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.

Increased automation also affecting number of sawmill operator jobs

Increasing automation at sawmills means fewer sawmill operators are needed to operate equipment. This trend is continuing, as companies try to maximise the use of technology to increase productivity. This may further reduce the number of sawmill operators needed in the future.

New sawmill in Gisborne will create jobs in 2011

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. The new mill is opening to process the increasing volume of wood that is expected to be harvested in the region.

Major employers of sawmill operators include:

• Juken New Zealand Limited
• Carter Holt Harvey  Wood Products
• Blue Mountain Lumber
• Nelson Forests
• Westco Lagan
• Red Stag
• Tenon.

A large number of wood processing workers, which includes sawmill operators, are based in the Central North Island. However, sawmill operators can work throughout New Zealand:

Main regions employing wood processing workers (2008)

Region	Number of workers
Central North Island	3,256
Otago/Southland	1,200
Northland	1,180
Auckland	1,110
Canterbury	1,036
Nelson/Marlborough	1,009
East Coast	335
West Coast	256
Hawke's Bay	228
Source: Ministry of Agriculture and Forestry.