Australia’s forest products sector must work across the entire value chain — from growers to processors, manufacturers and end‑users — if it is to meet the nation’s future needs. That is according to Dr Joseph Lawrence, Executive Director of Australian Forest and Wood Innovations (AFWI), a $200‑million‑plus research institute backed by $100 million in Commonwealth funding.
Speaking on Wood Chat, the FWPA‑supported podcast, Dr Lawrence said the $23 billion industry now has a “once‑in‑a‑generation” opportunity to partner with world‑leading researchers and accelerate innovation at scale.
With 30 projects already underway — through both the National Open Call and AFWI’s three research centres at the University of Tasmania, the University of Melbourne and the University of the Sunshine Coast — AFWI is rapidly becoming one of Australia’s largest research institutes.
“It makes us one of the largest research institutes in Australia, currently, which is very significant,” Dr Lawrence said. “The intent is always for industry and the research sector to join hands with the government to get the best return on investment.”
Drawing on his background in renewable energy, Dr Lawrence said the forest products industry has a unique opportunity to demonstrate the full value of sustainable forest management and wood to society. “I think the story goes through biodiversity, environmental protections… and the jobs it can create.”
Housing, he said, is one of the clearest areas where Australian timber can deliver immediate national benefits. “That’s where we see a real opportunity for Australian timber to be ramped up — for engineered wood to be ramped up — to be producing faster, safer and higher‑quality housing, all made here. So we can solve all the potential crises we are facing around shortages.”
AFWI has now finalised its five‑year strategy, aligned with the Australian Government’s new Timber Fibre Strategy, and focused on four priorities:
- Healthier, more productive forests
- Maximising wood fibre through value‑added manufacturing
- Climate solutions
- Engineered wood for modern housing
The strategy also identifies the need to break down long‑standing barriers between sectors — from forestry and processing to truss and frame manufacturers, architects, engineers and builders — with FWPA and AFWI working together to address the gaps.
Looking ahead to 2035, Dr Lawrence said solving the housing crisis and building advanced manufacturing capability will only be possible through a coordinated national science network involving more than 20 organisations. “We want to have the right R&D talent in Australia,” he said. “The real opportunity is to grow our own, but also learn from what is happening overseas and get ahead.”
He believes the biggest opportunity lies in connecting the entire forest‑to‑market pathway — something the industry has historically struggled to do. “The strongest opportunity is partnering across the entire value chain — from upstream to downstream — and connecting all the way through to the market.”
Using housing as an example, he said the industry can “start with the tree and map it right through to single‑level homes, multi‑storey buildings, high‑rise hybrids with steel, and even pure‑timber modular systems.” And the same approach applies to emerging sectors such as biofuels. “If you’re producing a biofuel from forest fibre or waste, you can align that directly with the aviation industry — companies like Boeing — as well as the chemical sector. It’s about bringing all of these players together.”
Dr Lawrence said the industry must move beyond the traditional model where growers and processors operate in isolation and leave the market to determine value. “Instead, we should be involved up front with everyone across the chain and map it out together. That’s what will make R&D truly commercialisable.”
