Inland West Business Trends

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Inland West Business Trends 1
Terry Miller
President

Inland West Marketplace Holds Steady Through Uncertainty

Throughout the Inland West region, sources that were contacted at press time all agreed that their sales were doing well. One source noted that despite the uncertainty throughout the market his company is doing better than they were six months ago.

Another source noted that his sales are up simply due to prices being higher than they were.

In Idaho a lumberman said, “Our sales are doing pretty well right now. We are doing better than we were six months ago, this is because prices are up.”

His company offers White Fir, Hemlock Fir, Douglas Fir, Spruce, Pine and Cedar in all grades and in thicknesses of 2×4 through 2×12. When asked if he had a specie that was doing better than the rest, he noted that Douglas Fir is currently his best-selling.

He sells to pro dealers and distribution yards. When asked if he has heard how their sales were doing, he stated, “Their sales are down and seem flat, but we still are seeing good margins on our end.”

He noted that while they are having staffing issues at some of their facilities for the most part, they have noticed an increased rate in retention among newer employees.

“We haven’t felt the impact of any tariffs yet,” he said. “We are hoping that the tariffs remain fair should they impact our markets.”

A lumber spokesman in Arizona said that his market is doing well, and that their sales are doing about the same as they were six months ago.

His company handles all softwood species, with a concentration on Douglas Fir, Hemlock Fir, Southern Yellow Pine, Ponderosa Pine, Sugar Pine and Spruce-Pine-Fir in all grades and thicknesses. He mentioned that all of their primary species are selling at about the same rate.

Sales are doing well throughout the Inland West region. Anticipation for tariffs to impact the industry still hangs in the air.

He sells to retail lumber yards and a variety of manufacturers. “My customers are all doing a little different, some of them are doing well, while others are down from where they would like to be,” he said. “The fluctuation in our customers’ sales hasn’t impacted our overall bottom line.”

His company exports into Mexico and imports from Canada. “The threat of tariffs on lumber has brought fluctuation and uncertainty to the market,” he added. “But our imports and exports are still flowing regularly for the most part right now.”

He mentioned that they have noticed that fewer trucks are coming out of Mexico which has led to some difficulty with shipping and freight rates.

In Montana a lumber salesman said, “Despite the weird year that we have had so far, we are still doing pretty well.”

He noted that they are doing better than they were six months ago. “We are close to the Canadian border, and they usually are able to undercut our prices by about 30 percent. So, we have been able to be more competitive with our prices with the countervailing duties that have been put in place over the years.”

His company offers Douglas Fir, West Larch, Spruce, Lodgepole Pine, Alpine Fir and Grand Fir in thicknesses of 2×4 through 2×10 and 1×4 through 1×12 and grades Select Struct, D and Better and No. 2 Common and Better, as well as a variety of MSR grades. “Douglas Fir and West Larch are probably our best sellers right now,” he said.

His company sells to wholesalers, distribution yards and end users. “My customers are doing about the same as we are,” he said. “It’s been a strange year. No one really knows what to expect with lumber prices and interest rates through the roof, which has led to a stagnant building environment.” He did note that his local building environment seems to be more robust than the national environment, speculating that this is likely due to the amount of vacation homes that are being built in his area.

“Everything is moving along in the market, but it is a different environment this year than it was six months ago,” he said.

Inland West Business Trends 2

millerwoodtradepub.com

By Terry Miller

Editor, Marketing Consultant, and Third generation publisher. With Miller Wood Trade Publications since 1983.

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