National Hardwood Magazine - December 2023

Despite The Challenges

Despite The Challenges That 2023 Brought There Is Hope Going Into 2024 Eric Porter Abenaki Timber Corporation Kingston, NH 2023 was a challenging year. I would say it was successful in footage produced and shipped but the invoice values were way down due to the rapid drop in kiln-dried prices. Our sales in dollar value will be down from 2022 but we were able to keep our market share in overall footage produced and sold. We serve a variety of manufacturers, distribution yards, wholesalers, brokers and the export markets worldwide. I would not be able to single out any sector that was better than another. Abenaki still produces the native American Hardwood species found in the Northeast and Appalachian regions as well as importing European Beech and some European Oak. We did do some control updating at both of our facilities and replaced some rolling stock but no new major equipment was added in 2023. Our key employees have proven reliable and consistent throughout the year. If we could add one or two at each facility, we wouldn’t hesitate to do so. Shipping was a major improvement in 2023 over 2022. We are more concerned as a company with the implied certification regulations that Europe is adding than we are with any tariffs currently. b By Cadance Hanson While looking back at how the Hardwood market fared throughout 2023, lumber providers came to a general consensus that while this year posed its challenges, it was a profitable year nonetheless. One participant stated, “2023 was definitely not the year we wanted but we were able to be profitable.” Another participant said, “2023 has exceeded our expectations, 2024 has a similar uncertainty to last year’s planning due to geopolitical and economic conditions.” Participants also shared their concerns over how tariffs and the European Union’s new regulations will affect sales in the coming year, with one stating, “The EU regulations that are on the table pose a very significant threat to exporters and all lumber producers in the U.S.A.” Paul Mallery Wolverine Hardwoods, Inc. Allegan, MI Considering the market changes we experienced, I would say we were very successful throughout 2023. Maintaining and growing relationships with customers is a big key to being successful in the future. Most of our customers are end users, whether large manufacturers or smaller distribution level guys. White Oak and Red Oak have moved well for us this year. In 2023 we introduced plywood, MDF and ripped to width lumber. We purchased two 50,000 feet SII dry kilns, which has increased our ability to kiln dry our own lumber by 25 percent. We also purchased a new electric forklift. For the most part we have been blessed with a great core group of employees. I have been thoroughly impressed with our crew and how they have come together this year as a team. We have three amazingly, dedicated, local owner operators and a couple brokers we work closely with to ensure our customers get the products they need in a timely manner. We do not export anything directly, so we are not currently concerned with tariffs. b 34 DECEMBER 2023 n NATIONAL HARDWOOD MAGAZINE RealAmericanHardwood.com/industry Brandon Clark Clark Lumber Company Red Boiling Springs, TN 2023 was definitely not the year we wanted but we were able to be profitable. The hardest part of 2023 was the inventory adjustments early in the year. It took several months of production to overcome the pricing adjustments. In order to be successful, 2024 needs to have steady demand for all production items and price stability and hopefully a small price increase would be best. Our grade lumber sales to distribution yards were strong, as well as our sales to moulding manufacturers, while our sales to flooring manufacturers was average. The pallet cant sales to the main line railroads was strong, while our sales to the small treatment plants was average, yet sporadic. All of our products moved at normal rates. We did not add any services or products in 2023 but Kirby Kendrick Kendrick Forest Products Edgewood, IA 2023 was an interesting year. The first half of ‘23 was still pretty good, while the second half of the year wasn’t as strong but still looks like it will end better than we were expecting. Challenges we must overcome to be more successful in 2024 would be labor, inflation cost and fuel cost, all while most American Hardwood prices have not kept up with the cost of inflation. Our customers are a mix of distributors and factories. Our Walnut and White Oak lumber items have been the strongest sellers for us in 2023. We recently started taking a higher-grade log and producing Walnut graded under Oak rules. This has allowed us to tap into other markets while still being able to offer RealAmericanHardwood.com/industry spent more effort going direct to customers, putting less reliability on brokers. We installed a new optimized edger in November at one of our facilities. We also began building a new grading and sorting line at that same facility. This project will last into the first and, likely, second quarters of 2024. Finding enough qualified employees is always a challenge but we do feel fortunate to have a good crew right now at each facility. We have spent a lot of time and money on automation in the last few years and that has paid off by allowing us to retain the vast majority of our employees and keep production at the desired level. Shipping always has its own challenges, but we have not had any changes that have affected our ability to deliver loads to the customers. We have not had issues with shipments to Vietnam, but China is always a concern with the potential for tariffs and market uncertainties. The European Union has been down on shipments for some time but does seem to be increasing at a small percentage. b our same consistent standard NHLA grade lumber as well. This year was a year focused on growing our rolling stock, especially our semis & log trucks. This allowed us to have more control over our product and better serve our customers. We have been fortunate that we have many long-term employees with a nice mix of the younger generation to teach and help grow. Wages are an important part but there also needs to be a fun working environment, and a good relationship with the employees which we have. Our employees aren’t just employees, they’re more like family to us. When you can treat someone like family, I think they’re more inclined to work hard and stick around. Trucking in general has loosened up, but the cost of fuel is keeping rates elevated. b Please turn the page DECEMBER 2023 n NATIONAL HARDWOOD MAGAZINE 35