This report traces the flow of Oregon's 2008 timber harvest through the primary timber processing industry and provides a description of the structure, operation, and condition of Oregon's forest products industry as a whole. It is the second in a series of reports that update the status of the industry every 5 years. Based on a census conducted in 2009 and 2010, we provide detailed information about the industry in 2008, and discuss historical changes as well as more recent trends in harvest, production, and sales. To convey the severe market and economic conditions that existed in 2008, 2009, and 2010, we also provide updated information on the industry and its inputs and outputs through 2010.