National Hardwood Magazine - March 2012

Supplier news about sales, labor, prices, trends, expansions and inventories.
SOUTHEAST LAKE STATES WEST COAST
Industrial markets and
railroad ties have provided a
steady source of business
over the past few years, particularly
in the Southeast
region. According to sources,
this year is no different. Wet
weather conditions have
affected logging conditions,
although few report production
disruptions. A
Hardwood supplier in
Mississippi noted activity for
Red and White Oak is slowing.
“Mostly we are experiencing
a slow down in green
Red Oak,” he explained.
“We’ve seen a supply shortage
already this year in
Poplar and Ash.”
When asked about the primary
factors involved in the
shortage, the contact said,
“Green lumber production is
off because there is little
demand. Many mills refuse
to tie up capital by stacking
lumber that they don’t know
when it will sell.”
Offering 4/4 FAS and No. 1
Common Red and White
Oak, Poplar, Ash, Hickory
and Pecan, the source said
demand for low-grade industrial
lumber has increased.
“When Poplar showed a
shortage, some of our customers
have inquired about
Sap Gum as an alternative
Sources in the Lake States
region indicate log decks and
sawmill production have
declined, along with demand
for Red Oak. A Hardwood
supplier in Wisconsin said
interest in other species has
increased recently. “Demand
for Hard and Soft Maple has
increased,” he explained.
“Supplies of green Maple are
somewhat limited, which
makes it difficult to meet the
needs of the market.”
The supplier noted that
kiln dried stocks are more
stable than the green.
“Activity for kiln-dried lumber
is more controlled right
now. There is still the issue
of buyers only purchasing for
immediate needs, but prices
seem to be stabilizing.”
He also commented that
his end user clients reported
moderately improved business.
“Our Hardwood flooring
customers are probably
seeing the most increase in
activity, with the cabinet and
furniture manufacturers following
closely behind,” he
said.
When asked about what he
expects for the second quarter
of 2012, the source said,
“We’re not expecting any
dramatic changes but naturally
business will have a
Contacts on the West Coast
report supply shortages with
a pick up in activity. “In
Southern California, we’ve
seen supplies tighten,” a
Hardwood supplier in
California said. “Activity has
picked up since the 2nd quarter
of 2011 but buyers are still
reluctant to speculate beyond
their immediate needs.”
When asked about current
inventory levels the source
informed, “No one in recent
history has been burned by
operating on a just-in-time
inventory. Being out of stock
is not a big concern—yet.”
He also noted that his customers
and associates indicated
business picked up at
the end of 2011 and has carried
steady so far in 2012.
“Many of the wholesalers in
our area had strong sales
through the end of last year,”
he explained. “One of the
largest yards in Southern
California had their best year
in 2011 since 2007.”
As for other issues that may
be impacting his operation
the source said, “We’re seeing
inflation in fuel, food, nondurable
goods and just about
everything except income and
property values and wood
prices.
“Lower Hardwood availabil-
NORTHEAST
Log supplies are still a primary
issue among northeastern
Hardwood suppliers.
Sources indicate sawmills
did not build large inventories
over the winter months
and profit margins are thin.
“We’re going into the spring
with moderately low log
decks,” a contact in
Pennsylvania noted. “Cash
flow is an issue and price
gains are selective on particular
items.”
The contact also noted that
the winter weather has had
a large impact on logging
operations. “Ordinarily we
take a hit during the winter,
so it’s not unusual to have
things slow down.” However
at press time the contact
noted that increased log supplies
and green lumber production
are necessary before
break up.
As for salability of lumber,
the source said most items
are steady or improved for
species grown in the region.
“Pricing has stabilized for
the most part,” he explained.
“Soft Maple has a combination
of limited log supply but
increased demand. Availability
of green and kiln
dried Soft Maple is about the
same. Common grades are
being accepted more due to
Please turn to page 49 Please turn to page 50
Please turn to page 50
Please turn to page 51
6 Hardwoods...A Renewable Resource