HARDWOODS ILD continued
HARDWOODS ILD continued They are looking for importers and wholesalers to stock the goods for them so that they can buy on a ‘just-in-time’ basis. That’s what we do, we specialize in ‘just-in-time’ shipments.” As for logistics Herga mentioned the company delivers by contract carrier and imports directly by container to all U.S. ports. “Most of the lumber that comes through our Leland branch goes through the ports of Charleston, SC, and Savannah, GA, via 40- foot containers,” he explained. “We also offer direct shipments to customers in various locations of the U.S.” As relationships with suppliers are key, Herga visits South America and West Africa on a regular basis. When asked about future plans for Hardwoods Import Lumber Division, Herga commented, “This business is going to grow considerably over the next couple of years. We are excited to be working with a great company, offering quality products.” Hardwoods Import Lumber Division is a member of the International Wood Products Association and the National Hardwood Lumber Association. For more information visit www.Hardwoods-inc.com. ■ SOUTHEAST continued from page 6 the mainstream companies who are exporting lost inventories because there was no availability and they were shipping everything out as soon as it was produced. Now when we see stock lists there are larger amounts of Red Oak and Cherry on those inventory lists.” A source in Alabama said, “Transportation continues to be a challenge. Availability of trucks and the cost are challenging. It affects everybody’s bottom line. I don’t see any other new problems. We’re starting to see a recovery in our part of the country and an increase in consumer spending and some of our woodworking customers are experiencing increases in their sales activity in business, which translates to the suppliers, including us, so it’s been good for all of us.” As for what remains in 2014 he said he believes business will stay the same. “I don’t expect anything major one way or the other until the spring at least. We’ll see some slowing in the winter as the weather gets colder and that’s normal for what we do. It’s nature and it’s just part of it. When spring comes business will pick up and I think we’ll see an improved year in 2015 over 2014.” ■ LAKE STATES continued from page 6 is directly related to employment. Hiring is a 48-hour a day job and the workforce available for hire is poor. Our customers are experiencing the same thing so they are asking us to do more value-added products. They’re requesting more defined parts and products so that they can just put the final touches to it. We are seeing a lot more of that, which is where we want to take part of our business anyway. Adding value to our product enables 44 NOVEMBER 2014 ■ NATIONAL HARDWOOD MAGAZINE
us to gravitate away from the commodity type purchasing and it enables us to pick up a few more points in our margins that we normally would not have just in raw material.” A Hardwood supplier in Indiana offered, “Basswood is moving okay and we’re starting to see a little uptick in Aspen. Overall I can say just like everyone else in our industry you don’t want to see any good thing slow down. Business has slowed down a little since the beginning of the year. I don’t think it is as bad as some people have their minds set to. I’m an eternal optimist and if business is drops off it means you’re not working hard enough.” As for transportation and availability issues he commented, “This is the worst logistics situation I’ve seen in 30 years and I don’t see it getting any better. I don’t think fuel is a detriment to trucking companies like it once was because most people have accepted it. The problem for us is availability and business is better in every industry. Product has to move and you need the equipment to move it. We’ve added four of our own trucks just to accommodate the shortfalls we’re seeing. I don’t want to get in the trucking business because we are in the Hardwood lumber business. But having lumber sit on the ground doesn’t generate revenue.” ■ that your trucks don’t go out empty or half full. Make sure that you maximize route planning and things like that are all a part of organizational logistics on our end.” The Hardwood supplier noted his customers are experiencing good business. “Most people are mirroring our business and expecting a very nice winter. We expect early next year to be just as strong. There is so much construction catch up to be done, I think we’ll all stay pretty busy.” ■ Keep Up With The Latest Hardwood Industry News nationalhardwoodmag.cohm A PATH WITHOUT A FOOTPRINT WEST COAST continued from page 6 “We’ve seen domestics continue to climb all year long. In some instances prices are so high that I anticipate a crash. When it corrects I don’t think it’s going to correct all the way back to where it was before. With imports there are so many other factors in play. From a crane breaking down on the coast of Africa to U.S. embargos in Myanmar and regulation changes decreasing exports. Every time something happens it drives prices up and a new concession opens and the prices drop again. So everything is up, but it’s also getting to a point that I feel if it gets any higher people will abandon the product. So we will see a correction soon.” A contact in Oregon said his transportation costs are high but competition is his main concern. “Transportation costs are expensive and that is not going to change because gas is expensive. Obviously not just the lumber industry needs transportation, so the competition is high. Ultimately what it comes down to is logistics. You have to manage your product making sure Lee Jimerson 800.329.1219 ljimerson@collinsco.com CollinsWood.com Lever Architecture. Photo by Jeremy Bittermann. Portland’s Union Way is a tribute to architectural ingenuity and civic responsibility – so is a stroll through a stand of Collins Pacific Albus trees. Plantation grown Pacific Albus is consistent, uniform and FSC® 100% certified. And as a visit to Union Way clearly shows, the results are both beautiful and environmental. Feel good about it NOVEMBER 2014 ■ NATIONAL HARDWOOD MAGAZINE 45
