EMPLOYMENT in the Irish forestry sector is likely to increase from 12,000 to more than 20,000 in the next 10 years, according to an analysis of the industry by Interface Business Information.

According to the survey, 12 firms account 80 per cent of timber processing capacity but these 12 firms have spare capacity. "The reduction in the number of companies, the Spare capacity and the regulatory forces present in the market could cause problems for the smaller firms with rationalisation being the best prediction for the future," the Interface analysis states.

Based on accounts filed between 1990 and 1995, the analysis shows that average fixed assets in the timber industry have increased by 24 per cent over the period, although one in companies in the sector was technically insolvent in at least one year in the five year period.