Business Trends U.S.A.
Business Trends U.S.A. Southeast West Coast Throughout the Southeast region, sources have said that their markets are slower than they have been. One source noted, at the time of this writing, that he has seen an increase in his sales over the past few weeks, while another said this is the worst he’s ever seen the marketplace in all his time in the industry. There is a general consensus that sales are currently dependent on the lumber species. A lumberman in Mississippi stated, “We’ve just come off the best two years we’ve seen in our lives, but right now, it’s about as slow as I’ve seen it. It’s really, really quiet.” He handles most species indigenous to the Southeast and Eastern United States, from pallet lumber to FAS in 4/4 and 5/4. He sells to end users only. His customers manufacture flooring, pallets, crating and upholstered furniture frames. “I think their sales are quiet, too,” he commented. “Transportation is steady,” he said, although their need for it has declined. “But Rocky Hardwood Inc. Lumber Hardwood Flooring Continued on page 28 Assessments of hardwood lumber markets on the West Coast are mixed. It’s either “strong,” “barely fair” or “steady,” depending on which lumberman you’re listening to. “I’d say business is still strong,” said a lumber provider in Oregon. “In terms of species, Walnut and White Oak are selling well for us.” Compared to not so long ago, the market is “worse,” he stated. “It has slowed down from the first part of 2022.” In addition to Walnut and White Oak, he also provides Maple to his customers. He offers higher grades plus No. 1 Common and Better, in 4/4 through 12/4 but mostly 4/4 through 8/4. He sells his lumber mostly to end users including smaller manufacturers of handmade furniture. “Our customers’ sales are still strong,” he remarked. “Most of them are working off of long lead times. Lead times are starting to come down some but the backlog of orders they have is enough to keep business on pace for them.” Regarding issues negatively affecting his company, he said, “Freight is still expensive; it’s not hard to book but still high in price. Material costs are up mostly because labor costs are up. Absorbing those costs on the front end is difficult.” A lumberman in Washington said, “Business is a little slower for sure. The market is barely fair,” and “definitely worse” than six months ago. He sells all grades of Walnut, Poplar, Oak, Maple, Basswood and all Eastern hardwoods, in 4/4 through 8/4 “but you could see any thickness go out of here,” he noted. Poplar is his best seller now. He sells to millwork shops, distribution yards, cabinet manufacturers and others. “Our customers’ sales are slowing,” he stated. “Everybody’s order files are shrinking. Everyone was hoping things would be better in January, but it wasn’t clear if that would happen, with interest rates the way they were.” Transportation is “not really” affecting his business, he said. “The diesel shortage has kind of made things unpredictable for rates per mile. But so far, transportation is pretty stable.” In California, a lumber representative said his sales are “steady but order to order. Lumber is moving.” However, the pace of sales is “a little slower.” He sells all FAS No. 1 and 2 Common in 4/4 thickness in Walnut, Hickory and White Oak. His customers are flooring manufacturers and retail lumber yards. “Their sales are steady, not as busy, but they’re still moving products,” he remarked. “Their customers are waiting longer to ask for the product.” For his company, transportation is “always OK,” he stated. “We have so much trucking in this part of the state. Also, containers are arriving in a more timely manner from the sawmills.” n Page 10 Import/Export Wood Purchasing News n February/March 2023
