Lake States Business Trends

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In the Lake States, the marketplace for lumber operations is either good or sustainable, depending on who you interviewed. A Michigan sawmill representative assessed his business as “good. It’s not crazy or spectacular, but it’s not bad. It’s good, I’d say.” Lumber sales are “definitely better than six months ago,” he observed. “Six months ago, all the lockdowns were starting for Coronavirus, and no one knew what was going to go on. There were so many questions in the air six months ago. People have somewhat of an idea of what’s going on now. It’s better than that.”

This business offers Hard and Soft Maple, Red and White Oak, Hickory, Walnut, Cherry, Poplar and Basswood. White Oak, Hickory and Hard and Soft Maple are still selling “pretty well,” he noted. Thicknesses come in 4/4 to 8/4. This sawmill sells to a mixture of customers, from cabinetmakers to millwork manufacturers to distributors. The sawmill representative remarked that his customers’ business-levels are “mostly good.” Finding employees and getting trucks are two problems, he said.

A lumber manufacturer in Illinois said that business “seems to be improving. It seems like in the last 30 days, it has improved. It’s still kind of questionable what the long term is going to be, but the short-term seems to be improving.” Nevertheless, he said, business is “worse now than it was pre-COVID. Before COVID it was looking very promising, but it’s gotten a lot worse.”

This sawmill offers Walnut, White and Red Oak, Hard and Soft Maple, Ash, Hickory and Cherry. Best-sellers are White Oak and Walnut. Lumber is cut to 4/4 to 8/4 thicknesses.

Most customers are distributors. “We don’t dry any lumber; it’s all green,” the sawmiller noted. Sales are “to people who dry it and resell it, other than flooring lumber end users,” he stated. How are customers’ sales? “It’s just kind of touch-and-go,” he said. “Here lately, they’ve seen an uptick in business, but one of them said: we’ll have two weeks really good, then we have two weeks of nothing. So, it seems to be kind of hit-or-miss for them, too.” Transportation has been a significant problem for this Illinois sawmill. “Transportation companies have just got more business than they have trucks or drivers for,” he observed. “So, that’s a sign the economy is getting better – but it’s bad for us, because they’re all looking for the top-dollar loads now. So, it’s gotten pretty difficult. Now you can finally sell lumber, and you can’t get it hauled.”

In Wisconsin, one sawmill reports that sales are “really strong in Maple. The supply is down. Oak is moving well, too. Supplies of Soft Maple are always tight up here. The Cherry market is horrible, like everywhere in the country.” Compared to six months ago, sales are “a lot better,” the sawmiller said. The company handles Hard and Soft Maple, Red Oak and Basswood. Hard Maple is selling best. The sawmill sells to end users. How is business for customers? “They keep calling,” he observed, “so it must be decent for them.”

Elsewhere in Wisconsin, a company contact said, “Currently there are pockets of activity that are going well for us, and there are certain items that are pretty slow right now. We’re busy, but it’s these little pockets of activity that are carrying us at this point.” Of the 12 species this sawmill cuts, Hard Maple is the best seller. He said the pulp mills have little demand for logs, so some loggers have ceased operations, making it more difficult for his company to get logs. Another Wisconsin lumber manufacturer assessed his sales as “overall, pretty good. It’s just as good if not better than six months ago.” Red Oak is his best seller. Sales of White Oak also are “fantastic in all grades,” he observed. Business has been good for this man’s customers, particularly those overseas.

By Miller Wood Trade Publications

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

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