Lake States Business Trends November 2026 – Lake States Regions Offers Mixed Reviews
Hardwood activity across the Lake States remained mixed recently, with sources reporting conditions ranging from slightly subpar to steady. Rising freight costs, cautious purchasing and broader economic uncertainty continue to influence the marketplace.
A Michigan lumber manufacturer described current hardwood activity as “slightly subpar,” although he said business has improved from July.
He pointed to reduced U.S. housing starts, weakness in the Chinese economy and the continued popularity of painted furniture and kitchen cabinets as factors weighing on hardwood demand.
The company manufactures Red and White Oak, Hard and Soft Maple, White Ash, Basswood, Walnut and Cherry. Production is predominantly 4/4, although some species are also available in 5/4 and 8/4. The operation produces 8/4 Ash and Red Oak and 5/4 Basswood. Grades include Select & Better, Nos. 1, 2A, 2B, 3A and 3B Common.
Customer markets have shown some hesitancy.
“One of my big customers just sent notice that they’re not going to take any loads of lumber for a good week because they have too much inventory,” he said.
He added that Chinese customers also continue to report difficult business conditions.
Transportation availability has not been a significant issue, but freight costs continue to climb. The lumber supplier operates its own trucks while also using contract carriers.
“We were just talking this morning about even delivering loads of firewood logs and how expensive that is,” he said. “We’ve got to watch the mileage, how far it is from the logging site.”
He also expressed frustration with local rail service, saying, “I sure wish we could do something to motivate those railroads to go back to giving local service again.”
Looking toward the next 30 to 90 days, the source expects conditions to remain challenging, citing high fuel costs, weak consumer confidence and general economic uncertainty.
A hardwood supplier in Minnesota, which serves markets in Minnesota and Wisconsin, described activity as fair.
The company handles Northern Appalachian Red and White Oak, Birch, Cherry, Basswood, Hard and Soft Maple, Poplar, Butternut, Black and White Ash, Aspen, Hickory, Walnut and Alder, primarily in FAS & Better grades in 4/4 through 8/4 with occasional longer lengths.
Transportation availability has not presented a major obstacle. The company maintains its own trucks while also using contract carriers, and the source said long-established vendor relationships have helped provide dependable service.
Freight rates remain a growing concern for both the company and its customers. The source also pointed to tariffs, inflation and broader economic conditions as significant influences on business.
Construction activity in portions of the company’s market has stalled or remained stagnant as customers react cautiously to economic uncertainty. Despite those concerns, the source remains hopeful that conditions will begin to settle and expressed a positive outlook for the coming 90 days.
Back in Michigan, a sawmill and hardwood lumber operation reported that business is holding steady, with sales volume roughly comparable to last year.
“The price of logs is not following the price of lumber,” the source said. “The margins have definitely been squeezed from a year ago, but the volumes are about the same.”
The company produces kiln-dried and S2S hardwood lumber, including Hard and Soft Maple, Red and White Oak, Yellow and White Birch, Ash, Basswood and Cherry. Most production is 4/4, generally in No. 2A Common & Better grades.
Lower grades currently appear to be moving better than upper grades, while Select & Better White Hard Maple is among the slower-moving items.
Customers are also purchasing more cautiously.
“It seems like their warehouses are pretty full,” he said. “They’re buying on an as-needed basis. They’re not stockpiling anything anymore.”
That has pushed more inventory back toward suppliers.
“I’m basically a warehouse for a lot of the manufacturers that make cabinet components or flooring,” he said.
Transportation has remained relatively stable because the company handles much of its own trucking and supplements that with long-term outside carriers. “The next 30 days, my order files are pretty robust,” the source said.
Beyond that, however, he expects business to begin slowing as the market moves deeper into the final quarter of the year.
