Slovenia’s reputation as the third country in Europe after Finland and Sweden with over 60 per cent of its territory under forests explains why woodworking industry has always been important. Cabinet, furniture, millwork and custom woodworking manufacturers tap the local skills heritage. The industry employs some 12,000 people in nearly 900 companies – bedrock of skills and technical expertise for investors to exploit. There is a full product range of both mechanical and chemical processing. The mechanical branch comprises milling, manufacturing of plywood and particle board, and fabrication of furniture and timber components for the construction industry. Pulp and paper, cardboard, and packaging materials are products of the chemical branch and there are companies producing surface coatings. The production of biofuel from biomass uses waste and residues from forestry and related industries. The fact that the energy demand of the woodworking industry is low offers future opportunities in the trading scheme designed to foster CO₂ emission reduction.

Estimated gross annual labour costs in wood-processing industry for 2012
Total cost per employee in €

Forests have the important function of protecting our living environment by recharging water resources and preserving our country's land. In recent years people have come to consider diversified advanced roles forests have in preventing global warming, use in promoting health, culture, education and the preservation of various living organism. Also, forests are looked to for producing timber, an environment-conscious material, with a low load on the environment. 
 
In order to continually demonstrate the role forests have in preventing global warming and a number of other areas, based on the important functions possessed by forests - water and land preservation forests, man and forest symbiosis and cyclic resource forests - from the point of view of further promotion of the role of forests in preventing global warming by absorbing carbon dioxide, the development of a stable forestry management base for forest resources and forest roads is being promoted.

The principal forestry growing and harvesting regions in Slovenia stretch into the forested areas the Western Balkans. A complimentary range of businesses provide support for the forestry, wood processing and pulp and paper industries. Advances in technology and the commercialisation of these processes are opening up new opportunities. When undertaking major new construction projects, these companies can be called upon, along with engineering and contracting companies from the wider region to ensure that projects come in on time and budget.

It is important to raise the level of use of wood per inhabitant of Slovenia but before architects and their clients »rediscover« wood, foreign markets remain essential for the earnings of local companies with exports accounting for nearly 48% of all revenues.

There are several regional programmes launched with the aim to provide support to the neighbouring countries: to the Serbian wood processing industry to enter the international market, to the clusters within the framework of the 6-Region Strategic Joint Action Plan for Knowledge-based Regional Innovation, and the integration of national programmes in the area of wood material science and engineering in the forest-based value chains. Foreign investors can clinch deals with the regional woodworking companies through the channels the Slovenian companies maintain with the members of the Southeast and Central European Network of Forest-based Clusters.

Productivity in Industry, 2011
Related GDP (PPP) per person employed in industry (in €)