This paper deals with the structural development of the German sawmilling industry between 1960 and 1995. During this period, the number of sawmills declined from 6,257 to 2,487, whereas the production volume of sawn timber increased from 7.7 to 12.4 million m^3. This development has been decisively influenced by the introduction of new conversion technologies between 25 and 30 years ago. This linkage between structural changes in the sawmilling industry and the new conversion technologies has been indicated earlier by some authors. This publication for the first time is basing such a statement on results of market analytical research. The target of this study is to give an overview of the development and structural changes between 1960 and 1995. Furthermore, it explains why these new conversion technologies could have such a strong influence on the structure of the German sawmilling industry.