The Furniture Industry Association says the Western Australian Government's decision three years ago to end old-growth logging is only just starting to affect manufacturers.

Yesterday, one of the state's biggest furniture manufacturers, Jenson Jarrah, stood down 12 of its staff in Busselton.

The company says it could not obtain enough jarrah to maintain business.

Owner Max Jenson blames the State Government, saying its policies on logging have led to the short supply.

The association's Ian Hearn says the Government's forest management plan took a long time to affect furniture manufacturers because of excess stock in the system.

He says there will be challenging times ahead for furniture manufacturers and saw millers.

"We need to work together to make the best of what we've got, it will require a very positive mind-set and the ability to again face the challenge of change," he said.

"We live in changing circumstances and if we're going to survive as furniture manufacturers we will have to change with the times."

Greens MLC and Member for the South-West, Christine Sharp, says she is not surprised furniture manufacturers are facing hard times.

She says there are problems with a contract between the State Government and timber supplier Gunns.

"It's not effective in ensuring that jarrah is actually used in Western Australia to be value added here and not overseas or in the eastern states," Ms Sharp said.