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Most likely this, I've got quite a sizeable area for forestry and it's working perfectly fine. Also if you are plotting nodes, are you ensuring that you have trees to actually cut down?
Just trying to cover all possibilities.
I know this sounds stupid but sometimes when you try to plop a building the blue wireframe of the structure actually shows and sometimes it doesn't (it will get that grey gear icon above it too).... and then it doesn't work...
So make sure you're not actually plopping down an empty lot and that it actually shows a building in blue wireframe.... Sometimes it actually only takes a pixel of moving your mouse to the left or the right for it to show (OR DISAPPEAR for that matter)
EDIT: This goes for ALL specialised industry btw and is ONLY an issue for specialised industry like ore, forestry, husbandry and/or oil
I am now thinking about giving up with this whole game because it just seems a joke. It is nothing in comparison to the first game
You can see forest areas using the natural resources info view (top left of the screen).
Also, if you have placed a forestry industry and it doesn't have any trees you can see this on the building's efficiency rating. It may say "-X% Natural Resources", for example.
All this being said, it's possible that there are bugs but forestry does work in my city. I noticed that another of my specialized industr areas that is very far from the city center has a hard time hiring people.
I tried for houres just turn of snapping to road and move the building just a little bit away from the road, but not to far you still need the road connection.