Economic contribution of forestry

The economic impacts of forest based activities

This study brings together the different parts of the forestry sector to provide a comprehensive estimate of its economic contribution.

GVA, or Gross Value Added, measures the contribution to the economy of each individual producer, industry or sector in the UK.

Read about the economic impacts of forest based activities in Scotland

Findings: the numbers explained

Forestry's economic contribution to Scotland is now £1.1 billion GVA.

£878m

comes from

forestry, timber processing, and supply chain activities

£252m

comes from

forest recreation and tourism

Forestry and timber processing and supply chain activities

Employment levels are up, with thousands now working in the sector.

£878m

GVA per year contributed

to Scotland's economy

16,010

people employed (full time)

across Scotland

34,100

full time employees

now working in the broader forestry sector

Forest recreation and tourism

£252m

GVA per year contributed

to the Scottish economy every year

18,130

people employed (full time)

across Scotland

The economic contribution of local forestry

Scotland’s forest sectors has expanded since the last report with more than 1,970 local businesses working together to maximise the value from forest-based activities, be they:

developing novel sustainable products
economic
environmental
ecological
social

The sector is a mix of businesses ranging from large multinationals to micro enterprises. This makes estimating total contribution a challenge.

The sector is growing and enjoying many positive local impacts.

Especially so in remote rural locations where there's often little alternative occupation or opportunities for business development.

A growing sector

Evidence demonstrates that recreation and tourism is important. Scotland’s forests provide the locations for entrepreneurs to create a range of profitable businesses.

Value from supporting local forestry businesses – a scoping study The economic contribution of the forestry sector in Scotland (2015)

Future economic development

Scottish Forestry continues to support the wood fibre sector in its ambitions to:

add new value across the whole supply chain
find the most appropriate end markets for Scotland’s timber

Our support involves successful partnerships and collaborations with public sector bodies and industry to initiate and support:

innovation
research and development
knowledge transfer
promotion of the benefits

Supporting climate action

A healthy forestry sector also supports timber and climate change actions.

These are detailed in Scotland's Forestry Strategy 2029 - 2029, and the Forest and Timber Technologies Industry Strategy - 'Roots for Further Growth'.

Scotland’s Forestry Strategy 2019-2029 Scottish Forest and Wood-based Industries Industry Leadership Group – Roots for Further Growth

Supporting Scotland's economy

Scotland's Forestry strategy is a vital element of economic transformation across the country.

Scotland's National Strategy for Economic Transformation (Scottish Government website) Scotland’s Future skills: action plan (Scottish Government website)