Lake States Business Trends

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Sources that were contacted across the Lake States all agreed that their sales were steady despite each noting a different area in which their markets could improve. There was also a general consensus that the labor market is progressing in the right direction.

In Wisconsin a lumberman noted that while his market overall is pretty decent, at the time of this writing, his sales on Basswood and Aspen have been subpar.

“We are doing better than we were six months ago, and that’s due to the prices starting to come up. White Oak’s price has continued to go up and I think that it is going to price itself out,” he said. “We are still moving our products at the same rate though.”

His company offers Red and White Oak, Hard and Soft Maple, Basswood, Aspen, Ash, Hickory and Cherry in grades No. 3 Common and Better and in thicknesses of 4/4 and 5/4. He noted that he sells a lot of Red Oak since he is in Red Oak country.

He sells to distribution yards and end users, such as flooring, cabinet and door manufacturers. “We have been getting more orders domestically, so we can tell that their business is getting better, but they haven’t offered any direct comments as to how their sales are doing,” he said when asked if he has heard any comments as to how his customers sales are.

He mentioned that his company is gradually overcoming any labor issues that they have had.

A Michigan lumberman said that his market proves to be fair.

“We are doing better than we were six months ago, but worse than we were a year ago. Customer demand just isn’t what it was and it seems that a lot of our demand is for the same 4-5 species,” he said, adding that this has caused their production and demand to be off kilter.

He noted that his company offers Hard and Soft Maple, Red and White Oak, Hickory, Cherry, Walnut, Yellow Poplar and Basswood in grades No. 3 and Bet- ter and in thicknesses of 4/4 through 8/4.

He mentioned that his company sells to a mix of end users and distribution yards. “We haven’t heard a whole lot of comments from our customers lately, but some of our flooring guys have said that their demand is slow.”

When asked if he is having issues with labor, he said that while it isn’t as hard to find new employees, the cost of labor is continuing to be tough.

In Illinois a sawyer said that while he is able to sell lumber, the prices at which he is able to sell his product have been less than desirable. “We can pretty much move any species that we mill, but the prices on most of them aren’t what we want, except White Oak and Walnut.” He added that their sales are worse than they were six months ago.

His company offers Hickory, Ash, Red and White Oak, Walnut and Hard and Soft Maple in grades No. 2 and Better and in thicknesses of 4/4 through 8/4.

He sells to everyone from end users to concentration yards, while the majority of his customers are end users. He noted that he doesn’t think that a lot of his customers are doing well, based on his sales.

He mentioned that labor and transportation are a bright spot. “The prices haven’t come down on trucking, but we are able to ship our product when we need to,” he said. “Labor has also seemed to have stabilized, and we currently aren’t having very many issues finding employees.”

By Miller Wood Trade Publications

The premier online information source for the forest products industry since 1927.

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