Firsts ...

When we think of firsts, we tend to focus on positive experiences. First dates, first kisses, first steps by your child, first time you achieved something, first light of the day. I am sure it is a captain obvious, psychological reason that we gravitate to positives versus negatives. No one wants to wallow in what isn’t going well, right? Though, the endless stream of cable news pontificator’s may be an exception!

Firsts are held out to be remembered. Things we want to hold in our minds to reminisce about with friends, family, and those we care about. Interestingly, sometimes what we see as firsts are not really firsts. They may be the first time we are going through something, but our firsts were firsts for someone else before they were firsts for us. Take the COVID pandemic for example. For most, it is a first to deal with masks, lock downs, quarantines and large scale casualties. But, it happened before in 1918. Many feel like the extreme division among the population of the US is a first. Again, maybe for most of us the division is more severe than we have ever seen, but US politics at its very inception has been filled with contentious disagreement. At the creation of our constitution, nationalists and those favoring stronger local government were at odds with each other. And, it is very hard to argue that our country has ever been more divided than it was when it actually endured secession in the 1860’s. 

The point is, firsts are relative to us individually. Having been in the lumber business now for over 25 years, I have been reminded by mentors and older peers of the cyclical nature of this business where very little that feels like a first is actually a first. Most likely you know someone who can remember a time when 4/4 fas1f red oak sold for more than $1800/M. I can remember selling 4/4 fas1f cherry for $4000/M, and now we are excited it is back over $2000/M. So, appreciating that my ‘firsts’ may not be yours, this crazy market of 2021 has created some unique moments for me. 

One, I cannot remember a time before now when I wasn’t confident about knowing the price for a particular hardwood product. There is always a range of pricing around hardwood lumber that fluctuates with inventory or need. But, today, the spikes in poplar and hard maple for example have become so volatile and detached from historical trends that I find myself unsure about where the real versus theoretical next price is. For me it is a first to talk about poplar and red oak at anywhere near the same pricing levels for upper grades. If anyone that happens to read this remembers poplar pricing being as high as it is now, please reach out to me, I would love to hear about it just as a fan of history. 

Two, I have never before been in a position to say I don’t need an order for anything right now. Previous spikes in the market have certainly put some items in tight supply, but at a lumber operation typically it is ‘crunch all you want, we’ll make more’. Today, more caution is required to prevent order files from falling behind.

Finally, and this isn’t really a first, but it is a necessity I remind myself of frequently because of today’s market circumstances. Relationships are integral to this business. Throughout good and bad markets relationships pay dividends in this business. To that end, I am very appreciative to our repeat, day in day out customers that we work with. There are times in any relationship that one side gets more from a relationship than the other. But, the benefit of relationships is that as circumstances change so the relationship changes over time. We are fortunate to have a core group of customer for pallet through grade lumber that we have relied on when lumber wasn’t moving and prices were extremely low, and it is our honor to get to serve them now that lumber is tight and prices are on the rise. The adage of you dance with the one that brought you holds true in the lumber industry and in markets like we are facing today. This doesn’t mean you forego favorable opportunities or get taken advantage of, but it is a simple and direct reminder how important personal communication, your word, and reputation is in this business.

What I describe above isn’t a first for anyone hopefully. But it is a good first reminder about how business and life aren’t so incredibly different. What we say, how we say it, the integrity and honesty with which we conduct ourselves personally and professionally matter. They mattered yesterday, they matter today, and they WILL matter tomorrow too.

So, enjoy this ride, we are on. Realize good and bad markets create possibilities to disappoint, but good communication and honesty secure strong relationships.