National Hardwood Magazine - August 2018

U.S.A. TRENDS Supplier

U.S.A. TRENDS Supplier news about sales, labor, prices, trends, expansions and inventories LAKE STATES Market activity in the Lake States region is moving steadily and log supply in the region has picked up, although transportation remains an issue, sources report. A salesman at an Indiana sawmill said the market in his area was strong. “It’s been really good,” he said. He handles all domestic Hardwoods, and said some species are selling better than others. “Ash has been moving well, Basswood is moving OK, Cherry’s a popular item, Poplar’s pretty steady, White Oak’s strong, while Walnut is moving OK, and so is Hard Maple,” he added. Transportation, both trucks and containers, have been difficult and expensive to get, he said. “Availability is probably the top problem, and it seems to drive pricing,” he commented. He said log supply was good with the drier and warmer weather. “That seems to be maybe loosening up a little bit, because logs are more available,” he said. He exports logs, and his domestic customers are mostly distribution yards and end use manufacturers. At a Michigan sawmill, a salesman said the market is “really good.” He markets White Hard and Soft Maple, Red and White Oak, color sorted Hickory, Heart Cherry, White Ash and Heart Walnut. “White Oak’s really good, and then Soft Maple is just OK, while everything else in between is moving well,” he added. Transportation is still tough, he stated. “Availability’s OK, but pricing is dependent on availability,” he added. Log supply has also improved in his area, he said. “It’s picked up, so we’re in good shape on logs,” he said. His customers are cabinet and flooring manufacturers and distribution yards. A salesman at a distribution yard in Wisconsin said he’s staying busy. He handles all of the species available in the area, mostly Ash, Basswood, White Birch, Yellow Birch, Red and White Oak, Butternut, Cherry, Elm and Hard and Soft Maple. He said there’s a shortage of supply in certain species, NORTHEAST Lumber sources in the Northeast region are reporting a steady market and good supply after a stretch of dry weather that has allowed sawmills to build up log inventory. A salesman at a New Hampshire sawmill said the market is good overall. “The wood is still moving and it’s moving across all species and all grades, there’s no awful dead spot anywhere,” he said. He added that he’s sensing oversupply in the export market, particularly in Red Oak. “I’m starting to get the sense there’s too much wood on the ground, but in my mind it’s one of those seasonal pushbacks,” he added. “So far, we really haven’t had to reduce pricing, but you never know what will happen in the bigger market.” He sells primarily 4/4 Northern Red Oak, as well as Hard and Soft Maple and Ash. Trucking remains a problem in his region, he said, although his company hasn’t struggled as much as others, from what he’s heard. “It seems to be a challenge for everybody, and we are hearing from our customers at times that it’s a struggle to get trucks lined up at a price that makes sense,” he commented. “As far as we’re concerned, there are still enough options to move loads, for the most part. I think it’s impacted some places more; a lot of our low-grade wood is going north into Canada, and those customers have had to scramble, but somehow they’ve kept the wood moving.” Log supply isn’t a problem, he said, especially with the drier weather. “Since the weather has finally turned, the logs are flowing a bit better,” he said. “We are just getting to the point where we’re gaining back some log inventory.” His domestic customers are distributors throughout New England and the mid-Atlantic states, and his overseas customers are end users and distributors, primarily in China. A lumber salesman for a New York wholesaler said the market is steady. “It’s moving along at a nice pace,” he said. He markets Red and White Oak, Hard Maple and Cherry in all grades, and noted they are all selling about the same. While he’s also heard that others are having trouble with 10 AUGUST 2018 n NATIONAL HARDWOOD MAGAZINE Please turn to page 44 Please turn to page 45

SOUTHEAST The lumber market in the Southeast region is strong, sources report, although transportation is still causing problems for some. A salesman at an Arkansas sawmill said the market was “very busy” and better than it was six months ago. He handles Red and White Oak in all grades and green Cottonwood. He said transportation hasn’t been a huge problem for him, because he ships locally or exports. “It just so happens that everything we do is either local or the other side of the world, so it’s either 300 miles or it’s 1,500 miles away that our lumber goes. So we are not having a lot of problems, but it’s just because we’re not selling a lot within a distance of several hundred miles. If we did that, it would be awful. Even what little bit we do has been more difficult,” he commented. He said log supply is good, while it had been tight before due to wet weather. “We have logs pouring in now,” he said. Seventy-five percent of his kiln-dried inventory goes overseas to China, while domestically his customers are end users and industrial accounts. A salesman at a sawmill in Virginia said the market is good, although he said he was a little behind compared to last year. “I’m probably 50 containers off pace from last year, better than 2016, worse than 2017, but we’re still in the ballpark,” he said. “The market’s been decent, and prices have been stable. We do a lot of Poplar and pine, and what Oak I have, I haven’t gotten any resistance on yet, so I’m probably where I need to be.” He handles Poplar, Red and White Oak, Ash, Cherry and Soft Maple. “Ash and Cherry moves as soon as you have it,” he said. “No. 2 Common Soft Maple is a little stagnant. It’s just one of those ones that probably sat three months, and then it’s suddenly gone.” Even though he has his own trucks, he said the electronic logging device (ELD) mandate is affecting transportation. “They didn’t ask truckers or trucking companies before they implemented this law. I think the normal trucking companies, they follow the rules pretty closely; there are the ones who skirt the rules out there, but you can’t blame WEST COAST Market activity is steadily gaining momentum along the West Coast, sources report. A salesman with a distribution yard in California said he’s seeing more movement recently. “The market is picking up,” he stated. He handles Oak, Walnut, Birch, Maple and Hickory. “What’s moving better is Red and White Oak, and also Walnut. There’s been an uptick in Hickory, which is interesting; usually that’s not one of our top sellers,” he commented. Transportation isn’t a problem for him, although he said he’s heard from others in the industry it’s a concern. Supply is “all right,” he said, but added Walnut lumber is tight due to the volume of Walnut logs being exported. “That’s part of the game,” he commented. His customers are distributors and flooring manufacturers. A source for a lumber wholesaler in Oregon said he’s seeing more orders and increased demand. “There’s good demand in the market across most species, export markets remain strong, particularly Asia. Domestic North American market activity seems to be growing year over year, so I’m feeling pretty good about the markets,” he said. He said transportation is a concern “in a huge way.” “Transportation is really, really challenging, both cost and availability,” he said. His customers are retail lumberyards and end use manufacturers. A Washington wholesale lumber salesman said the market in his area is “busy.” He said all species are moving steadily, although he added Red Oak is selling best. Trucking is a big problem for him, he added. “We’re having the same problems everyone else is having as far as getting trucks, paying the increased costs, and making sure there’s a reliable driver in that truck once we get it,” he commented. His customers are primarily home builders and contractors. Also in Washington, a lumber supplier noted the market is great. He sells Alder in all grades and added he’s not having any issues with transportation. Please turn to page 46 Please turn to page 47 AUGUST 2018 n NATIONAL HARDWOOD MAGAZINE 11