West Coast Business Trends

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On the West Coast, one lumber source interviewed expressed bright optimism about the Hardwood market, while three others were kind of in the middle. One has found a few challenges, but, he stated, “Sales are good, most definitely.” Another found one market segment to be the “bright spot.” A fourth source said business has been “a little slower.”

In Oregon, a lumber provider said the market is “much better, much improved from even 30 days ago. We’re seeing low lumber supply, which is affecting pricing. Cabinetry is pretty decent, as they are needing wood. Flooring has grown in terms of their need for wood. We’re even starting to see manufacturers calling. I think it’s heavily supply-driven, but it’s playing in our favor right now regardless.”

The market is better than it was six months earlier, this lumber source stated. He offers Cherry, Hard and Soft Maple, Red Oak, Birch and Poplar. Best sellers are Hard and Soft Maple and Red Oak. “All are moving well compared to six months ago,” he observed. He sells to end users and distributors. “Most people say they have strong order files,” he noted. “Their outlook is pretty good. They are struggling to find supply when needed. Inventories have gotten low.”

He stated that transportation is “not yet” an issue. But he is starting to notice it. “Vessels are a little further out,” he stated. “You have to book yourself ahead a little better.

Occasionally, you might fight more than two days to find a truck. They are still generally available. But I’m starting to see tightening on that.”

Another Oregon lumber spokesman expressed a different sentiment. In industry after industry, he found downfalls. Cabinet companies, he stated, have order files, “but they’re not big. Anything with hospitality is off the table. Office remodels or construction are off the table; those jobs are all cancelled. In our area, there are no conventions.”

Then he changed his focus. “I would say the housing market remains the one bright spot: new construction and remodel. The available housing supply is very low. Homes are selling at a rapid pace in the suburbs. Sales in the suburbs are going crazy. Good properties are only lasting a few days, and get high prices. More Hardwoods are going into the suburbs where houses are being built.”

He sees the market as better than six months earlier. “I think we’re doing better than what we had anticipated.” He sells every domestic and imported species, in widths from 4/4 to 16/4. He sells this lumber to industrial accounts, cabinetmakers and others. “We have a wide spectrum of customers,” he noted. He said his customers, business-wise, are “good. I don’t think they’ll set a record this year, but they’re good. I think people have been very agile this year in controlling their expenditures.” Transportation is not a problem, as this company has its own fleet of trucks.

In California, a lumber source stated that the market is “OK. I mean, we’re having some issues with shipping. But I haven’t not been able to get wood. I have to be a little more diligent to make sure I’m on top of ordering material or keeping wood in the pipeline. Otherwise, if I don’t, I could certainly run out. Sales are good, most definitely.” Compared to six months earlier, “I would say the market is about the same or better,” he said. He offers Red and White Oak, Hard Maple, Walnut, Cherry, Birch, some Ash and Hickory and a number of exotics in 4/4 through 8/4 with some 12/4 and 16/4.

He sells mostly to end users, to contractors and do-it-yourselfers. “Contractors are a big part of our business,” he stated. “Most of the contractors are positive; they’ve got good business. Things are moving right along. I’ve even heard of some that are pricing themselves out of the market just because they’ve got more business than they can handle. ‘If a customer really wants to do the job, this is the price,’ they say. I think their business is strong right now.

“From what I’ve heard,” he observed, “the Port of Long Beach, as far as getting containers in there, has been a nightmare lately. They can’t keep up with the 40-foot containers.”

A lumber provider in Washington said, “It’s been a little slower this month.” He said the market is about the same as it was six months earlier. He sells Poplar, Red and White Oak, Hard and Soft Maple, Hickory, Walnut and Cherry in, typically, FAS, No. 1 Common and No. 2A to mostly end users. His customers are faring well in their businesses. “I think I’ve got a good vibe from most of them,” he stated. “It seems like sales are good.” Transportation is not a problem, he said. “We’re just paying more.”

By Miller Wood Trade Publications

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

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