People in wood and paper product manufacturing jobs work in a range of sectors such as:

• solid wood processing –  includes log sawmilling, wood chipping and timber dressing
• wood panels manufacturing –  includes veneer and plywood manufacturing
• pulp and paper manufacturing –  includes making paper, tissue and cardboard.

Number of wood processing and manufacturing workers (2006)

Sector	Number of workers
Solid wood processing	7,581
Wood panels manufacturing	1,989
Pulp and paper manufacturing	5,139
Other wood manufacturing	9,432
Total	22,152
Source: Business and Economic Research Ltd (BERL), Census Data Tools.

The global economic downturn is causing job losses in the wood processing industry. Some sawmills, such as the mill at Putaruru in South Waikato, have closed in recent months. Others are restructuring and cutting back on staff, or reducing working hours.

This is because construction and manufacturing activity is down worldwide, so there is less demand for timber products. The drop in demand has added pressure to wood processing companies that were already trading under difficult export conditions caused by the previously high level of the dollar and rising costs.

The Central North Island is the major location for this industry, and where most wood processing and manufacturing jobs are based.

Other significant regions for employment in the wood processing and manufacturing sectors include:

• Northland
• East Coast
• Hawke’s Bay
• Nelson
• Marlborough
• Canterbury
• Otago.

A new sawmill is expected to open near Gisborne in 2011, creating up to 120 jobs initially. Another 180 jobs are likely to be created in the mill's second stage of development.

Training in this industry has become more important due to changes in technology. Laser wood-scanning equipment, kiln drying and automated sawmilling equipment mean workers must keep their skills up to date so they can use this equipment.