National Hardwood Magazine - August 2021

U.S.A. TRENDS Supplier

U.S.A. TRENDS Supplier news about sales, labor, prices, trends, expansions and inventories LAKE STATES Lumber manufacturers in the Lake States region are reporting a steadier market compared to six months ago, but the industry is still busy. “I think it’s a little slower now than it’s been,” said a source in Indiana. “It depends on what you have available, because it seems like only certain products are really moving.” Her company manufactures Walnut, Hard and Soft Maple, White and Red Oak, Ash, Basswood and Cherry and specializes in Grade Walnut lumber from 4/4 to 16/4. “Walnut and White Oak are the items that are moving and the things people are looking for,” she said. “But overall, as far as inquiries go, I think it’s slowed down some.” This source sells to both end users and distributors in the region, with trucking availability steadily improving. “Transportation is a little better than what it was,” the contact explained. “It seems we’re not warehousing as many orders for a long time now.” In Michigan, a sawmill representative described the market as “very busy” and comparable to how it was in the spring season. “I would say demand hasn’t slowed down a ton. Maybe a little bit,” he explained. “We’re about hand-to-mouth,” he added. “If we run something, it seems like it ships out pretty quick, and what’s still available – it’s not a whole lot.” This sawmill processes White Hard and Soft Maple, Red and White Oak, color sorted Hickory, Heart Cherry and Heart Walnut in thicknesses ranging from 4/4 to 8/4. The source stated that he sells to a split between end users and distributors. “Our biggest end users are flooring and cabinets,” he said. When asked if his customers have given comments on the current market, he responded, “Everybody’s pretty busy.” Transportation has been a struggle for this sawmill, which uses trucks, containers, rail and LTL to move product. “Taxation – as far as shipping lumber to our customers – has been a challenge,” he said. “Rates went up.” A lumber provider in Wisconsin reported that the mar- NORTHEAST Lumber suppliers in the Northeast are still reporting a strong market – one of whom described it as “red hot.” A source in Pennsylvania stated that despite the market for Hardwood in his area standing “quite strong,” kilndried and green material are still “relatively undersupplied.” Compared to six months ago, he said that supply is getting “a little better.” This provider’s company offers Hard and Soft Maple, Cherry, Ash, Red and White Oak, and its main product - Poplar. He added that White Oak is currently the species in highest demand for the company’s varied customer base of end user manufacturers, distributors, and resellers. “They’ve been saying how hard it is to find material for some time now,” he said. “Like I said, I think it’s getting a little bit more available than what it was, so we’ll see how that develops over the summer. It’ll be interesting, really.” This source has experienced issues with trucking throughout the year, but he said “at the moment, it might be slightly better.” Ease of transportation appears to fluctuate with no definite trend. In New York, a source reported that market trends have been “about the same” as they were six months ago, with “pretty good” sales. His company sells Red and White Oak in One Face and Better, No. 1 Common and No. 2 Common, mostly to distributors. Transportation issues have subsided for this provider because of a lot of determination. “We don’t take no for an answer. Someone tells us no, we keep on looking,” he explained. He believes that trucking prices are at their peak, and does not see them going up much higher. “Red hot” is how a contact in New Hampshire described the market in his area. “It hasn’t slowed down since November,” he said. “Everyone’s out of everything. None of our sawmills have much in back inventory.” Before the Hardwood market became this strong, his company had no problem building inventory with logs ranging from 10 to 16 feet. “Now, we get what we get,” he said. Please turn to page 46 Please turn to page 46 SOUTHEAST The markets for Hardwood lumber are strong in the Southeast. A lumber provider in Mississippi stated, “Our markets have been outstanding because of the trustworthiness of the mills we deal with and the trust we have from them. It’s been a great year for us. “Six months ago was a great time for us,” he continued. “After that, it was good. It’s been pretty steady till now. This month is a little slower than it has been, due to the amount of material available to sell. A lot of people don’t have logs to sell; there’s just not the inventory that there was. Freight of course is an issue. But the biggest thing I see slowing us down is supply.” He sells the most common Hardwoods from the North, South and Southeast. “We sell from pallet lumber to FAS,” he stated. Selling best are industrial grade lumber and frame stock. “I think we’re going to be looking at this market having an adjustment,” he observed. “Prices have climbed as high as they could go, and there’s some push-back now. It just can’t keep going up and up and up. People will say, we just can’t afford that lumber. But we haven’t had that problem yet.” Customers include end users in flooring, pallet manufacturing, crating, and furniture manufacturing. “Our customers’ markets are strong,” he noted. “The furniture market is good. We’re selling as much or more lumber than we have but at higher prices.” On the down side, he said, “Transportation’s been a problem all year. This year is the worst year for freight that I’ve seen, including rising costs. But we’ve fought through it.” A Hardwood flooring manufacturer in Arkansas stated that his market has been “very strong since June of 2020.” Compared to several months ago, he assessed the current market as better. He handles Red and White Oak in Nos. 1A-3A. His product is sold to distributors. He said “their business is wide open. Nobody can get enough lumber, but there’s a lot of business out there, and there’s been a strong increase in demand.” WEST COAST On the West Coast, the markets are good, but different factors are presenting problems to lumber providers. According to a wholesaler in California, “I would say, it’s been a really good market but it seems to be cooling off a bit. We’ve noticed in the last two weeks it has slowed down. “It’s worse than it was six months ago, for sure, due to pricing and availability,” he observed. “Keeping goods to sell has been challenging. As for pricing, my opinion is that some people are choosing to put jobs on hold because of material costs.” He sells “almost everything in Hardwoods,” he said. Ripped White Oak and Walnut are the hottest, he stated. Widths of 4/4 to 16/4 are the most common for this firm. “We sell primarily to end users,” he noted. “Activity is cooling off for some folks, but some customers are really busy.” Transportation is an issue for him. “It’s hard to get trucks and costs are skyrocketing. It’s been pretty tough” he observed. Another California lumberman, who operates a distribution yard, said his market is “pretty good. It’s probably one of the better markets, really. It’s better than six months ago.” He sells Poplar, Cherry, Red and White Oak, Maple, Ripped White Oak, Walnut and Ripped Walnut in all uppers. Appalachia is the source of this lumber, and he notes that that region has a diverse timber base. This distribution yard sells to lumber yards and end users. “Everybody I talk to, among our customers, is busy – from larger plants to smaller cabinet shops.” He noted that lumber yards deal with contractors who have had jobs cancelled on them. His thought is that this will help lower demand in the market which could “help out a little bit.” Then there’s the matter of transportation. Trucks bringing lumber from Washington and Oregon are not a problem, he said. His firm has dealt with the same trucking company for 25 years, and they do good work, he commented. On the other hand, containers for rail shipment are problematic. “The most terrible thing,” he explained, Please turn to page 47 Please turn to page 47 8 AUGUST 2021 n NATIONAL HARDWOOD MAGAZINE AUGUST 2021 n NATIONAL HARDWOOD MAGAZINE 9