National Hardwood Magazine - May 2022

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NORTHEAST Continued penses to the increased cost of electricity to run a mill. Still, her company is seeing strong sales in Hard and Soft Maples, in FAS and Better. Similarly, other sources noted that most species are selling almost as soon as they are available. For example, one source who deals extensively with exports said that what little White Oak is available sells quickly into Europe. “Red Oak at the moment, seems to have a lot of demand,” he added. “I think it’s probably people shifting over from White Oak to Red Oak, especially on the uppers.” He continued to state that all grades and species are moving, but not necessarily to the same markets. “In White Oak, you might have the uppers going mostly to Europe,” he said, “but you’d also have some 1 and 2 Common moving domestically. It may vary in where it ends up, but it’s moving.” A source from Maine has seen high demand for other species, as well. “The market for lumber is the best I’ve seen in several years, particularly in terms of what species are selling. We’re seeing high demand for Yellow Birch in 4/4 and 8/4, and 4/4 Soft Maple is very much in demand, as is Hard Maple in all grades.” He also noted that since Ash trees are still alive in their area, that is also a factor in sales. “They’ll take all we can saw,” agreed a New York source, whose sawmill stocks major lumber yards throughout the Northeast. “They’re super eager to get anything we can send their way, particularly Red Oak, White Oak and Hard Maple in FAS and Better.” n SOUTHEAST Continued from page 11 type of Hardwood being sold. “For us, Red Oak, White Oak, Ash and Poplar are selling best, with Red Oak and Poplar holding the top positions,” he said. “We’re holding White Oak, as we think it will become much more scarce and valuable in the next 60 to 120 days.” Among the species that are selling well, he notes that the lower grades and Commons seem to be doing better than FAS. Another sales manager for an Arkansas-based sawmill stated that White Oak in No. 2 Common and Select is selling the best from their inventory of Red and White Oak, Sap Gum, and Hickory. He noted that FAS Red Oak seems to be softer than anything else. A sales manager for a lumber and flooring manufacturer in Tennessee reiterated, “Demand is good, it’s as high as it’s been in a while. Supply is the issue. Of course, that creates the demand on the outside, because they can’t get it from anywhere, people are calling around to new places.” All sources interviewed mention the current economic climate as a primary concern. “Everyone is complaining about either the freight rates or the fuel,” noted one interviewee. “Transportation cost is an issue, whether we’re paying the additional cost or sharing it. Uncertainty about interest rates and the political situation are becoming very critical related to the number of houses being built, cabinetry and flooring. They’re all affected by the interest rates going up.” Another source stated, “Our end users are mostly brokers and they’re really struggling for supply and labor, like everybody else. Those are the two hard issues, but they seem to be waiting for the other shoe to drop. Everything’s been so good and we look at what’s going on outside…everybody feels like there’s no way that this can keep up.” Rising fuel cost remains a looming uncertainty for most. “Freight cost is extremely high and gas has gone up,” said one source. “Fuel is over a gallon where we are and will get worse. A lot of the low-end products will be mostly affected. The price will be more noticeable on the lower end.” The owner of a Cypress sawmill located in Southern Louisiana is seeing record sales with retail and contractor orders for 8/4 timbers, as well as 4/4 thickness for craftsmen. “The sales are up but South Louisiana is usually different than the rest of this country because of the oil and gas fields down here. When there’s a recession in the rest of the country, we don’t experience it because of our location. Even factoring that in, since pricing is going up, I’m afraid it will get so expensive that people may just stop buying Cypress. It priced itself out in the 80s and seems to be heading the same direction now.” The sawmills located in other areas feel an even greater pinch, despite focusing on local markets. “The market seems to be good but the Diesel fuel issue is having a big impact on us. We’re getting a fuel surcharge out of some people, but for some, we can’t. We were able to get trucks because we don’t haul very far, so transportation issues weren’t negatively affecting us until very recently, when the price of Diesel went up substantially.” n Follow us on & @millerwoodtradepub WORMY CHESTNUT • TROPICALS • QTR & RIFT • CYPRESS • ALDER Headquarters, Concentration Yard & Kilns in Hickory, N.C. Phone (828) 397-7481 FAX: (828) 397-3763 www.cramerlumber.com 3 million BF KD Inventory Atlanta, GA Warehouse 770-479-9663 “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 Northern KD Hardwoods • Aspen • Basswood • White Ash • Hard & Soft Maple • Red Oak • Birch • Cherry • Black Ash Export Packaging / Container Loading Joe Francois Joe.Francois@snowbelthardwoods.com Brady Francois BFrancois@snowbelthardwoods.com www.snowentities.com Phone: 715-561-2200 • Fax: 715-561-2040 Snowbelt Hardwoods, Inc. • 345 Ringle Dr., Hurley, WI 54534 John Hilgemann JHilgemann@snowbelthardwoods.com Tyler Francois Tyler@snowbelthardwoods.com 58 MAY 2022 n NATIONAL HARDWOOD MAGAZINE MAY 2022 n NATIONAL HARDWOOD MAGAZINE 59