Southeast Business
Southeast Business Trends By Gary Miller Vice President Quebec/Ontario Business Trends By Richard Lipman Guest Writer In the Southeast recently, business was good or at least steady, according to lumber providers contacted by The Softwood Forest Products Buyer. A lumber source in Mississippi said, “For us, things are going really well. We’ve had a good first four months of the year. We had a couple of sourcing issues. Now, we’re getting what we need. We had some issues with Pine in particular, with some items there was an oversupply for a while. That has abated. Overall, those are just kind of the normal factors we face. This time last year, we were really facing serious transportation problems. And we’ve had none of those so far. So overall business is good, is profitable, and we’ve picked up new accounts.” The market was “definitely better” than it had been six months earlier, he stated. This company handles Southern Pine, Continued on page 53 SAPSTAIN CONTROL Demand the highest quality lumber. Demand Contechem Sapstain and Iron Stain Control. • Deliver bright, clean, high quality lumber • Protect softwood lumber against damaging mold and fungi growth • Remove staining caused by oxidation and chemical reactions to metals WOOD PROTECTION PRODUCTS 716-833-9366 | www.uccoatings.com sales@uccoatings.com TM When asked about current market conditions in the province the facetious response from one Ontario producer was “what market?” There has been a dramatic decrease in activity recently due mainly to bad weather, which has impacted construction projects in eastern Canada and the U.S. “The lumber industry has lost lots of business as a result, as the construction market has a big impact on the use of SPF products.” A Quebec wholesaler remarked “no one has been spared, everyone has been impacted - mills, distributors, dealers, etc.” An Ontario sales rep lamented, “Building has been affected in lots of areas, but the mills never stopped producing. We are just starting to see some curtailing. The supply is way up over the demand we have seen in the past couple of months. It will take time for the pipeline to be cleared of some of the existing inventory. Then things might start to improve.” While it has been rain that has had the biggest impact on the construction activity, there have been more northerly areas of Ontario that have been much drier, and they are beginning to see the fire season ramping up. One Ontario wholesaler said that “there has been lots of talk about fires but it has yet to have a big impact on the industry, although some mills in the area of the fires are thinking of scaling back activity temporarily at least, and that might help the oversupply situation a little.” It is evident from speaking with people that Quebec firms are feeling the effects of the Softwood lumber tariffs. Said one producer, “It was one thing when prices were high, like they were last summer, but they have come off a lot, so we don’t now have that good insulating effect of higher prices and the impact of the duty is being felt.” Another noted, “We don’t expect to see a resolution to the trade dispute with the U.S. any time soon, where some of that duty we have paid gets sent back to us.” Looking at price trends from Natural Resources Canada regarding Current Lumber Pulp and Panel Prices, eastern SPF prices have been dropping over the last while, and the 4-week average price Continued on page 53 Page 30 Softwood Forest Products Buyer n July/August 2019
AWC- Continued from page 2 consideration in that state that would remove the requirement for proper lumber grading in some situations. The legislation calls for an amendment to the state’s Residential Code for One- and Two- Family Dwellings that would direct the North Carolina Building Code Council to permit ‘dimension lumber,’ or lumber that has not been grade-stamped under the authority of a lumber grading bureau, to be used in the construction of such dwellings. This non-graded lumber may be used if it meets four criteria: 1. The lumber is sold directly by the owner or employee of the sawmill that milled the lumber for the owner of the dwelling in construction. 2. The lumber meets or exceeds the requirements of the North Carolina Residential Code for One- and Two-Family Dwellings - other than the grade-stamp requirement. 3. The supplying sawmill provides a local mill certification to the owner of the dwelling in construction. 4. A code enforcement official reviews the framing of the dwelling to ensure that it meets the requirements of the North Carolina Residential Code for One- and Two-Family Dwellings - other than the grade-stamp requirement. Such state bills are not uncommon and historically have been intended to allow landowners to harvest and saw lumber from their own properties for their own construction purposes. However, even for just this limited use, this kind of legislation fails to recognize the importance of lumber grading in sound building design and in providing resilient structures. Further, the absence of a lumber grademark often results in complex enforcement challenges for building officials. Grade-stamps exist for a reason – they verify the quality and strength of the wood. Under all U.S. building codes, lumber that leaves a sawmill must be inspected to determine if it is fit for use and to what degree. Grades organize lumber in categories for strength and stiffness, which is reflected in potential use and value. If legislation eliminates requirements for proper grading, buildings constructed will have an added level of risk and building officials will be challenged in how to permit a structure in compliance with the existing residential code. AWC has provided modifying language to the North Carolina bill sponsor that would safeguard the integrity of lumber grading and further limit where such ungraded lumber could be used, and a number of other forest products groups have joined us in opposing the bill as written. As a result, it is not expected that the bill will move at this time. As the number of extreme weather events increases, so does the importance of proper design and construction of wood buildings. Following all aspects of the latest model codes adopted by the States is one of the surest ways to maintaining a building’s resilience in high winds, earthquakes, floods, fires, and more. For this reason, AWC regularly contributes to the development of sound public policies, codes, and regulations which allow for the appropriate and responsible manufacture and use of wood products. For more on the latest codes, visit our AWC codes and standards resources online at awc.org/codes-standards. If you need to identify inspection and grading agencies in your area, The American Lumber Standards Committee has contact information for local grading services across the nation at www.alsc.org. Robert Glowinski is the President and CEO of the American Wood Council, which represents the interests of the North American wood products industry that provides approximately 450,000 men and women in the United States with familywage jobs. On behalf of the industry it represents, AWC is committed to ensuring a resilient, safe, and sustainable built environment. Softwood Forest Products Buyer n July/August 2019 Page 31
