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Wisconsin’s Premier Manufacturer Pallet and Box Supplier since 1963

Fox Valley Wood Products is Prepared for Pending Lumber Supply Challenges

The future of the lumber supply industry is uncertain as sawmill curtailments and closures rise. What impact will this and other factors have on the future timber supply?  While no one has a crystal ball, Fox Valley Wood Products is prepared for a wavering industry climate to ensure customer service does not faulter.
lumber supply industry

Current State of the Lumber Industry

Canada’s lumber supply is in peril. According to a statement issued by the British Columbia Council of Forest Industries in May 2024, the actual 2023 harvest was 42% below the allowable cut. In 2018, the harvest was 60 million cubic meters to 35 million in 2023. The result is causing job losses, mill closures and curtailments, and it’s not just in Canada. The United States saw over 50 mill closures and curtailments in 2023. Many domestic loggers agree that 2023 was the most challenging year seen ever for loggers because they have nowhere to process harvested wood, where in previous years, every load had a destination before it was harvested. This drastically slows the wood flow, making lumber, paper, pulp and more difficult to attain.

At Fox Valley Wood Products, we primarily use green hardwood for our pallet stock. Yet, the SPF (spruce, pine and fir) market impacts the price and availability of hardwood, and it is this market that is currently seeing the most impact. Soon, pressure will naturally transfer to the green hardwood lumber market as well. Pricing, both in the SPF/SYP (Southern Yellow Pine) and green hardwoods markets, has been historically low for the past 24 months due to a slumping economy and the post-covid glut of used pallets. Yet, it will only take a slight uptick in national demand for the supply/demand equilibrium to flip. That situation is currently upon us and will only accelerate through the spring and summer when the pallet supply is forecast to dwindle.

Here are three ways Fox Valley Wood Products is poised to navigate any challenges ahead in the market:

1. Strong Supplier Relationships

Our lumber suppliers are our partners and friends, and we treat them as such.  Our suppliers can count on FVWP for financial dependability and logistical incentives to work with us. While we expect fair pricing, we’ve remained committed to our historical relationships as opposed to pinching pennies and sacrificing quality. This loyalty and trust from our suppliers put us in a position of strength to navigate a tight market in the coming months.

Maintaining a Commitment to Sustainability

Another reason we hold strongly to the established relationships with our lumber suppliers is that we believe strongly in conserving our planet for future generations.  We have aligned ourselves with lumber suppliers who hold this same value. Most are Forest Stewardship Council (FSC) certified, which ensures the wood products we consume come from responsibly managed forests that provide environmental, social and economic benefits. We also recycle 99% of our wood waste via landscape mulch, firewood or biomass fuel. We are not going to sacrifice these values due to market instability.

2. Generations of Expeirence in the Pallet Supply Industry

Having an experienced team has been paramount in safeguarding against the fluctuations of the lumber supply market. With three generations of industry experience, we are not new to market fluctuations or how to best prepare for them.  Our leadership team have all been promoted from within and have a deep understanding that the pallet/wood industry is like no other. While our niche market within the wider lumber industry is unique, the challenges facing the North American timber industry impact us directly.  Our deep experience navigating these impacts is passed on to our clients through cost maintenance and supply chain mastery.

3. Custer Service Focused

At Fox Valley Wood Products, customer service is at the core of everything we do. Regardless of the challenges in the lumber industry, our commitment to responsiveness remains unwavering. Our dedicated office staff is ready to assist starting at 4:30 AM, Monday through Friday, ensuring quick responses to customer inquiries. Emails are answered within minutes, and we guarantee same-day quotes and delivery for both standard and custom pallets and crates.

At every level of our organization, we live by the golden rule: treat others as we would want to be treated.

Fox Valley Wood Products is Your Pallet Supply Company

No matter what the future of the lumber supply industry may be, you can count on Fox Valley Wood Products for your sustainable pallets. Contact us today for a quote.