WHEELAND LUMBER CO.,
WHEELAND LUMBER CO., INC. • FORESTRY PARTNERSHIPS • WHEELAND LUMBER CO., INC • FORESTRY PARTNERSHIPS • BROWN STREET FURNITURE - Continued my of scale, feeding lumber into the warehouse for continuous sawing and building and waiting for customers to buy, consequently causing waste, to the current method of acquiring materials just before needed. “The customer’s order triggers the inventory to be pulled through the process. We only produce what and when needed, removing waste and saving the customers money.” The pull system, uses just-in-time seas markets where the lead time becomes 10 to 12 weeks. Previously we would buy, manufacture, and warehouse product, paying for wood, labor and shipping, and all the cash was in the warehouse. “Now we take a full order and produce it in one week. Once we set up a machine, which takes 20 minutes, we run that piece in 5 minutes, and ship in 6 to 7 days. Through this new age philosophy, we produce all in one operation, take less time in set up, and only produce what’s sold.” The brothers are silver status members of the Sustainable Furniture Council and take great pride in producing furniture in a way that is least harmful to the environment. They continue to focus on building the business and increasing factory capacity to produce their American-made furniture. Kyle reflected, “We believe deep down the consumer cares about that, just after price.” To contact Brown Street Furniture call 617-244-2062, or visit www.brownstreet.com, or email kyle@brownstreet.com. • • Clear Strips • Solid Dimensions • Band Headrig and Band Resaw Mill • 500,000 BF of Dry Kilns - 1,500,000 of Dry Storage • Grading to Overseas Standards Phone: (570) 324-6042 • Fax (570) 324-2127 Contact: Ray Wheeland, Sales • E-mail: ray@wheelandlumber.com Derek Wheeland, Sales • E-mail: derek@wheelandlumber.com Bill Baker, Sales • E-mail: bill@wheelandlumber.com Damen Wheeland, Log Sales: E-mail: damen@wheelandlumber.com Website: www.wheelandlumber.com SOUTHEAST TRENDS - Continued from page 6 inventory management, achieved through a Kanban series of replenishment points that posts what, when, and how much to produce. A sophisticated type of cutting tool, the Ultimizer, designed to allow operators to cut material in a very expedited fashion, is used in slicing and dicing wood through a series of computerized checkpoints. “It’s been an amazing transformation in production,” confirmed Tager. “As a domestic manufacturer, we provide a great variety of product, in whatever color wanted and in 4 to 6 weeks time, an advantage over overand our prices are going up. We’re paying more but it’s due to transportation. The extra is not going back to the mills, it’s going to the trucker for higher fuel costs. Our transportation issues are very real. Availability is off also. There seems to be fewer trucks and when you can get them, they are much more expensive.” He also said his export markets have dropped. “We’ve seen a drop off after the Fourth of July and we anticipate lower numbers to come.” Marketing to flooring distributors and conventional distributors along with moulding, millwork and pallet manufacturers, he mentioned his low-grade customers as a bright spot. “The pallet guys have pretty good activity right now and most of them are staying current. Normally the lower the grade, the slower the pay but right now the lowgrade is a bright spot.” Looking at the months ahead he expects business to remain flat. “I look for flat conditions to continue. I don’t think there is going to be any uptick in demand. Now there may be a supply decrease but I don’t look for any demand pick up.” In North Carolina a Hardwood supplier 44 Hardwoods Have Versatility
SOUTHEAST TRENDS - Continued also accounted for slow market conditions. “I haven’t seen a change in the past six months,” he explained. “Housing is our primary issue and our foreign accounts have slowed also.” Handling Ash, Red and White Oak and Poplar he said Poplar is moving well and Red Oak is slowing. “Red Oak had been moving fairly good but it started slowing down in the last couple of weeks.” As for availability he said, “Log supply has been tight and it’s directly related to weather.” An Arkansas Hardwood supplier said his prices are stable and he expects them to remain flat. “Transportation cost is up and that affects our bottom line,” he added. “We’re also having some availability issues; it’s tough getting containers right now.” He said his furniture and millwork manufacturer customers are quiet. “We haven’t heard much from our customers as far as how their markets are, but the general slowness of our business is a pretty good indicator.” For the remaining months in 2011, the source is hopeful. “I’m looking on the half full side of the glass,” he said. “I believe we’ll see some improvements.” According to the Federal Reserve’s Beige Book, other sources in the region reported that economic activity moderated somewhat in recent weeks. Retailers experienced a deceleration in sales and traffic, which they attributed to periods of adverse weather and high gasoline prices. Tourism-related spending, however, increased across all segments of the industry. Homebuilders noted continued low levels of sales and construction, while brokers cited modest improvements in sales and traffic. The Book said, overall, the majority of manufacturers continued to report increases in new orders and production. Financial sources reported that loan demand had improved slightly from weak levels. Labor markets continued to improve gradually across the southeast. Some firms expressed concern over rising commodity costs as margins remained tight and productivity gains became more difficult to realize. • LAKE STATES TRENDS - Continued from page 6 increased inquiries.” When asked about certified lumber products a source in Michigan said he isn’t noticing any increased demand in that area. “I sell to some companies honestly that are certified, and were using those products early on. But when the market fell, and the recession hit, a lot of these guys said, ‘we’ve got to get the lumber that’s the lowest cost or we’re going to go under.’” Coming back from an 80 percent bankruptcy two years earlier, the contact said the slightest improvement in market conditions is a step in a positive direction. “We lost 80 percent of our operation to a bankruptcy two years ago. So we’re thankful and grateful for even the smallest increase.” As for the remaining months in 2011, he said, “It’s a different market than before so it’s really hard to look ahead that far out. We have so many irons in the fire with customers that could blow up and become huge or just Please turn to page 53 UNINHIBITED The Model “ABX” Baker Band Resaw with optional TurnArounds Use a Baker Band Resaw to saw your raw material into beautiful boards of practically any wood species, any length, and any thickness. Optional Baker Automated Infeed & Outfeed TurnArounds make resawing an easy, low-labor endeavor. The Model BL6-23 6-spindle, 4-side Baker Planer/Moulder Your Log To Lumber Leader Unleash your desire to make the highest quality grade lumber at the fastest production rates! Baker Products makes your wood processing desires come true, uninhibited. Run lumber created by your Baker Band Resaw through a Baker Single- or Double-Side Planer or a 4-side Planer-Moulder combo unit, and give your lumber the ultimate, smooth finish. Baker Planers and Moulders will significantly increase the value of all your grade lumber! Let Your Raw Ambition Thrive with Baker Products. Phone: (573) 663-7711 or call toll-free: (800) 548-6914 eMail: info@bakerproducts.net www.logtolumber.com AUGUST/2011 45
