Forestry sector drags down Biobío's manufacturing production and explains much of May's decline

The forestry industry once again demonstrated its weight in Biobío's economy. The latest Manufacturing Production Index (IPMAN) from the National Institute of Statistics (INE) showed that regional manufacturing production decreased by 4.2% in May compared to the same month last year, with activities related to wood and paper precisely accounting for most of this result.

The report reveals that the divisions "Wood production and manufacture of wood and cork products" and "Manufacture of paper and paper products" were the activities with the greatest negative impact on the regional indicator. Together with oil refining, they accumulated a negative impact of 7.732 percentage points, far exceeding the positive contribution of other industrial sectors.

Wood leads the decline

Wood production and manufacturing activity recorded a year-on-year decrease of 21.2%, becoming the sector that most affected Biobío's industrial performance. Its impact reached 3.616 negative percentage points, mainly as a result of lower sawmilling and planing of wood activity.

Furthermore, the INE report indicates that this sector completed its third consecutive month of decline, reflecting a scenario of lower dynamism for one of the region's historically most relevant industries.

Paper also retreats

Adding to this scenario is the paper industry, another of Biobío's productive pillars. The manufacture of paper and paper products decreased by 6.7% over twelve months, contributing a negative impact of 2.703 percentage points.

According to the report, the decline was mainly associated with lower production of wood pulp, paper, and cardboard, also accumulating three consecutive months of contraction.

Strategic weight

The results once again confirm the strong dependence of regional manufacturing activity on the forestry complex. The wood and paper industries alone account for more than six percentage points of negative impact on the regional index, becoming the main factor behind the decline observed in May.

Although some sectors showed favorable performance — such as food processing, transport equipment manufacturing, and the chemical industry — their increases failed to offset the deterioration recorded by forestry activities. These three sectors together contributed 4.890 positive percentage points, insufficient to reverse the overall result.

The figures confirm that the evolution of the forestry sector continues to be decisive for the behavior of Biobío's manufacturing economy. When production of wood, sawmills, pulp, and paper decreases, the impact transcends the entire regional industrial activity, reflecting the strategic role that this production chain maintains in the economic development of the territory.