In 2002, the South's production of pulpwood showed a slight increase: from 63.5 million cords in 2001 to 63.8 million cords. Roundwood production dropped to 42.1 million cords and accounted for 66 percent of the total pulpwood production. The use of wood residue increased 2 percent to 21.7 million cords. Alabama continued to lead the South in total production and number of mills. In 2002, 92 mills were operating and drawing wood from the 13 Southern States. Southern mills' pulping capacity increased from 123,105 tons per day in 2001 to 127,110 tons per day, and still accounts for more than 70 percent of the Nation's pulping capacity.