Supplier news about sales, labor, prices, trends, expansions and inventories.SOUTHEAST LAKE STATES WEST COASTSources in the Southeast said businesscontinued to remain slow as the summermonths concluded. While some items arestill moving well, they’re just not sellingat previous prices.An Alabama manufacturer, who handlesboth lumber and flooring, said both marketswere moving “pretty slow. Nos. 1 and2 Common Poplar are doing all right,” hesaid. “Upper grades are slow in prettymuch every species. The price is toocheap on flooring.”The source said the Red Oak market,which had been nearly dormant in recentmonths, is “moving pretty well. We’reusing high grade Red Oak in S4S, andshipping a fair amount of common Red.”The contact said he’s heard rumblings ofsome furniture manufacturers returning tothe United States to make their products,a move he definitely favors. “It woulddefinitely be a big help,” he said. “All ofthem moved overseas for cheap labor, andthe furniture business in the States rightnow is pretty much dead.”An Arkansas Hardwood dimension andflooring mill source said his company isjust now recovering from a loss of logsduring the spring. “We were out of logsfor a long time,” he said. “But, the spreadon the market is not enough to kiln dryanything so we’re selling most everythinggreen except for FAS Red and WhiteOak.”The contact said stumpage prices are toohigh and lumber is selling too cheap tomake a considerable profit. “We don’thave anything that we can’t sell, but it’stough,” he said.Sources in the Lake States region recentlycited the current state of their businessas “slow,” but are hoping for a turnaroundduring 2009.A Michigan sawmill source said hiscompany is being “double whammied”due to the downturns in both the housingand automotive industries. “A lot of peoplehave lost their jobs (in the automotiveindustry),” he said. “Packaging containersand pallets for those guys are down, aswell as the housing industry so it’s a doublewhammy. Our production is probablydown about 30 percent.”The contact said species such as Red andWhite Oak, and Hard and Soft Maple are“moving OK, but prices are low. It’s thetoughest I’ve seen it in my 30 years.”The Michigan source added that heanticipates an uptick for industrial lumberduring October as firms restock theirinventories. “But, it will probably be themiddle of next year before we see any significantbreathing room,” he said. “By2010, we’ll be doing pretty good. It willtake that long to clear out this housingthing.”An Ohio wholesale lumberyard sourceechoed the sentiments, adding that severalmills in his area are working limitedhours.“I don’t think the situation’s going toimprove for at least 12 months or better,”he said. “The high cost of gas has justbeen a pain in the neck.”The contact said Ash and White Oak aremoving decently, while Cherry is “probablythe slowest thing out there, and productionhas also fallen way off. HardSources on the West Coast have mixedfeelings about the current state of the forestproducts industry. Despite a sluggishhousing market, contacts said there isbusiness to be found with higher-pricedhomes and the industrial sector.A Washington wholesaler describedbusiness as good. “Although the low-endhousing market has definitely sloweddown, the higher-end homes and commercialside of the business are still profitable.A lot of buildings are still beingbuilt.”The source said smaller homes are a“dead” market, with values decreasing 4to 5 percent in the past two months.“Million dollar plus houses are still beingbuilt, and those that have the money arestill buying them,” he said.The contact noted that Cherry andAfrican Mahogany, including paintgrades, are the hottest species. “Uppergrade Red Oak is actually selling again,while Maple just ended,” he said. “All ofour guys are pretty positive, and our customersseem to have work. We’re justgoing to keep going forward, and not tryto get into the downspin that everybodyelse is experiencing.”A California wholesale lumberyardsource described the current market aschallenging. “Nobody’s building sonobody needs wood,” he said. “With thehousing situation as grim as it is, the onlybright spot we’re all chasing is the commercialsector.”The contact said Poplar, Mahogany andAlder are the “bright lights” in the industryright now, selling to the custom mill-Please turn to page 73 Please turn to page 74Please turn to page 7518 Hardwoods Have Workability
Branching Out Worldwidewww.ahwood.com | sales@ahwood.comEmporiumHardwoodsGrahamLumberSEPTEMBER/2008 19
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