National Hardwood Magazine - November 2016

RALPH TAYLOR

RALPH TAYLOR VERTICAL.indd 1 2/8/16 12:31 PM LAKE STATES Continued ations. “A lot of people I talk to have the misassumption that custom furniture is expensive, but the pieces made here by the small manufacturers are actually really affordable. And because they purchase mainly Red Oak, they’re located in prime territory for keeping a steady supply of what they need to stay busy.” Operating his own fleet of trucks this source said that due to demand he has had to do a small amount of contracting in recent months. “It’s a small amount that we have to contract, but everyone runs into the same issues with some trucking companies charging double what the others charge. A few of the trucking businesses out here have started to compete a bit more, realizing that no one is going to put up with higher prices given that oil has been down in cost per barrel for a while now.” n since 1968 NORTHEAST Continued from page 8 560 Erin Drive, Memphis, TN 38117 901-684-1400 FAX: 901-684-1404 Email: Rtlumber@aol.com FACILITIES: • 7’ band mill and resaw producing 20,000,000’ of lumber • Tie mill producing an additional 5,000,000’ of lumber • 4,000,000’ covered air drying capacity for Common & Better Red and White Oak lumber • 400,000’ fan shed capacity used only for soft Hardwoods • 400,000’ dry kiln capacity • 2,000,000’ dry storage capacity • manufacturing lumber, crossties & board road LUMBER: • Red and White Oak • Ash • Cottonwood • Gum • Hackberry • Elm • Pecan • Sycamore • Hickory are loyal suppliers to some very loyal customers, and that is critical. We also are mindful to be very realistic with our market expectations.” He added, “We don’t have as much of our customer base tied up in exports as many others do, but what we do have invested in exports will be impacted by recent issues like the Hanjin Shipping bankruptcy, for example,” said the Vermont source. “I’m quite certain space is going to tighten up considerably on ships the rest of the year.” Otherwise, this company’s end-of-year business plan includes their typical decrease of on-hand lumber inventory. “For us, the market has, and is, moving along fairly typically. Momentum of sales built up till the end of July and into August, then the market began turning a little sluggish. We were poised a month ago to drive down our inventory as needed, and now we are where we want them to be this time of year.” In New Hampshire, a lumber source that is heavier to exports said, “The industry has pretty much backed itself into a corner. There are roundwood markets in our area, but they are plugged up, and the price of logs is too high.” This source credits the fact that his company is diversified as to why they are able to remain lucrative. “We do construction mats and ties; that’s really what’s paying our bills now,” he said. “Grade lumber right now is a waste of our time, and even in the upper grades you don’t get paid enough to produce them.” He added, “The money to be made is in Red Oak and Hard Maple, although Hard Maple has been getting beat up on price recently. In regard to Red Oak, as long as we can keep making the ties, we are okay, but if we quit doing that, it would change things dramatically for us. Basically, for what we have to pay for logs now in this part of the world, we have 46 NOVEMBER 2016 n NATIONAL HARDWOOD MAGAZINE

to ship green because we can’t afford to dry lumber, especially any that we might plan to ship to China.” This source, whose customers consist primarily of flooring manufacturers who need No. 1 Common and Better boards, added that 60 percent of his facility’s products have been going to China. However, with the recent bankruptcy developments in regard to Hanjin Shipping, this contact said, “You’d have to be ludicrous to pre-sale anything now, especially overseas. Yes, product will ship, but what you’re going to be charged to get it there is the problem, and whether or not the Chinese waiting on the product will produce documentation or pay the increased costs to receive it is another question.” He added that his company currently does not have a large order file overseas or otherwise. “We sell as orders come in,” he explained. Like other lumber manufacturers in the area, this one is driving inventory levels down now. He said, “I just don’t foresee building inventory until there’s real positive change in the market.” A Pennsylvania sawmill source cited a lack of kiln-dried inventory in his area at the time of this writing, and interest from end users has been species specific. He noted demand for upper grades of Red and White Oak has been peaking domestically in recent weeks while Hard Maple and Ash sales have been sluggish overseas. Soft Maple moved fairly steadily through the summer and into the fall, particularly for No. 1 and 2 Common, the contact noted, who added that overall pricing on most of the species he handles has remained firm, including Birch. n WEST COAST Continued from page 8 progresses, a contact in Oregon noted. “It’s something we all have learned to expect. Right now low grades are on the rise for us actually, which is great. In a few months it will drop slightly lower as production ebbs towards the end of the year. Right now, though, rustic grades are really hot, with the clears taking second place.” Like other sources, this contact said that Alder continues to be a strong species. “And on the opposite end of the spectrum we have Cherry, which has kind of been sitting around more than any of our other species,” he noted. “We’re not so much worried about it because it does still sell, but I’m definitely ready for it to pick back up.” Comments from a Hardwood distributor in Washington were positive as he looked ahead into the near-term. “We’re seeing a strong push for Poplar and White Oak, but Red Oak is close behind. From our end user customers there’s a focus on building up inventories to carry them through to the new year, so over the next month we’ll probably see their purchasing habits back off a bit.” Please turn the page Tracey Mueller, Log Procurement SAW MILL AND TWIN BAND RESAW PLAIN SAWN RED OAK • WHITE OAK MANUFACTURERS OF: 4/4 - 8/4 GRADE LUMBER SPECIALIZING IN: • WALNUT • COTTONWOOD • SYCAMORE • HICKORY • RED OAK • WHITE OAK • SOFT MAPLE • HARD MAPLE • ASH 400,000’ DRY KILN CAPACITY 1,000,000’ DRY STORAGE PLANER STRAIGHT LINE RIP DOUBLE END TRIM EXPORT PACKAGING CONTAINER LOADING Randy Mueller Sales Kevin Mueller Mill Manager Grooved sticks used on all whitewoods and White Oak. P.O. BOX 175 OLD MONROE, MO 63369 PHONE: 636-665-5193 FAX: 636-665-5812 E-mail: randy@muellerbros.com NOVEMBER 2016 n NATIONAL HARDWOOD MAGAZINE 47