Northeast Business Trends – January 2024

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Lumber suppliers across the Northeast region had varied responses when asked how their sales were faring at the time of this writing.

In Maryland a lumber provider noted that while his sales aren’t what they have been the past several years, he hasn’t had any trouble moving his products. “Prices aren’t what they were in 2021 or 2022, but those were radically different years.”

When asked if his sales were better or worse than they were six months ago he said, “Six months ago our customers weren’t building up an inventory because we were headed into the summer, now we have customers that are willing to build up their inventories.”

His company offers Poplar in 5/4, 10/4 and 12/4 thicknesses and Red and White Oak in 5/4 thickness. “We aim for Face and Better but we also cut No. 1 and 2 Common and some lower grades,” he mentioned.

He sells to distribution yards and pallet manufacturers. He also has some export customers.

He noted that his biggest struggle has been his expenses, stating that while his prices have remained steady his bottom line has been affected.

A Maine lumberman said, “We are starting to see the market tighten up on the green side. We have also seen that start to trickle into the kiln-dried side, although not with the same horsepower.”

He noted that while his sales are better than they were six months ago that he expects that they will start to slow down over the next few months. “We typically see a slowdown after the holidays,” he said. “So, with the housing numbers being off and our order files are off that we have with our customers, we are going to have a pretty tough winter.”

His company handles all species that are native to the Northeast region. “We have sawmills that produce Red Oak, Hard and Soft Maple, Yellow Birch and Ash. We also have a white pine mill,” he said. His company offers these species in grades Select and Better, No. 1, 2 and 3 Common in thicknesses of 4/4, 5/4, 6/4 and 8/4. His company also offers crane mats and railroad ties and has a flooring plant.

He noted that his company sells to distributors and cabinet, flooring and moulding manufacturers.

In Pennsylvania, a lumber spokesperson said that his sales are doing OK. “We aren’t doing any better or worse than we were six months ago,” he said. “Until the global economy can improve sales will stay flat.”

His company offers Ash, Cherry, Red and White Oak, Poplar, Hickory and Soft and Hard Maple. “We mainly offer FAS and Common grades in thicknesses of 4/4-8/4,” he added, noting that he doesn’t have one species that is selling better than the others.

He sells to distributors and manufacturers. “Their sales are OK, they aren’t great. A lot of our customers, especially the cabinet manufacturers have been up against competition where a lot of their customers are using competing products compared to Hardwood. They are bound to make what the customers are asking for, so they are making cheaper products.”

He went on to say that one of the largest issues that the Hardwood industry is continuing to face is substitute wood products. “We are losing out in the flooring and cabinetry industries. There aren’t enough quality craftsmen that are able to make products from the materials that we produce.”

By Miller Wood Trade Publications

The premier online information source for the forest products industry since 1927.

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