Equipment Forecasts For Equipment Forecasts For 2024 Equipment and Services Providers Accept The Challenges That The Market Brings By Cadance Hanson Across the forest products industry, equipment and services providers that accommodate the Softwood industry came to a general consensus that while budgets have begun to tighten, there is a growing need for advances in AI and automation technologies to meet the demand that sawmills have with the changing work force. One company leader noted, “The current trend in the sawmill industry both in hardwood and Softwood mills is to be as efficient as possible.” Another company leader spoke to the concerns of the supply chain and the time frame in which his company is able to deliver equipment. “Lead times for delivery of support parts have shot out to three months or more. This obviously affects the uptime of a manufacturing operation. So, we have added stock and advanced orders to accommodate the problem,” he stated. Casey Miller A.W. Stiles Contractors Inc. McMinnville, TN At A.W. Stiles we work with both the hardwood and Softwood industries. We have noticed that the hardwood industry has slowed down some as far as needing repairs, while the Softwood industry seemed to still need repairs and new builds on a regular basis. I anticipate that in 2024 both industries will be Casey Miller tightening their budgets even more. We offer new kilns for both hardwood and Softwood , as well as kiln reskins, kiln repair, kiln parts and chief prefabbed metal buildings. We haven’t had any real issues with parts, or any issues with transportation or labor. A lot of our customers are struggling with labor. In my opinion I believe that technology is making up for very little of the shortage of labor in the sawmills. I believe it will be hard pressed to replace the human eye and still supply a good quality product. Lumber Forecasts For 2024 2023 Proved To Be Successful – The Coming Year Holds Uncertainty By Cadance Hanson Across the board while many respondents said that 2023 was a successful year for them and their company, they feel that heading in to 2024 will provide just as much uncertainty as the last. They noted that while the market was slower than it has been in previous years, they were still able to exceed their sales goals and continue to build and maintain strong relationships with their clients. One respondent said, “We made a point of identifying and worked to plug the holes in our systems that became evident in the previous two years of COVID insanity.” This has allowed their company to maintain strong margins and volumes. “With the current economic environment, I suspect demand will stay on the softer side next year putting emphasis on quality products, reliability and great customer service,” another respondent commented. active families. We are not having issues with transportation as we are getting 15 plus calls from new freight brokers daily, this is a sign of the market! I feel the settlement of the current SLA will see the retirement of many near retired traders and be another catalyst in the everchanging North American wood supply base. I see this as a threat to less nimble companies - and an opportunity for ours. Chris Brown Chris Brown Culpeper Wood Preservers Culpeper, VA 2023 was a very successful year for our company. The challenges from previous years decreased and became more sustainable for our business. We projected a decline of 10-15 percent but saw an increase in volume from the previous year. We only sell pressure treated wood to retail lumber yards. We did not introduce any new products or services in 2023. Continued on page 63 Chris Bouchard FENCES THAT STAND FOR SOMETHING. At Alta Forest Products , our fences stand just a little bit taller. Craftsmanship, sustainability and American-grown Western Red Cedar are at the core of who we are. We value relationships more than anything, and believe in giving our partners the right tools to get the job done. www.altafp.com 800-599-5596 Kirk Forbes Kirk Forbes Brunette Machinery Co. Inc. Surrey, BC We work with both hardwood and Softwood lumber companies. Our wood processing machines can be configured to handle various materials, including hardwood, Softwood and wastewood. We saw an increase in capital sales in 2023. The first half of 2024 looks likely to continue this trend. We expect to see positive growth in the demand for size-reduction machinery as the bioenergy/biomass sector advances. While supply chain issues, transportation costs and a diminishing labor force was challenging in 2023, the impact of those concerns was lessened by diversifying our transportation providers, widening our vendor pool, increasing inventory and securing long term purchase agreements. With the global biomass power market continuing to gain momentum, we expect to see a heightened interest in products such as our Brunette BioSizer, SmartVIBE and Whole Log Chipper as demand for wood pellets and other biomass materials see an increase worldwide. Products such as our Volumetric Continued on page 58 Chris Bouchard BPWood Penticton, BC 2023 was a successful year, albeit the metrics were different than the previous few years. While overall dollars were down, margins and volumes remained strong. Old relationships were strengthened, and new ones born. We made a point of identifying and worked to plug the holes in our systems that became evident in the previous two years of COVID insanity. This year we’ve added several new members to our team on both our sales and administration side that will surely lead to growth, stability and better customer support in the coming years. Our customers are mainly largerscale distribution and remanufacturing partners globally, with approximately 65 percent in North America. This year we launched Thermo- Wood® products. We see this product group as having a strong and mandatory future in our markets. We have had a reputation of attracting industry talent for many years but finding new and aspiring lumber professionals continues to be a challenge. Remote working through COVID has made it easy to be anywhere and do our job, but to really learn this business we feel its best done through osmosis and lots of time in our office in Penticton, BC. Luckily, we live in a beautiful town which is attractive to young Reliable . Focused . Committed WE WANT TO BE YOUR PREFFERED SUPPLIER We've got you covered from 38 distribution locations. Save time with one-stop shopping from a broad and deep line of lumber, panels, specialty wood products, engineered wood, building materials, millwork, and metal products - all from quality mills and manufacturers. Leverage the scope of a national distributor with local decision-makers who are closest to our customers. Access local experts with up-to-the-minute market information so you can make smart purchasing decisions with confidence, and grow your business. bc.com/distribution © 2023 Boise Cascade Company. All rights reserved. Page 6 Softwood Forest Products Buyer • January /February 2024 Softwood Forest Products Buyer • January /February 2024 Page 7
