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National Hardwood Magazine - October 2022

In the latest issue of National Hardwood Magazine, get to know Holt & Bugbee Company, learn about Pennsylvania Hardwoods' expansion, and much more.

In the latest issue of National Hardwood Magazine, get to know Holt & Bugbee Company, learn about Pennsylvania Hardwoods' expansion, and much more.

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SOUTHEAST Continued<br />

using lumber like they were. The market isn’t as good<br />

as it was. I’m guessing people are not buying lumber to<br />

manufacture their products like they were because they<br />

aren’t able to sell their products as well.”<br />

He sells all grades of all species indigenous to the<br />

Southeastern U.S. and some native to the Northeast.<br />

Thicknesses are mostly 4/4 and 5/4.<br />

He sells his lumber to end use manufacturers. “Because<br />

they’re not buying lumber like they were even<br />

though lumber is available, it tells me they’re not selling<br />

products like they were.<br />

“Transportation is not that bad,” he remarked. “Rates<br />

are higher than a year ago, but that does not cost us<br />

sales. We have long-standing relationships with trucking<br />

companies, and we get a lot of calls from trucking companies<br />

wanting to haul our lumber.”<br />

A North Carolina lumber provider commented, “We’re<br />

doing OK. However, I see rough waters rapidly approaching.<br />

Some aspects of the market are doing well.<br />

But other aspects, typically on exports to Asia and Europe,<br />

are going through a pretty major price correction.<br />

Prices are going down pretty much across the board.<br />

I don’t think there’s any grade or species that is unscathed<br />

at the moment. The market is on the decline at<br />

this time.”<br />

In fact, he said, the market is not as good as it was a<br />

few months earlier.<br />

He offers Red and White Oak and Poplar in 4/4<br />

through 8/4, in all grades including FAS and No. 1, 2<br />

and 3 Common.<br />

He sells mostly to end use manufacturers and to some<br />

distribution yards. “They are OK today in their sales, but<br />

their order files are getting shorter.<br />

“The cost of transportation is difficult and has an effect<br />

on our business,” he observed. “However, transportation<br />

is more available.” n<br />

WEST COAST Continued from page 11<br />

most people. I just see that the sales are there; you just<br />

have to work it.”<br />

He sells all FAS No. 1 and 2 Common in 4/4 thickness<br />

in Walnut, Hickory and White Oak.<br />

He sells lumber to architects, flooring companies and<br />

retail lumberyards. “They’re still pretty steady,” he said,<br />

“not as busy as a few months ago but they still have business.<br />

“It’s tougher getting containers shipped from mills,” he<br />

remarked, “but local transportation is good.”<br />

A lumber provider in Oregon said, “Everyone is seeking<br />

clarity about what’s going on in the marketplace, what<br />

will happen.” He said the market is weakened. There<br />

is falling domestic demand as well as a slower global<br />

market. “Some people have pulled back purchases,” he<br />

stated. “Warehouses are full or don’t have much space.<br />

There is uncertainty with what the Federal Reserve will<br />

do with interest rates. The November elections, at the<br />

state and federal level, also provide uncertainty,” he said.<br />

The market is not as good as it was several months<br />

earlier, he said.<br />

Poplar, White Oak and Hard Maple are his best sellers.<br />

He said that, among other products, they run a lot of their<br />

lumber into profiles at their moulding plant.<br />

He sells his lumber to cabinet manufacturers, commercial<br />

enterprises that refurbish interiors of offices, banks,<br />

concert halls, universities, furniture manufacturers and<br />

retailers.<br />

Transportation is getting better, he said.<br />

In Washington State, a lumberman said, “The market<br />

has slowed over the past month or two it’s a little softer.<br />

All the negative news about recessions and the slowing<br />

housing market have affected the market.<br />

“I’d say the market is a little worse than it was a few<br />

months ago,” he stated. “We’re still moving products.<br />

The price of lumber is definitely falling. It’s significant but<br />

not drastic: a 20 percent drop on some items. People are<br />

holding off on their purchases and only buying what they<br />

need. They’re not stocking a lot of lumber right now.”<br />

He sells all grades of Walnut, Poplar, Oak, Maple,<br />

Basswood and all Eastern <strong>Hardwood</strong>s, in 4/4 through<br />

8/4 “but you could see any thickness go out of here,” he<br />

noted.<br />

He sells to millwork shops, distribution yards, cabinet<br />

shops and others. “I hear mixed results of sales by those<br />

companies. Some companies are so backed up they’re<br />

not seeing a slowdown; others have said the opposite.<br />

It’s hard to make sense of what’s going on. Some sheds<br />

are full, and those companies are buying to replace as<br />

needed. Lumber prices are falling a little bit, and people<br />

don’t want to be caught with high-priced lumber.”<br />

For transportation, prices have softened a little, and<br />

availability of trucks is better, he said.<br />

Overall, he observed, “You feel like everyone’s talking<br />

themselves into a recession. Indicators vary, which is<br />

weird. Some are bad; some aren’t. In today’s world, it’s<br />

tough to tell where you’re at economically.” n<br />

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OCTOBER <strong>2022</strong> n NATIONAL HARDWOOD MAGAZINE 43

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