National Hardwood Magazine - July 2012

SOUTHEAST TRENDS -

SOUTHEAST TRENDS - Continued from page 41 MANUFACTURER OF QUALITY BAND SAWN NORTHERN APPALACHIAN HARDWOODS RED OAK WHITE OAK CHERRY SOFT MAPLE POPLAR WHITE ASH HARD MAPLE WALNUT 500,000 B.F. Dry Kiln Capacity 2 Million B.F. Dry Storage Container Loading Mixed TL’s S2S, Ripped to Width, Cut-Length & Finger-Joint Lumber Measured & Inspected after Kiln Drying 2240 Shermans Valley Road, Elliottsburg, PA 17024 Phone: 717-582-4122 Fax: 717-582-7438 Toll Free: 1-800-253-0263 E-mail: sales@tuscarorahardwoods.com Website: tuscarorahardwoods.com kets, the contact said, “Right now we’re actually doing more export business than we are domestic. Transportation cost has not been a major issue. Trucks are available, but now that the fuel has come down, the surcharges have backed off a little bit.” Marketing to Hardwood flooring, furniture and millwork customers, he said his customers are ordering on a regular basis and he doesn’t expect that to change in the remaining months of 2012. “I think everything is going to stay about the same this year. I don’t think we’ll see much of a change either way.” In Tennessee, a source indicated demand for No. 1 Common Hickory continues to increase. “Distribution yards and manufacturers are increasing their orders of green Hickory,” he said. “So far production has been able to meet the increases, but we don’t know how long that will last. “We cut back our inventory this winter like many other mills in this region. We haven’t really gained much back so far this season. But supplies of Red Oak and Poplar appear to be meeting the needs of our customers.” The contact also said White Oak was moving well into Europe. When asked for a forecast for the remainder of 2012, he said, “We may see a few more bumps this year, but I don’t think we’ll see any hot spots or extreme lows.” When Quality Counts... KITCHENS BROTHERS MANUFACTURING 990,000’ Dry Kiln Capacity 1,900,000’ Predryer Capacity PRODUCING LUMBER, DIMENSION, RED & WHITE OAK STRIP FLOORING, MOULDINGS AND CUT-TO-SIZE FURNITURE PARTS SAWMILLS AT: Utica - Hazlehurst, Mississippi and Monroe, Louisiana Sales Office: John Clark - Sales Manager - E-mail: jlc1102@aol.com Paul Ostlund - Sales Representative - E-mail: paulkbmc@aol.com P.O. Box 111 Hazlehurst, Miss. 39083 Tel: 601-894-2021 Fax: 601-894-1069 Web sites: www.kitchensbrothers.com or www.cherrybark.net LAKE STATES TRENDS - Continued from page 6 rhyme or reason to what is going on right now.” The contact said conditions are better than six months ago mainly due to the seasonal change. “We’re always busier in the spring and summer months. However, I remember last year in June things got difficult and by July I couldn’t sell anything. So I think the busy people are going to remain busy but I think the slow people will just remain slow,” she said. As for species movement she indicated Hard and Soft Maple and Birch are moving well but Red Oak is still slow. “Our log yard is still in the building process. We haven’t had any shut downs and we’re still building inventory. Compared to three months ago our inventory levels are definitely lower. We’re trying to keep our log costs down. “Business is just spotty,” she continued. “I have one customer that is going to be busy throughout the year. It just depends on the type of business. I’ve got end user customers that are doing well and then the distribution people are just kind of stagnant. I think business will remain steady throughout the end of the year but I don’t look for any improvements.” Elsewhere in Wisconsin a contact commented on the local upper Wisconsin area along with the U.S. in general and abroad. “Domestic U.S. markets are stable to improving at this time with good overall demand. We are seeing a rebound in product flowing to furniture, flooring, cabinets and the distribution markets. Europe is slow and Asia is busy but profitability is minimal to negative.” Handling Hard and Soft Maple, Red and White Oak and Walnut, the contact said Soft Maple is probably the hottest 50 Hardwoods Have Resiliency

LAKE STATES TRENDS - Continued trending specie and the slowest is Walnut. As for availability issues, the contact said, “Bringing in Soft Maple is an issue right now. Of course it is seasonal and we do limit our purchases of that specie during this season.” When asked what he expects in the coming months the contact said, “I don’t look for many changes this year. I think we’ll move along at the same pace.” WEST COAST TRENDS - Continued from page 6 with early 2011,” he said. Looking at the remaining months in 2012 he said, “New home starts are gaining a little steam but I believe it’s at a slower pace than in other areas of the country.” In Oregon a Hardwood supplier said the Hardwood lumber market is “strangely better than we expected.” “Our business activity has been so good over the last six years, I’m looking over my shoulder waiting for the other shoe to drop,” he noted. “It’s hard to take decent business conditions for granted considering where we came from two years ago. “Availability of logs is a large factor. I don’t think there is a lot of lumber being produced overall. I honestly believe the market being decent is driven by supply and not demand.” A contact in Washington commented that lenders’ criteria are problematic. “The lending policies are playing a big role in this. The banks are expecting us to manage our cash the same way a big box retailer would manage it instead of factoring in the lead time it takes to get that log into lumber.” Handling Red and White Oak, Poplar, Soft Maple and Cypress the supplier said, “Poplar is moving better but we’ve been fortunate to be able to move our Red and White Oak.” As for availability he said, “We’re seeing some pressure in these areas. The fact that there are not a lot of markets for Hardwood pulpwood has put a constraint on the production of Hardwood sawlogs.” When asked about his own inventories, he said, “Our log inventories are down and our lumber inventory is down also. That’s the one good thing is that we’ve been moving a lot of old inventory. Prices on logs are steady and lumber prices are very quietly marching up.” He said his export markets have been surprisingly stable. “I really thought the export market was going to fall out in early April but we’re a few months away from that now and we’re still receiving inquiries. “We’ve got the same uncertainty that you hear daily on the news with tax policies, and the fact that environmental agencies want to hammer down on certain issues and the healthcare issues. All of that combined makes it a bad time to be a job creator when the U.S. is in dire need of jobs,” he continued. Serving end users overseas and in the U.S., the source said his prediction for the remainder of 2012 is that business will stay about the same as it is currently. We are your solution to dust, smoke, fume and vapor problems...contact us! Air Systems Mfg. OF LENOIR, INC. Turn-key Project Management Services: • Trouble-shooting • Written assessments • Technical recommendations • Conceptual and final design • Manufacturing • Custom installations • New, used and reconditioned equipment • Sales and support • On-site maintenance P.O. BOX 909 LONDON, KENTUCKY 40743-0909 PHONE (606) 864-7375 FAX: (606) 864-7355 WEBSITE: www.chaneylumber.com SALES: Jim Baker - Bryan Gentry Weʼd appreciate your inquiries when you need quality kiln dried Appalachian Hardwood lumber in the species we specialize in which are: 4/4 & 5/4 Red and White Oak; and 4/4 through 8/4 Poplar that are all in #1 Common up through the higher grades. ALSO OUR BUSINESS IS CUSTOM KILN DRYING Modern Cross Circulation Kilns • Quality Millwork 10,000,000 BF Air Dried Yard • In Stock–Extensive Inventory of Reconditioned Equipment • Maintenance Services Available for Filtration Equipment 2621 Hogan Drive P.O. Box 1736 • Lenoir, NC 28645 (828) 757-3500 • Fax (828) 758-5178 Check out our new website at: www.airsystemsmfg.com • Dust Collection • Air Filtration • Ventilation Systems • Custom / Standard / Reconditioned CHANEY LUMBER COMPANY, INC. 600,000 BF Kiln Capacity 2,500,000 BF Dry Storage 1,400,000 Air Dried Shed Capacity Experienced in Export Container Loading Whether you’re buying or selling please give us a call. JULY/2012 51