Timber Industry's Economic Weight in Poland

The timber industry in Poland is a cornerstone of the nation’s economy. Contributing 8.5% to the country’s GDP in 2022, the sector encompasses around 40,000 companies and sustains almost 350,000 direct jobs. Notably, many of these jobs are concentrated in rural areas, where employment opportunities are often scarce. Additionally, Poland holds a commanding presence in Europe as a leader in the production and export of furniture, wooden packaging, boards, floors, and paper. However, this crucial sector now stands on shaky ground due to recent policy changes by the Polish government.

Restrictions on Timber Harvesting Elicit Industry Concern

In January 2024, Poland’s Ministry of Climate and Environment imposed a moratorium on timber harvesting and began excluding sizable portions of State Forests from sustainable management practices. This policy has already reduced wood availability—a move met with alarm by the timber industry and related sectors. Entrepreneurs and industry representatives describe the changes as drastic and argue that such decisions lack sufficient consultation with experts, stakeholders, and scientists.

The National Conference on Forests, convened to discuss forest management, has been criticized for overlooking industry concerns. This decision to exclude a significant portion of forests—20% of State Forests—from active harvesting by 2025 is expected to result in a 3 million m³ reduction of wood supply, with severe financial implications.

Financial and Employment Fallout

The timber industry is already bearing the brunt of these restrictive policies. For the State Forests alone, the revenue loss is projected at nearly PLN 1 billion (EUR 215 million). For the broader industry, the impact is even more devastating, with losses in 2025 anticipated to hit PLN 12 billion (EUR 2.5 billion). These reductions are expected to continue driving job losses, as raw material shortages disproportionately harm small and medium-sized enterprises (SMEs), many of which serve as key employers in rural communities.

Already, over 200 furniture companies have ceased operations this year, displacing thousands of workers. The industry predicts a 6% decrease in furniture production in 2024 and an almost 20% drop in profits, reducing overall sector profitability from 6.4% to an estimated 5.2%. In monetary terms, this equates to a nearly PLN 190 million (EUR 40 million) decline in the sector’s net financial result.

Broader Implications for Sustainable Construction

Beyond the immediate economic and employment impacts, the government’s timber harvesting restrictions may clash with broader EU sustainability objectives. Wood-based materials are currently among the few construction inputs that meet the EU’s upcoming zero-emission standards for new public buildings (2028) and other structures (2030). Limiting wood supply could jeopardize Poland’s ability to contribute to these ambitious goals while suppressing timber's potential as an eco-friendly, renewable material.

Calls for a Measured Approach to Forest Management

The Coalition for Polish Wood—a group representing furniture, board, paper, and sawmill industry stakeholders—has issued an urgent plea to Prime Minister Donald Tusk to reassess the Ministry’s restrictive policies. They advocate for a balanced and gradual approach to forest management reforms, emphasizing the need for open consultation with industry experts, scientists, and environmental advocates.

The coalition also highlights the importance of sustainable forestry that balances environmental conservation with the economic needs of a sector that has been a backbone of Poland’s economy for decades. Failing to align forest management policies with industry input could risk long-term economic damage, mass job losses, and a decline in Poland’s global competitiveness in timber-related sectors.

The Path Forward

A collaborative and measured approach will be essential as Poland navigates the dual challenges of environmental conservation and economic stability. By involving all stakeholders and recognizing wood as a vital, renewable resource, policymakers can safeguard jobs, promote sustainable development, and ensure the timber industry continues to contribute meaningfully to the nation’s economy.