Forest products industry sources on the West Coast were consistent in how they viewed the state of the market in their region. Sources in California and Oregon said that business in their area was slow, but each commented that some weeks were better than others. In Washington, a lumber representative gave the market in his area a letter grade: C-plus.
The lumber representative in California said that business had been consistent over the previous six months and that he did not anticipate much change — positive or otherwise — in the coming months. He said that his customers — mostly end-use manufacturers — were reporting that business was less consistent and were only buying enough material to complete open jobs. “You talk to them this week and they say, ‘Oh no, I don’t have anything going on,’ then they call the next week and say, ‘Ok, I’ve got an order’,” he said.
Offering White Oak, Walnut and Hickory in No. 1 Common, No. 2 Common and FAS, the spokesperson reported that White Oak was selling best.
A forest products industry source in Oregon said that business was slower than it was over the first half of the year, but he expected the market to gain momentum over the following six months. When asked what he thought was affecting his business at the time of this writing, the source said that tightening regulations were beginning to affect the supply of certain species that were previously more available.
Marketing mostly White Ash, Black Ash and White Oak, he said that the demand for White Oak is high, but supply was hindering his ability to sell as much as he could in a more robust market. “If there could be more rift and quartered White Oak available, that would be better,” he reported. Because of the limited availability of White Oak, he said that he has done more Ash orders recently than anything else.
The source said that his customers, as well as owners of similar businesses in the region, have been conservative about offering opinions on the market.
In Washington, a lumber representative said that business in his region was worse than it was six months prior. He continued to say that general economic sluggishness made it difficult for him to make a definitive statement about where the market is headed: “There’s too many things going on, right? If it was just the market, that would be one thing,” he concluded.
The spokesperson reported that of the species he markets most often, Poplar was his best seller in terms of volume. He added that White Oak was his second-best seller in board feet sold, but said, “That doesn’t correlate to dollars.” The cost difference between Poplar and White Oak — White Oak being the more expensive of the two — made it so that White Oak produced the most income. The source added that he was also selling Red Oak and, while he had some sales in Maple and Cherry, limited supply made that product more competitive.
He expressed concerns about the future profitability of White Oak — “I don’t know how a sawmill trying to cut 4/4 FAS White Oak is going to survive,” he said — and said that Walnut would do very well in his market if there was a healthier supply: “Walnut would be king if they had it,” he said.
In addition to concerns with the economy, the source mentioned that a shallow job market was making it difficult for sawmills in his region to rebound from a slow start to 2024. He added that more than one business in his area had relocated in order to reestablish their businesses in a more labor-rich market.
