Along the West Coast, lumber movement remained favorable.
In Washington, lumber was selling well as of this writing. “Business is going well,” said a purchasing executive. “It’s more pre-pandemic speed now. Business is not flat. We are seeing a lot of activity.”
The best selling species are Hard and Soft Maple and Basswood, which remain limited in supplies. Poplar has also been selling more than other types because of sourcing difficulties. “We are definitely selling what we use to always sell, but availability has been a challenge,” he said.
Strong home sales combined with less lumber being produced drove prices higher for this contact, as well as his customers, including end users and distribution yards. “So far, most of our customers are doing pretty well,” the source related. “They’ve been grumbling and have been hoping and waiting for prices to recede quite a bit, but they just haven’t. A few items have softened, but, overall, it’s firm out there in prices.”
Compared to six months ago, business is off a little. Challenges include transportation. “Freight has been horrible this month, absolutely horrible,” the lumberman observed. “It’s much worse than a month or two ago. We are still seeing lumber sales going well. They aren’t quite as brisk as last summer, but freight being moved is a real issue.” The lumber buyer said it’s more about truck availability than pricing.
In Southern California, the market for lumber is booming. “The market here is very strong,” said a lumber provider. “December was one of our biggest months in company history. Demand is still there. It’s stayed very busy. If you look at the amount of deliveries, the footage we shipped and tickets we wrote, it indicates we are still in a strong market.”
Lumber sales have been slightly better than last summer. “Our customers’ business is very brisk,” he reported. “Many have planned out their business for the next six months or so.”
Poplar remains a strong seller followed by White Oak and Walnut gaining momentum and becoming big sellers. The company also markets Hard Maple, Red Oak and Birch in 4/4 to 16/4 thicknesses in FAS, Select and Better grades to home builders, contractors and remodeling pros.
Staffing remains a headache. Lumber manufacturers face the biggest labor challenges. “Trying to find someone to do work now is not easy,” the source noted. “Labor is an issue but we have done fairly well with hiring and keeping employees, filling the positions.” The company enjoys a low turnover rate and possesses many longterm employees. “The biggest labor issue for us is getting material from the mill to us. Also, trucking is worse than before.”
Freight and labor issues have challenged an Oregon lumber manufacturer and its customers. “Transportation is not easy and it may not be as timely as we would like it to be, but relying on our years of contacts and business relationships, we are getting everything moved,” said the vice president of the firm that services residential cabinetry, furniture and millwork customers.
“Probably the biggest issue facing us, our customers and suppliers is the current COVID variant,” he explained.
Restricted workforces harmed supply and distribution. “We have been able to move people around and get everything covered,” he said. “Some of our suppliers have had to curtail shifts or shut down operations. Some of our customers are in the same boat. This, on top of an already tight labor market, makes it challenging.”
Despite the obstacles, the lumber market remains solid. “It’s decent for the time of the year it is,” the source reported. “It’s always slower early in the year, but we are seeing what we consider good and busy demand. Overall, business is good.”
Poplar is the company’s biggest seller with White Oak, Walnut and Red Oak also selling well. Thicknesses range from 4/4 through 16/4. Cabinet manufacturers during the early part of the year were still able to retain full order files with this lumber provider.
