Inland West Business Trends
Market Conditions Vary Across The Inland West
Terry Miller
President
Softwood activity across the Inland West remains steady, although conditions vary by location, customer base and product mix. Demand remains present, but transportation costs, fuel prices and uncertainty about the months ahead continue to influence buying activity.
A Wyoming lumber manufacturer and sawmill described business as “okay,” with activity somewhat quieter than earlier in the year. Conditions vary across the markets the company serves.
“It’s a mix,” the manufacturer said. “Some guys are slow and some are busy.”
Boise remains among the stronger markets, with continued home construction and some multifamily activity beginning to emerge. The source said single-family construction continues to account for much of the activity he is seeing.
The sawmill handles dry Hem-Fir and dry Douglas fir, with products ranging from studs through dimension lumber in 2×4 through 2×12 sizes. Customers continue to buy close to immediate needs, making the company’s ability to assemble highly mixed truckloads increasingly important.
“Buyers have held out as long as they could until they absolutely have to have it,” the source said, describing the approach as a “just-in-time model.”
Transportation availability has remained adequate, but costs are higher. The supplier said fuel surcharges have had to be adjusted, while some longer-distance shipments into the Midwest and East continue to increase.
An Idaho sawmill and softwood lumber manufacturer reported good demand and fair availability. The company offers studs, industrial/shop products and dimension lumber in multiple inland species from 2×4 through 2×12 in lengths ranging from eight to 20 feet. Its softwood mix includes Spruce-Pine-Fir, Douglas Fir, European Spruce, Lodgepole Pine and Western Red Cedar.
“Transportation is the hot subject as the numbers at the tank continue to rise,” the manufacturer said. “We have our own trucking operation, and the margins are slim right now.”
Costs, not limited to fuel, have been increasing as reported by a softwood lumber source.
The source said customers are reporting decreased activity as they plan for the months ahead. “It’s a weak but steady feeling overall,” he said. “There is some buying power, but it’s reserved on the high-end, custom side.”
He added that the company has experienced similar transportation pressure before, “but it has been many years since it has pinched the market to this degree.” His outlook remains hopeful, particularly if fuel costs ease. “I hope we’ll see some change in fuel rates and also in legislation,” he said.
A separate Idaho lumber manufacturer/distributor, offered a somewhat different view, describing activity as average for this time of year.
“We’ve felt a little downtick here and there, but overall, we’re seeing strong conditions,” the source said.
The company offers Douglas Fir, Western Larch, Grand Fir, Western Hemlock, Lodgepole Pine, Western White Pine, Engelmann Spruce, Sub-Alpine Fir, Ponderosa Pine, Western Red Cedar and SPF-S. Dimension lumber ranges from 2×3 through 2×12, with additional boards and patterns offered in Ponderosa Pine and Idaho White Pine. Grades include No. 1 Common & Better, No. 2 Common & Better, MSR, Shop, moulding, Common and other specialized grades. They also handle studs and assemble highly mixed truckloads for customers.
The source said tariffs remain a concern and expressed hope that legislative action will address issues affecting the lumber industry as well as broader domestic and global markets.
He expects the company to finish the year at about average levels. “We’re not having a bad year, but it could have been better with the right conditions,” he said.
Overall, Inland West suppliers describe a market that remains steady but measured. Demand is sufficient to keep material moving, while transportation costs and uncertainty are limiting stronger momentum. Sources generally expect similar conditions through year-end, with fuel costs remaining one of the primary factors they will be watching.
