Northeast Business
Northeast Business Trends By Cadance Hanson Staff Writer Softwood suppliers in the Northeast accounted for softer market conditions. In New Hampshire a contact said, “It’s definitely slower than the last quarter. All of a sudden everything has become really quiet. It’s about 20 percent slower than it was this time last month.” Handling 4/4 and 5/4 Eastern White Pine he said 4/4 lumber is moving slower than 5/4. “Our customers are working off of very low inventories. With the uncertainty in the market nobody wants to make a lot of purchases right now. Interest rates are high and that’s putting a damper on building. The remodeling activity has even slowed up. People borrow money for remodeling projects and the interest rates are too high right now.” As for other factors he said, “There are plenty of trucks available but the freight rates are pretty high right now.” Looking into the next few months he said, “Some people I talk to believe that business will pick up. There is a huge demand for new housing but I don’t see much happening. The interest rates are putting a wash on Continued on page 39 Reliable . Focused . Committed Inland West Business Trends By Terry Miller President 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. Throughout the Inland West region lumber sources varied as to how their marketplaces were faring, at the time of this writing, with some stating that they were busy while others felt their sales were on a decline. In Arizona a lumber spokesperson said that the market in his area has slowed down significantly. “Interest rates have really halted home sales and new construction and we are feeling the effects of this slowdown,” he remarked. When asked if his sales were better or worse than they were six months ago, he said that they were worse. His company offers Inland Hemlock Fir and Spruce Pine Fir in grades No. 2 and Better and in 2x4-2x12 and in lengths 8-feet to 20-feet. “We sell to dealers, brokers and home centers,” he said. “I think that they are all in the same boat that we are. They are seeing and feeling the slowdown due to the interest rates, just like we are.” In Montana a lumber salesman said that his sales have been doing well. “We are busy right now,” he said. “We are having a bit of a fall push before the snow flies in.” He noted that while he thinks that the weather is going to slow down his sales temporarily, there are economic pressures that could affect his business further down the road. “I would say that we are doing worse than we were six months ago, but that is only because we aren’t in the heart of building season anymore,” he said when asked if his company was doing better or worse than they were six months ago. His company offers Hemlock Fir in 2x4’s through 2x12’s in grades No. 2 and Better and Select Struct and No. 1 Common. He said that his company mainly sells to dealer yards and that they have all relayed that they have been fairly busy, at the time of this writing. When asked if there was anything that might be negatively affecting his business, he stated that the only thing that has proven difficult for his company is the availability of parts for equipment. A lumber representative in Idaho said that his market has been flat. “Our market and sales are lackluster at best right now,” he stated, adding that their market is doing about as well as it was six months ago. His company offers Ponderosa Pine, Lodge Pole Pine and Cedar. They offer their Pine in No. 2 Common and in 3/4 thickness and Cedar in 7/8 thickness and in 2FACE. He said that there wasn’t one specie that was selling better than the others. “We sell mostly to home centers,” he noted. “I think that everyone is in about the same position that we are, and with the static levels that we are at, everyone is Continued on page 39 Midwest Business Trends By Paul Miller Jr. Vice President Throughout the Midwest region there were mixed reviews as to how the market in the area was faring at the time of this writing. In Texas a lumberman said that his sales have been soft. “Business seems to be really slowing down,” he said. “I think this is due to the economy and inflation. It seems that no one is wanting to spend money.” He also stated that since they are so close to the Houston area that they are indirectly tied into the oil industry and when they aren’t able to drill, it affects all of the companies in the area. When asked if his company was doing better or worse than they were six months ago, he remarked that this year has turned out to be flat. “A majority of the lumber that we handle is Southern Yellow Pine, while we do bring in some Ponderosa Pine and some mixed hardwoods. We typically handle grades No. 4 and Better in thicknesses of 2-inch, 2x4, 2x6, 2x8, 2x10 and 2x12,” he noted. He said that his company sells to a variety of customers and that they have come to the same consensus that he has in regard to the year being flat overall. A Missouri lumber spokesperson said that he has noticed the first signs of a slowdown. “It isn’t anything too major, but the sales pace has been off a tick and the comments we are hearing from our dealers in the field and what their builders are telling them is that the fourth quarter has been significantly slower.” He said that his sales are about the same as they were six months ago, but noted, “I think that I am speaking to what I am going to see happen in the next three to four months.” His company offers Southern Yellow Pine and Douglas Fir. “We offer Southern Yellow Pine in No. 2 and Douglas Fir in Nos. 1 and 2, both in 2x4-2x12.” He said that they both seem to be selling at the same rate. He noted that he sells to contractor yards and box stores. “While there is a concern about the interest rates, multifamily homes have actually done pretty well. There are a lot of people that have realized there isn’t enough inventory in the housing market,” he said, adding that this isn’t just a problem in the Midwest, but a national one. “This has really kept the home building industry from taking a black eye.” He noted that while his sales are slowing down, the market seems typical for this time of year. In South Dakota, a lumber representative said that his market is doing well. “The nice weather has allowed us to really get more done in preparation for the end of the year.” He noted that his company’s sales are doing about the same as they were six months ago. His company offers Cedar in No. Continued on page 51 West Coast Business Trends Page 36 Softwood Forest Products Buyer • November/December 2023 Softwood Forest Products Buyer • November/December 2023 Page 37 By Zach Miller As we head into the final quarter of 2023 the market as a whole is stagnant for the most part, with a few exceptions. Continued economic anxiety, high interest rates, and the usual seasonal slowdown are driving factors for the lethargic market. West Coast producers are navigating regional difficulties as well, including but not limited to log supply issues stemming from another brutal fire season. The following is what a few of those producers had to say: Dean Garofano of Delta Cedar Specialties, Pitt Meadows, BC said, “The drought in Coastal British Columbia that contributed to an extraordinarily long fire season appears to be over now. Rain has finally found its way to the Coast, lowering the fire danger class in most areas from extreme to moderate. During the extended shut down, many manufacturers found themselves with a lower log inventory than they anticipated and are now finding it difficult to replace certain sorts. Recently, loggers have been starting up projects again in an attempt to pick up lost revenue from the extended shutdowns.” Garofano continued, “The Cedar log shortage through the summer month Continued on page 51 DiPrizio Pine Sales A Team of Over 50 Dedicated Men & Women Producing Eastern White Pine Lumber Products for Our Valued Customers! Our company has been working with this MAJESTIC RENEWABLE RESOURCE... since 1938 Great People. Great Facilities. Great Solutions. Great Pine. Mixed Truckloads • PTL • Partial Units • Partial Loads • Custom Programs Custom Kiln Drying • Trucking Arrangements 800-647-8989 or 603-473-2210 Route 153, Kings Hwy Middleton, NH 03887 NELMA Patterns & Custom Patterns Double-milled with Weinig Moulder Finish 4/4, 5/4, 6/4 and Timbers • 1/2 x 6” & 8” Bevel Siding Primed D Select Boards • DPS- “Band - Tex” Finish dipriziopine.com Email Jamie Moulton jmoulton@lavalleys.com
