As a fundamental industry of national economy, the forestry industry plays an increasingly important role in ecological construction. This paper systematically introduces the current situation of the forestry industry in the Qinba Mountain Area, and analyzes the strengths, weaknesses, opportunities, and threats (SWOT) of the forestry industry. The paper uses expert questionnaires and principal component analysis to identify the factors that have great impacts on the forestry industry in the Qinba Mountain Area, so as to provide a scientific basis for the formulation of the forestry industry development strategy. The research reveals that the threat of ecological environment problems, the disadvantage of low intensive level, the opportunity of ecotourism development, and resource advantages have major impacts on the development of forestry industry in the Qinba Mountain Area. Therefore, the Qinba Mountain Area should focus on ecological construction, make use of its location and resource advantages to develop characteristic industries,optimize the industrial structure, and accelerate the development of forest tourism, thus to promote the high-quality development of the local forestry industry.