Monthly Archives

October 2013

Zeeland Lumber & Supply Expands to Northern Indiana

By | Homeowner News, Professional Builder News | No Comments

We have an exciting announcement to make regarding capital investment for our company. We have grown our geographic footprint over the past few years. We are experiencing growth both organically from our existing customers and with market share gains. We are blessed with an improved market.Google-Earth-Showing-Mishawaka-Local
To support this growth, our board of directors has approved the purchase of property and equipment at 3740 Manchester Drive, Elkhart, Indiana. The property consists of approximately 6 acres of land and 50,000 square feet of building space. The equipment purchases are additional truss and wall panel equipment to support our manufacturing division. At Manchester Drive, we will operate our retail lumber and building materials operation, Zeeland Lumber and Supply, and our component manufacturing division, Zeeland Truss and Components.

This investment serves our company well in these areas:

  • Serve our existing customers better in Northern Indiana and Southern Michigan with a regional facility closer to their market.
  • Seek new customers and new markets in Northern Indiana and Southern Michigan.
  • Relieve capacity from our existing facilities in Zeeland and on Clay Ave, Wyoming to better serve our customers.

We are excited that this investment will add value to our customers, employees, suppliers and shareholders. We are excited about the future of our business and our industry, and the purchase of this property.

 

Futures Market and You

By | Uncategorized | No Comments

John-Colley-Final-1024x1024We have been watching the market very closely after the closing of the September futures on September 15th.  Essentially, before the futures contracts expired the cash market was trading below the futures pricing.  With steady demand we would have thought the market would find an equilibrium price but this did not happen.  The cash market rallied and the November futures rallied as well.  After studying demand, I would think If anything contributed to this it would have to be the overall  trend and maybe the seasonal element.  Looking back at what actually happened, I don’t think we can overlook temporary shortages from contractual obligations at the close of the futures contracts.

At the beginning of the year I thought we would see some of this “bullwhip” effect I described above.  The forecast for demand was much stronger than previous years partly because retailers, wholesalers and mills all slightly over-corrected. This translated into a big market rally at the beginning of the year and then a market correction which is what we saw in July.  This normally is followed by similar cycles in diminishing magnitude.  In all honesty, I felt the trend would be a little more level but I think the current upward trend reflects some seasonality and probably won’t let the market reverse any time soon; at least not in time to finish out our building season.

What does this all mean?  I would think the market is going to continue at, or close to, current levels through the next couple months not accounting for natural disasters and governmental meddling.  I think we could see some minor corrections but overall I would not expect any major changes until we see forecasts for 2014.  If news is good we may just see a similar “bullwhip” effect all over again!

I hope you have a safe start to your fall season.