SURVEY Continued Ray
SURVEY Continued Ray White Harold White Lumber, Inc. Morehead, KY ramer REV 2018.qxp_Layout 1 8/6/18 10:13 AM Page 1 Unfortunately, the Hardwood markets on grade are not good. Even with the reduced production of output due to very low log inventories, the markets continue to slide. I would say that currently the state of the industry of Hardwood lumber is extremely challenging with no real indications of improvement this year. Actually, the low-grade and industrial markets are very good and helping to offset losses in grade lumber. Grade White Oak continues to remain strong and should for the balance of the year, but log supplies of this species are very strained due to the huge demand of staves. Trucking is very difficult and expensive. Fortunately, we still operate our own trucks, which helps with just-in-time deliveries. Still we depend on several contract truckers in our operation, and their costs have risen. The current state of the market has required us to completely reevaluate our efficiency and overall costs. During the great recession we leaned up as much as possible and have been operating this way. Now with this market, our options are fewer. The continued high price of logs and low price of lumber is not good. I see and expect attrition rates to increase this year. Many had hoped the loss of production this past winter would help the markets; but unfortunately, this is not going to be the case. I hear “survivor mode” from most of my customers. I have great anxiety and fear that our industry is and will undergo a significant contraction if many things do not improve. We are a resilient industry and always seem to find a way; but we are witnessing obstacles never seen before. WORMY CHESTNUT • TROPICALS • QTR & RIFT • CYPRESS • ALDER 4 million BF KD Inventory Atlanta, GA Warehouse 770-479-9663 Headquarters, Concentration Yard & Kilns in Hickory, N.C. Phone (828) 397-7481 FAX: (828) 397-3763 www.cramerlumber.com “LIMBO” The Lumber Rule Hardwoods • White Pine • Cypress RGH • S2S • SLR1E 4/4 thru 16/4 thicknesses Export Sales 706-736-2622 HICKORY • HARD & SOFT MAPLE • POPLAR • RED & WHITE OAK • WALNUT • ASH WHITE PINE • BASSWOOD • BEECH • BIRCH • CEDAR • CHERRY 48 JULY 2019 n NATIONAL HARDWOOD MAGAZINE
Rob Paradise Devereaux Sawmill, Inc. Pewamo, MI Overall, the Hardwood market for our company has been pretty good – better than the second half of 2018 but not as good as the first half of 2018. So far this year, White Oak and Soft Maple, in all grades, have been the best-sellers. Right now, we have no transportation issues. Due to changes in the market, we have made some changes to increase efficiency. It’s important to note that marketing of solid Hardwoods in the U.S. seems to be catching some buzz. Ruth Cardin Cardin Forest Products LLC South Pittsburg, TN So far this year, the Hardwood markets have been challenging. Products that have been selling well include 4/4 Poplar in all grades with No. 2 Common selling great; 8/4 White Oak 1F selling good; 4/4 1F White Oak picking up; 4/4 No. 1 Common White Oak starting to move better, and 4/4 1F and No. 1 Common Red Oak starting to move but not at a great price. Transportation is an issue, by both truck and rail. Also, changes in the market have led our company to start surfacing more. Overall, I feel that the last month picked up and we are on our way to a great year. Larry Mether Midwest Walnut Company Council Bluffs, IA The market has obviously been slower than last year, but business has been steady as long as we keep prices competitive. All we sell is Walnut. 4/4 in all grades has been the most active, followed by 8/4. As far as transportation, we are having no real issues out of the ordinary. Changes in the market have not led to anything new in products, just more effort on the marketing side. n Now, Stronger Than Ever. Since 1946, SITCO Lumber Co. has believed high quality stands the test of time. Now, as part of Overseas Hardwoods Company, our reputation for high quality domestic and imported hardwoods will be stronger than ever. Learn more at www. OHC.net/Sitco. JULY 2019 n NATIONAL HARDWOOD MAGAZINE 49
