National Hardwood Magazine - Christmas 2022

2023 Hardwood Purchasing Plans
While Challenges Persist There Is
Hope For The Coming Year
Compiled by Cadance Hanson
Editor’s Note: The following is an exclusive annual report compiled by National Hardwood
Magazine about the 2023 purchasing plans of several of North America’s largest Hardwood
lumber buyers.
The market has varied throughout 2022, often varying greatly throughout the year for distribution
yards and end users alike. Many lumber buyers said that they will continue to have lower levels
of inventory as they continue to watch inflation and interest rates.
As finding quality employees continues to be a struggle for many industries, the lumber
industry is no different. Many business operators said that they are offering proper compensation
packages, like employer matched 401K and production bonuses, as well as new hire bonuses
and bonuses based on employee referrals.
While there is still a lot of uncertainty plaguing every facet of this industry right now, many
believe that things will begin to turn around in 2023.
ERIC BOER
MASON’S MILL
AND LUMBER
HOUSTON, TX
While much of 2022 was a challenge
with keeping what we needed
on the floor and trying to keep costs
as manageable as possible, we’ve seen things loosen
up going into the fall and winter. Our expectations are
that trends will continue, and we’ll see shorter lead times
and continued softening on prices. On that basis, we’ve
been trimming down stock levels and holding off on forward
purchasing where possible. I expect that to be normal
for a while moving forward.
Despite significant headwinds on a lot of fronts, 2022
was a very good year for almost everyone I’ve spoken
with. There were very few slow-moving items, and, in
fact, some items were downright difficult to secure for
much of the first half of the year.
As with most folks, White Oak was the hot ticket along
with Poplar over the course of the year. We struggled at
times to ensure we had ample stocks on hand in some
White Oak and Poplar items, but overall, with a little
planning, we were able to keep inventory on hand to satisfy
our customers.
While rift cut White Oak was and still is in extremely
high demand, we saw a surge in interest in both plain
sawn and quarter sawn White Oak which I feel was,
in part, a reaction to the incredibly steep climb in rift
sawn White Oak pricing. Other lines we saw increase
in demand and popularity were the thermally modified
woods, including Ash and assorted softwoods.
We expect the interest and demand to continue to
grow in these modified woods and look forward to other
Hardwoods like Red Oak being introduced into this
field. We’ve positioned ourselves aggressively to stay
on the forefront of this new technology and the products
thereof.
Increased freight costs had a significant impact on the
cost of both domestic and imported wood products all
year. While freight costs continue to be high, we’ve seen
a little softening, especially on ocean freight.
I’ve heard from many of my counterparts in the industry
that employee hiring, and retention are some of
the biggest struggles they deal with. We’ve been fortunate
in that regard and while we’ve had some issues
with finding the right people, we’ve been able to retain
most of the people that we really wanted to. In addition
to proper compensation packages, we’ve found that
employee engagement and managerial flexibility have
aided in keeping staff. We strive to maintain an upbeat
and positive work environment and feel it has paid off
well for us.
I expect some challenges in 2023, including the impact
of high interest rates on the housing market. Overall,
the demand for our products remains strong. We are
cautiously optimistic that we can make a good year of it
overall with a conservative approach to forward buying
and overall stocking levels. s
Please turn to page 57
Simple – we handle all the complexities that go into hardwoods to make
life easier for you. Natural – we manufacture and supply only sustainable, high-quality
products that breathe life into your work. Hardwoods – from harvest to delivery,
we set the standard for what the hardwoods experience should be.
nwh.com
22 CHRISTMAS 2022 n NATIONAL HARDWOOD MAGAZINE