Inland West Business Trends
Stable But Purchasing Decisions Tentative
Terry Miller
President
Softwood suppliers throughout the Inland West continue to reflect cautious buying patterns as customers closely monitor economic conditions, interest rates and transportation costs. Sources described demand as steady, though most agreed uncertainty continues to influence purchasing decisions.
An Idaho manufacturer focusing on Ponderosa Pine boards ranging from 1×4 through 1×12, along with 5/4 and 6/4 shop products, said market conditions feel somewhat softer than they did a few months ago, although overall activity remains relatively stable.
“The feelings are worse, but the end result is it’s just there,” the source said. According to the source, the line between supply and demand remains extremely narrow, making prompt inventory a key advantage in the current market.
“Prompt wood is king,” the source said. “Everybody’s hand-to-mouth right now because they don’t know what the future is.” The supplier noted that customers remain reluctant to build excessive inventories, choosing instead to purchase material as needed.
He also said many customers continue to prioritize flexibility over volume commitments, allowing them to react quickly as conditions change. While this approach limits inventory exposure, it also places greater emphasis on supplier responsiveness and product availability. According to the contact, buyers are increasingly looking for suppliers who can provide material on short notice rather than those offering long-term inventory positions.
Contacts appear content to maintain lean inventories and purchase material as needed.
In Wyoming, a sawmiller specializing in No. 2, 3 and 4 Common Ponderosa Pine boards, 5/4 and 6/4 moulding and 5/4 and 6/4 shop products reported similar buying habits among customers. While demand remains consistent, uncertainty surrounding financing and broader economic conditions continues to affect project timing.
The contact said multifamily construction remains a particular area of interest. While many projects are being quoted, fewer are actually moving forward. “There’s a lot of multifamily stuff getting quoted, but not really a lot getting landed,” he said.
The contact noted that activity levels vary considerably from project to project. While some builders remain active, others are taking additional time to evaluate budgets and financing arrangements before moving forward. As a result, suppliers are seeing a healthy flow of inquiries and quotations, though not all are translating into immediate orders. The source said this has created a market environment where forecasting demand remains challenging despite relatively steady overall activity.
He also noted financing costs continue to play a significant role in project decisions. Many developers are evaluating projects carefully before committing to construction schedules.
Elsewhere in Idaho, a supplier who handles Douglas Fir and Hem-Fir among other products in 1×4, 1×6, 2×6, and some 2×12 in No. 2 and Better said Douglas Fir continues to outperform other species in the market.
“Doug Fir is still leading the market by far,” the source said. According to the source, availability remains relatively balanced, but strong demand continues to support Douglas Fir pricing.
While transportation costs remain a concern throughout the region, the contact said long-standing relationships with trucking providers have helped minimize disruptions. He said confidence could improve if fuel costs begin to ease.
“If fuel prices go down, people are going to have a little bit more confidence in the market,” the source said.
Most day-to-day shipments continue to move without significant delays, although fuel surcharges remain a factor. “We’ve had to pay the fuel surcharge,” he commented. “It’s slowly coming down, but it still affects everything.”
Sources throughout the region pointed to interest rates, fuel costs and broader economic concerns as some of the biggest factors affecting purchasing decisions. Throughout the region, contacts appear content to maintain lean inventories and purchase material as needed, creating a market environment where availability, service and prompt shipment remain critical competitive advantages.
