Southeast Business Trends September 2026 – From Decrease In Demand to Cautious Optimism
Hardwood market activity across the Southeast is receiving mixed reviews with some lumber suppliers reporting a decrease in demand while one is cautiously optimistic after noticing some signs of a slight improvement. There are also reports of struggles in certain areas, such as the framestock industry as well as the crosstie market. Multiple lumber sources all report White Oak as being one of their top-selling species, and one has found a steady market for Cottonwood.
A Kentucky sawmill source said the market in her area is not good and probably worse than it was six months ago. “Lack of sales,” she explained.
Her operation handles Red and White Oak, Chestnut Oak, Hard and Soft Maple, Poplar and Hickory in all grades and thicknesses with White Oak being the top-selling species.
The lumber representative sells to flooring companies and pallet companies. Her customers have also commented about the challenges her area’s market is facing.
“The prices have dropped way down,” she said. “Demand is down as well.”
Another obstacle is the increase in the price of diesel.
“Transportation is very expensive,” the contact said.
A Mississippi hardwood mill representative reported that activity in his area is picking up some.
“Nothing to jump up and down about yet, but I feel like it’s showing a little improvement,” he said.
Because of a good customer base, his operation has not had any problems moving its lumber products. But certain areas of the industry have been facing challenges, such as the framestock industry, he said.
“People shutting down left and right,” he said. “People coming in from China buying some plants over in Ecru, MS, out from under American people. It’s just a mess right now in the framestock industry.”
His company handles all the trees that grow in the South and some up above the Mason-Dixon line in 4/4 to 8/4.
“As far as the upper grades, we just do green lumber and air dried. We don’t have kilns,” the contact explained. “As far as our green lumber, we are able to move the flooring Oak and the Common and Betters in all species. We’ve been moving that pretty good.”
He said Red and White Oak, Ash, Poplar and Cottonwood are the dominant sellers.
For Cottonwood, his operation has a contract with a casket business, which is one of his two biggest customers. “We cut some 75 to 125,000 board feet; every week, we cut for them,” he said.
His other biggest customer is a concentration yard in which he has an established relationship.
“They keep us pretty much busy, and they seem to show a little sign of improvement also,” he noted. “They are upping their volume that they buy and getting a little more money coming in on the prices.”
The source said that he is seeing in his market an increase in demand, and prices are inching up a little bit.
“It is nothing to write home to Momma about,” he said. “I believe it’s better overall. I’m not sweating like I was or having such a hard time moving it now.”
For example, the casket business had been ordering about 50,000 board feet of Cottonwood a week or every other week. The supplier said now he receives weekly orders that are sometimes over double the former amount ordered.
“Like next week, they’ve already got us down for 120,000 board feet,” he said at the time of this writing.
While Common and Better Cottonwood is moving, he said there’s been no market for No. 2 Common Cottonwood. So, to move the product, “We’ve put it in 6×8 cants and try to sell to pallet plants. We just kind of got that up and going.”
While flooring Oak is moving steady, it hasn’t picked up any, he said.
The contact did note that the company’s trucking and labor force is in good condition.
“Every day is a new day,” he said. “One day, you’ll have a great day at work, and the next day you go there, and they’ll call and say, ‘Look, you got to hold up, man. We can’t ship no more there.’ It’s always something. Obstacles everywhere you turn.”
In Tennessee, a mill representative said the market in his area is slow.
“I would say it’s worse than six months ago,” he said.
As he explained market conditions in his area, he speculated that “demand is down and prices are dropping.”
He added, “We lost the crosstie market” but the overriding issue in his area is demand is down.
His operation handles Red and White Oak, Poplar, Hickory, various and assorted mixed hardwoods, and some Walnut and cuts from 4/4 to 8/4.
“Right now, the Red Oak, White Oak and Poplar are selling better than any of it is,” he said.
This lumber supplier’s customer base is mostly end-use manufacturers.
A challenge his business has been facing is a labor shortage.
“It’s been ongoing now for a couple of years,” he said.
For now, lumber suppliers in the Southeast are staying steadfast and figuring out ways to overcome obstacles and move their products in a slow market in hopes that demand will soon pick up.
