Confor hails 'remarkable' new figures on impact of forestry and wood manufacturing in Scotland

Confor's Chief Executive said the figures - announced by Deputy First Minister Kate Forbes on a visit to West Fraser, a manufacturer of wood- based panels in the Highlands - were a "remarkable" achievement in the face of major challenges, and reflected growing demand for wood as a low-carbon material.

The independent study says more than 34,000 jobs are supported by the forestry and wood sector in Scotland - compared to 25,867 in the last study, published in September 2015. The economic impact of £1.1 billion was up from £954 million in 2015.

Confor CEO Stuart Goodall said: "It’s good news for Scotland that this increasingly important industry has experienced such 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 the people working in the sector, and the growing demand for wood as a low carbon material."

Mr Goodall praised Confor members - including West Fraser, based at Dalcross, near Inverness and hosts for the visit by Kate Forbes - for its part in securing the strong numbers. “In recent years we have seen hundreds of millions of pounds of investment and businesses expanding and recruiting new staff," he added.

George Webb, European Purchasing Director for West Fraser, said: "It's highly appropriate that the Deputy First Minister announced these positive new figures at Dalcross, which has seen the largest investment in any UK wood processing site over the last decade.

"Around £200 million has been invested in world-leading technology at the plant, to increase production capacity and meet growing European demand for oriented strand board (OSB). This investment illustrates West Fraser's commitment to our Scottish workforce and supply chain. Across our two sites in Scotland, at Dalcross and at Cowie in Stirlingshire, we now employ 500 people directly and substantially more in the supply chain."

OSB is used widely in construction, especially in walls, roofs and flooring, and in furniture production. The mill at Dalcross is the largest of its kind in Europe, and produces around 750,000 cubic metres of OSB each year and uses in excess of a million tonnes of wood fibre. West Fraser is currently working with the Scottish Government to identify funding to improve the supply chain further by creating a rail link to transport materials in and out of the Dalcross site, using a freight line spur from Dalcross Inverness Airport railway station, which opened last year.

Launching the report at West Fraser, Deputy First Minister Kate 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 ensuring 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.”

The statistical exercise began in 2020. During the pandemic, the industry experienced huge demand as wood was designated as a key resource in the fight against Covid, providing building materials for the emergency hospitals that were constructed and moving food and pharmaceuticals around on pallets. Home-owners also drove demand as they spent money on their homes and gardens.

It is not possible to assess the impacts of this and other factors like the Ukraine war which saw imports to the UK from Russia and Belarus end and flagged up again the need for the UK to consider its ‘timber security’. However, the industry is on an upward trajectory and Stuart Goodall said there was a chance to push the numbers up even higher in coming years

"With tree planting figures picking up significantly in the latest statistics, the potential to take these numbers higher still is there for all to see," he said.

Forest Research statistics published in June showed that more than 15,000 hectares of new forests were created in Scotland during the 2023/24 planting period. This included a healthy conifer component of 8,720 hectares, alongside 6,320 hectares of broadleaf planting.

Mr Goodall concluded: “We need to build on the growth in planting this year. With clarity on increased future funding, our nurseries will plant the young trees we need. Businesses across Scotland will continue to invest and create jobs, and we can collectively take a big stride towards our net zero target - and over time, the industry will employ more people, deliver more rural economic growth and make an even bigger impact in addressing the damaging impacts of climate change.”