Midwest Business Trends
An Active Midwest Market Despite Uncertainty
Chris Fehr
Marketing Consultant / Editor
Softwood suppliers serving the Midwest and surrounding markets are reporting steady to slightly improved business conditions, although cautious purchasing, transportation costs and uncertainty surrounding construction activity continue to influence the market.
A source serving the Missouri-Kansas market said current softwood activity has changed little compared to either last year or the previous month. “We’re on pace with last year,” the source said. “Not a lot of fluctuation in either direction, year over year, and looking probably month over month, same. Not a lot of movement.”
The company handles SPF dimensional lumber, primarily 2×6, along with Southern Yellow Pine plywood, primarily 5/8 and 3/4-inch rated sheathing.
Plywood availability remains good, with mills running approximately two weeks out, while lumber supplies are somewhat more constrained. Customers are generally matching purchases closely to current demand rather than building substantial inventories.
“Transportation costs remain a consideration, particularly on flatbed loads moving from Louisiana and Texas into the Missouri-Kansas market,” he explained. “Fuel costs continue to add pressure, with global uncertainty contributing to concerns about expenses.”
Looking ahead, the source anticipates steady to slightly increased activity over the next 30 to 60 days, noting that the time period is traditionally busy for the company.
Sources explain juggling just-in-time inventories while expecting the unpredictable marketplace to stabilize and the incoming seasonal slowdown.
In Texas, a contact who supplies No. 1 & Better Green Douglas Fir, No. 1 Green Western Red Cedar and No. 1 kiln-dried Douglas Fir said conditions have improved slightly, with availability good for most items. Freight costs, however, remain a strain and uncertainty is weighing on building activity.
“We’ve got so much uncertainty in the political arena right now, builders are feeling the pinch,” he said. “Long-term housing projects are not as fluid as we saw this time last year.”
Many customers are maintaining just-in-time inventories rather than committing to larger positions, although demand can change considerably from week to week.
“We’ve seen the larger orders come in recently with a quick turnaround, and we are able to handle it,” the source said.
He expects that uneven pattern to continue. “We’ll see the same activity up and down like this until we hit the late months,” he said. “It will slow down seasonably as we get further in the year.”
An Oklahoma softwood supplier handling Douglas Fir, Pine and dimension lumber is seeing softer conditions. “Sales are slower but still steady,” the source said. “We saw a lot of activity in the early part of the summer due to a local building project. Now that it has finished, we slowed down, but we also expected that.”
Trucking availability is fair, but prices remain high, and the source said transportation and financing costs continue to affect the market. “Fuel costs are still a primary complaint for everyone,” he said. “But banking concerns are ranking right up there, with interest rates now a primary concern.”
Despite business falling short of earlier expectations, the supplier anticipates conditions eventually stabilizing. “It’s a slower market than we had planned for sure, but it’s been slower,” he said. “I think we’ll level out.”
Overall, suppliers describe a softwood market that remains active but cautious. Availability is generally manageable, but customers are keeping inventories lean and purchases closely tied to immediate needs. Freight and fuel expenses, financing concerns and uncertainty surrounding construction continue to limit enthusiasm.
