LAKE STATES Continued
LAKE STATES Continued from page 12 other conditions have led to the “lack of vision” in the market. “There is a general slowdown in this industry for Hardwood products,” he said. “It is spurred by things like interest rates, the time of the year and Hardwood alternatives. Instead of solid wood floors, people have gone to luxury vinyl plank flooring. High Density Fiber products are replacing Hardwood in many cases.” Due to many of these factors, the source said he doesn’t expect things to rebound until the third quarter of 2024. “Demand is down and so is supply,” he said. “It is hard right now to convert a log into lumber and make a profit. A lot of these sawmillers, they know the price of the timber that they have and they are not bringing it in. If demand finally picks up there is going to be a gap out here where there is not enough lumber to supply the demand. “We are producing a lot of rustic grade and 2 Common and not enough 1 Common,” he continued. “Most people have 2 Common White Oak but no 1 Common or prime. Logs have so much value now, they are not making it to a sawmill. The logs you’re left with are low grade logs.” A Minnesota source who primarily sells to contractors and cabinet makers said that Hard Maple sales have “started to come back” but that Cherry is “a problem.” “White Oak is still moving like crazy,” he said. “And Walnut is always high.” The lumberman said that 25 percent of his sales come from kiln-dried lumber. “I wouldn’t say that things are slow right now,” he emphasized. “We have been pretty steady.” He added that the market has been “very competitive” for home builders since fewer houses are being built. A Wisconsin lumberman was optimistic that the market would improve after the holidays. “I thought it would be a lot better,” he expressed. “But we are still waiting for things to take off. Things have been lean for about six months.” He added that sales in flooring, cabinets and moulding have been “slow but steady.” Specializing in Hard Maple, Basswood, Red Oak and Ash, this Hardwood business significantly curtailed production to 50,000 feet a day. One of the markets that the business has temporarily cut out is exports. “We have not been exporting (Red Oak) to China or Vietnam this year,” he said. Work has slowed to the point that the mill is only operating 30 hours a week. “One bright spot is the Hard Maple,” he said. “It has really been picking up.” Another concern for the source is that there are not enough logs on hand to move before the eventual “break-up,” the unideal period of travel time ranging from 6 to 8 weeks when ice is melting and freezing from the roadways. An Ohio lumberman also noted that the “weather has been terrible for logging.” n NORTHEAST Continued from page 12 No. 3A and Better and in 4/4 and 5/4 thicknesses. “Maple continues to be our best seller with it making up 50 to 60 percent of our production,” he said. He sells to end users, concentration yards and brokers. A lumberman from New Hampshire noted that his kilndried markets are depressed. “The demand is low and pricing is challenging, for kiln-dried lumber. The green markets are aggressive with there being very little logs and green lumber is probably overpriced compared to what kiln-dried lumber is currently,” he said. “For companies that depend on green lumber it’s kind of a catch 22, they either buy green lumber at higher prices or they send their people home.” He believes that his sales are doing better than they were six months ago but mentioned that he doesn’t have any reason to be optimistic in the near future. His company offers Ash, Basswood, Beech, Birch, Cherry, Hard and Soft Maple, Red and White Oak, Hickory and Yellow Birch in grades No. 2 Common and Better and in 4/4 and 5/4 thicknesses. “White Oak is still the prevailing specie to be dealing with if you are able to buy it correctly. The Maples are showing some signs of life after a long period of hibernation,” he said. He noted that 50 percent of his companies sales are sold overseas, while what is sold domestically is sold to distribution yards, cabinet, furniture and flooring manufacturers. “The only customers that seem to be doing well right now are the small distribution yards that have been able to hold their own.” He said that he would love to be able to find some more Please turn the page Funding For your neck of the woods Finding financial solutions built for the hardwood industry shouldn’t be difficult. That’s why we offer lending solutions that are a little closer to home. Farm Credit Mid-America understands the unique financial needs of forest products businesses and offers lending solutions built around your business’s goals. Loans subject to credit approval. Additional terms and conditions may apply. Farm Credit Mid-America is an equal opportunity lender. Let’s Connect. Visit FCMA.COM/ FOREST-Products to get started. 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