National - Miller Publishing Corporation

QUEBECSupplier news about sales, labor, prices,trends, expansions and inventories.Quebec and Appalachian area mills and wholesalers are strugglingto attract and maintain new customers. Even the longstandingcustomer base is not a guarantee for orders these days. This is seenfor kiln dried FAS Red Oak, according to comments received fromthe industry. The demand is well below the supply to absorb thetotal production.Some report that slower payments from customers are restrictingtheir cash flow. The high fuel prices are also causing concernsthroughout the industry. Trucking companies have been unable topass these costs along at the rate they have been incurred, and havetherefore had to cut their fleets. Some overseas shippers indicatedthey are experiencing delays waiting to receive containers, whileocean freight costs have risen dramatically as well. Delays areattributed to the lack of fewer goods arriving from Asia and othersupplier markets.The slow housing market is restricting the Oak strip flooringindustry. Manufacturers have reduced their production, and are stillpressed to keep developing supplies moved out.Suppliers are seeking available production of Ash, as wet weathertightened its supply earlier in the year.Use of Red Oak is down reported contacts. Curbed sawmill productionhas seen supplies fairly well balanced with buyers’ needs,and prices are stable. Shipments of kiln dried No. 1 Common haveimproved to a degree in terms of volumes, but prices are mixed.White Oak demand has tapered off somewhat, and in Europeespecially, where there is increased competition from Asian suppliers.Poplar is also seeing a decline in demand both on the domesticand international markets. This is due to the slowdown in the U.S.housing market.The slowing U.S. economy is taking a toll on the industry. Severalmore companies have reduced their hours, or shut down a shift.Unfortunately for some, they have had to close their doors.The wooden pallet and container manufacturers have also beenaffected by the U.S. recession. Sawmill production has decreased,Please turn to page 78ONTARIOTremendous effort is being exerted to maintain new business, andestablished customer relationships are not guaranteed to produceorders, comment contacts in the industry. The ones who can immediatelyship determine who gets orders. Sawmillers are reportingtight cash flow, as they are carrying large inventories necessary tofulfill secondary manufacturers’ short term needs. Fuel and deliverycosts are also affecting the trucking industry in the province, asthese costs are almost impossible to pass on to the customer. Fewertrucks have been reported as available to transport logs and otherproducts.Upper grade supplies of Aspen are marginally adequate to satisfythe demand. Hard Maple supplies of green stocks have been morethan sufficient to satisfy buyers’ needs and are readily meetingdemand. Soft Maple demand from the cabinet sector is reported tobe down as well. Soft Maple is competing against imported speciesfor market share. With total consumption down, prices for 4/4 No.1 Common have trended lower.Earlier in the year and up until recently, White Oak has been thebright spot for several sawmills. Some have exported this speciesoverseas, especially the kiln dried No. 1 Common and Bettergrades. Available supply remains steady, and supports the currentmarket demand.The Ontario Finance Minister tabled his budget in late March.Businesses were hoping for much needed tax cuts, which unfortunately,did not materialize. The modest tax measures for business,in fact, did little to satisfy neither the Federal Minister nor the businesses.The budget focussed on spending for transit and other infrastructureprojects ($1 billion), and $334 million for skills trainingfor fiscal year ended March 31st. The budget, it is reported,includes a $600 million “buffer,” in the event that revenues declinefurther than forecast. The capital tax, however, has been eliminatedretroactive to January 1, 2007, a year earlier than initiallyplanned. This will provide $190 million in rebates for manufacturers.The province is also granting a 10-year tax holiday to newPlease turn to page 7812 Hardwoods...The All-Purpose Material