Some SYP Independents Stay The Course

Article by Rich Donnell, Editor-In-Chief, Timber Processing April 2016

Mark Twain wrote: “The reports of my death are greatly exaggerated,” or something to that effect. The same might be said of independent southern yellow pine operators.

Indeed the onslaught in recent years of Canadian corporations purchasing independent SYP companies caused a serious thinning of the ranks. These were some solid independents, too (why would Canadian corporations buy anything less, right?). And if U.S. housing really busts loose, Canadian firms will reap the benefits—more than they already have—of their acquisitions of very efficient sawmills, many still operated by the former ownership and/or managerial personnel of the independents that sold them. (The real test will be when these sawmills lose their ties to the past as this older generation of former owners and managers retires and their sons and daughters won’t be filling their shoes—having taken the money and run so to speak.)

Meanwhile, the reports of the death of the entire SYP independent community are greatly exaggerated. Rex Lumber is still very much alive. Owned by the McRae family, its Graceville, Fla. sawmill and technology improvements therein is the cover story of this issue.

Asked about the Canadian acquisition thing, co-owner Charles McRae had a cool, straightforward comment: “People and long-term families that operate as independents, like we do, want to be in the lumber business.”

Another noteworthy development at an independent occurred recently at Hood Industries. Its new president is Jay Galloway, who succeeds Don Grimm, who has retired after 13 years at the helm. Galloway previously worked at Hood for a number of years, before he became president of Tolleson Lumber for five years, before concentrating on the transportation business.

A newcomer to the independent SYP community is Biewer Lumber. It’s a third generation, family owned group of companies operating two sawmills in Michigan and two in Wisconsin. Number five will be its first SYP sawmill going into construction at Newton, Miss. with production planned for early next year. Welcome to the South!

We’re not stating that we are against Canadian companies buying SYP independents, or condemning the independents for selling to them. People and families have their reasons, whether it’s financial or circumstantial or generational or simply the right time, or all of the above. We just hate to see some of these people go, because we like them.

Speaking of hating to see somebody go, we’re very saddened by the passing of Dwight Harrigan of Harrigan Lumber in Alabama. We remember a tour through his sawmill in Monroeville, followed by a splendid evening at his hunting lodge and a morning hunt—nearly 30 years ago.