December 2011

Jordan Lumber

THE PROJECT

In December 2011, AMCREF Community Capital (AMCREF) provided $8.5 million of New Markets Tax Credit (NMTC) financing to a subsidiary of Jordan Lumber & Supply Inc., a family-owned and operated sustainable forest products company with fee timberland, sawmills and chip mills. Founded in 1939, Jordan is headquartered in Montgomery County, NC, where it is the fifth largest employer in a county that was suffering from 13% unemployment. Therefore, Jordan’s operations are paramount to the well being of the entire community. Unfortunately, due to the downturn in the housing industry and overall economy, the U.S. forestry industry as a whole had experienced a decline in demand and therefore, had been downsizing. For example, employment at Jordan went from a high of 405 employees in April 2006 to 227 at the time of AMCREF investment (down 40%). The newly formed QALICB owns and manages over 20,000 acres of timberland located primarily in highly distressed low income census tracts in North Carolina, 100% of which are located within non-metropolitan census tracts. Jordan has a history of managing its timberland in accordance with Sustainable Forestry Initiative (“SFI”) standards and has committed to maintain SFI compliance.

COMMUNITY IMPACT

  • Job Creation and Support: Create/maintain 564 FTEs at the QALICB parent company; 109 logging FTEs and 23 FTEs in the trucking/transit industry, which are primarily small, local family-owned businesses, and 182 indirect/induced jobs. QALICB parent company FTE wages are well above local living wage averages and the company provides full benefit packages.
  • Environmental Benefits: Jordan is committed to maintaining its timberlands in accordance with SFI compliant standards. The SFI Program is a twenty-point program addressing reforestation, water quality protection, wildlife conservation, visual quality, biological diversity, and efficient use of forest resources. Furthermore, Jordan’s timberlands are a net carbon sink because their land management best practices include continually growing more trees than are harvested each year.
  • Community Impacts: Jordan works closely with the NC State College of Natural Resources (including providing academic and financial support) to improve use of forestry resources and establish education programs. The Jordan family has repeatedly been commended by municipal leaders for their extensive involvement and support in the local community.
  • Economic Impact / Catalytic Effects: As the fifth largest employer in the region, Jordan is strongly supported by local and regional economic development groups. Jordan’s operations bolster the region’s economic viability, support other local businesses and reduce overall unemployment.