Lake States Sources Remain Hopeful For Uptick In Fall
Hardwood suppliers throughout the Lake States region reported mixed market conditions recently, with activity ranging from steady to “lukewarm.” While certain species continue to perform well, contacts said seasonal slowing, higher fuel costs and uncertainty in some end-use markets are keeping overall activity in check.
An Indiana sawmiller offering Red and White Oak, Poplar, Hard and Soft Maple, Hickory, Basswood, Ash, Cherry, Beech, Walnut and Sycamore in standard thicknesses, along with some longer lengths, described the market as “hit and miss.”
“Poplar, Red Oak, Hickory are moving pretty well,” he said, while Hard Maple has experienced more difficulty.
Some end-use markets are showing improvement. “Some of the moulding customers are doing pretty well, especially with the Poplar,” he said. Flooring customers have also improved, and the sawmiller has received inquiries for 4/4 No. 1 Common Hickory that were “almost non-existent” a year ago.
Transportation availability has remained adequate despite rising diesel prices. “We’ve been able to get lumber transported okay,” he explained.
The sawmiller expects a reasonably positive fall, although heavy rainfall could temporarily affect log supplies. He reported that some areas of Indiana recently received five to 10 inches of rain. “It’ll be interesting here over the next few weeks, people getting into the woods and getting logs out,” he said. “Maybe a slight log shortage here the next month or so, but I look for a good fall.”
Lukewarm to hit-and-miss describe current market conditions in region.
A Michigan hardwood distributor offering 4/4 and 8/4 Red and White Oak, Hard and Soft Maple, White Ash, Basswood, Walnut and Cherry described business as “fairly steady.”
“It’s been a little slow for the past couple weeks, but this is not too uncommon for this time of year for us,” he said.
White Oak remains one of the distributor’s stronger sellers. “White Oak has still been pretty popular,” he said, adding that the species has maintained that position for at least the last couple of years.
Most of the distributor’s business is concentrated in Michigan, with additional service into portions of Indiana and Ohio. Approximately 90 percent of its sales are local, and the company operates its own trucks for much of that business. Transportation availability has therefore not presented a significant problem.
Fuel costs, however, are being watched. The distributor previously built anticipated increases into its delivery pricing and has not yet exceeded those projections. He noted that if fuel moved closer to the $5 range, the company might have to reconsider its rates.
Looking ahead, the distributor expects the typical seasonal slowdown could give way to improved fall business.
“I’m always optimistic, so I think it’s going to get better,” he said.
A Wisconsin hardwood wholesaler offering Red and White Oak, Hard and Soft Maple, Ash, Beech and Basswood characterized overall activity as “lukewarm.”
Among individual species, kiln-dried Ash has been one of the stronger performers. Basswood is seeing activity, although the wholesaler described pricing as modest. White Oak had been sluggish but appeared to be showing some signs of improvement, while Hard Maple has remained relatively consistent.
Customer sentiment is similarly mixed. “I think a little bit of grumbling, maybe, is what I’m sensing, but I wouldn’t say it’s terrible either,” he said.
Transportation availability has not been problematic, but fuel costs are becoming a larger concern. “It takes a lot more money,” he said. “It’s probably going to, if it holds out, become more and more of an issue.”
Labor is another challenge. While the company currently has adequate staffing, the wholesaler said he wishes quality labor were easier to find at an affordable cost.
For the next 30 to 90 days, he expects conditions to remain relatively similar. “What you see is what you get,” he said, adding that lower fuel costs could provide some welcome relief. “I just hope maybe the fuel thing will help everybody just be a little more profitable.”
