As we head into fall, businesses are looking at ways of building inventories for later in the season and into early winter. With the Labor Day weekend behind us, it is business as usual. However, with lower production levels over the summer months, businesses are finding it challenging to get the stocks they need. Sawmills, contacts say, have not produced excessive amounts of most species. Some expressed concern of having adequate supplies moving through winter. Prices appear to be stabilizing, and with the forest fires that raged throughout the summer across the country, it is felt there may be shortages for some species in the coming months.
Ash inventories are reported as low for kiln-dried lumber although demand is somewhat steady on domestic and international markets. Depending on areas contacted, No. 1 Common and Better grades are selling better than for No. 2A. Some contacts stated that green Ash production had been a little more available during the summer thus meeting buyers’ needs in several grades and thicknesses.
Basswood demand is weak. Thus prices are also down for this species. Some mills were avoiding processing Basswood logs in late summer as much as possible, but were being processed to avoid staining. Sales for No. 2B and Better Basswood was challenging which led to competitive pricing.
Birch is noted as one of the few species holding firm on local markets and to some export markets. As sales have been much lower over the past few years for Birch on domestic markets, this has caused secondary manufacturers to reduce their needs for lumber, as well as Birch. Production was said to be closely balanced for green Birch and buyers’ needs. Kiln-dried inventories for Birch were up, and competition for the Common grades, has pushed pricing down.
Aspen production was ample to meet demand which was lukewarm, and those buying it had ample inventories.
Prices are remaining steady for green stocks. Supplies of kiln-dried Aspen are higher than demand, and it was noted that competition for orders in certain areas was pressuring prices.
Demand of finished goods of Beech are down, and buyers are not looking to purchase large stocks of this species as production is reported to be exceeding buyers’ needs. This has resulted in prices being down.
Contacts are reporting some shortages of kiln-dried Hard Maple on domestic markets and to the U.S. Green supplies, it was noted, had not moved much. There are challenges at sawmills with regards to timing of production and shipments as order files are low. Soft Maple kiln-dried business improved slightly for some, but demand for green stocks remained weak. As most buyers have ample supplies on hand, sawmills are finding it difficult to find outlets for their developing supplies. Contacts also noted a pickup in kiln-dried Soft Maple orders.
Red Oak appeared to be available as more was being sawn. Secondary manufacturers and wholesalers are absorbing green lumber production, although prices were reported as down. Some contacts commented that White Oak was doing better than many other species, with some mills shipping all their production. Sales of kiln-dried White Oak were fair for the Common grades.
As the industry continues to face the challenge of seeking productive workers and keeping them, these issues will be addressed at a free WMS Live stage session, during the Woodworking Machinery and Supply Conference and Expo at 2:00 p.m. on November 3, 2023. Guest speakers include Richard Lipman, president of the Wood Manufacturing Council (WMC), and Vera Palmeri, senior account executive of HR Covered Inc., will present “Recruit – Retain: Assessing the Right Tools”, moderated by Sandra Wood, executive Director of the Canadian Kitchen Cabinet Association. Attend the session to learn how to recruit qualified candidates and retain them.
Owners and managers of woodworking companies will gain new insights on how to more effectively build a stronger and more productive shop team. The session is one of 11 being offered during the WMS Live stage over the course of three days, November 2-4 at the International Centre. For more details see WMS Live schedule.
The Government of Canada continues to support initiatives that enhance the competitiveness of the forest sector, its contribution to the bioeconomy and the resilience of the communities that rely on it. The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, launched calls for expressions of interest (EOI) and funding proposals for three programs that support diversification, innovation and competition in the Canadian forest sector.
The Investments in Forest Industry Transformation (IFIT) Program is seeking EOIs for projects to facilitate the development and adoption of innovative technologies and products with a focus on the bioeconomy. Projects include those that improve efficiency and environmental performance in forest sector operations, such as efforts to decarbonize industrial processes or generate more value from the same amount of wood. The program continues its support of projects that use wood fibre, especially from underutilized sources, to produce renewable energy and sustainable bioproducts.
The Green Construction through Wood (GCWood) Program, encourages the use of wood-based building technologies and low-carbon construction materials in infrastructure projects, is also accepting EOI submissions.
GCWood has expanded its focus to target innovative building solutions and schematic design under key areas of interest, such as prefabrication and retrofits. These projects help to decarbonize Canada’s built environment by incorporating renewable and sustainable resources into new and existing buildings.
Applications for the IFIT and GCWood programs will be accepted on an ongoing basis until June 30, 2024, and are open to organizations such as for-profit and not-for-profit companies, industry associations, research associations, Indigenous organizations and groups, and provincial, territorial, regional and municipal governments and their agencies.
