Data on energy use in the manufacturing process of the wood products industry in 1974 are tabulated. The forest industries contributed 10% of New Zealand's factory production and consumed 25% of all industrial energy (including that produced from self-generated sources such as waste heat liquors and wood wastes) in that year. An evaluation of the potential for savings in process heat systems in existing production levels is shown to be 3% in the short, medium, and long-term time periods. The industry has a high potential for fuel substitution in all sectors. The payback periods for the implementation of the conservation measures are indicated.