Midwest Business Trends

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Chris Fehr
Chris Fehr
Marketing Consultant / Editor

Throughout the Midwest region sources that were contacted at the time of this writing all agreed that their sales were down from where they were six months ago.

In Missouri a lumber representative said that he has seen his sales flatten over the past two months. “We are doing worse than we were six months ago. I think that our customers are reluctant to buy much product right now with everything that is going on in the world, and the uncertainty that they are feeling,” he said. Despite this, he noted that some of his customers have said that his company should start seeing an uptick before winter sets in.

His company offers Douglas Fir and Spruce-Pine-Fir products in 2×4-2×12 and Cedar in 1×2-8×8. They offer all three species in grades No. 2 and Better.

“The ProDealers and contractor yards that we sell to have said that they are expecting an uptick in their sales, but the box stores that we sell to have given us different feedback,” he said when asked if any of his customers had mentioned how their sales were doing.

He noted that the labor force in his area has improved over the past several months.

A mill rep in South Dakota said that his market remains fair but that his sales are worse than they were six months ago. “I don’t think that people have as much money as they did six months ago, so they are spending it differently.”

His company offers solely Ponderosa Pine in 4/4-12/4 in various grades of rough green lumber. “We sell to residential, industrial and agricultural contractors, and their sales have also come off from what they were six months ago,” he added.

In Texas a lumberman said that his market is softening. “Our sales have slowed down considerably. I think that this is due to the time of year and the fact that there is still more supply than the demand that we are currently seeing.”

He noted that his sales aren’t doing as well as they were six months ago, but he has attributed this to the seasonal tilt of the market. “We do a lot of business in the spring and we try not to give back all of our profits in the fall,” he remarked. “I think that this also has to do a lot with where we are regionally. The places that we serve in Texas that were in the path of the hurricanes this year have remained busy, but the areas that weren’t as affected have seen less business.”

His company offers Southern Yellow Pine in 5/4×6 radius edge decking, in Premium Standard grades, as well as a no grade stamp No. 2 and a no grade stamp No. 3 and No. 4 mix.

“I talk to the treating plants that I sell to on a daily basis, and how they are doing is a direct reflection of how we are going to do,” he said when asked if he’d heard any comments from his customers.

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