In this issue of National Hardwood Magazine, learn more about Gat Creek's expansion, go behind the scenes at Abenaki Timber Corp., and take a look at recent conventions and meetings. The issue also features Who's Who in Hardwoods, Trade Talk and Business Trends.
SOUTHEAST The
SOUTHEAST The Hardwood market in the Southeast is booming compared to six months ago, but unprecedented issues remain with supply not meeting demand across the region. All sources repeated similar concerns and commented that the supply-and-demand dynamic is unprecedented. One source said, “Prices are rising, and volume is scarce.” Another remarked, “It’s never been like this, and I’ve talked to some customers of ours who’ve been doing this for 40-50 years, and they would say the same thing.” A lumber supplier in North Carolina commented, “Most of us have been, or are, out of logs. It’s hard to sell something you don’t have.” However, he observed that the market prices have improved compared to six months ago. His company manufactures Red and White Oak, Poplar, Ash, and Cyprus in all grades, with Poplar and White Oak “busting at the seams,” he explained. His company sells to a mixture of end users and distributors who reportedly are looking for more product due to a log shortage. As far as transportation, this lumber provider described it as “a nightmare all by itself,” with increased prices for transporting lumber. “It didn’t go up a little bit, it doubled,” he stated. According to him, these trends are unusual for the Hardwood industry. “I’ve been doing this since 1974, and I’ve never seen Hardwood like it is right now.” A different lumber source from Tennessee shared the same concerns regarding supply. He has been in the Hardwood industry for nearly 28 years. “The market is incredible,” he stated, but “supply is extremely low.” Compared to six months ago, this source said he’s seen far better sales recently. He emphasized sales as being “a whole, whole, whole lot better.” He offers all major Appalachian species: Red and White Oak, Hickory, Hard Maple, Poplar, Ash, and Cherry with grades ranging from No. 3A and Better. His best-sellers are Poplar and White Oak with domestic business to end users, such as flooring manufacturers, moulding, trim and cabinet companies, as well as distribution centers and American ex- WEST COAST Lumbermen on the West Coast say the market is good and they are busy – but getting product can be problematic. A lumberman in Washington State considered his market to be good. “If you’ve got the product,” he stated, “it generally moves right out the door. That’s the case for sure right now. It’s good. However, it’s frustrating because of lack of supply.” Overall, he observed, the market is better than it was several months ago. Species he sells include Poplar, Red and White Oak, Hard and Soft Maple and Hickory. Red Oak is the only quiet specie, he remarked. Thicknesses are mostly 4/4 – for flooring, cabinet parts and moulding. “It seems like the cabinet manufacturers are doing well,” he said. “They’re surprised that the volume is so good.” Transportation, on the other hand, is “terrible,” he noted. “It’s hard to get trucks. It’s deteriorating.” In California, a lumber provider said his market is good. “It’s very good,” he said. “I’d say it’s good enough that we’re having the same problems a lot of people are having with getting materials in. It’s not a problem sometimes selling right now; it’s having enough material in here. With ocean freight the way it is, we bring in some items from Europe – Estonia, Germany and Spain – and the containers get delayed. Even our Hardwood mills are having trouble with enough supply. We’re struggling there, too.” He commented, “We’ve been discounting our invoices for 40 years and being nice to our vendors, and we still can’t get the lumber we need. It’s a challenge. Sometimes we call it PTSD – price to time of shipment disorder. That’s what we’re suffering with. It’s been like that for some time now. But this, too, will pass. We just don’t know when. And we hope not to be stuck with high inventory cost when it does turn around.” Compared to a few months ago, monthly sales figures indicate the market is now “a little bit better,” he stated. He sells all domestic species including Cherry, Maple, Poplar, Walnut, Red and White Oak, rift and quartered wood, up to 16/4 on certain items, upper grades and Please turn to page 58 Please turn to page 59 8 JUNE 2021 n NATIONAL HARDWOOD MAGAZINE JUNE 2021 n NATIONAL HARDWOOD MAGAZINE 9
