14 Pallets West
MAY 2018
traditionally would help create downfall for the industrial users. However, as China’s volume picked up they began buying the whole log prior to its being sawn. So instead
of exports helping the industrial market, every export to China was hurting the industrial market. Then China drastically increased their purchases compounding the problem.
Is there any end in sight?
At this time, nobody can predict with any real level of confidence what will happen because there are simply too many variables in play. Will China keep buying hardwood at the current or possibly increased rates? Might the US limit hardwood exports? Will our manufacturing economy experience another surge increasing industrial hardwood needs further? At what price point will it make sense for a logger to fell trees driven by industrial use rather than grade lumber demand?
One thing is for sure…as the price of industrial hardwoods continues to climb (and know that soft wood is moving too!) it is increasingly important that you have the ability to rethink the way you design, use, and source industrial lumber products. The only thing everyone seems fairly sure of is that more change is coming and at faster speeds than we’ve experienced in the past.
You’ll be best prepared if you think of your pallet, dunnage, and crating purchases as industrial lumber purchases and evaluate them as such. Be ready to pivot. If you aren’t ready to pivot on design, material, and how you use these products, get ready to. If your team doesn’t have the needed skills, experience or time to do so…find a partner that can help you.
If you would like to contact Tyson directly to discuss the industrial hardwood market from either the buyer or supplier perspective feel free to contact him directly at [email protected] or visit www.tpai.com.