Lake States Business Trends – March 2025
Lake States Region Not Hindered By The Winter Weather
Across the Lake States region, sources that were contacted varied a bit on the state of the market in their area. One source noted that his sales were doing okay despite the winter weather. Another source said that his sales seem to be upbeat for the time of the year, stating that this is likely due to pent up demand from the lack of buying that he saw during the last quarter.
A lumber spokeswoman in Minnesota said that her sales are slow. “I think that it is hard to judge the marketplace during this time of year, especially when the weather is bad.” She did note that while there has been severe winter weather across much of the United States that has impacted the forest products industry, that her company isn’t as fazed by it due to their location.
When asked if her sales were doing better or worse than they were six months ago, she stated that they are about the same as they were. “We have seen the prices of lumber go up drastically, and it has affected how we price out our products,” she added.
Her company offers White Oak, Select and Better and Rift and Quartered, as well as Walnut and Hickory in upper grades. They offer these species in 5/8, 3/4 and 1-inch thicknesses. “White Oak continues to be our best seller,” she said.
She mentioned that she sells to distribution yards. “I have noticed that a lot of my customers are slowing down quite a bit,” she said. “I think that this slowdown that we are seeing just comes with the time of year.”
Her company continues to struggle with keeping a strong labor force. “We are a small company, with only about 25 employees. So, while it is difficult to find reliable new employees, it is even more difficult when we are unable to keep them on staff.”
In Indiana a lumberman said that his market continues to be fair. “It’s hard to saw frozen logs, but we are doing okay despite that,” he noted, adding that with the weather factored in, his sales are about what they were six months ago.
His company offers Red Oak, Hard and Soft Maple, Cherry, Basswood, Hickory, Walnut and Poplar in grades Select and Better and Nos. 1 and 2 Common. “Poplar is our bestseller right now,” he said. “Hickory is one of our slower movers, but I was able to sell a mixed load of it and Walnut a few weeks ago.”
He sells to hardwood flooring and furniture manufacturers, as well as retail lumber yards. “One of my flooring customers told me recently that he was able to run Red Oak for about three weeks before he had to switch back over to White Oak. He also let me know that he hasn’t been able to move any Hickory.”
A lumber salesman in Illinois said that his sales seem upbeat for this time of year. “Our orders have been doing well. I wouldn’t say that they are strong, but they are better than what they were this time last year.”
He noted that compared to just six months ago their sales are doing better. “I think that we are seeing more purchasing going on due to some pent-up demand that built up over the last quarter.”
He mentioned that with the colder winter weather that there is a chance that log supply will be low and that it could have an impact on lumber production and the pricing of lumber into the late winter and early spring months.
His company offers Red and White Oak, Ash, Poplar, Walnut, Cherry, Hard and Soft Maple, Hickory, Cottonwood and Cypress in thicknesses of 4/4 through 8/4 and in grades No. 1 Common and Better. “White Oak has continued to be a good seller for us, but we have noticed that Red Oak has started to see an increase in movement,” he said, adding that Hickory is his slowest moving species.
He sells to end-use manufacturers, distribution yards and wholesalers. “I haven’t heard many comments from my customers directly, but I can tell that they are doing well because they are continuing to place orders with me,” he stated.
He noted that whether he is talking to his vendors or his customers that there is an overall sense of optimism throughout the industry for what 2025 will bring. “This positive attitude that I am seeing has me hopeful for a good year overall,” he added.
