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4_Layout 1 9/29/16 10:33 AM Page 2 WEST COAST Continued tt G.F.Hardwoods,Inc. “A Company You Can Depend On” Quality Appalachian Hardwood Lumber 900,000B.F.KilnCapacity Jimmy Carr, KD–Lumber Sales jimmycarr38544@yahoo.com Quentin Moss, KD–Lumber Sales/GR-Lumber Sales/ Purchasing quentin@gfhardwoods.com Trevor Graves, KD-Lumber Sales trevor@gfhardwoods.com In the past year a species that has been slow to sell was Walnut. The contact said, “We held off on carrying much Walnut until we saw it recovering. Now we’re finally starting to get a lot of calls for it.” Other than seasonal issues, there were few negative factors to report. Though the source did mention, “Towards the end of November we always see the Christmas tree market take over a lot of the available trucks, so it can make it difficult to get the Hardwoods not native to this area. It’s no different than the watermelon and other produce needing to be trucked to neighboring states. After the 20 years I’ve spent in the industry, I know what to expect.” n 9880 Clay County Hwy. • Moss, TN 38575-6332 PHONe: 1-800-844-3944 • FAx: 1-931-258-3517 www.gfhardwoods.com SOUTHEAST Continued from page 8 “In our industry, we sometimes are our own worst enemy,” he said. “That’s because the truth is when your mill is almost out of logs, you wind up paying whatever price you have to in order to meet your customers orders. We need to see price margins improve.” He buys logs from within a 120-mile radius to minimize transportation costs as much as possible. This source also exports lumber to China and he expressed concern about how shipping rates will be impacted by the recent Hanjin Shipping developments as this year winds down and next year begins. Taking into consideration issues with transportation and pricing, this source said, “Compared to how we did as a business in 2015, we are doing a little worse at this time in 2016. Our profitability is down directly because log prices have not been good in comparison with lumber prices.” A lumber contact in North Carolina said his log situation recently has been good as his area managed to avoid the recurring soaking rain many states in this region experienced in late summer. He added that upper grades of White Oak have been in demand among many of his flooring customers, and one of his clients has been looking for quality Red Oak at reasonable prices. In Arkansas, the lack of logs has created some issues for mills, said one lumber source who handles Red and White Oak, Hickory and Sap Gum in upper grades. But he was upbeat in his expectations of improvement in log availability since fall has arrived and the ground has dried up in recent weeks. He, too, cited thin price margins between logs and lumber, but he voiced optimism that as the log situation improves, so will pricing. This source sells a considerable portion of his lumber to flooring manufacturers who have reported consistent demand for products all year. In Kentucky, a supplier of lumber 48 NOVEMBER 2016 n NATIONAL HARDWOOD MAGAZINE
primarily to flooring distributors, said his log inventory is the “biggest and best we’ve ever had.” That’s because his company procures logs from 10 different states to avoid the challenge of any shortages. “We’re actually in the process of building up our inventories for the winter, and haven’t had any issues doing so. Even in regard to transportation, we are fine because we have established strong relationships that we’ve built through the years with various trucking companies,” he added. Specialty cuts of White Oak, which comprise 90 percent of his sales, have been “hot” all year, this source said. Looking ahead to the end of 2016 and into 2017, this source “feels good” about the direction of his business and the industry in general. “Our business this year has been stable – not necessarily better than last year, but good and stable. Because of this, we’re optimistic,” he said. n aircraft to canola. Non-energy export volumes remain 2 percent below where they were in September last year. “While the strength in exports this summer was encouraging, the ground lost over previous months raises the possibility that the profile for economic activity will be somewhat lower than anticipated,” the bank said in a statement accompanying the rate decision. The bank blamed global growth, which it said is not picking up as fast as expected in the summer, when it released its last set of forecasts. The main culprit was a contraction in U.S. business and residential investment in the second quarter. Some economists speculated that Please turn to page 53 ONTARIO Continued from page 9 da Child Benefit payments, which the government began issuing in July, will boost consumer spending throughout the fall. A favorite theme of the bank’s Governor, has been that Canada is poised to reap the benefits of a recovering global economy by selling a lot more to the rest of the world. But a series of unexpected setbacks – including the oil price collapse, Alberta wildfires and an economic stall in the United States – have led to disappointment for the Governor. The central bank conceded that July’s export bounce wasn’t enough to make up for an export slump earlier in the year that was “larger and more broad-based than expected.” The problem goes well beyond oil, and spans much of what Canada produces, from lumber to cars and THINK AGAIN NOVEMBER 2016 n NATIONAL HARDWOOD MAGAZINE 49
