The kiln-dried hardwood market is facing tightening supply conditions across key regions, with sawmills and drying facilities struggling to keep pace with demand. Conversations from recent industry events and supplier meetings highlight ongoing production challenges, potential pricing shifts, and the impact of tariffs on availability.
Northern Region: Production Bottlenecks & Drying Delays
Supply chain constraints are putting pressure on northern sawmills. Some mills are experiencing significant drying delays due to stacked-up air-dried (AD) inventory and kiln outages, making it harder to get kiln-dried (KD) lumber to market. Others are just now recovering from equipment limitations that had restricted the size of lumber they could produce. Weather-related setbacks have also slowed sawmill output, with some mills cutting back from extended production shifts to just one shift per day. With summer approaching, many anticipate an even tighter market as demand outpaces supply.
Appalachian Region: Shifting Opportunities & Capacity Adjustments
In the Appalachian region, some mills are adjusting their strategies to focus on more in-demand species and exploring custom drying options. Increased kiln capacity at select mills presents new partnership opportunities, while others are prioritizing stocking items that move quickly rather than overloading inventory. Meanwhile, the impact of export restrictions on logs is creating ripple effects in the domestic market, potentially freeing up additional green lumber availability. Despite these shifts, industry discussions at recent events indicate that tariffs and supply shortages remain major concerns for buyers heading into the next quarter.
What’s Next for Hardwood Buyers?
With kiln-dried inventory running low at multiple mills and sawmills adapting to fluctuating log availability, buyers should expect continued market volatility. Tariff discussions and export restrictions are adding another layer of uncertainty. As summer approaches, securing reliable supply partnerships and staying ahead of potential price increases will be crucial for businesses relying on hardwood materials.