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Page 8 NAWLA NAPA PHOTOS - Continued from page 1 The Softwood Forest Products Buyer Chuck Nortness, North Pacific, Napa, Calif.; Jim Enright, Rosboro Lumber Co., Stockton, Calif.; and Mike Griffin and Brian Keefer, North Pacific Jim Decker, North Pacific, Napa, Calif.; Nick Kent, NAWLA, Rolling Meadows, Ill.; Ethel and Tom Rice, Conner Industries Inc., Ft. Worth, Texas; and Wayne Miller, The Softwood Forest Products Buyer, Memphis, Tenn. Steve Fischer, Genelle Frontin, Becky Scarratt and Mike Arnold, North Pacific, Napa, Calif. Craig Adair, APA–The Engineered Wood Assoc., Tacoma, Wash.; Gregg Wilkinson, North Pacific, Portland, Ore.; and Thom Wright and Bob Carlson, All-Coast Forest Products Inc., Cloverdale, Calif. Bob Carlson and Kent Bond, All-Coast Forest Products Inc., Cloverdale, Calif.; Denny McEntire and Paul Brateris, Harwood Products Inc., Branscomb, Calif.; and Mike Finck, All-Coast Forest Products Inc. NAWLA PORTLAND PHOTOS - Continued from page 1 Ron Breedlove, All-Coast Forest Products Inc.; Mike Griffin, North Pacific, Napa, Calif.; and Darryl Turner, Stockton Wholesale Lumber Co. Inc., Stockton, Calif. Jon Anderson, Random Lengths, Eugene, Ore.; Michael Kirkelie and David Smith, Rosboro Lumber Co., Springfield, Ore.; and Wayne Miller, The Softwood Forest Products Buyer, Memphis, Tenn. Brian Smith and Gregg Wilkinson, North Pacific, Portland, Ore.; Troy Gilbert, Poly Chem Corp., Spokane, Wash.; and Bob Knott, System Transport Inc., Spokane, Wash. Monique Bauer, North Pacific, Portland, Ore.; Jim Talley, Blasen & Blasen Lumber Corp., Portland, Ore.; Dan Hoagland, Stimson Lumber Co., Portland, Ore.; and Jay Ross, North Pacific Joe Honochick, Karl Hallstrom, Brian Jones and Mark Grube, Zip-O-Log Mills Inc., Eugene, Ore. Kevin Dodds and Grant Phillips, Buckeye Pacific LLC, Portland, Ore.; Vince Mast, Hampton Lumber Sales, Portland, Ore.; James Weber, Cascade Structural Laminators, Eugene, Ore.; and Chris Cassard, North Pacific, Portland, Ore. Ned Olson, Western International Forest Products LLC, Portland, Ore.; Gordon King, retired, Hampton Lumber Sales, Portland, Ore.; and Glenn Lowe, Blasen & Blasen Lumber Corp., Portland, Ore. Rick Kelly and Bob Mai, Potlatch Corp., Lewiston, Idaho; Loren Krebs, Disdero Lumber Co. Inc., Clackamus, Ore.; and Lee Freeman, The Temperate Forest Foundation, Beaverton, Ore. Gunnar Brinck, Disdero Lumber Co. Inc., Clackamus, Ore.; Joe Nealon, Pacific Western Lumber Inc., Lakewood, Wash.; Rocky Mullen, Mullen Lumber Inc., Molalla, Ore.; and Dan Ettelstein, Disdero Lumber Co. Inc. Joe Honochick and Karl Hallstrom, Zip-O-Log Mills Inc., Eugene, Ore.; and Mike Phillips, Hampton Lumber Sales, Portland, Ore. Additional photos on page 10
May/June 2007 Page 9 West Coast Business Trends By Wayne Miller Executive Editor In mid-April, markets for commodity products were described as slow or soft by most suppliers due to over production of domestic supplies, continued supplies of imported material arriving from offshore, late winter weather in many parts of North America, and a slower economy than the same time last year. Specialty or niche products fared better; generally speaking. In West Bank, B.C., Andy Carr with Gorman Brothers, a board manufacturer, said, “Demand for our number two boards is very high and we are sold out the next six to eight weeks. One issue that’s fairly new for us is blue stain that is showing up more and more from beetle killed trees. It is getting harder to keep our log supply free of the blue stain as more of these killed trees are being harvested. In April we made a change in our prices after eight months of no change. Some pressure came off logs so we dropped the price of eight inch and increased the price of the 12-inch widths. We have an adequate log deck for this time of year and the quality of our logs is pretty good. However, by July we expect that we will see more blue stain coming in. We can’t avoid blue stain entirely, but we can pay higher prices and get more logs without the stain. Demand is huge for our boards. We get several calls a day from distributors we are not currently selling and we have to turn them away. Our focus remains supplying our distribution partners that we have ongoing relationships with. Almost all of them would like more of our product than we have to supply.” Robert Sandive of Haida Forest Products, Burnaby, B.C., said, “Our products are all of Cedar and we have a consistent order file, however we are short of a number of items due to lack of Cedar supply. Somehow we have managed to make up sales dollars from what we are able to make and what we do have to sell. Our overall shipments are actually higher in volume than this time last year, probably because we have been in business a long time and have well-established relationships with our suppliers. There is no doubt we could sell more products and volumes if we could get more supply. “Also there is a concern about high prices from end users. Prices seem to continue upward due to lack of adequate supplies. Will those ultimate buyers be willing to continue paying higher prices? The Cedar supply seems to be always shrinking. However, our bevel items and wavy item sales are up about 10 percent from last year. We are staying busy. Clears are really tight and we have had to raise our prices on clear items considerably. Clear export prices are up by a third since a year ago. For instance, a year ago 2x6 No. 2 Clear was at $2,150. Now it is $3,000, almost a 40 percent increase. Mills are having a difficult time as logs continue to go up in price. Mills have the most capital invested in our supply.” Sat Brar with Silver Creek, Matsqui, B.C., said, “Our Cedar shingle and shake mill has been shut down for the last three weeks due to lack of logs. We talked with our log guy and last week he said it will be two or three weeks before Cedar logs start to come out of the woods. Very few Cedar mills are running now. We ran consistently until three weeks ago. It is hard to know what demand is right now. We are getting inquiries but we cannot quote. I have been in Cedar sales for 10 years and I have never seen this situation before. Right now we face the highest prices we have ever seen for Cedar logs.” Doug Clitheroe, sales manager for Interfor, Maple Ridge, B.C., said, “Demand for Cedar was very good through 2006. We saw the best shipments in 2006 since 1999 in fact. This year we have a lot of harvest issues and much of the resulting problems are due to a tough and long winter causing a slower start up for Cedar mills. We have also seen a bad winter in the northeast which has considerably slowed demand. So, in my opinion, balance between supply and demand is not far off. There is not much inventory in the field or at mill levels right now. In our own Cedar mills, we are starting to get some logs in and our production is gearing up. We expect more and better production in May and June. Commodity products are ugly. Because of this, many wholesale or wholesale distribution companies are trying to shift gears and get into Cedar to improve sales and margins. Those companies that have not been in the Cedar market until now are finding it very difficult to make any inroads in their efforts to find material. Established suppliers are focusing on long term customers.” Dennis Wight, sales manager for Pacific Western Wood Works Ltd., Delta, B.C., said, “Demand for specialty Cedar products is there. However, the quality of logs has changed and the percentage of clear yield is less. We are seeing Cedar from our supplying mills free up a bit more—better than two or three months ago. However, I could make more money if I had more wood and better quality Cedar on hand. We Continued on page 27 Zip-O-Log Mills specializes in carefully crafted, high-quality timbers available in an impressive range of stock and custom sizes. We begin our quest for quality in the forest where Douglas fir trees are carefully selected and harvested. Then, each log is expertly milled by our skilled operators using specialized equipment. The resulting timbers are thoroughly inspected for exceptional appearance and quality. Midwest Business Trends By Paul Miller Jr. Assistant Managing Editor Price gains for Ponderosa Pine and SPF stabilized in recent weeks as traders throughout the Midwest reported an increase in interest as buyers emerged from what the sources referred to as “the winter blues” when the market was considerably slower. The Upper Midwest appears to be the exception to a market that has shown gradual improvement. Distributors in the Upper region have reported a scarcity of jobs and orders in recent weeks. Spruce-Pine-Fir (SPF) mill sources report they struggled in the early weeks of spring due to sluggish demand as wintry weather persisted well into April. This resulted in softened prices of some species throughout this area of the Midwest. However Nos. 1 and 2, 2x4 SPF products have remained firm, and even gained slightly in price as of press time of this issue of The Softwood Forest Products Buyer. From forest to finish EUGENE, OREGON 541-343-5854 Mill sources reported receiving “modest to fair” offers on such products as SPF Nos. 1 and 2, while No. 3 2x4 SPF prices gained substantial ground by mid- April. Overall, though, sources categorize the market as lackluster and spotty, and all echoed hopes that the summer months will bring an uptick—however slight—in activity. Housing Horizon Projected Brighter In 2007 When the National Assoc. of Home Builders (NAHB) recently released a report outlining exactly which regions of the country have suffered most during the “correction” phase of the housing industry, the Midwest topped the list. The good news is that the NAHB forecasts that the worst is nearly behind us; however, better days are about one year in the future. In fact, the NAHB reports that “the Midwest, which is the hardest hit region of the country due to some key markets that have been languishing because of weak local economies, aren’t likely to see brighter horizons until next year as job and income growth gradually improve.” The report notes that the correction that started last year has affected different markets to different degrees, “but even markets with signs of over-heating during the boom have slowed consider- Plus, Zip-O-Log is adept at handling your special requirements for kiln drying, surfacing, and more. We provide the right lumber specifications for your building needs, whether in full units or custom piece counts. And all orders are packaged, shipped and delivered on time with the utmost care. Contact Zip-O-Log today to find out why, when it comes to high-quality Douglas fir timbers, we’re simply outstanding. WWW.ZIPOLOG.COM Continued on page 28
Page 1 and 2: The Softwood Buyer P.O. Box 34908 M
Page 3 and 4: May/June 2007 Page 3 Table of Conte
Page 5 and 6: May/June 2007 Page 5 The Home Depot
Page 7: May/June 2007 Page 7 Innovation and
Page 11 and 12: May/June 2007 Page 11 North America
Page 13 and 14: May/June 2007 Page 13 ALL-COAST Is
Page 15 and 16: March/April 2007 Page 15
Page 17 and 18: May/June 2007 Page 17
Page 19 and 20: May/June 2007 Page 19 BCWLA Members
Page 21 and 22: May/June 2007 Page 21 Texas Hospita
Page 23 and 24: May/June 2007 Page 23 CLA - Continu
Page 25 and 26: May/June 2007 Page 25 APA - Continu
Page 27 and 28: May/June 2007 Page 27 WHO’S WHO -

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