In the Lake States region, sources expressed relatively consistent opinions, describing the overall market conditions as either “okay” or “pretty good.”
“I’m going to call it okay. Not bad not great. At the end of the month the numbers have been coming in satisfactory” is how one lumber provider in Illinois described his situation at the time of this writing. He mentioned that the fourth quarter of last year and the initial months of this year were notably sluggish but is currently doing better than he was six months ago and has been stable overall.
His company handles Red Oak and White Oak, Ash, Poplar, and a little bit of Walnut. “Poplar is still moving decently in the upper grades and the 1 Common. White Oak has been pretty steady. Red Oak is the dog again. The way to move Red Oak is niche markets, specialty poles and stuff like that. The lower grade with 1 and 2 in Red Oak is okay. Price is cheap but you can still move some,” he added.
His primary customer base consists of end-user manufacturers, distribution yards, and wholesalers. “We do about 40 percent end-user manufacturers, 30 percent distribution yards and 30 percent wholesale.”
When asked about transportation and labor he commented, “Transportation is available, and its prices have come down since about 12 months ago. Labor is better than it was a year ago but if you get a good worker, you better pay him to keep him under your tent.”
In Wisconsin one sawmill representative said, “We are doing okay. The markets though, are terrible, it’s just the prices are depressed, and a lot of things plainly aren’t moving.” He acknowledged that their business activity had worsened compared to several months ago.
His product offerings consist of Red and White Oak, Basswood, Hard and Soft Maple, Aspen, Cherry, and Hickory, primarily in 4/4 thickness with a few selections in 5/4. These varieties are offered in No.3 or Better grades. When asked what his best seller was, he commented that it was currently White Oak.
“Transportation and labor I am doing okay with,” he added.
A sawmill representative in Michigan said that things have slowed down recently but they are still doing good overall. “It’s not great but it’s alright. I would say things have slowed down here recently besides the White Oak,” he commented.
He handles Hard and Soft Maple, Red and White Oak, Hickory, Walnut and Cherry in No. 3 Common and Better. His thicknesses range from 4/4 through 8/4. “Red Oak is about the same as earlier in the year, but White Oak is getting busier,” he added.
His customer base is evenly split between end-users and distribution yards. “It’s kind of inconsistent when I talk to my customers. Some clients say they are busy, and some clients say they aren’t busy. I don’t know if it depends on where they are located or what they are making but I get a mixed bag on how good they are doing.”
As for his transportation and labor, he commented that both of those are good at the time of this writing.
