Supply of nation-building hardwood timber is critical to the NSW economy, providing thousands of jobs and skills right along the supply chain, according to a new Ernst + Young Report. Science-based election policies must safeguard local timber supply to meet the rising demand for wood products and support our regional communities.
The Report shows (Table 1) that the NSW hardwood timber industry is vitally important to the State’s rural and regional economy, contributing $2.9billion in revenue, adding $1.1billion to NSW’s Gross Domestic Product and employing almost 9,000 people.
Ernst + Young was engaged by the Commonwealth-funded North East & South East New South Wales Forestry Hubs to conduct an economic impact assessment of direct and indirect effects of the hardwood timber industry for 2021-2022 on four different NSW regions: the North East, Southern, Western and Greater Sydney (see Table 1 below).
Table 1
| NSW Region | Gross Revenue ($m) | Gross Value Add ($m) | Employment (FTE) |
|---|---|---|---|
| North East | $1,840 | $700 | 5,700 |
| Southern | $720 | $270 | 2,230 |
| Western | $260 | $100 | 820 |
| Greater Sydney | $80 | $30 | 240 |
| Total NSW | $2.9billion | $1.1billion | 8,990 |
Timber NSW CEO, Maree McCaskill said: “We need to set out the facts. Hardwood timber is a sustainable, renewable and essential input into the construction, agriculture, mining and energy sectors. Contrary to self-serving announcements from the WWF[1] and other conservation groups, Australia faces strong and rising demand for nation-building timber supplies. The NSW timber industry is in fact a significant and growing part of the NSW economy[2] and has had this central role in our regional communities for more than a century.”
Ernst + Young’s Report, commissioned by the Commonwealth-funded North East NSW and South East Forestry Hubs, tracks the hardwood timber industry’s economic impact beyond direct forest management and harvesting activities, seen primarily in rural areas, to the supply and servicing of downstream sectors including manufacturing, building construction, transport, energy and mining.
Hardwood timber generates jobs all along its supply chain, beginning with forest management and log harvesting and haulage, to primary and secondary processing, timber transport, product manufacturing, and wholesaling. Installing finished wood products into people’s homes and community infrastructure also keeps thousands of tradies employed throughout Australia.
Maree McCaskill said: “It’s the durability, strength, range and natural appeal of NSW hardwood timber makes it highly sought after for flooring, decking, furniture, cladding, building and fencing products. It is also relied upon to provide essential infrastructure like power poles and marine wharves and jetties as well as the timber pallets upon which most other products are transported. The strength of this demand for hardwood timber is driving its increasing value.
“Opponents of the NSW timber industry fail to recognise that the strong and growing economic contribution of the industry is due to its central role in nation-building activities. New South Wales needs timber and importing it from less regulated countries is not the answer.
“The lesson post-pandemic is that self-sufficiency in critical supplies like timber is sound policy. NSW State Forests can and should be managed for their critical economic contribution, in harmony with their contribution to our communities, environment and biodiversity.
“We must safeguard local timber supplies and keep these jobs and skills in NSW.”
Timber NSW media contact: Timber NSW CEO, Maree McCaskill, Phone 0418 657 453
[1] WWF 2022 study Transition support for the NSW native forest sector
[2] Australian forest and wood products statistics – DAFF (agriculture.gov.au)
Notes to Editors:
Timber NSW was established in 1906 as the representative organisation of the timber and forest products industry in NSW.
Regional Forestry Hubs
To help deliver upon its National Forest Industries Plan: Growing a Better Australia – A Billion Trees for Jobs and Growth, the Australian Government established eleven Regional Forestry Hubs across Australia under a Commonwealth Government Grant Agreement.
Each Hub is responsible for undertaking a strategic assessment of the factors impacting on their region’s forest growing and processing sectors and for identifying key themes for investigation, in consultation with industry, community and government stakeholders.
Details of all the hubs can be found here. The North East New South Wales Forestry Hub was established in April 2019. For further background on the North East NSW Forestry Hub see here.
Source: Timber NSW
