National Hardwood Magazine - October 2018

SOUTHEAST Continued ter

SOUTHEAST Continued ter deal and say, ‘Well, my truck broke down.’ Fuel has risen a little bit, but they have raised their trucking rates quite a bit this year, and even when you find fuel cheaper they haven’t backed off their trucking rates that they inflated at the first of the year,” he explained. He said that shipping from his area up north is difficult. “Going into Pennsylvania and New York is mighty difficult right now,” he stated. “We just push more out of domestic and into export, then they are talking about 25 percent tariffs on Hardwood lumber, so that’s going to put everybody into a real pickle.” Log supply has been constrained due to weather, he said. “We’ve just been deluged with rain and we’re about as skinny as we’ve been in a couple of years. We’re in good shape if we can hold steady at the level we’re at in terms of logs, but winter’s coming. I think we’re down to about two weeks’ supply right now, which is a little nervy, but it’s not time to panic yet,” he commented. His customers are mostly distributors, end users such as moulding plants and flooring manufacturers, and brokers who sell his lumber overseas. n WEST COAST Continued from page 19 TARIFFS ON NORTH AMERICAN LUMBER, LOGS TAKE EFFECT The Chinese government announced recently they would proceed with retaliatory tariffs on U.S. products in response to the Trump Administration’s imposition of 10 percent tariffs on 0 billion worth of Chinese imports, including a variety of Hardwood and Hardwood products. Retaliatory tariffs will be imposed on billion worth of U.S. exports at either a 5 percent or a 10 percent rate, which started Monday, September 24, 2018. The Hardwood Federation received a list translated from Chinese of the logs and lumber to be affected and has been confirmed by U.S. Hardwood sources on the ground in China. Here are the wood species on that list, including both Hardwood and softwood: Lumber – • Red and White Oak, 10 percent • Hard Maple, 5 percent • Cherry, 10 percent • White Ash, 10 percent • Yellow Poplar, Black Walnut and Hickory, 5 percent Logs – • Red and White Oak, 10 percent • White Ash, Yellow Poplar, Black Walnut,Hickory,Basswood,Cherry, Hard Maple, Red Elm,other North American Maple,10 percent • Yellow Cedar (15cm and up), 5 percent • Yellow Cedar (15cm and under), 10 percent The Hardwood Federation reported that the Chinese government’s announcement did not clearly indicate if the Chinese tariffs will increase on January 1, 2019 to match U.S. planned rate increases from 10 percent to 25 percent. However, separate statements indicate that “if the United States insists on further increasing its tariff rate, the Chinese side will respond accordingly, with related matters released separately.” n Learn more at www.hardwoodfederation.com. (Editor’s note: At presstime, the wood species list in this article was the most recent translated list from China to be received by the Hardwood Federation.) ter than it was before. However, it’s been pretty wet back East, so that has had a dampening effect on supply, so to speak,” he noted. “But with the log exports drying up, we’ve got plenty of logs to run.” His customers are Hardwood distributors, original equipment manufacturers (OEMs), cabinet, furniture and millwork manufacturers. A lumber supplier in California said the market was good. “We’ve been very steady,” he stated. “We’ve remained very busy, and we’re hustling.” He sells Walnut, Hickory and White Oak in all grades and noted the upper grades are moving well. “The best sellers have been No. 1 Common and No. 2 Common Walnut, and also the upper grades, then a No. 1 Common in White Oak as well as upper grades,” he commented. “Then also Hickory has been moving well in upper grades.” He hasn’t had issues with transportation, although he said he knows many of his competitors have. “We just don’t seem to have that problem here; there are a lot of trucking companies around here,” he added. “If a truck is on a backhaul and you call and you’re nearby, they’ll come right 88 OCTOBER 2018 n NATIONAL HARDWOOD MAGAZINE

ight over and get it.” Lumber supply is good, he stated. “I have no complaints about supply,” he commented. “That’s partly due to the fact that it’s a faster drying time in the warmer months.” His customers are mostly flooring manufacturers and retail lumberyards. A salesman with a Washington lumber supplier said the market has been decent. “It seems to be OK; the issues with China have slowed business down a little bit, so that’s a hurdle,” he stated. He sells Alder in about 20 grades and said all grades are selling well. He said log supply is “only OK.” “It’s improving, then it gets harder to find the logs, but it’s just because Chinese business has slowed a little bit and Alder logs are more available in the warmer months,” he commented. His customers are distributors and end users. n QUEBEC Continued from page 20 The government generated a surplus of .3 billion in its 2017-18 fiscal year, or fully .45-billion more than Finance Minister Carlos Leitao projected in his March budget. Quebec’s economy grew by 3 percent in 2017, producing higher tax revenues than anticipated. That means Quebec will need to withdraw only 7-million from its .8-billion stabilization fund to balance the books in 2018-19. The fund leaves the next government with a healthy cushion to weather a short economic downturn or more measures implemented by the United States. n ONTARIO Continued from page 20 Canada forecast that construction workforce demand would rise by approximately 22,000 workers by the end of the decade. “Despite slower employment growth in most provinces, recruitment pressures will intensify with the estimated retirement of up to 21 percent of Canada’s construction workforce this decade,” said the executive director of BuildForce Canada. “Simply put, the industry must remain focused on recruitment, training, and mentoring efforts to prevent a potential skills and capacity gap over the next 10 years.” This could impact the Hardwood lumber sector should there be a strong slowdown in construction. With fewer homes being built due to a shortage of labor, this could negatively impact demand for Hardwood lumber and finished goods. n nationalhardwoodmag.com OCTOBER 2018 n NATIONAL HARDWOOD MAGAZINE 89