industrial lumber

By Frank Forward Global Pacific Trading Group Lake Oswego, Or.

SEEKING to better utilize

L)resources and identify niche markets, manufacturers accustomed to producing only clears or dimensions are finding added opportunities in cutting shop lumber from the sides of logs for industrial markets.

Since industrial lumber is designed for remanufacture, producing and selling it requires a different mindset.

Historically, the species used have come full circle. Before World War II, producers used species native to the area-southern yellow pine in the South, eastern white pine in the New England states, hemlock along the West Coast, ponderosa pine in California. After the War. the affordability of railroad transportation opened markets across the country to plentiful ponderosa pine. But in recent years, with shipping costs increasing and environmental restrictions tightening supply, manufacturers are again looking to local species, as well as alternatives such as imported pine (radiata, elliotis, patula).

Yet different species require different dryng cycles. The goal is to determine through trial and error the length of time required to get a non-stressed piece of wood that will remain stable and straight.

The buyers of industrial lumber are remanufacturers, including plants that produce doors, windows, millwork, furniture, picture frames, etc. They can be located through industry directories such as Random Lengths' annual Big Book, smaller publications, libraries, and SIC codes. Initially, they should be prospected by phone, visiting them in person to iron out details only when both parties know "they're going to play ball."

Selling industrial lumber is more complicated than moving a truckload of 2x4s. so most manufacturers use a combination of direct sales and a broker. Each method offers its advantages and disadvantages, regarding credit protection, diversified customer base, pre-established relationships, and regional biases.

Sawmills new to industrials should develop their customer base within their own region first. Selling close to home maximizes control over product and minimizes transportation and other costs, providing the biggest dollar return.

After a business is established, it can expand until it reaches its resistance point-the greatest distance to which customers are receptive to its products and prices.

Counts also are different for shop lumber. Instead of a piece tally (for example, what is sold as a2x4 actually measures l-ll2"x3-112"), industrial lumber is calculated using a stick or rule tally (2x4 is 2x4). What buyers pay for is what they actually get. Tallies are random length and random width, heavy to all 14'and 16'.

When transported, industrial lumber usually is not paper wrapped. Appearance isn't the issue; what you're after is the cutting value. It is shipped mainly by truck and needs to be fully tarped.

For pricing, manufacturers typically look to the open market, as well as to guides such as Random Lengths and Crow's. The price guides are particularly helpful in setting up a monthly program. Often, producers will hold back a certain percentage of their output from the open market, hoping prices might rise, but with much of their production already assigned, protected in case prices fall.

Industrial lumber sizes and grades include:

4/4 (typically used by window plants, some novelty producers)

- Surfaced two sides (S2S) or four sides (S4S) to 314 or 7/8

- Moulding & Better or straight moulding (rough or surfaced)

- 3rd Clear

- #1 Shop

- #2 Shop

- #3 Shop

- Paragraph 99 (Will yield 50Vo of a wood that is 2-ll2"x9" long)

- Shop Outs (The remainder. Totally an open grade. Remember, some mills' shop outs will be better than others').

514 (for window, door and millwork applications)

- Surfaced two sides (S2S) to l-5/16

- Moulding & Btr. or straight moulding

- 3rd Clear

- #l Shop

- #2 Shop

- #3 Shop

- Paragraph 99

- Shop Outs

Producing and selling (industrials) requires a

different mindset.

614 (for window, door and millwork applications)

- Surfaced two sides (S2) to l-9116

- Moulding & Btr. or straight moulding

- 3rd Clear

- #l Shop

- #2 Shop

- #3 Shop

- Paragraph 99

- Shop Outs

8/4 (usually for door & window plants)

- Surfaced two sides (S2S) to l-13116

- Moulding & Btr. or straight moulding

- 3rd Clear

- #l Shop

- #2 Shop

- #3 Shop

- Shop Outs

Miscellaneous grades include "Cutting Commons," a custom grade with blocks shorter than 9" long, in random widths and lengths, and "Pre Rip," wood that has already been ripped, so itjust needs to be cross cut for clears. Because Pre Rip yields a higher count, it costs a premium of $20 to $50 per thousand, depending upon market conditions.