Lumber Producers Agree: Shifting Tariffs Need Stabilization, Rise Of Look-A-Like Products Proves Challenging, But Legacy Of Hardwood Industry’s Resiliency Remains Strong
Instability in the market due to ever-changing tariffs that impact exports, increases in operational costs, challenges in many areas to fulfill staffing needs, the ability to remain nimble and able to be innovative were among the factors that defined this year for those who responded to our annual questionnaire about the current-plus-future year.
Norm Steffy
Cummings Lumber Company
Troy, PA
As we reflect on the second half of 2025, it’s clear that recovery defined much of our year. Entering Q4, we were still ramping up operations after the fire that shut down our sawmill for 13 months. Thankfully, we retained the majority of our customer base post-startup, allowing us to move manufactured lumber without issue. Volume wasn’t the challenge—margins were. Throughout the remainder of the year, tight margins persisted. Looking ahead, I’m cautiously optimistic that a moderate uptick in demand could lead to item shortages and, ideally, improved margins.
Our most immediate hurdle remains restoring full production capacity. Hiring and retaining personnel — especially for labor-intensive roles — continues to be a struggle. I don’t anticipate this labor dynamic changing soon, which makes investment in automation and technology essential. Reducing reliance on manual labor is no longer optional — it’s strategic.
In 2025, we made significant capital investments to boost efficiency, capacity, and yield. New installations include the Cleereman 150HP Band Mill, Headsaw, Log Deck and Metal Detector. Other additional installations include: AFS Boiler Controls, Stringer Wastewood Chipper, MAC Filter dust collection system, Phelps Chip Blower, Biomass Trailer System, HMC Debarker Cab, MDI Metal Detector, Wood-Mizer 50HP Bandsaw along with Rollcase and transfer Conveyors.
Our location in Pennsylvania’s Northern Tier offers access to a diverse mix of hardwood species. Ash, Cherry, and Red Oak are primarily exported. Hard and Soft Maple, White Oak, Hickory, and Poplar serve domestic markets. Our production is evenly split—50 percent domestic and 50 percent export—as well as 50 percent distribution and 50 percent manufacturing. Most of our low-grade lumber feeds into our flooring plant. We also provide value-added services such as width sorting, surfacing, and rip-to-width lumber.
Transportation remains a strength. We handle domestic deliveries with our own fleet and outsource export container hauling. However, trade tariffs have emerged as a major concern. While media coverage often centers on consumer impact, the consequences for export-reliant businesses like ours are profound and underreported.
As someone directly affected, I can attest to the disruption tariffs have caused in 2025. With China as our largest export market, the retaliatory tariffs announced in April followed by several 90-day pauses have led to delayed orders and, in some cases, cancellations. Roughly half of our shipments are export-bound, making this issue critical.
I recognize that tariffs can serve as leverage in trade negotiations. But if they become a permanent fixture, the economic fallout could be severe—especially for the middle class. Offshore manufacturing of low-skilled jobs is often a necessity due to wage realities. It’s becoming increasingly clear that tariffs and sanctions are being used more as political tools than as solutions to genuine trade imbalances.
If the U.S. continues down this path of escalating tariffs and our trading partners respond in kind, the hardwood industry and businesses like ours will face ongoing hardship. The ripple effects will be felt across the economy, with long-term consequences that extend well beyond our sector.
Steve Jones
Ron Jones Hardwood Sales Inc.
Union City, PA
In 2025, we had plenty of challenges navigating the landscape of uncertainty due to export tariffs and understanding the effects it places on the domestic market. Our markets are 50 percent domestic and 50 percent export. We feel this is a good balanced mix for our Northwestern Pennsylvania market supply.
We sell to customers that are looking for a quality product that is consistent. We have a very broad range of customers including major hardwood distributors, cabinet and flooring manufacturers, and millwork shops.
A few years back, we installed a new planer line that has enabled us to produce a better product. We ship our product out rough or S2S. Each of our customers’ needs are different and we can work to produce what they are specifically looking for. We are always looking for the next opportunity and enjoy building loads for our customers’ needs. Specialty and mixed grade or specie loads seem to be a good mix for us. We are always looking to produce a product that our customer can depend and count on.
This year, we purchased a new fork truck to add to our fleet. We have around eight fork trucks and have them on a yearly rotation. We purchase a new truck a year. It is surprising how expensive fork trucks are and how much we need to rely on properly functioning equipment to keep our operation running smoothly. We also installed a new T-shed to cover our inbound, fresh green lumber. The roof covering will aid in protecting our lumber from the elements such as summer heat, winter snow and ice. Our goal is to produce a great product with limited defects. In addition, we finally installed a new camera system throughout our entire facility.
We have an exceptional leadership and management team that all work together for the betterment of the company. It’s infectious to have all the employees working towards the same goals. We celebrate our successes and take very good care of our employees. We are all very blessed to have dedicated employees that are always looking to improve on what we do. Every year, I mention we have the best workers, and every year the employees seem to gel better together than the prior year.
Regarding transportation/shipping, our logistics team works well with freight forwarders, independent truckers, and freight partners. We are grateful for the transportation companies we work with, as they are an extension of who we are. These companies are exceptional at what they do. We work to have clear dialog and communication with these companies.
Exporting lumber in 2025 has been a year of challenges with on and off again tariffs. This year has been difficult to strategize and plan for business, as tariffs have plagued our export markets. We have put all stops to shipping markets, only for markets to reopen and to ship as much as possible through a tight window of opportunity. The future of exporting is challenging with country specific tariffs and working through the new European EUDR requirements. We are overburdened with the challenge of trying to guess or predict what markets lie ahead in the next three to six months. Many times, we are just working daily to figure out what are our next steps. This hardwood lumber business can keep us constantly strategizing and there is no easy plan forward for anyone. Fortunately, with time, patience, and God’s grace, it all works itself out.
The future of our hardwood industry will remain in constant struggle as we compete with products like vinyl, ceramic, plastic, particle board, and inferior wood products that are portrayed as hardwood. As an industry we need to do a better job with gorilla marketing to promote the benefits of real American hardwood. Why should a consumer use our product and what are the benefits? As an industry we have a natural product that only gives back in beauty, durability, and sustainability. Hopefully, future generations will see the lasting and rewarding hardwood lumber the USA has.
Brandon Clark
Clark Lumber Co.
Red Boiling Springs, TN
Would we define 2025 as a successful business year for our company? No, the cost of holding inventory and increased production costs have been the biggest challenges for 2025. Uncertainty due to tariffs have been the biggest sales challenge this year.
Domestic distribution has been the strongest sector for us this year. Flooring has gained momentum in the last two months but still has a fair amount of uncertainty.
TMT Poplar is a new product we introduced in 2025 and we installed a used Nicholson Debarker at one facility to take the place of two older and slower machines.
Is having enough employees been a problem for us in this market? Yes, we have had several people working overtime as well as attempting to train less skilled employees to become skilled with little success.
Regarding transportation, domestically we are not seeing as many issues, but the export markets can become complicated due to container availability during the rushes to avoid tariffs.
Regarding current or expected tariffs, this is probably one of the most detrimental things that our industry has encountered. Multiple auction papers arrive each week and we cannot predict who is next nor are we able to find a common thread among the businesses being auctioned.
John Beard
Beard Hardwoods Inc.
Greensboro, NC
As we all are aware, writing a forecast for the lumber business is a difficult task. My bankers are always asking for forecasts for the next year. Mainly to check the box to satisfy their underwriters and credit partners. I can honestly tell you, I was pretty good at it in my first 25 years in the business and had an accurate track record. Over the past 10 years I don’t think I ever hit bullseye. The years I thought would be bad ended up alright. The years I thought would be good had some external event happen that would turn it upside down. Trade wars, recessions and tariffs come to mind, don’t they?
2025 started out slowly because of poor timber and sawmill production at the end of 2024 and into the first quarter of 2025. As the second quarter progressed, we steadily gained momentum production-wise and experienced a decent rebound in the third quarter. Early indications for the fourth quarter show steady business, however our mills are complaining about lack of loggers and timber sales. It’s starting to smell like the end of 2024. We’ll see, and fingers crossed. Many thanks to some of our industry leaders for addressing the problem of exporting logs. In my eyes it’s been a problem for many years, and I applaud their courage to speak out.
Beard Hardwoods will continue to focus on producing the highest quality Yellow Poplar in the industry. We will continue to focus on quality, volume and customer service. In other words, you can count on us to deliver what you want and when you want it with superior communication.
Labor will continue to be an issue, however, at this moment we have a good crew that works hard to get the lumber out. Labor wages and expenses such as worker compensation insurance and health insurance continue to rise at an alarming rate with no end in sight. Our elected officials don’t seem to want to talk about how to control those costs anymore.
The export market continues to be a major market for us, but a major concern. Low grade Poplar hasn’t found a home domestically and honestly, I don’t believe the tariff initiatives that are being taken now will ever result in a substantial reshoring of the furniture industry. We will continue to work hard to support the domestic customers we have.
Many thanks to all of our suppliers and customers. We are blessed to work with people we all consider friends. Merry Christmas and wishing everyone a successful 2026!
Bill Courtney
Classic American Hardwoods Inc.
Memphis, TN
2025 was successful from the standpoint that we are open and profitable when so many other companies have closed and/or are struggling. However, against the backdrop of the numbers of people employed and the amount of capital required to run the business, the ROI is subpar. For 2026 – the biggest challenges are ongoing trade wars with every country on earth – they create mass confusion in the marketplace, uncertainty, and have slowed international business significantly. The facts are that the U.S. alone is simply not a big enough market to sustain our industry and until the trade wars are settled and each country has rules to go by so we can actually know what costs are in each market, the slowdown will linger. Additionally, the advent of cheaper substitute materials being used in flooring, cabinets, millwork, and furniture have created a very difficult market for solids and this will continue to be a challenge for our industry.
We sell to 42 different countries and all over the U.S. – so, we sell in all markets and categories. I would say distribution customers have been strongest this year.
In 2025, we put in two high speed molders and are now selling S4S, mouldings, millwork, styles, and rails.
Regarding labor, fortunately, being in Memphis, we have access to a fairly large labor pool and labor has not been a struggle for us.
Paul Eastman
Collins
Wilsonville, OR
I would say that 2025 has been successful as far as moving all our production but profitability has been an issue for most of the year. Going forward we need to find ways to improve our efficiency and recovery. On top of that, lumber prices need to come up in order for sawmills to be profitable. We are getting squeezed from all sides. Lumber prices are about the same today as they were 20 years ago. I challenge you to name another industry that is in the same position as ours.
Our customers include the following segments: cabinets, furniture, flooring, millwork, pallets and crates, components, distributors, agents and wholesalers. Pallets, distributors and agents (export) were our strongest markets.
Width sorted lumber is a new product/service we provided in 2025.
In 2025, we installed three new 70,000’ SII kilns, improved the brightness of our white woods and decreased our cycle times. Also, we purchased a new 280 Hyster, increased our up time and increased efficiency.
It is still a challenge to attract “quality” employees, but we have seen more applicants coming through the door this year. We have increased our starting wage and offer full benefits soon after hire.
We have not had any issues to speak of concerning transportation, we get calls and emails daily from trucking companies looking for loads.
From my perspective, one of the biggest challenges with export is the uncertainty that the tariff rates are up in the air, and they keep putting short term extensions in place. We just need to know what they are going to be, so we can move forward with more confidence.
Rob Paradise
Devereaux Sawmill
Pewamo, MI
2025 has been successful but challenging. We need real wood products back in homes.
Cabinets were our strongest sales segment this year. Looking ahead, we are working on new equipment to kick off 2026 and add 15 percent production.
Our concern regarding current or expected tariffs is that customers find alternate sources or use alternate products.
Tony Pescaglia
MO PAC Lumber Company
Fayette, MO
Success can be measured in a lot of ways but as I look back on 2025, I would consider it a successful year. We will have survived an incredibly tumultuous year in the hardwood lumber business having overcome many obstacles throughout the year. The trade war created great instability for both sides of our marketplace. A combination of the tariffs, log exporting, inflation, and world economic issues have made business much more difficult in 2025. A trade agreement between countries, lower interest rates in the U.S., consumers purchasing more wood instead of plastic substitutes, and the restriction of Walnut log exports would be a large help for the success of our business in 2026 and beyond.
Our customers are mainly distribution yards and furniture manufacturers, both domestically and abroad. In 2025, we experienced a mix demand. Low-cost labor markets were stronger for the lower grade material, while the higher grades are more in demand in the U.S., Europe and the UK. By the end of the year, the 2025 demand for the lower grades would probably be considered stronger.
In 2025, for the first time in many years, we started sawing White Oak at our mill. The availability of quality White Oak logs had been greatly restricted as a result of the huge demand from the state’s barrel stave industry, but those markets have softened, offering us the opportunity to buy the high-quality logs we need for our customers.
This year, we installed a new MDI metal detector at our mill, replacing the old unit from the same manufacturer.
Regarding labor, every employer that I have talked to, in every industry, has problems finding quality employees. Being in rural areas with small population bases magnifies the situation for many in our industry. We have recently hired an employment broker to use to employ contract foreign workers. We are hopeful that this will help solve our need for quality employees.
In regard to transportation/shipping, in the spring, when the trade war with China ramped up and the tariffs and retaliatory tariffs were escalating by the hour, we got stuck with several containers that were in transit that would not meet the deadlines to ship or to arrive. There were some sleepless nights and a lot of lost revenue as we were forced to make decisions on how to handle these shipments.
Another shipping issue we have experienced over the past couple of years are the endless calls we get every day from truck brokers trying to solicit our business. They are relentless. In my opinion, this illustrates how slow the market is for domestic trucking.
Tariffs have been palatable for the low-grade lumber because it doesn’t make as much impact when the items are low priced. For the upper grades, it is almost a deal killer because of the tariffs. Many of our contacts, in China especially, are not purchasing the lumber unless we decrease our price by the amount of the tariff they must pay. Some even want it well below that because of the availability of the Walnut lumber supplied by the Vietnamese now. I am just hoping there is an agreement between the countries, so we know exactly what everyone is working from. Uncertainty is the biggest issue in my opinion.
Wesley Robinson
Robinson Lumber Company
New Orleans, LA
The hardwood industry faced a variety of challenges in 2025, but demonstrated resilience and strategic growth. Despite ongoing tariff uncertainties and a growing boycott of American products, the industry maintained stability through innovative approaches.
Unusual summer market conditions characterized the year. Traditionally, summer supply exceeds demand, leading to lower prices and increased inventories. However, this summer experienced low supply aligning with subdued demand, which helped prevent significant price drops and kept inventories tight.
Robinson continued to focus on its high-quality White Oak products, experiencing a notable price correction that reflects current market conditions. The company has invested heavily in operational efficiencies, including new kilns and lifts, allowing us to better focus on pulled to width and ripped White Oak and Hickory lumber.
Export sales into Europe, Asia, and South America were slower this year, impacted by global economic slowdown and boycotts of American products. Despite these headwinds, transportation and labor costs remained stable, enabling operational resilience.
Looking ahead to 2026, Robinson remains committed to investing in both its people and technology to enhance efficiency and growth. These efforts aim to position the company for success amid a changing global landscape.
Javan Mallery
Wolverine Hardwoods Inc.
Allegan, MI
In 2025 sales were okay. But profitability is challenging. Margins are squeezed.
We primarily sell to end user manufacturers. No one sector was super strong. All sectors seem a little slow, so we have to work very hard.
We now have a gang rip saw and are offering ripped to width lumber.
This year, we installed a Mereen-Johnson 524, and we have diversified our customer base. We provide a more value-added product to customers.
David Mayfield
Goodwood Lumber LLC
McMinnville, TN
What an interesting year we are completing! New president and still many challenges to contend. This year has not been a disaster as many would claim. This year has been a year that much forward planning and good thinking has proven valuable to success. 2026 will be another challenge for anyone in the wood fiber business. We all must watch our overhead with “eagle eyes.” The rise in expenses such as replacement parts, and even blades and belts and hoses will eat you alive. Our parts expense has doubled in the past three years. Tighten your belt and hang on is my best advice. Thank goodness for our wonderful distribution networks. This sector has kept many of us running. Keep it up, PLEASE!
We are in the midst of constructing a new warehouse that will help in the drying of our 8/4 Oak products. We feel like this will assist our efforts in producing better 8/4 Oak. Quality sells when offered.
Seems like labor is often mentioned as such a problem. IT IS!!! We installed a sorter six years ago and eliminated several workers and even increased production. WIN-WIN. Today, we all must look at and evaluate every job as for its viability to our success.
Seems as if the year started with great activity and then in March, the TT hit (TERRIBLE TARIFFS). China is such a large market for our Red Oak and POOF it was gone. When your largest customer for your largest specie stops buying, it does hurt. Tariffs are a real thorn in our side and the sooner they are resolved, the better.
Interest rates are falling some, trade disputes are being resolved and a tremendous need for housing, are several items that lead me to be hopeful for 2026. In fact, I believe the fourth quarter of 2025 will start to see an uptick in hardwoods. Our day is a coming!
Eric Porter
Abenaki Timber Corporation
Kingston, NH
As we close out 2025, I would consider this year successful despite major changes. One of the biggest shifts came when we sold our non-profitable New Hampshire facility. That contraction allowed us to focus more sharply on profitability, shrink our footprint, and concentrate on niche customers that deliver stronger margins.
Our customer base is very diverse, ranging from domestic buyers to international exporters. This year, Poplar was one of our strongest species, while Ash and Red Oak performed well in the first half of the year. White Oak underperformed compared to expectations, and overall activity slowed during the summer months. Even so, we managed to find success by capitalizing on available inventory, working it hard, and staying flexible with demand.
The most notable service change for us in 2025 has been expanding wholesaling. If we don’t produce it ourselves, we’ve leveraged our network to source lumber for our customers, saving them time and making us more service oriented. That model has helped offset the loss of production capacity from the sale of our New Hampshire facility. Looking ahead, we plan to make improvements to our West Virginia yard, but no major new equipment installations are scheduled.
Labor has been one of our greatest challenges. Staffing in New Hampshire was a key reason for shutting that location down. West Virginia has a larger labor pool and has been easier to manage, though we are still watchful of employment pressures. Transportation, on the other hand, was much smoother in 2025 than in recent years. Domestic and export logistics performed far better than during the pandemic disruptions, which helped keep product moving efficiently.
Exports remain uncertain. Demand in Asia has been sluggish and very price-sensitive, and the true effects of tariffs have yet to fully materialize. We are holding firm on pricing, though it remains to be seen if that proves the right call.
In summary, contraction has been our pathway to stability. By focusing on profitability, service, and niche customers, we expect to wrap up 2025 on solid ground. The key challenges for 2026 will be finding ways to grow from a leaner base, continuing to meet customer needs in diverse markets, and adapting as global export conditions evolve.
Sandy Yarbrough
Kepley-Frank Hardwood Co. Inc.
Lexington, NC
2025 has been a very challenging year. Sales and pricing have suffered.
In regard to products that were the strongest sellers this year: Poplar, KD RO and WO, flooring stock. Poplar, with a slight uptick in KD RO.
We installed a new Hurdle sawmill, which increased production.
Anthony Hammond
Roy Anderson Lumber Company Inc.
Tompkinsville, KY
2025 has proven to be another uncertain year in the hardwood industry. As with 2024, our team maneuvered a challenging market well.
To be successful in 2026, our industry still needs a lift in popularity.
We need hardwood products to gain back favor in cabinets, flooring and furniture. It is crucial for our industry to continue to focus on gaining back market share that has been lost to look-a-like products in recent years.
Our customers include distribution yards, flooring manufacturers, millwork, moulding and furniture companies. Poplar was our strongest seller for 2025 based on volume.
In 2025, our team implemented three large improvements to our Tompkinsville, KY, facility.
1. Artificial Intelligence Grading Solution through partnership with Neural Grader. The addition of AI Grading will allow for increased throughput at our green sorter and KD grading lines.
2. PictureTally Overboard tally system through partnership with River City Software, LLC. This improvement will provide layer level data to our customers and allow for increased processing.
3. Industrial Wood-Mizer sawmill. This addition will add to the overall production of our Tompkinsville, KY facility and allow optionality to add new products for our customers in the future.
Staffing in 2025 has been more challenging than in previous years. The severity of this decreased due to shortened sawing schedules resulting from a lack of logs. Ultimately, we were able to staff shifts across our facilities but still suffer from a skills gap with entry level employees.
We have not experienced any transportation issues to the degree that we have in previous years. We are less dependent on export markets to move the core of our production than we have been in previous years. Exports are always going to be important for certain products. This has added uncertainty to our business and industry.
Wesley Boles
Hermitage Hardwood LUMBER SALES INC.
Cookeville, TN
2025 was a successful year as we have continued to service our current customers, while developing new markets as well. Uncertainty on tariffs will continue to be a challenge in 2026, as well as green supply being lower overall.
We sell to many different sets of customers, including flooring, moulding, millwork and distribution. Walnut, White Oak, Poplar, and Ash were our strongest sellers this year.
We’ve offered new sorts on some of our existing products like width sorting our Superior grade Walnut to offer a more efficient and better yield for customers.
We installed a course makeup system with automatic strapping to our main KD grading line. This will help our company by having a quicker turnaround time on products being available, as well as improving the presentation of our packs.
We are okay currently on employees, although that can change throughout the year.
We have good relationships with the shipping companies we use, which provide us excellent service. We haven’t had issues domestically and have seen an excess on transportation needs. Internationally, we’ve experienced equipment shortages and erratic scheduling.
One of the main concerns regarding tariffs is that there continues to be uncertainty, and constant changes. This makes planning and forecasting extremely difficult.
