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Kretz Lumber Co., Inc. shares a newsletter, the “Kretz Forest Family Newsletter,” with the members of their “Forest Family.” Al Koeppel, the company’s head forester, writes the cover page for each issue.This article was written with so much passion we have to share it with all of you.
Out on a LimbAn Excerpt from the Kretz Forest Family Newsletter Volume 2, No. 1-Summer 2008
Hi folks. Summer is here and as I sit down to write this article it at first seemed a real challenge to write something upbeat and positive. Building of new homes is down. There are many homes that aren’t selling. The foreclosure rates are high and still rising. Then take a look at what fuel prices are doing and you have to admit it is not the best of times. In the hardwood lumber market the upper grade lumber is used in cabinets and furniture. Middle grades of lumber create flooring. Low grade lumber is used in pallets and crating. A number of years ago furniture manufacturing moved from the US to other countries. In the past when housing starts dropped we still had furniture and remodeling to pick up the slack. The cost of transportation is a real challenge to move lumber to the coast for exporting and puts mills in the Lake States area at a very real competitive disadvantage to the mills on the east coast.
As it works in all things in life when things are going well you have a tendency to get relaxed and take advantage of the good times. I would like to tell you that the people at Kretz Lumber Co., Inc. are like all good Americans when the going gets tough the tough get going. We did get leaner so to speak. We quit feeling sorry for ourselves. We decided we are going to get through these tough times and that is all there is to it. So what is Kretz Lumber Co., Inc. doing? We are analyzing what is working and what isn’t. This means more testing of (raw material that works) going through the sawmill. This means looking at lumber sales and finding more markets. This means experimenting. We are looking at how we can improve each individual’s performance. None of this is easy and it comes with frustration. Didn’t someone say “nothing good in life comes easy”?
I often get asked “aren’t log prices really down”. Actually they are not really that bad. There is a strong demand for logs, pulp and veneer. If you consider the time value of money and ask “should I harvest today or wait a couple of years”, I do not think I would gamble on waiting. On Capital Hill there is talk of raising the capital gains rate. Currently lumber pricing seems to be stable and that is a good thing. When things sky rocket it is the time to be cautious because we know they can come down just as fast.
Like everyone, Kretz Lumber faces many challenges created by today’s economy. As we have done for the last 79 years, we will meet such challenges head on. It is our plan to work with our Forest Family to do the right thing for our forests so we’ll be here for the next 79 years. Have a great summer.
Al Koeppel
Head Forester Kretz Lumber Co., Inc.
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