies has a great effect on the stability of forest-based communities. Vast forests cover nearly one-half of the Pacific Northwest and have played a historic role in the economic development of the region. Forest-based communities are affected by changes in the economy that affect die industry. To understand the role of competition, the business cycle, and modernization in changing the industry's structure, it is necessary to first develop a baseline. The future stability of forest-based communities will continue to depend on the strategies and behavior of individual firms. Attention should focus not only on the traditional issues of long-term timber supply and national forest policies, but also on industry trends and company responses.
