The Hardwood markets on the West Coast are encouraging – but not without problems.
In California, a source said the market is “pretty strong. We can’t get enough wood; shipping is a problem; and prices are going up, but the demand is still there.” The market dynamics are similar to several months ago, he remarked.
He sells about 80 different species of lumber. Poplar, White Oak and Walnut are his best sellers. Thicknesses range from 4/4 to 16/4 and grades are mostly uppers, Select and Better and No. 1 FAS.
His customers are mostly end users: cabinet shops, furniture makers and trim manufacturers. “Residential work is going really strong out here,” he stated, “but commercial work is weak.” Species of lumber that he sells to residential builders include all of those previously listed and others. “The White Oak has been really hot for a long time, but the availability of it is getting difficult,” he noted. “We could sell more White Oak than we’re able to get. I wish we could get more if it.”
“Transportation has been a problem,” he said. “Costs have doubled, and we still can’t get some product. I had a container in North Carolina that took three weeks to ship, and it cost double what it cost eight months ago. It’s putting a bind on things.”
Addressing the big picture of his market, he said, “The residential market is really strong. The commercial market is not quite dead. My customers that do commercial work are trying to get by. People building big, fancy homes haven’t slowed down a bit. People aren’t going to Europe because of the pandemic, so they’re spending money to remodel their houses.”
A lumber provider in Washington State observed, “Sales are going OK, but lack of availability of product is slowing us down. It’s all about availability.” Also, he said, “There’s a lot of complaining from customers about high prices.” He commented that his market is actually worse than it was a few months ago.
The top five species he sells are Poplar, Hard and Soft Maple and Red and White Oak in No. 1 Common and FAS. He sells to mostly end users. “Everybody seems to be robustly moving forward if they can get wood,” he noted.
Transportation for his firm is “bad,” he said. “We’re putting some good money on loads, and trucking companies are being particular about where they’re going. Obviously, they have re-loads at the other end. They’re really selective about what they’ve got on their truck and where it’s going. If it doesn’t fit their profile or what they need, they’re passing on it.”
In California, a provider of different varieties of Walnut is emerging from a period of low sales volume. “As of the last two months,” he stated, “we’ve been selling a little bit of wood and a couple of slabs and some gun stocks. Gun stocks are our steady bread and butter type product, since we’ve dealt with gun manufacturing for years.
“Before these recent sales, there was nothing going on at all – like after 9-11. The phone wasn’t ringing. Gradually the market is starting to open back up again. Everyone has been so scared of COVID, they didn’t want to buy any wood. A lot of shops, who were building tables out of our big, Walnut slabs, probably had to lay off some of their employees.
“The product we produce is really high-end,” he stated. “We’ve got a sawmill here that will cut up to seven feet across and 20 feet long. This Walnut is prized for its figuring and its color. Most of our products are shipped out of this area, to Southern California or back East or Colorado. Our customers are really high-end, where they want a really big table for a multi-million-dollar house.”
He recalled the low level of sales during the startup of the pandemic. “People were so gun-shy, they didn’t know what was going to happen. Now that things are slowing down as far as the infections go, they think that things are opening up now. I’ve known some furniture makers who pretty much shut everything down and let their employees build furniture at their houses. And now they’ve finally opened up five days a week. But they’re not doing their viewing whereby visitors come in on Saturday for half a day to see their products. People travel from all over the world to view the furniture they build. They’re not opening up for fear visitors will transmit COVID.
“Market conditions are definitely better, most definitely better,” he said. “For the last couple of months, the phones have been ringing and people are wanting to get going again.”
The species of Walnut that this firm offers include Claro Walnut, English Walnut and Bastogne Walnut. This wood can have, according to the lumberman, “phenomenal coloring and figuring.” This lumber goes to end users including furniture makers and large gun-stock manufacturers. One customer, a rifle manufacturer, says its business is “very slow.” No other feedback from customers has come to this lumber provider.
He has heard of problems with transportation from other firms, but he has not experienced it himself.
He also said he has seen the trend of “people getting stove-up in their houses and wanting to make a coffee table, build some shelves or do little hobbyist projects in the garage. I see the interest in doing that. We’ve sold some wood to people like that, to save their sanity.”
In another part of California, a source said his customers are willing to pay higher prices for lumber, “but they’re just surprised at how fast it’s gone up. But I’m not surprised because of this time of year and the weather. It makes sense. There hasn’t been a lot of lumber cut. Our wood comes from the Midwest where there has been a lot of rain and a cold January and February. The orders for my business are out there. Customers have these jobs that need to be finished and, therefore, you’re still getting orders.”
Compared to several months ago, the market is “a little better,” he said.
He sells Walnut, White Oak and Hickory, all uppers in No. 1 Common and No. 2 Common.
His customers include flooring companies and retail operations. “They say their sales are fine,” he observed. “Since people have been home with the pandemic, they’re interested in improving their homes since they’re around there more.”
Transportation for this California business is not a problem. “We’re really lucky,” he said.
