Exporting Southern Softwood Lumber: How Small Firms Can Begin

When small to medium-sized southern softwood lumber manufacturers, who have little or no exporting experience, are appraising the export potential of their products, several key factors should be considered. The initial factor is whether to serve the European or Caribbean markets. European markets are dominated by tastes in design and architecture; Caribbean markets by building codes and millwork specifications. Selling to export merchants (indirect exporting) has been the most rewarding sales channel for small southern lumber manufacturers just beginning exporting. The main advantages of selling to export merchants are that transactions occur in the domestic business environment, marketing requires no new middlemen, merchants perform valuable sorting functions, and they are accustomed to working with small mills. Methods of locating export merchants for southern softwood lumber and factors to consider when choosing a particular merchant are discussed. Merchants expect producers to have solid integrity, a long-term commitment to exporting, and better-than-average manufacturing flexibility and quality control. Mills cutting timber from older natural stands within 200 miles of a major southern port have a locational advantage making them attractive to export merchants.

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