West Coast Business Trends – July 2022

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If you talk to lumbermen on the West Coast, you’ll get a mix of assessments of the markets for Hardwood lumber. Recent interviews with three West Coast lumber providers yielded: “a little quieter,” “steady” and “strong.”

A Washington State wholesaler stated, “It’s actually been a little quieter the last two weeks. It used to be, if you had Maple or some of the really desirable species in the last year and a half, it was no problem to sell them. But even with the desirable species, either people are stuffed full of lumber now or you’re getting a little price pushback.”

The market was better a few months ago, he observed. “There seems to be a lot more lumber on the market,” he said. “A lot of our customers bought up lumber pretty heavily for the spring.”

He handles “pretty much all North American Hardwoods: Oak, the Maples, Poplar, Hickory, Basswood, a few softwoods and imports. His best seller is Soft Maple. He sells upper grades, and then No. 1, 2 and sometimes 3A Common, primarily in 4/4 but also 5/4 through 8/4. “It’s very heavy to 4/4,” he remarked.

He sells to end users and distribution yards. “The only downturn in their sales that I’ve heard – and I take it with a grain of salt – is some of the RV people are slowing down. So, I work with a few people in the Indiana area who say their RV customers have slowed a bit, but their other customers – manufacturing mouldings and cabinet parts – are still pretty busy.

“It seems like trucking and transportation have gotten slightly better,” he commented. “There is more availability of trucks, but prices haven’t softened.”

“The market is steady,” said a lumber representative in California. “Lumber is still an issue, getting the product shipped with containers. There’s still a real shortage of containers. You have to plan better to get the wood on a regular basis. Sawmills have difficulty shipping the lumber via railroad due to a container shortage.”

He said the market has been steady since six months ago.

He handles White Oak, Walnut and Hickory in all grades in 4/4 thickness.

Distribution yards and flooring manufacturing companies are his customers. “Their business seems to be steady,” he noted. “I keep using the word ‘steady,’ but that’s the way I describe it. My customers order ahead now because they know it takes a while to get the products. They want to make sure they have the products.” As for transportation, “We’re lucky here,” he said. “There’s a lot of trucks in the Orange County and LA County area. So, we’re OK.”

In Oregon, a lumberman assessed his market as “strong. It’s similar to the end of 2021. We haven’t really seen a drop-off. Both the commercial and residential markets are strong.”

Compared to a few months earlier, the market is “similar,” he stated. “It’s been pretty steady and strong all the way through for us.”

He sells Oak, Walnut and Western Maple, mostly in 4/4 through 8/4, Select and FAS grades.

He sells mainly to end users who make high-end handmade furniture. “I think their sales are strong as well,” he said. “Demand is high for goods like that right now.”

Asked if transportation is a problem, he replied, “Yes, it is, but only slightly. I think it’s a matter of time before it has a greater effect. Right now, my customers are willing to pay the increase in transportation costs passed on to them, but it seems like patience is wearing thin.” He utilizes mostly trucks.

By Miller Wood Trade Publications

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

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