The state of the Slovenian sawmill industry has changed considerably in the last years. The newest data is from 2002, but it is not reliable, because the data is based on the sawmill owners' own will to participate in the survey. The current condition of the sawmill industry in Slovenia was researched, mainly the yearly quantity of timber processed in the sawmills, types of machines, types and markets of products, as well as the amounts of remnants were established. The key information was gathered through a questionnaire, done by post. By analyzing the questionnaire, the total capacity of the sawmill was established: it is 810.030 m3 of timber, representing 48 % of the available timber for 2007. The bigger plants have increased their capacities, and have become technologically more advanced: however, they are still technologically behind sawmilling plants abroad. 40 % of the sawmill plants sell their products abroad. We estimate that the competitive advantage of the Slovenian sawmill industry is in the flexibility of the production.