Chris Fehr
Marketing Consultant / Editor
Market Conditions Remain Steady Throughout Midwest Region
Sources that were contacted in the Midwest region all agreed that their sales are doing the same as they were six months ago, if not better, at the time of this writing. One source noted that while their market isn’t booming, they have remained steady. Another source said that while his sales for certain products currently seem sluggish, that his sales are better overall than they were six months ago.
In Oklahoma a lumberman said that their business was slow due to the time of year but their sales have remained steady. “We don’t have a booming market in our area right now, but our sales have continued to stay on trend,” he said, adding that his sales have followed the same trend over the past six months.
His company’s three main species are Yellow Pine, Douglas Fir and Engleman-Spruce-Pine-Fir. They also offer White Pine. They are able to offer Engleman-Spruce-Pine-Fir and Douglas Fir in 2×4 and 2×6 dimensions, Yellow Pine in 2×4 through 2×12 dimensions and White Pine in 1x’s. “We probably sell more Yellow Pine dimension than any of our other products,” he stated.
He sells mainly to retail lumber dealers. When asked if they have offered any comments as to how their sales were doing, he said, “Since we are the second step in the supply chain our customers’ business often mirrors ours, and they seem to be steady as well.”
He noted that his company continues to have issues with finding reliable employees, especially when it comes to finding drivers.
He mentioned that his company carries a lot of imported products. “I’m not sure how much our business will be impacted by the tariffs,” he said. “I think that any of the tariffs that are imposed on a permanent basis will be absorbed by the producers and the manufacturers.
This will likely raise the cost of certain products that we carry. Of course, if the imported products that we carry become more expensive than the domestic alternative, we will likely switch over to the domestic product.”
A lumber spokesperson from South Dakota said that his market was fair at the time of this writing. “Given the time of year, we are doing pretty well,” he said when asked if his sales were better or worse than they were just six months ago.
His company offers Ponderosa Pine as a rough green product. “We sell to treating facilities, residential customers and into the industrial agriculture sector,” he said. “They all seem to be in slow down mode, but I am getting a sense of optimism from them for how the rest of the year is going to play out.”
When asked if his company would be impacted by any potential tariffs, he noted that he does not expect them to have too big of an impact on them.
In Texas a lumber salesman said that his market has been sluggish. “I don’t think that our market has any clear direction to it right now,” he said. “I think that people are still uncertain when it comes to interest rates and whether they are going to rise or fall. Most of my customers are only buying a little bit at a time and they are waiting until they absolutely need product before making any purchases.”
Despite the uncertainty that he has noticed in his customers and the lack of direction that he is seeing in his market, his sales are better than what they were six months ago.
His company offers Southern Yellow Pine and Spruce-Pine-Fir, as well as a small number of hardwoods. They offer the Southern Yellow Pine and Spruce-Pine-Fir in 1-inch and 2-inch dimensions. “We have started to see a rise in pricing and demand for our 1-inch dimension products,” he noted.
He sells to truss manufacturers, industrial accounts and pallet manufacturers. When asked if any of his customers have offered any comments as to how their sales were doing, he noted that they have all been doing about as well as he is.
He noted that while his company does not do any direct exports that they do work with export brokers. “I think that we will likely be affected by the tariffs to some degree, but at this point in the game, I am not sure how much that will actually be.”
