Softwood Forest Products Buyer - January/February 2019

EASTERN FOREST PRODUCTS/

EASTERN FOREST PRODUCTS/ MILL SERVICES Largest Eastern White Pine finger joint plant in the Northeast 100% clear Eastern White Pine finger jointed primed lumber Available 1x2 to 1x12 8–16’ foot lengths Approximately 12 million board feet of clear DEFECT FREE boards Offering Primed Products in both oil and latex coatings A team of 97 dedicated employees making the products you depend on Providing all NELMA patterns produced by Weinig moulders Also capable of producing Eastern White Pine Edge Glued Panels 18", 24" and 28" wide Quebec/Ontario Business Trends - Continued from page 55 This is a typical slow down time of year, with the weather changing and hunting season upon us. Pine prices are still fairly firm, according to an Ontario lumber producer. “There is no panic; there is not a surplus of material and the logging had been strong because of favorable conditions. We are looking forward to a decent spring. We don’t know for sure until spring comes around, but the outlook is ‘mild to positive’. Retailers are not saying they are seeing any signs of the market slowing down, so the outlook is favorable. “The market was down a bit in the latter part of the summer and early fall, with housing starts down and with the softening in the Spruce market. The tumbling effect has stopped, and it is unusual for it to drop that much. You never know with the speculative nature of the Spruce mills but we are not dropping prices now.” People switch to low grade Pine when the Spruce market gets too high, but it is tougher when the Spruce comes off. One Ontario sawmill contact noted that the “mills in the Ottawa Valley have had a couple of good years, to replace the 10 years that were not good. People have to make money to do capital expenditures, which we have not seen much of recently.” Looking longer term, Forest Edge LLC and Wood Resources International LLC have produced a study titled “Future Suppliers of Softwood Lumber to the U.S. Market – Supply and Demand Outlook 2017-2030: A Multi-Client Study.” It finds that Canada will continue to be a major supplier of Softwood lumber to the U.S. in the next decade, with export volume from the Eastern provinces forecasted to increase substantially. The Softwood sawmilling sector in Eastern Canada will play an increasingly important role as a key supplier to the growing U.S. lumber market in the future. They predict there will be uncertainty surrounding log availability in the eastern provinces. Both the eastern provinces, as is the case with the western provinces, face complex factors that will further decrease the Annual Allowable Cut (AAC). Despite this, there is still a possibility that Softwood round wood production will increase in the future in Eastern Canada as current harvest levels are far below sustainable levels. Another of the study’s conclusions is that lumber exports from Eastern Canada to the U.S. are likely to increase substantially through 2030. n Midwest Business Trends - Continued from page 38 ing by the agricultural industry, he said. “We’re seeing more activity in the metropolitan areas for new home construction, multi-family and commercial construction, versus rural construction of storage and livestock buildings.” “The market definitely has slowed down a little bit as we’re staring winter in the face,” a Missouri sales contact who works for a distributor of lumber, including Softwoods, said. “The commodity lumber market has taken its toll on just about all of us. A historic drop, there’s no way to manage through that unscathed.” The source said most distributors “are in the same boat,” and that he believed the pricing decline had affected the overall market. His company’s top-selling Softwood is No. 2 and Better SPF, 2x4 through 2x8, while Douglas Fir in 2x10 and 2x12, is also popular with customers. What do those retail lumberyards say about their businesses? “I think their outlook is about the same. Things have definitely slowed a bit,” the contact said. He added that an early winter snow had contributed to a slower market, but that transportation was not as big of an issue as it was last summer. In Iowa, a fifth-generation retailer says the Softwood market has softened. “Demand has dropped off a little bit because of the time of the year and the weather, but it looks like supply has gotten a little beefed up, so I think there’s a little more pressure on the sellers to back off pricing a little bit,” the source remarked. Weather also has affected the Softwood market locally. “We had a lot of rain, then the cold settled in,” he said. About 65 percent of his customers are do-it-yourselfers, while the rest are professional contractors. Top-selling products are 2x4 and 2x6 dimensional lumber, No. 2 Common Pine, 1x4 through 1x12. It also sells patterned and clear stockboards, as well as plywood sheeting. n Marketing through wholesalers and wholesale Distributors ! call (800) 578-2119 www.millservicesinc.com Page 56 Softwood Forest Products Buyer n January/February 2019 Eastern-Mill SVCS-Nawla 2018.indd 1 9/6/18 11:28 AM

WeST West COAST Coast BUSiNeSS Business TreNDS Trends - Continued - Continued from page from 38 page 38 turn got as a quickly solid 2-2 as ½ possible. month plan, So balancing and our order our operating file will hold capacity up at with least sales 60 days, demand which is a should challenge get us at into times. February. Our goal I’m is to more make optimistic sure we about have 2019 the right than products for our customers at the right time—and that is always a guess and involves I was risk.” about ’18 or ’17 for that matter.” Duchi finished, “The positives for us moving Darren forward Duchi, is raw sales product manager availability, for Siskiyou even though Forest the Products, housing market Andersen, has taken CA, said, a slight “We just hit, ended it is still our at fiscal a decent year pace and and it went if things well stay overall. inline It was we should not as good have a as we expected, but our growth continues and it is steady and on plan. We have always relied on two main species in our manufacturing–Western Red Cedar and very good 2019.” Redwood. Jack Hetherington We have added of Skana a third, Forest which Products, is Alaskan Richmond, Yellow Cedar. BC said, This “Supply gives us more is driving certainty the when bus at it comes this point to making time. sure I think we mills have will the use wood this supply time as we an need in our opportunity manufacturing to elongate process. some In curtailment our business, that costing is going remains on, use a the challenge. downtime It is hard to run a manufacturing plant based on increasing costs, especially when we are for using maintenance so much downfall. or other issues. When the On overall a scale of supply 1-10 of I would wood dwindles, give 2018 it a complicates 8, nothing things for is perfect us. We but saw the one ability major to Cedar make supplier and lose go money out this past year was and strong we unprecedented, are afraid that we and may it opened see more some going interesting out. I think doors the for Canadians Skana. We are sense scared. that In the grand scheme, they are looking at either a substantial tax on lumber or a there is demand heading into the new year but we could be in for a correction. big increase in milling to turn lumber into other products.” n I think we could be in for a period of entrenchment, it has been one of the longest bull market runs and it will have to end at some point. If I had to forecast I think 2019 will be relatively TRADETALK flat to slightly down. The feeling can best be described as cautious stability.” n Tim Cutler is New executive Vice President of Sales at U-C Coatings LLC Buffalo, NY–Tom Johel, president of U-C Coatings LLC, headquartered here, recently announced the addition of Tim Cutler to the TRADE company’s management TALK team. “Tim brings to U-C Coatings over 25 years of business planning and strategic marketing in the coatings, sealants and adhesives industry,” remarked Arling Johel. Lumber Acquired by Cutler was instrumental in growing his family business, Miracle Boise Adhesives, Cascade which was later acquired by Pratt & Lambert Paints. Cutler’s expertise in business development led Boise, to increasing ID– Boise senior Cascade management Company announced roles at Pratt & Lambert and Shuman Plastics. As executive an agreement vice to president acquire Arling of sales Lumber at U-C Inc., Coatings, Tim Cutler Cutler headquartered will have responsibility in Cincinnati, for OH. strategic Arling planning, is a third business generation, development, family-owned distribution and networks, operated and wholesale customer relationships. His focus will be growth planning and strategies to continue the distributor of top quality lumber as well as plywood, success of the company’s sawmill and logging protection products, as well as establish the newly acquired SEAL-ONCE OSB and engineered ® products wood as the products. premier water proofers for wood Nick and concrete. Stokes “Arling is an exceptional supplier of many forest to meeting products,” our said core Nick customers Stokes, in executive the Softwood vice and Cutler stated, “I look forward hardwood industry, as we continue our value-added strategies for quality lumber processing, president, and Boise pursue Cascade. growth “With in the their building experienced sector and for our knowledgeable SEAL-ONCE team, ® products.” they will be a great addition to our nationwide distribution network and will U-C enhance Coatings our is service a leading capacity manufacturer in the Ohio and market.” worldwide supplier of wood protection products for the logging, lumber, furniture and woodworking industries. The “Boise Cascade has been a valued supplier to Arling Lumber for over 45 company’s products include ANCHORSEAL ® , GEMPAINT ® , BATES BC ® Glue Release, years,” and said SEAL-ONCE P.J. Arling, president ® waterproofing of Arling sealers. Lumber. “This is an ideal strategic More and information cultural fit that can will be found allow at the www.uccoatings.com combined organization and to grow www.sealonce.com. more value n to our customers.” and provide Cedar Boise Creek Cascade Promotes is one Kevin of the Stewart largest producers And Vince of Palmer engineered wood products Oklahoma and plywood City, in OK–Cedar North America Creek, and located a leading here, U.S. recently wholesale announced distributor the of promotion building of Kevin products. Stewart to corporate director of operations. In his new role, Stewart will be responsible for all corporate operations staff, and will report directly to For more information, go to www.bc.com. Cedar Creek’s Chief Operating Officer Alex Averitt. Stewart has over 30 years of experience in the lumber and building products industry, and has been with Cedar Creek for more than 19 years. During his tenure, Stewart has held various managerial positions, including his most recent role as project manager. Prior to joining Cedar Creek, Stewart worked in wholesale distribution for Louisiana-Pacific Corp. Vince Palmer has been promoted to regional vice president for the central region by Cedar Creek. Palmer earned his Bachelor of Arts in Business Administration degree from Heidelberg University in 1984. He is a 25-year industry veteran with previous executive level experience serving as chief operations officer of Frank Paxton Lumber Co. and vice president of distribution for Musser Lumber Co. Inc. Palmer joined Cedar Creek in 2015 as a general manager and was promoted to director of business development in May 2016. Cedar Creek was founded in 1977 and now operates 25 distribution centers across the U.S. For more information, visit www.cedarcreek.com. n Boise Cascade introduces FireWALLFr Two Coat exterior Prime Our two-coat process starts with an alkyd sealer to block tannin migration, followed by a high performance acrylic primer The result: RESERVE quality, inside and out. Superior Wood Made of quality, clear, finger-jointed Western Red Cedar or Redwood, these products are naturally designed for exterior use _ both species are ideal for enuring extreme weather. Surfacing + Sizes + Lengths RESERVE products come in a wide range of sizes, lengths and finished. Whether the project calls for S1S2E or S4S, we offer lengths ranging from 16’ to 20’. Pattern stock is also available. 1x4 _ 1x12 5/4x4 _ 5/4x12 2x4 _ 2x12 The Finest Stock, The Best Coating Our Siskiyou Forest Products RESERVE line is specially manufactured and treated to create the highest quality product available. Using state-of-the-art application and curing equipment, our premium Western Red Cedar and Redwood stock is made to last for many generations. We are proud to offer a Boise, iD – Architects, specifiers, builders and manufacturers will soon have another choice in their search for quality fire-rated building components, thanks to a beautiful, durable product that is ready for installation and new product from Boise Cascade. FIREWALLFR, a new 50# premium industrial final painting the moment it reaches the craftsmen. particleboard Acquisition panel with of certified Contechem Class 1/Class by A fire-rated U-C Coatings properties, will be available this month. FIREWALLFR Will Fuel is Future unique in that Innovations it will be the first Class 1/Class A fire-rated composite panel in North America containing at least 60 percent Ponderosa Pine for its consistency, blonde color and machinability. Ponderosa Pine panels laminate seamlessly Buffalo, without NY–U-C telegraphing, Coatings LLC, and their a leading uniformity manufacturer helps extend of wood machine protection tool life products and improve including job or end fabrication coatings site and productivity. sealants for logs and lumber, based here, www.siskiyouforestproducts.com Architects has acquired and specifiers Contechem of Inc. commercial of Portland, OR. institutional projects such as schools, hotels, hospitals and airports are increasingly specifying fire-rated components, but have been limited in their quest for reliable products to meet height- 800.427.8253 • 6175 Hwy 273 • Anderson, CA 96007 Contechem, which was founded in 1985 by Gene Mitch and Gary Anderson, ened is a protection leading producer requirements. of sapstain Manufacturers control products of commercial for the lumber case goods industry foron schools, the west offices, coast. labs The and merger hospitals of the have two companies, been similarly both challenged owned by to High find Road certified fire-resistant panels. Products with the standard Class C flame spread rating were limited or unable to satisfy requirements, so Boise Cascade Continued developed on page 58 FIREWALLFR at their particleboard mill in La Grande, OR. The La Grande team Softwood Forest Products Buyer n January/February 2019 Continued on page 41 Page 57 The Softwood Forest Products Buyer November/December 2016 Page 39