The purpose of this study was to improve the understanding of the role of the forestry industry in the Welsh economy. The forestry industry was defined to include the activities of private forestry owners, Forest Enterprise, forest management companies, timber harvesting, extracting, haulage and marketing companies, and primary processors including sawmills, wood-based panel manufacturers and paper mills. The research was informed by an extensive questionnaire and interview survey of forestry industry organisations. The financial information generated by the survey was incorporated into an input-output model of the Welsh economy to allow the indirect or 'multiplier' impacts of sector changes to be estimated.