West Coast Business Trends – April 2022

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The Hardwood markets on the West Coast are good with the exceptions that one source saw his sales cooling down (even though sales were positive) and another said his sales were slow.

“The market is still solid,” said a lumber provider in California. “It’s just about the same as it was a few months ago. People give you an inquiry, and they might not get back to you right away. But when they get the order, they call you back. Sometimes it’s two weeks; sometimes it’s a month or more. Whoever has the lumber is going to get the order. We’re picking up orders on a regular basis because of that.”

He provides uppers in No. 1 and No. 2 in Walnut, Hickory and White Oak. His best seller is White Oak.

His customers include flooring manufacturers, designers and retail lumber yards. His customers’ sales seem to be fine, he said, “but you have to work a little more to get the orders.” He has to work harder to get orders from his customers, and his customers also have to work harder to get orders from their customers.

As for transportation, he said, “It takes longer to get shipments from the sawmill. But locally once the product gets here, shipping it is not a problem.”

In another part of California, a provider of specialty Walnut (Claro Walnut) remarked that his sales of Walnut slabs and lumber have been slow. That has been the case for a year and a half, he commented. He also sells gun stocks to gun manufacturers and that market, he said, is “steady.”

He sells Claro Walnut, which is a specialty product that is highly figured and attractive, to furniture makers and hobbyists. “It’s been the same for the past two years,” he said of his sales. “It’s been slow.” He pointed out that the Claro Walnut lumber is used for anything from mantles to shelving to cabinets.

In addition to Claro Walnut, he sells Sycamore and Redwood.

“Transportation is absolutely no problem for us,” he stated. “We’ve got a good company that we deal with.”

In Oregon, a lumber source commented, “The market is good. However, it’s slowing due to the fact that so many builders aren’t able to complete their homes. Windows and garage doors are hard to come by. You can’t get the permit until you’ve got a garage door. It’s been frustrating for the cabinet manufacturers because they haven’t been able to deliver completed cabinets to the job sites.”

The market is about the same as it was several months earlier, he stated.

His most popular species are White Oak, Walnut and Poplar.  “Walnut and White Oak are high value product,” he stated. “We carry only Select and Better in those.

“The market is protecting margin, which it should,” he said. “Unreasonably low prices are not sustainable, although some companies charge low prices.

“I’m concerned about mortgage rates,” he added. “What percentage of the buyers do you take out with every incremental increase – half a point. What does that do to a lot of people?”

His customers include cabinet manufacturers, general architectural companies, retail, flooring professionals and fixture companies.

“Attracting new employees is tough,” he remarked. “I can also state that a number of our suppliers have the same problem. Shipping from the mills in the upper Midwest and the East Coast has been difficult because of the container shortages. Also, freight is still expensive and not moving the way it should.”

Also in Oregon, a provider of Walnut, White Oak and Maple in the higher grades said the market was “very, very strong.” It was about the same as it was a few months ago, he added.

He sells mostly to manufacturers of furniture and interior millwork.

Transportation, as it is for most companies, is “absolutely horrible,” he remarked. “We’re able to find trucks, but they’re twice the price.”

A Washington State wholesaler stated, “The market is pretty good. People are buying. The market seems to be fine right now, but it has cooled off a little bit since last year.”

Compared to a few months ago, he said, the market is “about the same. It hasn’t gone up or down; it’s pretty steady.”

He offers Hard and Soft Maple, Poplar, Red and White Oak and Alder in all grades. Also, he sells some Yellow Birch and Basswood but, he noted, they are hard to find.

He sells lumber to distribution yards, end users and mills. Most of his customers’ sales are good, but certain species are hard to come by. Nevertheless, “Their business seems to not be slowing down at all,” he noted. “Transportation is a real problem, just finding trucks,” he commented. “Even if you’re willing to pay more, it doesn’t make a difference. The availability is either there or not; that’s the hard part.” Regarding the railroads, he observed, “If it’s intermodal in the States, it’s OK. Prices have definitely jumped by a big factor. But because you can get dates and bookings it’s easier than searching for a truck all the time. At least you can get a date. It may be a couple of weeks out, but you’ve got it covered.” 

By Miller Wood Trade Publications

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

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