Northeast Business Trends January 2026 – New Hopes For The New Year And Concerns Carrying Over
Most Northeastern hardwood lumber sources reported that the market in their regions, at the time of this writing, has improved compared to six months ago. Many also cited an increase in exporting, especially to China for Red Oak and Cherry. Reports of labor issues continue along with mixed feelings about the market’s stability in 2026.
“The market has been very strong recently,” stated a lumber source in Connecticut, who added that it is better than six months ago. “China has started purchasing hardwoods back to a level of normalcy, which made the guys in the United States realize the shelves were empty and they didn’t want all the lumber to go to China, so they started purchasing.”
In regard to lumber species, they offer “pretty much everything,” he said before listing Cherry, Poplar, Hickory, Birch, Ash, Red and White Oak and Hard and Soft Maple. These species are sold in 4/4 through 8/4 and No. 3 Common & Better. Due to their location, they are “really heavy in Red Oak, Cherry and Soft Maple,” he stated when asked about their bestseller. “We do a lot of Cherry and are one of the largest Cherry producers. Probably half of that goes to China.”
Their customers consist of wholesalers, distribution yards and more. His customers, he commented, “Feel that there will be a little stability in the new year, so it’s a good thing. I don’t see anything brewing on the horizon and expect stability in some of the upper grade prices in the new year. I expect that No. 2 Common & Better will need to rise in price in 2026. We have been saying that for two years. The reason I expect it to rise, is that I have seen more sawmills come off the market – just shutting their doors. There is going to be more of that, which is the problem with the low grade market. I think it is the supply finally meeting the demand and we are going to see it.”
Transportation is not an issue but they “struggle” on labor. “We keep investing in technology. We don’t get rid of employees but are moving them around and finding other tasks for them,” he noted.
In Maryland, the market is “a little bit better now” as a lumber representative reported that they are “starting to ship some export loads into Asia.
It is better than it was three months ago and a little better than six months ago.”
“All Appalachian species” such as “Red and White Oak, Hickory, Hard and Soft Maple, Ash, Cherry and Poplar but not Walnut,” are what they handle. When asked about grades and thicknesses, he stated, “No. 2 Common & Better and 4/4 through 8/4. Right now, Red Oak has been selling the best. We’re exporting the No. 1 Common FAS Red Oak into Asia — specifically China. Domestically, the product is going into the flooring industry.”
Their clientele is “100 percent distribution. My customers always say they have concerns, but I think their businesses are pretty good based on the orders they bring through. In reference to price, they’ll try to negotiate the best price they can and then, suddenly, some orders pick up and we start raising our prices,” he added.
While transportation is “not a problem” for them, labor is “somewhat of an issue because we struggle to get the entry-level positions. If I look at the skilled labor force we have here, the age is probably 40 and above.”
His concerns, he commented, are “consistency and stability. We like to know what’s going on in reference to regulations. We were at a three month pause in tariffs not too long ago in 2025,” and at the time of this report, he said, “I think it’s a year-long pause now. What’s going to happen in a year, I don’t know but then we’ll talk about bringing certain industries back.”
It is slow in Pennsylvania for one lumber source, who attributed this market behavior to a lack of “confidence and instability because of the tariffs. People aren’t wanting to add to anything or update machinery in the lumber industry, for example. The domestic market has slacked off, I think, because of low confidence and a lack of orders. It seems like we have been exporting some and there is kind of a push because of the new deal with the Chinese. We’re getting a few loads out because they felt a little bit better about shipping. It’s not booming at all. I don’t feel like it is going to pick up because of the new deal but that it will stay pretty flat instead.”
“We weren’t exporting anything six months ago, so that is better right now but it’s only a window,” she said.
They are “heavy to White Oak right now. Typically, Red and White Oak, Poplar and a little bit of Hard and Soft Maple,” are what they offer. “The Chinese,” she continued, “are more interested in Red Oak. White Oak has stayed domestic. They are inquiring on White Oak, but the price structure isn’t there for them yet. A little bit of Commons are moving export-wise but no upper grades. We do Nos. 1 and 2 Common and Select & Better. We are a 5/4 mill, and we cut 4/4 as well. We have been cutting some 6/4 but we’re selling it green and aren’t drying it.”
When asked whether she had any distribution yards, wholesalers and end users as costumers, she replied, “All of the above and my customers have lots of concerns.”
“I have truckers calling here every day wanting to haul something,” she stated. “As for labor, we’ve had our main crew switching out jobs for at least two years. We haven’t really hired anybody new and aren’t looking to grow our workforce currently.
“We’re just trying to get by – that’s all.”
