National Hardwood Magazine - November 2013

SOUTHEAST continued from

SOUTHEAST continued from page 6 along with the furniture and export markets. Everything is positive right now,” he offered. The supplier said he expects a strong market in the months ahead. “I think the supply of lumber will probably stay pretty tight. The low grade and industrial markets are going to stay strong. There’s going to continue to be a lot of competition for Oak flooring also. All of that is going to stay in high demand and the demand on those markets is going to continue to increase.” According to a contact in Georgia, economic conditions have improved modestly overall. “We’ve seen a slight pickup in sales, and bright spots over the year,” he explained. “Most of our customers are still cost conscious. They’re buying, but just not in large quantities. Many of them continue to report increase in demand. The flooring and furniture manufacturers are busy and the distribution yards we serve are picking up.” A Hardwood supplier in Florida mentioned supply shortages were hindering his company’s ability to meet current demand. “We have a few back orders right now and it’s because supply is limited. This year our industry has seen some positive improvements with gains in housing and some banking criteria changes. People are getting on with the projects they’ve had planned, but supply is not meeting the current demand. Several factors are involved in the supply shortages. Some suppliers in certain areas didn’t expect a large increase and so they were unprepared. In other areas the weather wasn’t great for logging early on in the year, which dictated a lot of what would be available in the spring and summer.” When asked about the remaining months in 2013 and the beginning of 2014 he said, “If the weather patterns play nice this winter we’ll see supply get back to a normal range and things will level out.” ■ SPECIFY Collins Hardwood Lumber Millwork and dimension, veneer logs Collins Pacific Albus ® Plantation hardwood lumber Collins Softwood Lumber Dimension, common and industrial, slicing flitches Collins Pine FreeForm ® NAF, CARB Exempt, Declare Product, FSC-certified, and available moisture resistant; MR10, MR50 Collins Pine Particleboard NAF, CARB Exempt, available moisture resistant TruWood ® Siding & Trim Engineered wood The mark of responsible forestry FSC ® -C002971 www.fsc.org Information and Sales: 800.329.1219 Lee Jimerson ext 2266 ljimerson@collinsco.com CollinsWood.com Whats in a name? A promise. Oregon Health & Science University, awarded first LEED health care facility. We specialize in custom-made suspended wood ceiling panels, mainly for institutions. The wood has to be clear and beautiful, like Collins Pacific Albus hardwood. But for us it also has to come from a company thats the real deal when it comes to forest management. Collins is that company. Walk in their forests like I have and youll know what I mean. They honestly and transparently, Do the right thing. Michael Roemen, Design Solutions Manager 9Wood LAKE STATES continued from page 6 As for other issues affecting his operation he said, “We’re not having any major issues with transportation right now. Everybody kind of knows what to expect and I think we’re getting back into an arena where you can do that—where it’s possible to forecast your business six months out.” A contact in Indiana who markets Hardwood lumber to distribution yards and endusers said his customers’ markets are doing well. “We have such a world economy now, business conditions continue to improve for everyone. If you can’t sell your lumber in one market you can go to another market, whether it’s Australia or China. There has been some talk that Vietnam is going to purchase a lot of lumber over the next year because manufacturing is moving to Vietnam as China has become expensive.” A Hardwood supplier in Wisconsin said housing has improved, which has impacted the economy and the Hardwood lumber industry in a positive way. “Moulding and flooring manufacturers are on fire right now,” he explained. “Exports are actually up in our area so combined with housing picking up we’re seeing some shortages. We’re actually scrambling just to get enough wood to keep up with our orders.” Handling Ash, Aspen, Basswood, Birch and Red and White Oak, he said most species are moving well. “Ash and Aspen are moving slightly slower than the rest. Red Oak is in short supply so it speaks for itself as the best moving item right now. The Oak inventory that we have on the ground is already spoken for and some of that is not even here yet from the green mills.” When asked about what he expects at the end of 2013 and in the New Year he said, “We will finish out 2013 better than 2012, 10 or 11. It’s too early to tell what kind of year we’ll have in 2014. If the trend continues, good business is what I forecast.” ■ 42 NOVEMBER 2013 ■ NATIONAL HARDWOOD MAGAZINE

WEST COAST continued from page 6 see that pricing comes off at least 10 percent. At that point we’ll see the usage go back up.” He said his export markets are good. “That’s where a lot of the midgrades are going. Five years ago most mills didn’t enjoy much of a relationship with export markets. I think today most Hardwood manufacturers enjoy a good international relationship.” A Hardwood supplier in California said transportation issues are mild. “We are right in the supply line so that’s one reason why our trucking runs so heavy. We utilize the supply line and we do most of our own trucking.” Marketing to cabinet and furniture manufacturers and other endusers, he said his customers’ markets have improved. “I think everybody is seeing improvement. Everybody is seeing his or her way out of the ‘hungry’ mode. In the last few years we’ve all been lucky to keep cash flow going but now we’re finally seeing people pull some profit out.” As for what remains of 2013, the contact said he expects a slight increase. “It’s just going to get a little softer because of the season. I don’t look for any roller coaster changes.” An Oregon supplier said business is a little slower than it has been throughout the year. “This was a slow month but most of that is because of the seasonal slow down,” he commented. “We have some customers that are extremely busy and others that are slow. We had a really good August and an average September but everything still points to good conditions.” Handling all domestic Hardwood species he said Alder is his best moving specie in cabinet and superior grades. “We’re not having any availability issues and our inventory levels are a little higher than we like,” he said. “Prices are trending upward and we don’t see a change in that area until next year sometime.” Marketing to cabinet and commercial fixture manufacturers, the source said he expects a normal winter cycle with business picking back up in the spring. ■ NORTHEAST continued from page 6 market, but it is getting a lot of attention in Asia.” The contact indicated the price of timber is not coming down but his log inventory is increasing due to improved weather conditions. “We have been moving quite a bit of lumber for the last 60 days and the price of logs continues to go up. If we have to purchase lumber from the outside, the prices are also higher.” With 40 percent of his business in North America and the other 60 percent in exports another source in the Northeast said his export markets are increasing currently due to the coming Chinese New Year. “The Chinese are buying as much as they can right now because the Chinese New Year stops shipments from November 15th to January 1st. The U.S. market is very active and there is not enough product on the market. So everyone is paying more for lumber, especially in China. I would say we are close to the levels of 2003 or 2004 at this time.” When asked about the next six months he said, “We see only positive things in the near term. Our industry has seen four years of difficult times and now we are on our way back up.” ■ STAy iN TouCH AND iNformeD. Phone: 540-946-9150 FAX: 540-946-9153 www.ahiwood.com nationalhardwoodmag.com NOVEMBER 2013 ■ NATIONAL HARDWOOD MAGAZINE 43