National Hardwood Magazine - November 2013

U.S.A. Trends Supplier

U.S.A. Trends Supplier news about sales, labor, prices, trends, expansions and inventories SOUTHEAST LAKE STATES WEST COAST NORTHEAST Hardwood suppliers in the Southeast accounted for good business activity. In Tennessee a Hardwood supplier explained, “Business is as good as we’ve seen it in a long time. Demand is good, lumber supply is pretty tight and prices have gone up a lot. If you’re selling lumber and you have lumber, it’s a very good market.” Handling Red and White Oak, Cottonwood, Ash, Poplar, Sap Gum, and Sycamore, the contact said all species are moving well. “I can’t single out one specie that is moving better than the other. Everything that we have is moving well.” He said his inventory levels are down and prices are up. “We buy logs and lumber and the prices on the lumber that we buy on the outside are going up.” As for his export markets he said, “The domestic market has picked up some but the export market is what keeps us going. China is real strong right now. They’re actively looking for lumber and they know that there is a shortage so they’re willing to pay what we’re asking.” When asked about transportation he said availability of trucking is limited. “There is a real shortage of drivers right now and it’s hard to get loads where you need them when you need them. That’s really the only area in which we are experiencing issues.” He said his customers report good conditions also. “The Hardwood flooring market is good According to sources in the Lake States region, Hardwood lumber market activity continues to be on the rise. One contact in Ohio noted, “If you’re in the lumber industry and you haven’t made money this year, you’ve done something completely wrong. Log shortages have definitely created some interesting situations that reflect in the lumber shortage. There have been shortages but we haven’t completely run out. Sawmills are still running. They may not have three months worth of supply but they have three days. Enough logs keep coming in and that’s one of the primary factors.” Stocking Walnut, Hickory, Cherry, Red and White Oak, and Hard and Soft Maple the source said, “Cherry is still dead, but otherwise all the other species are moving.” The source said his inventory levels are tight. “If you don’t have alliances in place in a market like this you’re in trouble. If someone calls us and wants a load of lumber this week and they’ve been ordering from us for the past 10 years, they’re getting taken care of right away. It’s important that you have a network in place. You have to be friends with your customers and your suppliers.” While the contact indicated his prices are currently up, whether or not they’ll change in the coming months depends on the logging season. “We’re right on the cusp of logging season and there is a shortage of loggers too. Everything has changed since the slow down of the economy.” Hardwood suppliers on the West Coast indicated supply is tight and prices continue to rise. “Business is not back to 2005 levels yet but it’s certainly a marked improvement,” a contact in Washington said. As for the factors involved he noted, “Obviously the housing market has improved and there is more building going on. People are getting back to work in certain segments that have been down for a couple of years. The one thing that never leaves the market is the high-end home. Even during the worst of a recession, the wealthy are always wealthy.” Stocking most domestic Hardwoods, the contact said Alder is moving the best. “Walnut, Cherry and Beech are doing well, but Alder is still the number one specie requested. Oak is off a little bit, but Maple should kick back into gear soon. It’s ironic that the trends have been good on Walnut and Cherry because those are the upper tier.” He said he isn’t experiencing any availability issues and his inventory levels are high and the prices he’s paying are level. “Alder came up quite a bit from a 10 to 15 year low. Maple jumped up in price and that drove people away from it. I’m expecting to see Maple level off this fall because we’re getting into the cutting season for Maple. Now that we’re coming into the cutting season for Maple, where we don’t have the sap stain that you face during the summer months. I think the cutting will get a lot heavier and we’ll The Northeast region is experiencing improved Hardwood lumber market activity overall. “Supply is definitely an issue, which is driving demand,” a contact in PA noted. Handling Red and White Oak and Poplar, he indicated all species are moving well. “Upper grades of White Oak are a little slow but mostly everything is moving well,” he explained. “Purchasing timber has been an issue lately. I think everybody’s inventory is low from the sawmill to the enduser right now.” He said the prices he’s paying for timber are up and he doesn’t expect them to change in the coming months. As for export markets he hasn’t seen much change over the last six months. When asked about other issues affecting his operation he said, “Every cost is affecting us. Trucking, fuel, electric and insurance are the primary concerns.” Marketing to endusers and wholesalers he said his customers’ markets are good. “I think we’re going to be busy for the remainder of the year. Whether or not it will be profitable is another question altogether.” A Connecticut Hardwood supplier reported significant improvements in activity. “There is a shortage of lumber because of the weather. As a result we are seeing more demand and better pricing,” he said. Handling Hard and Soft Maple, Cherry, Ash and Red Oak, he said all species are moving with the exception of Cherry. “Cherry is not very strong in the U.S. Please turn to page 42 Please turn to page 42 Please turn to page 43 Please turn to page 43 6 NOVEMBER 2013 ■ NATIONAL HARDWOOD MAGAZINE