Southeast Business Trends – July 2023

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Sources in the Southeast region had mixed feelings as to how the market was doing at the time of this writing, with one source summing it up well: “Some things are good, and some things are not.”

In Louisiana a lumber spokesman said that while his sales have been slow, they have been somewhat steady. “We did not see the spring boom that we usually do when people get their income tax refund back.” He also noted that his sales are worse than they were six months ago.

His company primarily handles Cypress in No. 2 Common and Select and in thicknesses of 4/4 and 8/4, as well as posts and beams in 6×6, 8×8 and 12×12. “We kiln-dry our 4/4 and tongue and groove paneling,” he added.

His company sells to retail lumber yards and public contractors. He said that they have told him their sales aren’t where they would like them to be as the housing market has slowed.

“There are always problems with transportation and labor. The company that picks up my waste product can’t seem to find drivers,” he remarked.

A sawmill representative in Tennessee said his market is fairly steady and stable for the moment. “It’s better than expected. We are doing better than we were six months ago,” he noted.

His sawmill handles Ash, Cherry, Hard Maple, Hickory, Poplar and Red and White Oak in all grades and a variety of thicknesses. “We offer Poplar in 4/4-6/4 thicknesses and White Oak in 4/4 and 6/4,” he added. “Poplar still seems to be our strongest at the moment. Red Oak is still moving well and White Oak has strengthened.”

His company sells to distribution centers, flooring, cabinet and upholstered furniture companies and American exporters. “Domestic manufacturing seems to be doing well. Exports, especially to Asia, have been slow,” he remarked.

He said that transportation hasn’t been difficult for them since they have seven trucks to carry kiln-dried lumber and green lumber. “Labor is a nonissue. I think this is going to be normal from here on out trying to find reliable employees, I’m hearing about it from everyone I talk to in the industry,” he stated.

In Mississippi a lumberman said that his market is doing well. “This month has been really slow and our sales have been quiet. We are definitely doing worse than we were six months ago.”

His sawmill handles all species indigenous to the Southeastern U.S., acquiring some species from the Northeast every so often. “Most of the stuff that we handle is from the Southeast,” he said. “We handle the whole spectrum of what’s in the Hardwood log from cants to FAS, mostly in 4/4 and 5/4 thicknesses.” He added that nothing is selling well for him right now.

“We aren’t having issues with transportation because we don’t really need it. We are getting lots of calls from trucking companies, however, asking if there is any freight for them to haul for us,” he noted.

Another lumberman in Mississippi said that some of his products are selling well, while others are not. “The Hardwood flooring and Common grades have become very cheap in my opinion. Railway ties, board road and mat timbers are doing pretty well on the other hand,” he continued. He added that while he is trying to be optimistic about his sales it does seem like they are better than they were six months ago.

His company handles Red and White Oak, Poplar, Hickory, Gum, Beech and Sycamore in grades FAS, No. 1, 2A and 3A Common and in 4/4 and 5/4 thicknesses. “White Oak FAS, Common is selling well, and so is the Ash,” he mentioned.

When asked if his company was having issues with transportation, he said that since the cost of diesel fuel has come down it hasn’t been as much of an issue. “Labor has been a constant battle. The younger generation isn’t getting into our industry,” he added.

His company sells to flooring plants and moulding manufacturers, as well as railroad tie, pallet and mat buyers and manufacturers. He noted that he thinks that the flooring plants seem to be the most affected in the forest products industry, as they have the most competition with look-alikes and the rising cost of interest rates in the housing sector.

A lumber spokesperson in Arkansas said that their market is doing well. “Sales are better than they were six months ago. I think that it is due to the pent-up housing demand.”

His company manufactures wood flooring in Red and White Oak, Hickory, Walnut and Maple. They handle grades No. 2 and No. 3A Common and buy lumber in 4/4 thickness and make 3/4 thick flooring. He noted that White Oak is selling the best for them, at the time of this writing.
“We sell to wholesale distributors and their markets seem to be better than they were six months ago,” he remarked.

When asked about transportation he said that it has eased up and noted that labor has become a consistent issue.

In Georgia a sawmill spokesperson said that his sales were doing well and that they are doing better than they were six months ago.

“Between my two mills we handle Red and White Oak, Poplar, Ash, Soft Maple and Cherry in a variety of grades and in thicknesses of 4/4, 5/4, 6/4, 8/4 and 10/4,” he noted.

His company sells to both the domestic and export markets. “Domestically we sell to Hardwood concentration yards and flooring manufacturers, as well as some millwork houses. They haven’t really talked to me about how their sales are but judging from how they are moving lumber, they seem to be doing well,” he remarked.

He mentioned that while it is easier to find transportation, it is still very costly.

By Miller Wood Trade Publications

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

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