Lumber sales in the Lakes States region was reported by sources as strong recently.
“I would say the market is very good,” said the owner of a Wisconsin sawmill. “All of the customers I’ve talked to say their business is booming. The market backed up a little in November, especially with the exports, but for us business kept moving along well.”
Red and White Oak, Hard and Soft Maple and Basswood (4/4 thickness, uppers) were moving well at the time of this writing while Cherry had slowed down. The company sells to distribution yards and end users.
The tight workforce continues pressing companies. “It doesn’t matter who I talk to, labor is the issue,” he stated. “If they had more people, they could do more.”
The lumber operation is getting by but could use more workers. “It’s a fight,” he declared. “We have some good employees. We just have to shuffle them around once in awhile to cover all aspects of the operation.”
Meanwhile, transportation hasn’t been a headache for a Michigan green sawmill that markets industrial Hardwood to concentration yards and end users.
Business remains similar to six months ago, the company’s representative said, but movement is better because Basswood and Aspen are up. “With those two oddball species and Maple actually up, it certainly helps everything,” he commented. The company sells lumber in 4/4 thickness in different grades to a variety of customers, including the RV and flooring markets.
As supply still isn’t meeting demand, prices have remained high. “People are still paying for it, trying to find as much lumber as they can,” he reported. “Maple has been crazy. It seems like every week it goes up again. Our customers are busy. There is still demand out there for everything, Red Oak through the Maples, Basswood and Aspen.”
Low grade lumber has also been highly sought after. “The industrial guys are busier than heck,” the source observed. “There is still lots of demand for the low grade lumber, which is easy to move as well.”
In Indiana, lumber activity remains favorable. “Our business is going well,” reported the sales manager for a manufacturer. “We feel like we are finally getting on top of the market.”
Cherry, Hard and Soft White Maple, as well as some Red Oak, are among the species the company sells with the Maples and Cherry moving the best. The company purchases No. 2A Common, which it sells in 4/4 thickness.
The firm’s customers are doing well. “It’s a very strong business, everybody’s buried,” the source said. “It’s night and day different now. Talking to our customers, they see a pretty good 2022, carrying on what was going on in 2021.”
The strong sales helped the bottom line. “We ran on fumes with our raw lumber inventory the last five to six months,” he related. “We have had a tiger by the tail. We are finally getting caught up to where we have a little bit of cushion. We are looking to cut inventories but are very cautious cutting any inventory as much as this industry seems like it’s struggling.”
While labor availability and supply chain issues have pressed business, lumber demand and sales remain unscathed. “It’s way better than six months ago,” he said. “The people component is night and day different than it was last year. We had turnover like you would not believe. Our workforce now has stabilized.”
