Wood is one of the materials obtained by salvaging items in the salvage cube. Materials are used by the Artisans to craft new items. Materials are also required for the training the Artisans to do level up.
There may be other purposes for materials as well, but none have yet been revealed.
Wood is a fairly common material, and is required to craft most items with some wooden components to them, such as bows, shields, or spears.