A thriving, world class forest industry can be created in Wales but not without “significant” challenges ahead, a major new report has concluded.
The report, the most comprehensive study of the sector so far, was commissioned by Working Group 3 of the Welsh Woodland Forum to define the role of the country’s forest industry and its economic impact. It will help the Welsh Assembly implement its Woodland Strategy.
The study, completed by Jaakko Pöyry Consulting, reveals an industry annual revenue of £1.7bn, while the total wood chain value (annual market transactions in domestic and imported wood) is £315m for softwood and £105m for hardwood.
It also found a “large and dynamic” secondary processing business of nearly 1,500 businesses, while some 16,300 full-time jobs exist. Businesses are long-lived (average 21 years), with 30% of companies intending to expand staff numbers during the next three years.
But challenges include the need to “reconnect” high quality woodland resources with processing capacity, as 90% of hardwood and 65% of softwood is imported.
The report said the Assembly’s new woodland management regime could cause a 20% reduction in timber volume production, with a corresponding 30% fall in revenues.
Recommendations include the creation of a Welsh cluster to provide industry cohesion, further research and development by Forest Commission Wales and building a “Welsh franchise” through promotion.
Kieran MacDermott, partnerships manager at the Wales Forest Business Partnership (WFBP), said: “The report has highlighted some key issues that need to be fairly rapidly addressed.”
He said WFBP will use the report as a guide to help identify a plan of action with industry partners.
