The Softwood Forest Products Buyer - November/December 2022

Southeast Business Trends
By Matthew Fite
Staff Writer
According to sources in the Southeast, the market,
as of this writing, is still doing well. There were
mixed remarks when asked if the current market was
doing better or worse than it was several months
ago.
A lumber exporter in Louisiana said that his demand
is high with business being good at the time of
this writing. He also noted that his market is better
than it was six months ago.
He said that he only deals with Yellow Pine in full rough thicknesses
of 4/4, 5/4, 1-5/8, 8/4, 10/4, 12/4, and 16/4. He added that he handles all
export grades, sap, prime and merch.
He has not had a chance to talk to his customers about their markets, as
they are mainly importers in other countries. He also remarked that he is
having difficulties with transportation and that is adding to his problems.
“My biggest problem is getting lumber to my customers,” he said.
A lumberman in Arkansas said that his business is average with the mar-
Bert and Bud Vaagen founded Vaagen
Brothers lumber in the early 1950’s.
Today, the company continues as a
closely held corporation owned by
members of the Vaagen family. This
continuity of management, vision, and
leadership has helped guide the
company for more than half a century.
Creating a culture of innovation,
integrity, and cooperation that’s
fueled Vaagen’s advancement, evolution
and growth over the years.
Vaagen Bros. Lumber
565 W. 5TH Ave
Colville, Wa 99114
Sales - 509-684-5072
www.vaagenbros.com
Continued on page 55
Quebec/Ontario Business Trends
By Richard Lipman
Guest Writer
According to an Ontario wholesaler, “Eastern
Spruce-Pine-Fir prices have eroded a bit over the last
two months, although there has been a fair amount
of resistance to lower prices. This will be coming to
an end if nothing changes in terms of the production
volumes in the country, while the demand is lower.
This will create a problem in bringing prices down.
The price decrease has been limited in the last four
weeks because there was work to be done, projects to be finished. Companies
have done well with on time deliveries to the job sites.”
A Quebec wholesaler noted, “Common grades are decent. They are still
moving, while the No. 3 Common is harder to sell. If nothing changes on
the production side, things are going to drop. It will be the larger volume
mills that will need to make a change in production levels. I find the western
producers are better at adjusting production.”
Housing was on people’s minds, one Quebec producer noted, “We do
see that the housing market is slowing down, but it is not as bad as the
statistics show. There is still
demand. It is not as bad as it
looks. Business has also been
good for repair and remodelling.
I feel we could just be looking
at one year of harder times. By
next fall, we could be back in
a dynamic market where we
need to be building more homes.
We are not too worried. We are
going to find business. We must
understand the market is going
to go lower.”
According to an Ontario
producer, “Looking long term,
we still think that increased
demand and limited supply will
mean that the Spruce-Pine-Fir
prices will stay above the levels
from before the pandemic, even
though they are weakening right
now. We are watching the U.S.
economy carefully. The housing
market has slowed down. There
is not nearly as much building
going on, there’s no doubt about
that. If interest rates keep going
up, people are not going to make
the leap.
“It could be a couple of years
before it sorts itself out. I really
feel for anyone out there buying
a home today. What you could
afford at one time is way off in
the distance now with the interest
rates. It’s a lesson learned;
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zero percent doesn’t last forever.
The higher rates are going to
affect what people can put away
for retirement as well. The price
of new homes and the interest
rates are slowing down activity.”
On the Pine side, according to
a Quebec producer, “The Pine
markets are stable. Production
is about the same as it was a
couple months ago. There is
no excess out there. Demand
sputters this time of year in local
areas with people hunting, from
Continued on page 65
NELMA Meeting Continued from page 1
the largest gathering in the past five years of this traditional September
meeting of the lumber industry. The event always begins with the NEL-
MA Golf Scramble, which this year was held at the Breakfast Hill Golf
Club in Greenland, NH. 52 golfers in 13 foursomes enjoyed a beautiful
New England day on the links. The team of Robert and Pam Johnson
(Johnson Lumber), and Adam Duplisea and Henco Viljoen (Nyle Dry
Kilns) took top honors with a winning gross score of 63. Second Place
went to the team of Matt Duprey, John Cole, Aaron Schulte (Hancock
Lumber) and Bernie Nugent (Warren Trask). The Third Place prize went
to the team of Alex and Bryan Darrah (Durgin & Crowell), and John
Krueger and Eric McCoy (Seaboard International). The longest drive
winners, ladies and men, were Rebecca Lowell (Lowell Lumber) and Eric
McCoy (Seaboard International).
A total of 13 exhibits and product displays lined the Welcome Reception
space on Wednesday evening following the golf scramble to kick-off
the all-important networking opportunities scheduled during the meeting.
The exhibits continued to welcome visitors during Thursday’s Breakfast.
The Morning Business Session followed with NELMA Chairman Chris
Brochu providing the official welcome. Jeff Easterling, NELMA President,
discussed the State of the Association, updating members with current
operational information that
covered staffing and financial
highlights. Chairman Brochu
recognized the Safety Award
winners for 2022 based on 2021
mill performance. The winners
for the Combined Operations
(Sawmill and Planer Mill) were:
Division I (< 50,000 hours),
Hammond Lumber – Belgrade,
Maine; Division II (>50,000 to
100,000 hours), Pleasant River
Pine – Hancock, Maine; Division
III (>100,000 to 150,000
hours), Durgin & Crowell – New
London, New Hampshire; and
Division IV (>150,000 hours),
Pleasant River Lumber – Dover-
Foxcroft, Maine.
Up next was the offering of
a slate of nominations to the
Board of Directors, approved
by the general membership.
The list includes the re-election
of the current officers for their
second year of their 2-year
term – Chairman: Chris Brochu
(Pleasant River); 1st Vice Chair:
Susan Coulombe (Irving Forest
Products); 2nd Vice Chair: Matt
Duprey (Hancock Lumber); and
Treasurer: B Manning (Sawmill
Associates). For the Board of
Directors: Bob Mai (Potlatch-
Deltic) for a 3-year term, and
Alex Darrah (Durgin & Crowell)
for a 3-year term. Robert Moses
of Britton Lumber was re-elected
as an at-large, one-year term
representative to the Advisory
Committee.
NELMA’s extensive marketing
programs and activities were
highlighted by Jeff Easterling,
followed by an overview of
a plethora of public relations
activities during the year by Kim
Drew (Drew PR and NELMA
Consultant). The PR report
provided a natural segue into the
next event, a live audience podcast
of From the Woodshed with
A.W. Stiles Contractors, Inc.
A.W. Stiles provides a full line of Modern Day Equipment serving both Softwood and Hardwood markets. New Installations
and Complete Rebuilds on Existing Equipment: High Temp Track Kilns, Hardwood Package Kilns, Predryers, Walnut Steamers
(Right) Charles Ingram Lumber in Effingham, SC. A.W.
Stiles Contractors fabricated and installed a patent pending
dual path kiln consisting of a 60’ center chamber and 40’
extension chambers. The engineering firm over the project
was Tinsley Consulting Group of Hot Springs, AR.
Complete Rebuilds Including:
• Roof Replacements/Complete Reskins
• Heating Coils and Complete Steam Systems
• Energy Efficient Upgrades -
controls, insulation additions, wind flow,
heating capacity, door seals, etc.
Ashley and Ryan Eldridge and Chase Morrill, all of Maine Cabin Masters
television fame.
Thursday’s Industry Luncheon welcomed guest speaker, Donna
Blevins, billed as the Big Girl of Poker at 6’5” tall. In addition to tidbits
about her views of poker playing, Ms. Blevins provided a unique approach
to inward self-help and awareness to the audience. Following
lunch, the afternoon session began with the signature economic presentation
by Paul Jannke of Forest Economic Advisors (FEA) with this
year’s topic of “Will Rising Interest Rates Cause a Recession or Merely a
Slowdown?”
And for the second year, the Northeast Regional Meeting of the North
America Wholesale Lumber Association (NAWLA) was embedded within
the NELMA Annual meeting. Back by popular demand, Speed Dating
returned, the ultimate high-energy networking event for lumber buyers
and sellers. 10 mills (sellers) welcomed 26 buyers in a 5-minute meet-
&-greet frenzy that incorporated over two hours of important business
interactions. Thursday’s packed business day ended with the evening’s
Chairman’s Reception and Dinner that concluded with the Golf Awards
and Best Poker Hand prize winner announcement.
The 89th Annual Meeting ended with Friday morning’s Board of Directors
meeting that incorporated important industry issue updates from
(Left) T. R. Miller Mill Co. in
Brewton, AL. A.W. Stiles Contractors
fabricated and installed two
steam-heated patented dual path
kilns each kiln consisting of 94’
center chambers and 62’ extension
chambers. The engineering firm over
the project was Tinsley Consulting
Group of Hot Springs, AR.
• Doors and Carriers
• Structural Repairs
• Protective Coatings
• Complete line of replacement parts
Lee Stiles Cell: (931) 409-0144
Email: lee@awscontractorsinc.com
Glenn Thompson Cell: (615) 372-4261
Email: glenn@awscontractorsinc.com
Casey Miller Cell: (931) 607-7451
Email: casey@awscontractorsinc.com
Office: (931) 668-8768 • Fax: (931) 668-7327
286 Bass Lane, McMinnville, TN 37110
awscontractorsinc.com
Continued on page 42
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