Midwest Business Trends
Midwest Business Trends West Coast Business Trends By Paul Miller Jr. Vice President Sources throughout the Midwest region are all in agreement that sales are steady for this time of year and that the market appears to be entering back into traditional seasonal trends. In Missouri a lumber spokesperson noted that his marketplace is doing surprisingly well at this time of year. “I would say that our sales are better than expected,” he said. “Our sales are off from what they were six months ago, but when considering what we should be earning in either season I would say that we are doing just as well.” His company offers green Douglas Fir, Spruce-Pine-Fir and Cedar in grades No. 2 and Better and in 2x4-2x12. He sells to big box stores and pro-contractor yards. “There is concern as to what 2024 will look like. Our sales were down in 2023, but they weren’t down as much as everyone thought they were going to be,” he commented. He remarked that he hopes that winter stays away, as it doesn’t matter how d Continued on page 71 By Zach Miller . New Year’s Resolution: Buy Trucks, Not Cars…. …and lose 144,000 pounds overnight! Check it out: Cars from Other Mills Trucks from IDAHO TIMBER . Must buy 4x the truck volume Limited mill tally Weeks in transit, or longer… Hard to balance inventory Big volume = slow turns Require lots of capital and space Order just a truckload, 10-20 units Get whatever you want, even custom trims Delivers in 24-48 hours Easy to stay in balance and in stock Trucks turn 4x faster, wood stays fresh Up to 82% less capital and space needed When you switch to trucks from Idaho Timber, you get mill-direct pricing with distributor-like service. And our just-in-time delivery improves every facet of your inventory management so you can make money by the truckload! We ship highly mixed trucks fast, direct from our 8 regional mills so you can get just what you want, right when you want it. Your turns and GMROI will soar while inventory stays in stock and in balance. You’ll tie up significantly less capital and space, while slashing carrying costs to reduce your true cost of flooring lumber. And, you can stop the stress over how much you might lose on cars by the time they finally arrive and all that wood is slowly sold through in a falling market. So lighten up on inventory, costs, losses & hassle. Buy trucks from Idaho Timber and prosper in 2023. Happy New Year! As we kick off 2024, the North American lumber market could best be described as lackluster. West Coast manufacturers are dealing with a myriad of issues beyond the seasonal slowdown, including tight fiber supply, weather related issues, and overall economic uncertainty. The following is what a few West Coast producers had to say: Mark Gray of Patrick Lumber, Portland, OR, said the following in regard to high grade Softwood lumber: "Overall, lumber supply is still tight. Each specie has its own story but I don’t think anyone is swimming in wood. Prices are staying consistent/firm. November and December were much quieter, which is to be expected with the winter slowdown and we anticipate that to carry over into winter 2024. Not much has changed from prior months, high-grade logs are still hard to come by (both USA & BC). Logging volumes usually quiet down in the winter as well. We’ll see if seasonal slowdown offsets lower production volumes... TBD. We’re not experiencing any labor challenges at the moment but we’re only running one shift, i.e. winter. I don’t think transportation is an issue. Lots of unknowns – election year, interest rates? recession? Who knows… everyone will tell you a different story. We’ll still be showing up to work everyday though.” Jack Hetherington of Skana Forest Products, Richmond, BC, said, "Supply and demand for the most part now appears to be in general lock step. Business can be spotty but there’s generally 800-654-8110 enough fiber to fulfill spotty general needs. Frustration is often the verbiage used to describe the marketplace. Volumes are down – the economy is in general – although somewhat manageable turmoil. Labor can also be problematic, while tight government edits can be annoying in an up market they can be sometimes intolerable in a down market. One of the worst fire seasons in Canadian history has created serious issues but has been handled with great aplomb. Transportation has for the most part, depending on region, been a non-event, the availability of trucks for most lanes being generally satisfactory.” Hetherington continued, "I feel that with the coming of 2024 and with any recession subsiding as the BOC (Bank of Canada) gradually lowers interest rates, combined with the rapid influx of more new immigrants from around the world creating the need for more housing, much more will indeed be needed. The recession will now be in our rear view mirror and we’ll all be once again singing 'Good Times Are Here Again'." John McDowell of Oregon Industrial Products, Springfield, OR, said the following in regard to supply and demand, “Yellow Continued on page 71 GROWING THE FUTURE TOGETHER Here at Western Forest Products, we extend sincere thanks to our committed customers who have consistently supported us with their business. We look forward to continuing these relationships and creating a strong future, together. Never hesitate to reach out to your WFP Sales Representative for any of your needs. sales@westernforest.com | westernforest.com Page 44 Softwood Forest Products Buyer • January/February 2024 westernforest.com
