SA’s timber industry: Thriving economically & tackling climate change

South Australian Business News  •  Economy
Thursday, March 13th 2025
Dovetail

South Australia’s $3 billion timber industry is thriving economically while also tackling climate change head-on. 

Forestry and timber is the only primary industry that captures and stores more carbon than it emits. Plantation-based practices, with no harvesting of native forests, make the industry 100 per cent sustainable. South Australia’s plantation forests were established in 1876 and now cover about 168,000 hectares across the Fleurieu, Adelaide Hills, mid-north region, and Limestone Coast.

SA’s own Dovetail Advanced Manufacturing is one of Australia’s largest manufacturers of flatpack furniture and a diverse range of other timber products. This Bedford-backed social enterprise also plays an important role in our state’s booming timber industry.

With approximately 18,000 people employed in both direct and indirect roles, the sector produces 35 per cent of Australia’s house framing and interior sawn wood, 25 per cent of the country’s locally produced particleboard, 40 percent of packaging and industrial grade timber, and 60 per cent of timbers for agricultural use. 

Yet, according to the South Australian Government, 40 per cent of timber produced leaves the state unprocessed.

Michael Silvy, Dovetail General Manager, said this creates a significant opportunity for companies like Dovetail to add value locally.

Dovetail is at the forefront of this opportunity, transforming raw timber into high-quality products at our manufacturing sites in Panorama, Gepps Cross, Reynella and Mount Gambier,” Mr Silvy said.

The company manufactures a range of products for both the Australian and New Zealand markets, including:

  • Flatpacked, ready-to-assemble (RTA) furniture, wardrobes and other storage solutions
  • Indoor and outdoor kitchen cabinetry
  • Decking, picket fencing and custom export crates
  • Wall, floor and ceiling framing
  • High quantity board cutting, edging and boring
  • Commercial custom-made products, and 
  • Medium to high density development fitouts.

A key part of Dovetail’s commitment to sustainability is the use of lightweight timber wall, floor, and ceiling framing systems that are environmentally friendly and designed for adaptability. The modular design can be easily repurposed and adapted to new needs, reducing waste and extending the lifecycle of materials.

Looking ahead, Dovetail is expanding its footprint with a new, state-of-the-art manufacturing and retail hub in Salisbury, set to be operational late in 2025. The hub will increase the company’s production capacity by doubling output and introducing advanced equipment and automation solutions. 

This expansion also underscores Dovetail’s focus on social impact, as it continues to provide open employment pathways for people who have experienced barriers to employment, including disability. 

Excitingly, Dovetail has been in discussion with some key industry players recently regarding future projects in the building industry, such as Block Flock, AUSCO Modular, Department of Education, T2D Alliance and John Holland.

In a growing timber industry, Dovetail Advanced Manufacturing is not only playing a critical role in South Australia’s economic development, but also shaping the future of sustainable timber production and inclusive employment, proving that business success and social impact can go hand in hand.

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