Buying a million pounds of U.S. steel for our company in Brazil taught me a good lesson on steel tariffs. While there were no apparent restrictions on imported steel, the Brazilian authorities used extraordinary means to prevent us from doing so, and we haven’t bought any since. I suspect...

If you enjoy watching any of the many home improvement shows where the hosts pick an older home to renovate, you notice they always talk about the “bones” of the house. In their opinion, this is one of the most important features of any potential renovation job. Typically, they...

“What is the lumber market going to do?” is a very important question and the answer is very simple. It is going to rise and fall. Brilliant, right? A better question might be, “How far will lumber prices rise and fall?” That answer requires an understanding of...

Let us assume that you are having problems with a truck’s transmission and it must be repaired or replaced. The local mechanic explains the hourly rate for service and that the cost of any parts needed to fix the transmission is extra. The hourly charge he is billing is to cover his...

Perhaps the most important question in our lumber industry is: “What's next?” We are in the heat of the September Surge. That will soon be coming to an end, but the clock doesn't stand still. Lord willing, the sun will rise tomorrow. So, the question is, “What's...

Back in the day, when the lumber brokerage firm I worked for would not hesitate to take a 500 car position half a dozen times a year, I had this brilliant idea. I approached my four best customers, two wood preservers and two truss manufacturers, with a plan. Rather than profiting from my risk...

Too often a repeated mantra within our industry is that everyone sells components at too-low margins. The blame is always on the other guy, meaning the competitor, for selling at a lower margin than what should be market pricing. Well, what can your company do to raise margin pricing? During...

A fellow lumberman asked me to describe my ideal style of inventory management, or buying strategies. So, here it is. The best way to describe it is “elasticity.” Imagine the lumber market like the waves and tides of the sea. The tide is predictable...it ebbs and flows with the...

Preliminary CVD announced at 19.88% The pieces are falling into place. Department of Commerce has issued its preliminary countervailing duty on Canadian softwood lumber exports destined for the U.S. The rate of 19.88% is lower than the anticipated 30%. In addition, the four largest producers...

Have you heard the news? Lumber prices are up? Feel like punching me in the throat, don’t you? Over the past several months, we have been looking at ways to save money in the lumber market. Saving money adds money to your bank account, which means that saving money is part of our business...