Lake States Business Trends
Consistent Demand And Balanced Orders Are Lake States’ Bright Spots
Hardwood activity across the Lake States is steady, with sources reporting consistent demand. Most contacts said business is stable, supported by residential flooring demand and balanced order files.
In Wisconsin, a source said activity in his area has been “pretty good,” noting that conditions are comparable to a year ago. “I’d say it’s about the same,” he said.
His operation handles Red and White Oak, Hard and Soft Maple, Hickory, Cherry, Basswood and Aspen, with Red Oak and Hard Maple currently leading in movement. “Red Oak is moving well, along with Hard Maple,” he said.
Residential flooring continues to provide the most consistent demand. “The flooring sector has been strong for us, especially residential,” he said.
Transportation has not presented availability challenges, but rising fuel costs are pushing freight pricing higher. “Transportation has not been a problem, and prices are going up quite a bit with fuel,” he said.
Looking ahead, he said near-term direction will likely hinge on global factors. “I think it all depends on this war,” he said. “If that gets resolved, I think things will get better.”
A Michigan source described hardwood activity as good across most domestic hardwoods, including Red and White Oak, Hard and Soft Maple, Hickory, Cherry, Basswood and Aspen. He noted that Basswood and Cherry are moving more slowly, though they are not typically primary volume drivers for his operation.
Supply changes, fuel cost increases, wet ground and the war are red flags for the hardwood market.
He emphasized supply-side challenges, noting that wet ground conditions have limited logging activity and contributed to tighter log availability in recent weeks. “We have to know that availability is dependent on weather and will be key to increasing harvesting activity so that we can rebuild supply.”
The contact also said, “Demand from our flooring customers has remained stable compared to the first part of the year. We have seen a slight positive trend in activity.”
As for other factors, he said, “Transportation availability has been fine, but fuel costs are increasing freight expenses and those additional costs are being passed along to customers, contributing to ongoing pricing pressure.”
Looking ahead, he expects conditions to level out, particularly if weather improves and allows logging activity to resume at a more typical pace.
An Indiana source who carries Red and White Oak, Hard and Soft Maple and Hickory said demand remains consistent. He attributed steady conditions to the flooring sector and general millwork. “Flooring and millwork are keeping things moving at a steady pace,” he said.
He said species movement remains typical for the region, with primary hardwoods driving most activity while secondary species see more limited demand.
Like others in the region, he accounted for no significant issues with transportation availability, though rising fuel costs continue to impact freight pricing and overall costs.
He also pointed to logging conditions as a concern. “The wet ground has limited harvesting activity and contributed to tighter raw material supply,” he explained. “This is typical for this time of year in our industry. It’s seasonal and it will get better.”
Looking ahead, sources in the region expect hardwood activity to remain steady in the near term, with potential for modest improvement if weather conditions improve logging conditions and normal supply activity returns.
