Economic impact of forestry

Scotland’s forestry contributes £1.1 billion to the economy each year and supports more than 34,000 jobs, a new report has found.

The independent study, commissioned by Scottish Forestry, notes that the industry directly employs 10,380 people, with a further 5,630 working across wood processing and forest activities, and 18,130 in forestry-related tourism. This represents a 30% increase in jobs since 2015. 

The findings underline the growing importance of Scotland’s natural economy and demonstrate how forestry is supporting many businesses, rural economies and communities. 

The report was launched by Deputy First Minister Kate Forbes as she visited West Fraser’s Dalcross mill at Morayhill, near Inverness. West Fraser is a leading global manufacturer of wood-based panels. 

Ms Forbes said:

“Scotland’s forests and woodlands are a sustainable powerhouse. They support a growing number of jobs, many in rural communities, and make an increasingly important contribution to Scotland’s economy. 

“The Scottish Government is committed to expanding our forests and woodlands and ensure they continue to provide multiple benefits for Scotland.

“Scottish Forestry is working closely with the sector to maximise future woodland creation with the resources available. Scotland is creating nearly 75% of all the new woodlands in the UK and last year saw the highest level of woodland creation in 34 years.”

Scottish Forestry’s Head of Economics Pat Snowdon said:

“Forestry is often called a ‘hidden industry’ because there are so many small businesses placed in remote areas working throughout the sector. This comprehensive economic study covers a multitude of forestry activities and their important contribution towards boosting the economy of Scotland.  

“The findings provide a snapshot of the different ways forestry generates income and employment across Scotland.”

Chief Executive of forestry and wood trade body Confor Stuart Goodall said:

"This increasingly important industry has experienced strong growth. To have increased levels of employment by 30% and annual economic impact by more than 15% is remarkable in the face of unprecedented economic challenges.

“It is testament to the resilience and ingenuity of people working in the sector, hundreds of millions of pounds of investment by businesses, and growing demand for wood as a low carbon material."

Background

The independent study on the Economic Impact of Forestry in Scotland was completed by Frontline, Stantec and Evolving Forests on the behalf of Scottish Forestry. Scottish Forestry is the Scottish Government agency responsible for forestry policy, support and regulations.  The figures are for 2019.

West Fraser is a Canadian diversified wood products company. Its Dalcross mill is the largest of its kind in Europe, producing around a million cubic metres of Orientated Strand Board a year for use in products including panels, roofing and furniture.