West Coast Business
West Coast Business Trends By Zach Miller Senior Sales Representative Midwest Business Trends By Paul Miller Jr. Vice President U.S. and Canadian lumber manufacturers are starting to see varied production movement after a rampant first quarter. Prices in April started coming down to earth a bit in both the framing lumber sector, and the panel market, while prices continued to ascend for Cedar producers. Many of the same issues are plaguing Western manufacturers including fiber supply, and railcar delays, as well as new tariffs added to shake and shingles coming from Canada. The following is a look at what producers on both sides of the border are seeing: Dean Garofano of Delta Cedar Specialties, Delta, BC had the following to say, “We have seen steady take away for most of our products so far this year. Weather issues for a lot of our customers slowed down construction activity for the first three months of the year. At the same time Cedar log availability is still low and has presented a challenge at times on hitting order dates. We have been behind on our DC Premier timbers for several months now unable to produce enough volume to fill our customers’ needs. Quality Products Personal Service Continued on page 47 Over the years, we’ve learned a thing or two about this business. Every day, our people walk through Boise Cascade’s doors with one goal—to be the preferred distribution partner for our customers and suppliers. Our consistent track record means you can rely on us to help you drive sales and grow your business. We provide quality products and competitive value. But more importantly, you can count on us all day, every day. Lumber representatives in the Midwest region are reporting a mixed market, with some uptick in activity with the spring weather. A supplier in Iowa said while the market is decent, he’s noted prices are rising. “Our own business is decent; the lumber market prices are high,” he commented. He handles Southern Yellow Pine, Hemlock Fir, Pine and Engelmann Spruce/Lodgepole Pine in No. 2 Common and Better, Select Structural. In his region, he’s also noticed difficulties with transportation. “Trucking seems to be a little tough, it’s hard to find trucks to get deliveries,” he stated, adding, “We don’t do anything by rail.” As far as supply, he said the biggest issue is prices increasing. “This point so far, we have been able to get our hands on what we need; we’re just paying more,” he commented. His customers are mostly end users. A wholesaler in Oklahoma said the market is mixed. “We have just been waiting on spring to get here,” he commented. He handles Douglas Fir, Engelmann Spruce/Lodgepole Pine, Quick Response Southern Yellow Pine and Cedar in mainly mid-grades. He’s not having problems with transportation, but he’s observed others who have issues. “No, it’s not as bad for us. I hear that it’s bad, but I don’t know that we see it. There’s not been too many delays,” he stated. His customers are exclusively retail lumberyards. A lumber source in South Dakota also reported a slow but sure increase in market activity. “It’s still slowly increasing from the winter doldrums, I guess you could say,” he commented. He handles Cedar, Southern Yellow Pine, SPF, Hemlock Fir, White Fir and Douglas Fir, and said all are moving well. As far as transportation, his biggest concern is timeliness. “There have been delays quite a bit on rail and trucking; two to three weeks isn’t anything surprising, to be honest, anymore,” he explained. “It seems to be like the products we purchase are a standard twoweek lead time, which is acceptable; the mills are having a little bit of an issue sometimes getting a hold of the logs,” he stated. His customers are mostly retail lumberyards and some commercial accounts. ■ Stay in touch & informed www.bc.com/distribution Building Materials Distribution softwoodbuyer.com Page 22 Softwood Forest Products Buyer ■ May/June 2018
Southeast Business Trends Quebec/Ontario Business Trends By Gary Miller Vice President By Joshua Smith Staff Writer Representatives throughout the Southeast region report a strong market, but all cite issues with transportation. A lumber source in Alabama said the market in his area is robust. “It’s pretty strong, definitely shoring up,” he reported. He markets Pine in No. 2 Common and Premium Spruce. “Spruce is probably the hottest item, followed by Pine. Mainly, what we’re seeing demand for is Spruce, Pine and patterned Pines,” he stated. Trucking is problematic in his area, and he commented it’s usually difficult to get trucks around this time of year. Lumber supply has been difficult, particularly in certain types of Spruce. “It’s been tight, especially in the European Spruce, very, very tight. No question about it,” he stated. “Pine items are hit and miss, but nothing in Spruce is easy; Premium Spruce is very tight.” His customers are primarily retail lumberyards. A Softwood salesman in Mississippi reported the market in his area was tight, with prices rising. “It’s tight. Prices are really, really high right now, so the market is pretty tight with all lumber,” he stated. He sells Southern Yellow Pine in No. 3 Common and No. 4 Common. Transportation, he said, is very difficult. “Trucking is awful, that’s the worst part of it,” he commented. “I just don’t think any trucks are available right now. We just can’t get anything shipped.” He also reported log supply is tight, and he added he’s noticed others having difficulty obtaining logs, too. “It’s pretty widespread,” he said, of the log shortage. His customers include retailers and manufacturers. An agent in Virginia said the market was “strong” in his area. He sells Eastern White Pine and Southern Yellow Pine. “In Southern Yellow Pine, we’re doing standard and premium, very little industrial,” he stated. “All we’re doing in the Southern Yellow Pine is a No. 1 Common and some C grade and some D grade.” He said he’s had “major issues with trucking,” and said both availability and rates have been a problem. “It’s tough to get a truck and when you do, you pay through the roof for the haul,” he commented. He also cited log shortages, which he attributed to a damp winter. “It’s been a very wet winter; mills are short on logs, and demand is way up,” he stated. “Over the past several years I built some good partnerships, and if I didn’t have the relationships I have I’d be in trouble.” He said he sells predominately to wholesalers and brokers, and added his customer base has changed some because of the Continued on page 48 Strong prices and robust demand are keeping hopes high in the Softwood lumber market, as wholesalers and mill operators alike have reported another quarter of solid sales. Still, some feel as though the industry would be better if the United States ended its tariff war with Canada and again opened unfettered access to the full North American market. The vice president at one Ontario-based mill said his company has seen solid sales across the board, with perhaps the exception of Cedar, which has become more difficult to acquire. “The main two are Western Red Cedar and Eastern White Pine,” he said of the mill’s primary products, adding that they also work with “a bit of Hemlock and a bit of Spruce. We sell SPF through our pressure-treated line as well. We do not sell regular framing lumber, but we do sell a fair amount of Douglas Fir and Western Fir.” Although sales are generally strong, especially for larger dimension cuts Consistency. Dependability. P Continued on page 48 Every single stick of Idaho Timber stud and dimension lumber is visually inspected and graded for consistent quality by professional graders – real human beings who can see and Tired of worrying Call todayyour (800) 654-8110 Softwood Forest Products Buyer ■ May/June 2018 Page 23
