OK, after going over currently available resources, I think I have an idea for a suitable 'industrial' production we can undertake: Glass Making and Glass Working

Rationale

At the moment, the only export good we have is fish. Admittedly huge amounts of fish, but a little narrow, none the less. While the dwarves are unlikely to have a significant source of fish and will likely be interested in trading for it, it might be a good idea to widen out our possible trade goods. Further, we are short on utility materials such as metals for cooking, plates, mugs, cups, etc. While possible trade with the Dwarves may alleviate this, it may be worth investigating alternative sources.

As a possible solution, we could investigate making Glass.

The raw materials for basic glass types are here, namely beach sand and wood. Additives can be created from the sea or from standard waste products. More advanced glasses may require trade for some more specific additives, but this can be looked into later. If capabilities and skills increase we may be able to expand later on into stoneware, porcelain, china and other ceramics based materials.

Method

I would expect that the capability to  make glass should be available within the population. Even so, I'd expect the mages and/or the scholars to have a little knowledge of the basics.

Raw materials for glass would initially be primarily sand and wood. Charcoal would be better than wood, but requires production of charcoal, which again could be undertaken easily (and is likely a skill available in the worker population). In a well designed  (i.e. well drawing) glass kiln, we might even be able to fire with just wood.... In the mid term we could even design a magically heated kiln. Sea salt and ash/boneash would provide the lyme, resulting in a not particularly clear, but stable, low MP, easily workable glass suitable for most day to day use. 

Other ceramics, stoneware, etc could be created if a source of clay is found. I seem to recall there was a source at the River Village which we used to make the forges.

Proposal

For the first steps we would simply need to construct a well drawing kiln to see if we can reach the necessary temperatures with wood alone and see if we can start to make a basic glass. Assuming this works, we can then look into creating a good batch of glass stock while we are looking into getting a glass forge built, which requires much lower temperatures than the glass making kilns. this might even possibly be done in the apprentice lab (although I'd much prefer to keep this as the apprentice lab).

Possible Outcomes

• Failure: We have lost the use of some people for a small period of time, building a kiln/furnace/smelter and an additional oven/forge. Even if the plan does not come together, the kiln can be utilised for a number of things, at the vey least as a pottery or glazing kiln, or as an ore smelter. The blowing forge would at the worst case also be useable as a normal metal forge. Al in all, nothing would go to waste. The charcoal is needed anyway for longer term metal forging.
• Moderate success: If the glass produced is not of a particularly high quality, it will still be sufficient to provide us with utility items for our own day to day use and provide an alternative to metal items for day to day household materials. If borax can be traded for, we may even be able to create some cookware from glass.
• Good success: If the sand source is suitable for high quality glass, and we train up a few people on glass working and produce goods of good quality this may create a suitable additional/alternative trade good in the future. We might be able to expand into coloured glass and if some people develop some artistic skill we may even expand this further and generate an additional source of income for the town. The dwarves are unlikely to have as clean a source of sand as we have in this area, which means there may be a need for them to import the material.

Glassworker with some of his wares:

Glass based jewellery: