Northeast Business Trends
A Wintry Mix Of Tariffs, Slowdowns And Labor
By Cadance Johnson
Contributing Writer
The Northeastern softwood market encountered a flurry of issues throughout the winter months including labor, tariffs, prices, low demand and uncertainty.
The sources appeared divided about market concerns, some even stating their marketplace has been stable.
In New Hampshire, the market is “doing well. It’s pretty stable and steady — I haven’t seen much change in it,” stated a lumber source. “It is about the same as six months ago.”
Eastern White Pine, Western Red Cedar, White Cedar and Douglas Fir are their primary species. “The Eastern White Pine probably sells the most. We do Knotty and Clear in most of those and some in Clear Vertical Grain,” he added.
They have a variety of customers including homeowners, lumberyards and contractors. “I’ve had some people be concerned about the market but, overall, I think it has been pretty stable,” he added.
“We’re doing pretty well with transportation and labor. For transportation, we don’t do a whole of shipping because we don’t export but if we do, it is smooth. For labor, there haven’t been too many problems,” he divulged.
As for the future, he noted that his company is venturing into online sales to “reach more people by updating our website a bit. This is less for our softwoods and more for the specialty hardwoods we offer.”
The market is experiencing a slight slowdown due to the season, according to a lumber representative in Maine. “I think there is a little uncertainty in the market because of the tariffs. In general, I think the economy is strong, but people are just trying to figure out what is right for them at the moment.”
He expressed that the market is the same as six months ago and that people “aren’t making any purchases” because of tariff uncertainty.
Western Red Cedar and Eastern White Pine “mostly 3/4 -inch boards and NELMA patterns such as Premium, Standard and Select,” are what he said they offer. “The Pine is selling the best. There is less movement in Pine. So, it is fairly accessible. I don’t think anyone is over buying because there is no high or low price – Pine prices are staying relatively even.”
Pine and transportation and high points in the Northeast
Most of their products are purchased by industrial manufacturers.
When asked about transportation and labor, he commented that it “just found its new highest point, and it seems like the trucking industry, at least for us, has figured out how to survive at a higher price than in the past. So, I don’t think prices are coming down but we’re not having any trouble. Trucks are available. The industry wrenched it up a few years ago in price, so I think that helped keep more trucks on the road. We’re not looking to hire right now and haven’t lost anybody – we’re steady and we’re doing okay. The labor force is aging out. We’ve all gone through how to take somebody who is more interested in technology and computers and make them do labor. I think everybody seems to be struggling with how to cultivate people who are interested in this line of work.”
As for the new year, he is “looking forward to it and how to adjust to whatever the new normal will be.”
In Pennsylvania, the market is “mediocre due to economic conditions” and “about the same as six months ago,” replied a softwood lumber representative.
White Pine and Hemlock are what they offer. “We mix them into our products, but Hemlock sells the best. We do mostly 2-inch and 3-inch millrun. A much smaller segment is 1-inch Hemlock boards. We don’t offer any upper grades,” he explained.
Their clients are a mixture of industrial companies that, as he said, “use the products for crates and pallets. We also have heavy industry planking and timber customers.” His customers are “being very cautious. We’re just trudging along – no big profits but no big losses either. We’re in a holding pattern.”
They struggle with transportation and labor.
When asked if anything could improve market conditions, he commented, “You would think the tariffs against Canadian lumber would help but, quite frankly, I haven’t seen any change. I think the Southern Yellow Pine is edging its way North for industrials. Just an uptick in demand would help.”
