While 2024 proved to be challenging for most lumber suppliers, many believe that there is hope for 2025. One participant stated, “…any increase in demand at all will be a boost to movement and hopefully pricing.”
Another participant said that despite the headwinds that his company has seen over the course of 2024, there is potential for 2025.
Participants agreed that while there are many strategies that their companies can take to improve their overall sales in 2025, one thing stands true, the value of solid hardwood must be recognized by the general public. “This makes it crucial for companies to continue emphasizing the superior quality and longevity of real hardwood to stand apart from the competition,” one respondent remarked.
Ray White
Harold White Lumber, Inc.
Morehead, KY
2024 has been an extremely challenging year on many fronts. I would comment that we have further adapted and modified our operations with the everchanging hardwood markets. 2024 has not been a good year. I am somewhat hopeful, that after the elections are over, interest rates have been cut and the turmoil from recent natural disasters has settled, that perhaps the second or third quarters of 2025 may finally show some improvements for our industry. However, there is still another 500 million feet-plus of production that will unfortunately have to fall off. I believe the recent natural disasters will have enormous implications to all of our insurance renewals next year forcing many companies to begin looking at dropping or reducing coverages. Of course, this has already been a trend for the last four years.
The next five months will bring significantly more attrition. Solid wood is disappearing at an alarming rate. The flooring industry sector is currently taking numerous hits which will only get worse. We are facing multifaceted challenges with the hardwood market, particularly as non-wood alternatives gain traction due to their lower cost and cosmetic appeal.
The decline in solid wood products is indeed concerning, especially for industries like flooring, where quality and durability are paramount. The market shifting toward cheaper, non-wood materials reflects a broader trend in construction and design, where immediate cost savings can often overshadow long-term value. This makes it crucial for companies to continue emphasizing the superior quality and longevity of real hardwood to stand apart from the competition. It will be interesting to see how the November elections have played out and economic changes, such as interest rate adjustments, might affect demand and production in the upcoming quarters. The most discouraging data for our industry that is extremely distressful and sad, over 76 percent of our industry has contracted since 2008! And the analysts say another ½ to 1 billion board feet needs to drop before supply and demand equalize.
It is hard to find much to celebrate in our industry any longer. But as my father always said, “No matter how bad it seems right now, there are always bright spots to be grateful for.” We are a resilient industry that is mainly family owned, friendly competitors and just fun people to be around, which makes us the most unique industry in the world.
Our customers are distributors, furniture producers, exporters, flooring, cants, ties, pallets, Equine industry and individual woodworkers. Our best markets depending on species were both domestic and exports being used for higher grade millwork and furniture grade products along with the niche woodworking clients.
We expanded our secondary manufacturing with additional finger jointing, increased moulding products and further niched our markets on rough green and kiln-dried lumber. We have also engaged in some new and exciting ways to advertise and sell our products. We are putting additional emphasis going forward that are very different from traditional marketing.
We invested in a much larger and higher production moulder, mill upgrades, new rolling stock and are preparing to transition to some very new and niche products outside the norm.
The correct number of employees remains a significant problem for almost all companies and the technical skills that we require. Fortunately, we have been able to enroll in a program with our regional detention center employing work release prisoners. This has been a saving grace for us.
We have mainly had issues with shipping containers and logistics with exporting. The recent port strikes had profound interruptions to our year end shipments. Additionally, the sheer cost of freight is very prohibitive with longer range customers.
The current tariffs really are not affecting us as they did during the 2018-2020 period. The recent concern for us all has been the EUDR regulations that were preparing to take place. Fortunately, this has been postponed for one year. Overall, I expect exports to remain fairly robust. However, though the uncertainty around global conflicts certainly adds complexity along with the global economy, I would reemphasize that the U.S. wood markets are going to remain weak and very vulnerable which highlights the need for caution in domestic strategies.
Brandon Clark
Clark Lumber Company
Red Boiling Springs, TN
We would not want to have many years like 2024, but we do feel fortunate to be moving the majority of our production without too many challenges. 2025 is an unknown right now but with production as low as it is we feel that any increase in demand at all will be a boost to movement and hopefully pricing. We plan to maintain our current production and staff and be ready to capitalize when pricing does increase.
Most of our grade lumber customers are either flooring or distribution. The flooring customers have had a tough year, and the order file shows the same. Distribution yards are still moving the volume that we have become accustomed to which allows most of the FAS grade Poplar to move.
We haven’t introduced any new products in 2024. We have simply tried to maintain long-time customer relationships and try to pick up any extra orders that may be available due to mill or yard closures.
This year we installed a new grading line to improve our consistency and efficiency in the inspection process.
We have been able to maintain the same number of employees but are always looking for people to fill skilled positions such as sawyers, graders and maintenance.
Hiring truck drivers is a challenge in our area but we have not had any issues with OTR or drayage this year.
Our primary concern is the European Union (EU) Deforestation Regulation policy and how that will affect lumber going to the EU or even shipments to other parts of the world that eventually end up in the EU.
David Messer
MacBeath Hardwood Company
Berkeley, CA
MacBeath Hardwood has just completed its 70th year in the hardwood industry, and the company boasts a very diverse collection of long-established business partners. With nine locations running the gamut from concentration yard and dry kilns to distribution, export, millwork, thermally modified products and retail, there are few hours of the day that the sun isn’t shining on MacBeath Hardwood. As a company, this provides us access to a wide array of industry segments.
Our customers are making everything from birdhouses to surf boards to hardwood floors. Providing lumber solutions to a customer mix like this requires a talented and diligent team. 2024 was a year that, in order to be a successful year, has demanded focus and resolve from our team, and has required us to hone those already present talents.
I believe wholeheartedly that we will look back and be thankful for what 2024 has taught us because it has prepared us to face the challenges that 2025 will undoubtedly present. The industry has contracted, and necessarily has contracted at a greater rate in primary supply.
Our greatest challenge to overcome in 2025 will be determining how to optimize a limited supply of green lumber to fulfill the increasingly specific demands of our customers. We’re confident that the market will gradually improve in 2025 over 2024 for a number of reasons; housing demand, interest rates and inflation moving in the right direction, etc. In order to fully participate in and fully benefit from this recovery however, we’ll need to be creative, and we are looking forward to it.
Rob Paradise
Devereaux Sawmill
Pewamo, MI
2024 has been a challenging, but successful year. For 2025 to be successful we will need to continue expanding our customer base, especially end users of lower grade lumber. Turning the public eye onto hardwoods would turn 2025 into a successful year. We continue to battle the alternatives to wood products; this remains an issue for our industry.
Distributors, millwork, cabinetry, flooring and furniture are our company’s main customer base. All of our products seem to have had success at different times throughout the year, I am not sure which one would be considered the strongest.
We have a large project that has started that we are hoping to wrap up in 2025.
Having enough employees is a challenge, but not as challenging as it was a couple years ago. We have enough employees cross trained to get work done when vacations are taken or employees miss a day. It is the extra work and secondary projects where we could use the extra hands to complete.
No major issues in transportation. Truck rates and availability seem to be at a comfortable level.
The first quarter of 2025 will paint a better picture than we currently have to see if any new export hurdles get put in front of us. There are some mild concerns, but mainly uncertainty on this as we enter 2025.
Eric Porter
Abenaki Timber Corporation
Kingston, NH
When the dust settles, 2024 should turn out to be a surprisingly good year for Abenaki Timber Corp. We have learned how to do more with less and are focusing our efforts in areas that are more profitable for a small business like ours. The challenges for 2025 will be in determining the species and thicknesses to process that will help us “specialize” in items that people need and are willing to pay fair prices for.
Abenaki Timber Corp. is a concentration yard operation producing kiln-dried hardwood lumber from our two yards in Epping, NH, and Belington, WV. We have a very diversified customer base that hits on almost all areas of hardwood manufacturing and distribution. This allows us to do our purchasing of green lumber from our sawmill partners in a way that is beneficial to them as well as us.
We did not offer any new products in 2024, but we did upgrade our kiln controls with state-of -the-art equipment at both yards.
We still struggle every day at both of our locations maintaining the number of employees needed to operate at maximum efficiency.
Serving the U.S. and several other countries always creates challenges in transportation and logistics. Thanks to many wonderful and capable companies out there we have been able to keep our products moving reasonably well. At this time the longshoreman strike is being delayed and hopefully will be settled.
Quentin Moss
GF Hardwoods, Inc.
Moss, TN
Up to this point I would consider this year a success. To be as equally successful in 2025 we as an industry need to see greater demand for most all species and grades. Housing starts and remodeling will need to be as good or better in 2025. As well as improved export markets.
Our customers consist of flooring, concentration yards, cabinet manufacturers, moulding and trim and furniture companies. White Oak has been the strongest seller as far as price, Poplar as far as volume.
We installed a new Fromm plastic banding system. This will allow for better appearance for our packs and better securing the packs for freight.
Employment has been an issue for the entire industry for several years now and we’re no different. Equipment automation is how we have been forced to deal with it.
We have our own trucks and trailers, so we haven’t had to worry about any issues with freight.
We do not do direct exporting. However, I do sell to American exporters, the tariffs have definitely affected the export market but I feel like it’s necessary.
Adam Hyer
Granite Valley Forest Products
New London, WI
2024 was a successful year for Granite Valley. We didn’t set any records, but we’re happy with how we performed. Demand was steady from our customers, and we were able to (barely) keep enough logs at our sawmills. 2025 will have the same challenges as 2024 as more logs continued to be exported, wood substitutes gained market share and our market continues to consolidate. Despite these headwinds, we see potential for 2025. We’ll all see how it goes!
Like many people in the industry – our customers range from industrial applications, to millwork, flooring and cabinet shops, to distributors both domestic and international. No one customer area seemed overly busy in 2024, but thankfully most were steady. Best sellers? Gosh – Rift White Oak sure was and is insane. We are very glad to be able to produce that item at our sawmills. Northern Red Oak, Sap Soft Maple and Premium Walnut items were also strong last year. Next year looks largely the same with a low demand and low supply situation being the new normal. Any uptick in demand could increase pricing quickly – if it happens, who knows? Things could even be better next year and we’re excited to work with our customers to help solve problems together.
We’ve stocked a few more species and plywood items. Mostly we’ve focused on increasing our inventory turns and communication processes in order to serve our customers as quickly as possible. We’ve also increased our width sorting programs in specific species while also offering more FSC certified stock. Granite Valley has 100 carts off our dry processing line – that is helpful for customers that need specific widths in Red and White Oak or Maple.
Our Rockbridge and AAA sawmills put in a new log scanning optimizing system from Cleereman. Also, a new carriage and drive were installed at our Rockbridge sawmill. At our New London, WI, facility we installed a second VisionTally system along with a Signode automatic banding station. Our packaging looks really great! Both upgrades will help us run the 150,000 feet per day of kiln-dried lumber that is processed.
Getting great employees is still difficult but better than a few years ago. It seems we’re always hiring for all positions – you can never have enough good people!
Granite Valley is fortunate to have our own flatbed trucks for domestic deliveries. That helps get orders out quickly to our customers. International freight is fine – aside from pesky port strikes.
We like logs to be sawn in the USA. Exporting this volume of logs is not something that is healthy for the economy. We’re just lumber people, we don’t know the right way to fix this – but we support any tariff or policy that helps our industry. Long term our industry is crucial to the American economy, even if the average person on the street does not recognize that today. As far as more of a trade war on lumber – we support fair trade.
David Mayfield
Goodwood Lumber, LLC
McMinnville, TN
We have been able to automate our operation and reduce our labor costs throughout 2024. In order to retain good help, we have also raised wages, like many other companies. We try hard to make the necessary changes to keep ourselves competitive. 2024 has been mostly successful but not where it needs to be with the investment required to do business. I think the most challenging aspect of 2025 will be to stay on top of costs, parts costs, labor costs, fuel costs and normal operating costs. Especially, our parts costs and replacement costs are a factor that prove to be a challenge.
Our distribution customers are great users of hardwoods. We also ship to Mexico and Asia.
To stay in the game, we reduced our prices (margins). Everyone knows you do whatever it takes to keep those good customers. Width sorts, specialized length sorts are the norm!
We have broken ground on a new warehouse that will serve to air dry our 8/4 Oaks and have more covered space for kiln-dried material. The new warehouse is approx. 31,000 square-feet and will be completed in the spring of 2025.
We have not had labor shortages. We decided that we were going to pay more to keep employees. Why train them and then loose them over $1-$2 an hour? We have a great staff of associates.
Occasionally, we have some offshore issues with transportation but, domestically we have not had any problems.
Tariffs will be something to which everyone will be exposed. The hardwood lumber industry will find a way to overcome this challenge just as we always find solutions to our problems. One tool is to educate and present knowledge to young people in the form of the Hardwood Forest Foundation. Train them young of the beauty of HARDWOODS!
Anthony Hammond
Roy Anderson Lumber Company Inc.
Tompkinsville, KY
Success within our industry in 2024 is relative. We maintained full production and continued to add to our growing team. Our team is maneuvering a challenging market well and this speaks to their skillset and focus on delivering a good and consistent product to our customers.
To be successful in 2025 we feel our broader industry needs a lift in popularity. We need hardwood products to gain back favor in cabinets, flooring and furniture. It is crucial for our industry to continue to focus on gaining back market share that has been lost to look-a-like products in recent years.
Our customers are distribution yards, flooring manufacturers, furniture, millwork and moulding manufacturers. Poplar was our strongest seller for 2024 based on volume.
We started offering planing and straight-line ripping in 2024.
In 2024 we installed a planer. This allows us to be more marketable to smaller manufacturers and distribution yards. It also allows us to offer value added services for our existing customers.
We have been able to staff a full team throughout 2024.
We have not experienced any transportation issues to the degree that we have in previous years.
Should tariffs be imposed, reciprocal tariffs will most certainly follow. While less of our business is directly exported than in previous years, the ripple effects will be felt through our entire industry.
Wesley Robinson
Robinson Lumber Company
New Orleans, LA
In 2024 Robinson Lumber Company experienced steady performance amid significant market themes, including a presidential election, global recessions and tight supply. While sales in Asia and Europe declined, North American sales showed positive growth.
Specializing in White Oak and Hickory, primarily for flooring, distribution and mouldings, we noted high demand for White Oak this year. Our FSC Certification has also led to increased interest in our sustainable products.
At our New Albany, IN, yard, we continued to make strategic capital investments, notably by installing an additional bank of SII kilns, enhancing our production capabilities.
Looking ahead to 2025, we are optimistic. With the presidential election concluded, we anticipate a vibrant first quarter. We look forward to strengthening our relationships with suppliers and customers as we navigate the opportunities ahead.
Robert Ousley
James Ritter Lumber Company
Summer Shade, KY
2024 has been very challenging for us.
In 2025 we would need lower log costs and higher selling costs of lumber. I realize that’s fifth grade math, but that’s basically what we need to be successful.
We sell to flooring, millwork, pallet, cabinet, X ties and distribution yards.
Our strongest selling products this year were Red and White Oak, Walnut, Poplar and Maple.
There’s always a labor issue in the sawmill business. The work is hard and many times very hot and cold. Our employees are our greatest asset. We’re in a small community so our employees are our friends, family and neighbors. The Ritter Family and management work shoulder to shoulder with them every single day!
We are definitely worried about tariffs. It took a toll on us the last time they were implemented, and I don’t think the economy is nearly as good this time around. If the tariffs hit, they’re going to slow export shipments, and slower exports put more lumber and more pressure on a saturated domestic market!
In a nutshell, we’re probably worried more about imitations. They continue to capture a bigger percentage of this industry, which has been hit very hard by LVT. I think the cabinet industry now may be as much as 50 percent MDF. Most cabinets now are white, and the millwork is white. If they’re painted, does it make a difference what the substrate is?
Dave McCunn
DJM Hardwoods
McArthur, OH
We haven’t done well this year. Prices for lumber have remained stagnant and they aren’t what they need to be for us to make a decent profit. The industry is currently suffering and we are a long way from where it needs to be.
My customers are concentration yards, cabinet and flooring manufacturers. The flooring companies that I sell to have continued to struggle as the pricing for flooring isn’t as high as they need it to be to make their money back. Our best seller this year was White Oak in 4/4 thickness. The stave mills have helped keep up the price of White Oak.
We continue to struggle with keeping enough employees to stay fully staffed. We hire double the employees that we need and at the end of the week we either have just the right number of employees or we are just below it. I have noticed that the work ethic that used to be in the lumber industry isn’t there anymore, and the people that we are hiring just don’t seem to want to work.
The prices for shipping and delivering lumber keeps going up. We mainly sell domestically but we do some exporting. I believe that tariffs will affect the entire industry as those that export are going to make their money back somehow.
I am hopeful that the hardwood industry will improve. We need to focus on building new homes and putting solid hardwood in each one.
