National Hardwood Magazine - July 2012

When it comes to

When it comes to Hardwood or Southern Yellow Pine Lumber, Eastern Lumber Corporation gives you competitive prices, and we stand tall on service. For you at Eastern Lumber we offer: • A Southern Yellow Pine concentration yard in Orangeburg, S.C. • Green and air dried Appalachian, Northern and Southern Hardwoods; and green, air dried and kiln dried Southern Pine. • Export packaging & container loading. • Experienced personnel. Eastern Lumber Corporation Headquarters: 338 St. Paul St. N.E. Orangeburg, S.C. 29116 Tel: (803) 531-1887 FAX: (803) 533-0195 Sales: Russell and Leonard Blanchard, Ed Holley, Jim Shepherd & David Turner Youʼll like doing business with us because we follow through on your orders and we do what we say weʼll do! Begley-Made BAND SAWN HARDWOODS This is an aerial view of Begley Lumber Companyʼs band mill operation located in London, Kentucky. At Begley, we... • have a large band mill operation in both London and Hyden, Kentucky • have 740,000 board feet per charge of dry kilns and an additional 30,000 board feet per charge Walnut steamer • produce 60 million board feet of lumber 4/4 through 16/4 thicknesses per year combined • have a Newman 382 planer • have several T-sheds that hold 4 to 5 million board feet of lumber • have an 80 bay sorter We’d like to hear from you when you need quality Appalachian Hardwoods! P.O. Box 2800 London, KY 40743-2800 Phone: (606) 877-1228 FAX: (606) 877-1230 E-mail: jpatterson@begleylumber.com Website: www.begleylumber.com SALES: John Patterson and Matt Begley NORTHEAST TRENDS - Continued from page 6 operate more efficiently.” In Pennsylvania a Hardwood supplier said production has been consistent and lumber availability is meeting current demand. “Depending on the species, availability of lumber is generally good. And on the species that are not abundant, we haven’t had much demand at this point,” he explained. “We’ve had to dig into log inventories to a degree throughout the year to maintain production levels,” the source continued. “We have recovered from the shortages of earlier this year and the summer season is off to a good start.” As for transportation issues, the contact noted the changing prices are affecting his bottom line. “We’ve seen a spike in fuel costs over the last few months but it’s a ‘yo-yo’ effect. Normally we expect to adjust to fuel price changes in the warmer months of the year, but this year there has been no stability. Surcharges are up, then down, and before you know it, back up again.” In Connecticut a contact said wet weather interrupted operations briefly during the spring break up. “Red Oak is in limited supply,” he explained. “Demand for green lumber is moving towards the upper grades, especially in Hard Maple. We’ve seen an increase in No.1 and 2 Common pricing but it’s marginal.” As for kiln dried species, he said that Red Oak is suffering in production because whitewoods are being so heavily produced. When asked about what lies ahead in the remainder of 2012, the source said he expects moderate growth and is looking forward to a better year in 2013. “The forecasters are predicting improvements in certain elements of our markets over the next three to five years. We’ve managed to keep our hat in the game thus far and we’ll still be here when the tide turns.” QUEBEC TRENDS - Continued from page 7 new jobs by 2020. The strategy, recently released, will generate an additional billion in economic activity in the next eight years through expanded exports to emerging markets and a recovery in the U.S. The organization has also set a target to reduce their firms’ environmental footprint by 35 percent in areas like water usage, waste and air contaminants. The FPAC interim president said the sector has gone through a difficult few years following the collapse of the U.S. housing market in 2007 and the subsequent global recession. Employment in the sector is down more than one-third from the 360,000 peak reached in 2005. The industry has used this downturn to become more competitive and energy efficient. It has shifted its attention to markets in growing emerging economies like China and India. The Canadian forest industry is Canada’s leading exporter to China. Asia accounts for about 28 percent of Canada’s forest products exports, up from 11 percent a decade earlier, the forest association said. Sales of lumber to China have exploded, from million in 2001 to .5 billion last year, the association said. Including pulp and paper, total sales to China topped billion in 2011. Exports to the U.S. have fallen to 62 percent of the total from 80 percent during the same period. 52 Hardwoods...The All-Purpose Material

QUEBEC TRENDS - Continued In a recent report, the Conference Board of Canada predicted Canada’s wood producers would double profits in 2012 and add 6,000 workers, mainly because of gains in export markets. The think-tank said industry profits were expected to rise to 5 million in 2012, and subsequently grow by more than 20 percent annually for at least two additional years. Visit us at IWF Booth 7466 Aug. 22-25 2012 ONTARIO TRENDS - Continued from page 7 demand for Red Oak has not increased dramatically, but has been rather steady in the marketplace. The crossties demand is balancing the demand of this species. Supplies of kiln dried Red Oak is adequate to supply the needs. According to PriceWaterhouseCooper’s (PwC) Net Earnings Summary for the quarter ended March 31, 2012 released in May, preliminary results indicate that most Canadian forest and paper companies have posted improved results for the first quarter compared to the fourth quarter of 2011, but most reported losses which are well below the level of earnings posted for the same period in 2011. The report notes the two fires of B.C. mills contributed to a spike in lumber prices in North America, but that real demand is also starting to grow slowly. PwC forecast pricing would be flat over the next quarters, but in looking ahead, stronger offshore lumber exports should help increase commodity prices and deliver some sustained improvement in lumber prices for 2013. The demand from China for lumber, pulp and other Canadian products remains a big part of the equation for long term growth potential, with the greatest impact on Western producers in Canada and the U.S., noted PwC. The gross domestic product took a dip in mid-May suggesting the economy has less strength than Bank of Canada expected, lessening the likelihood of a summer interest-rate hike. The economy shrank 0.2 percent in February to an annualized .28-trillion, Statistics Canada said, as factories posted their first drop in six months. The unexpected drop, after a 0.1-percent gain in January, said the Bank of Canada’s projection of a 2.5-percent annual growth rate for the first quarter was too optimistic. The main driver was a 7-percent drop in mining, while oil and gas extraction fell 0.9 percent due to shutdowns in Alberta. Manufacturing dropped 1.2 percent, utilities fell 1.9 percent as warmer weather arrived, and retail sales slipped for a second month. The slow start to the year indicates there is more slack in the economy than was anticipated. It may be longer before borrowing costs are lifted, with the effects of a high currency, the unsettled global economy, and many householders having high debt — all signs to move with caution. The Bank Governor said that the “timing and degree” of rate hikes will depend on domestic and external developments. Debt accumulation is seen as the No. 1 made-in-Canada risk to the economy. We enjoy providing fine Appalachian lumber to customers that demand the best. We have experienced people in every facet of our operation that want to provide you with quality lumber. A view of some of our lumber air drying in our shed. 3530 Jonathan Creek Road Waynesville, North Carolina 28785 U.S.A. Tel: (828) 926-1621 Fax: (828) 926-3383 E-Mail: mail@oaksunlimited.com Website: www.oaksunlimited.com Contact: Joe Pryor, Mark Taylor or our other salesmen White Oak • Red Oak Yellow Poplar • Cherry JULY/2012 53