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Whenever you need something done with wood you ask the Carpenter , who is usually found in the Carpentry Workshop located to the right when you enter the Town. Carpenters use Hammers and Chisels to turn Wood into weapon and tool Handles, Arrow Shafts, stakes, bows, and Cooking items like bowls and ladles.
As of Version: 0.0.32.2 there are no experience-based upgrades for Carpentry. The best way to make it easier is to use higher tier Metals in your chisel, and to use the largest hammer available to you. Carpentry efficiency is not based on the Metal used in the hammer, but the weight of the hammer. A 13 ingot Valyan hammer will be just as efficient as a 13 ingot Gold hammer.
See Carpentry for a full list of recipes as well as a how-to guide.