Southeast Business Trends

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In the Southeast, some companies are in a wait-andsee mode, while others are very busy. A Georgia lumberman says business is “pretty slow. We’re still waiting to see what’s going to happen in China. Some things are picking up. Poplar’s doing better. Red Oak seems to be doing a little bit better in Vietnam. But in China, everything’s still relatively slow.”

He noted, “For us overall, business is a little bit better than it was six months earlier. We’re doing more domestically and not as much export. But, it’s not gang-busters by any means. It might be a little better, but it’s not all fun and games right now. It’s still pretty challenging.”

His sawmill handles Red and White Oak, Poplar, Ash, Cypress and Southern yellow pine. He said Poplar’s the best seller with some grades of White Oak picking up. Cypress is moving well, he stated. “Everything’s 4/4,” he noted.

His company sells both to distributors and end users. In China, it’s more distribution; in Vietnam, it is more end users. “We were mostly export,” he observed, “but now we’re doing more domestic, especially in the common Oaks.” His customers say that business is still slow. However, “Everybody seems to think the market has picked up a little bit and they’re a little more optimistic. I think everybody’s pretty much just waiting for Nov. 3 to see what’s going to happen with that, and make more decisions going forward after we see how that’s going to end up.”

Another lumber manufacturer in a wait-and-see mode is in Alabama. “We could sell everything, but we are in a holding mode,” he observed. “In 60 to 90 days, the lumber will be worth more. I see no way that the price is coming down in the next 60 to 90 days. Right now, we’re in a holding mode.”

Business is better than it was six months earlier. “The prices were falling then; now they’re inching back up,” the lumber representative said. The contact sells Red and White Oak, Ash and Poplar. Red Oak constitutes 65 to 70 percent of their production. Sales are to distribution, end users and export, but not to retail. His customers report varied levels of success in sales. “It’s all across the board,” he said. Trucks are hard to get, he added.

A Tennessee lumber company is “very busy,” according to a contact there. “We’ve gotten quite a few orders that came in unexpectedly,” he remarked. “We’re just busy. There’s a lot going on in the marketplace, both domestically and in Southeast Asia.” The marketplace for his establishment is better than it was six months ago. Sales include Red and White Oak, Poplar, Ash, Hickory and Walnut, kiln-dried in 4/4 to 8/4 primarily. Best-selling is White Oak. Activity is increasing on Red Oak and Ash. The business sells to both distribution and end users. Those customers report that they’re busy. The contact noted that two problems are finding employees and the increase of transportation costs within the last six months.

By Miller Wood Trade Publications

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

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