Southeast Business Trends – June 2024

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Throughout the Southeast region lumber sources that were contacted, at the time of this writing, agreed that their sales are heavily dependent on the species being sold.

In Louisiana a lumber man said that overall, his sales are tough. “It’s hard to make money on Red Oak right now, but of course White Oak is moving well.” He also noted that in order to supplement his sales he has started cutting Cypress and pine.

When asked if he is doing better or worse than he was six months ago he said, “We are making it, but we are doing worse.”

His company offers Red and White Oak in grades FAS, Nos. 1 and 2 Common and switch ties, with Red Oak available in thicknesses of 4/4 and 5/4 and White Oak available in 4/4, 5/4 and 6/4. He noted that they offer Cypress and pine in 4/4 thickness.

He sells mostly to end users and occasionally to some sawmills. “There is one sawmill that I sell to that is a Hardwood mill, but he is currently cutting 70 percent pine. So, I supply him with Red Oak,” he told us.

He noted that he does not have issues with transportation as he works with a dedicated trucking company that makes sure that they are constantly able to haul the lumber off the yard.

“Right now, you have to be creative and be able to switch your selling tactics at a moment’s notice to be able to sell all of your products for the month,” he added.

A lumber sales representative said that while he is able to sell lumber out of his warehouse, he had to shut his sawmill down for a month due to a lack of logs.

He mentioned that his sales have been steady over the course of the last eight months.

His company offers Red and White Oak and Poplar in grades No. 2 Common and Better and in 4/4 thickness. “Of course, White Oak is selling the best, I can’t keep it in the yard.”

He sells to distribution centers and end users. When asked if they had offered any comments as to how their sales were doing, he said that they think that their markets are continuing to prove to be competitive.

In Alabama a lumber spokesperson said sales depend on the species he is cutting. “If I am cutting Red Oak, then that market has dropped off and that is due to the exports and the companies that we usually sell it to slowing way down. White Oak is doing well, and I don’t have a problem selling it, and it’s the same for us with Poplar.”

He noted that he offers Red and White Oak and Poplar in all grades and in 4/4 thickness.

He mentioned that they are definitely doing better than they were six months ago.

He sells to flooring and furniture manufacturers mainly. “Red Oak is trending down for a lot of my customers. The flooring companies are moving to the vinyl flooring planks, and that is continuing to hurt our sales.”

By Miller Wood Trade Publications

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

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