Northeast Business Trends
A New Year With Old Challenges
Northeastern hardwood lumber representatives reported that tariffs, high inventory, low demand and labor struggles are causing challenges. Despite difficulties, they hope for improvement.
The market, according to one Maryland lumber source, is average. “We’re trying to get some business out here on our export side before the Chinese New Year. From what I’m hearing, both on the domestic and export side, inventories are high and the demand might not be there. I would think there would be a pick-up in 2026 because of the supply. Our log inventories are low, so we don’t have much availability.
“I would say it is better than six months ago because we have a little bit more clarity on the tariffs,” he added.
He noted that his company handles “all Appalachian species – Oaks, Maples, Cherry and Walnut. Poplar is selling the best and we primarily handle 4/4 and 8/4. We also have all NHLA grades.”
Their main customer base is comprised of distribution yards, but they also sell to retail yards, wholesalers and end users. “We do export and send some Cherry to China. We also send products to Canada, Mexico, Vietnam, South Africa and some European countries. Our South African customers purchase Walnut,” he said.
Even though transportation is good, they are struggling with labor.
“A little subdued,” replied a lumber representative in Vermont when asked about the market. “The tariffs, as wells as the economy, are certainly having an impact. Some of the domestic products that I would usually anticipate being a little stronger, are pretty flat.”
The market is the same as six months ago and he added, “We’re all hoping that it will be better.”
Many lumber sources expressed that improved pricing would help their markets.
Red Oak, Ash, “a little bit of Yellow Birch” and Hard and Soft Maple are what they offer. “The lower grades are not moving particularly well. People just aren’t investing in the products needed for lower grades and the lower grades also used to go to Canada. There is some difficulty there with the tariffs. When I say lower grade, I’m not talking pallet wood No. 2 and 3 Common — those are much slower. The No. 1 Common, FAS and Selects in most aspects are steady. By volume, Red Oak is the best seller, but the margins aren’t very good. We primarily handle 4/4 and 5/4. We work with FAS & Better as well,” he commented.
Primarily distribution yards, “a little bit of wholesalers” and end users are his clients. “I think everybody is very cautious,” he said when asked if his clients shared any concerns with him. “It seems fragile and they’re not sure when to make purchases.”
“Transportation has been okay. We’re still short some labor. It’s better than it was six months ago though but not exactly where we’d like to be. It’s hard to find good, quality help. There are just a lot of unqualified people. Our industry does not seem to attract as many as we had in the past,” he noted.
“I can move stuff. That’s about it. Nothing special,” stated a lumber source in Pennsylvania.
While it is the same as six months ago, he added that, “pricing could improve the situation.”
“White Oak is the best seller in grade lumber followed by Soft Maple,” he said. They also offer Poplar, Birch, Hickory, Red Oak and Hard Maple. Their primary thickness is 4/4 but they also handle 5/4 and 8/4 in addition to grades such as No. 2 Common & Better. He explained that their lumber is all green and they don’t dry it.
“We work with middlemen who then ship the product out. They keep hoping for better and say it is going to get better, but it hasn’t too much as far as pricing goes. They think it is getting better but then it changes and it doesn’t take much to make changes,” he added.
They handle their own transportation, and their labor force is steady but he shared that can “change day to day. People could go to McDonald’s and make more money. We burned in 2021 and have a whole new crew. The people are younger and it’s not the same. They don’t have the same knowledge, and many don’t care as long as they get a paycheck. We can’t refine our hiring processes right now because we can’t offer more money.”
