Southeast Business Trends August 2026 – Steady Movement But No Increase In Demand In The Southeast
There’s a steady slow-moving flow of hardwood activity across the Southeast. For some suppliers, this slower pace has been the ongoing norm for some time. For others, however, although steady, the lower demand combined with dropping lumber prices and difficulties with transportation have created challenges that have many across the region working tirelessly to face head on.
In Arkansas, a hardwood lumber supplier described the market as “not good” and said that it has become increasingly challenging over the past six months.
“Everything’s just down right now,” she said. “Prices are down. Fuel is up, so hauling it is harder. And they are just not needing the lumber or needing the goods right now, so demand is low.”
She offers mainly upper grade Red and White Oak in 4/4.
“I am able to sell what I have but everything is such a low price, the lowest price it’s been in years is what I’ve been told,” she said. “It is selling but it’s a lot less.”
Her main customers are flooring manufacturers and the rail tie market, which has been down. “They are not buying them right now at all,” the source noted at the time of this writing about buyers of cross ties for railroads.
She said she has had conversations about the market with her customers, and many have commented on the challenges they have been facing. She said they have told her that “this is the worst that they’ve seen in years. Maybe one of the worst times they’ve seen, several of them have said.”
One obstacle for her operation has been the high cost of fuel.
“We have the drivers and the trucks, but fuel is up so high that it makes it harder,” she said. “You’re still able to do it; it just cuts into your profit, if you even get a profit at that point.”
Her main difficulty, though, has been demand. “It’s just not moving,” she said. “The companies you normally sell to, they are not having more demand for more flooring.”
In North Carolina, a hardwood supplier described the market as “okay.”
“We’re having to work real hard to make things work,” he explained.
The source said the market has been “a little bit better” than it was six months ago.
“Six months ago, it was Christmastime, and it always slows down around Christmas. It is a little bit better, and this is kind of the ramp up before the Fourth of July vacation time,” he said at the time of this writing. “It’s a little bit busier because of that, I think.”
Regarding lumber species he said, “We just do Poplar in 4/4 and 5/4 No. 2 Common through FAS.”
His operation sells to moulding, millwork and furniture customers, who have expressed some concerns about the market.
“Just industry wide, I think everybody’s having a hard time and just working really hard and making just a little bit or nothing at all,” he said. “So, it’s just a tough time.”
Transportation continues to be an ongoing issue, the source said. Not only high fuel prices but also a labor shortage in the trucking industry have caused difficulties.
“Not necessarily just from a fuel standpoint, it’s just a supply standpoint,” he said. “I think there’s just a lack of trucks and truckers right now. Freight’s gone up a lot in the past 30 days.”
An Alabama lumber representative said the market in his region has been “just status quo” as compared to six months ago.
“I don’t think it’s changed much,” he said. “It’s just been steady.”
Supplying upper grade 4/4 Red and White Oak and Cypress, and some mixed wood, the source said White Oak has been the best seller. White Oak has “been selling pretty steady for a while,” he added.
He sells to wholesalers, distributors and pallet customers. In addition, his operation makes crane mats and sells drilling mats to customers in the oil field industry.
He said his operation has faced challenges with transportation.
“Trucking is tight right now,” he said. “It’s hard to get trucks, but we manage but it’s not easy. I think it’s fuel and drivers.”
While there’s hope demand will pick up in the future, many hardwood suppliers in the region are continuing to work hard to persevere.
