What is driving sawmill purchase demand

[Kindlinmaker]

I can speculate all day long and come up with several current factors that might be driving the current purchase demand for sawmills but it would still be just that - speculation.  Does anyone actually know what is driving the demand?  

[mike_belben]

Speculation!

[Ianab]

Lumber Prices?

But what's driving Lumber Prices? ???

[Tacotodd]

It's like anything else, most people don't realize just what has to be done to come out with the results that they are use to & they think that they are being short changed, SOMEHOW.

Life is hard, it's harder when they don't get their mind wrapped around that one little simple fact.

Driving is tough, but only when you really think about ALL the little stuff involved in the end result, whether it be paying someone else to maintain said vehicle (takes $ that SOMEONE had to earn), $ of being driven around (same thing) and the list of everything goes around like that.

It's like the old bumper stickers from the 70's , cash, grass, or ash, nobody rides for free. Somebody got to come up with something, because it's impossible to get something for nothing!


EVERYTHING in life is like my driving example, I just used driving because everyone on this site can appreciate that in one form or another.

[kantuckid]

I've been hanging around some on the FB WM Group. I've seen many people buying (meaning ordering if a new mill with long wait times) mills that don't know a tree from a telephone post. Seriously true based on commentary/questions asked. I definitely don't mean most of that groups members as most are people who saw for income. I do mean the newer folks buying a mill thinking I don't know what? Some of it derives from the natural edge slab & cookies thing in recent years. 
No doubt it will be hard on some forests. It may eventually make a bunch of used mills show up as they fail to make those payments. 

[Bruno of NH]

The thoughts of making easy money  :D
Its harder than most folks think .

[Patrick NC]

As someone who is still fairly new to milling, I can share a little insight into what led me to it. I have always been interested in sawing my own lumber, but never could seem to afford to buy a mill. Then our kids grew up and moved away, and suddenly I had a bunch of money freed up that was looking for a place to get spent. I bought my first mill and liked it so much that very shortly found myself needing a bigger mill. So I ended up buying my current mill about 10 months later. It was baffling to me how much the market had changed in that short period of time. I got my first mill the same day I bought it and 10 months later I had to wait 6 weeks for my new one to come in. Would have been a much longer wait for a woodmizer. I'm sure that low interest rates( cheap money) and high lumber prices are driving a lot of the demand. I paid cash for mine, so I don't have to worry about sawing to make a payment. 

[Sodrawdy]

I bought my mill 4 years ago to build my own shop. I have land and trees but not enough money saved up to build the shop. It just seemed like a better investment to me to buy the mill and cut my own lumber. Fast forward until today and the Lumber prices + Stimulus checks and people being out of work, looking for something to do to supplement their income and a mill just sounds to good to pass up. I have had a lot of people I know buy the mills to start a business and fail miserably. I bought the mill as a hobby item that turned into a business.  

[Kindlinmaker]

I actually wanted to restart Richhiway's thread from February about this subject and see if any "new" information had come to the forefront.  I didn't mean to disregard all the good answers that were posted then but frankly, I just couldn't find the post to work with it.  The "Similar Topics" feature did find it for me after I started the new post which just proves how technically challenged I can be.

Anyway, we don't seem to have any new "wow" information yet but I hope some might still be out there.

I sure hope the demand is being driven by folks who are just spending more time at home with projects/hobbies and not folks who might be spending their limited resources on a hope for a new livelihood.  Milling is great as a part time business or hobby that pays its own way but it is hard to make a full time living.  I fear Kantuckid is correct about a bunch of available used iron in the future.  Reality rarely equals the dream.  I  know there are more rusting hulks of old mills than running mills in my county.  I've never been able to make a custom milling business plan work.

[RichTired]

I think people are putting money into sawmills instead of bassboats or other such toys.

[HemlockKing]

It’s like anything else, most people don’t realize just what has to be done to come out with the results that they are use to & they think that they are being short changed, SOMEHOW.

Life is hard, it’s harder when they don’t get their mind wrapped around that one little simple fact.

Driving is tough, but only when you really think about ALL the little stuff involved in the end result, whether it be paying someone else to maintain said vehicle (takes $ that SOMEONE had to earn), $ of being driven around (same thing) and the list of everything goes around like that.

It’s like the old bumper stickers from the 70’s , cash, grass, or ash, nobody rides for free. Somebody got to come up with something, because it’s impossible to get something for nothing!


EVERYTHING in life is like my driving example, I just used driving because everyone on this site can appreciate that in one form or another.

If I have learned if anything in this crazy life is everything rarely goes as planned, will always be unforeseen events/situations no matter how hard you try to prepare, just go with the motions and don’t fight it too hard and instead try to make the best of every scenario even if it hadn’t the one you planned.
Life is certainly difficult at times  ;D

[Lynwoo]

Personally I have been very frugal.  Being in the construction destruction business I progressed from buying a $56.00 new craftsman saw with my first side gig to the lt15g  last year.   Am retired and now I have time to use it . Purchased it to mill our timber for me to have materials to use at will.

I approached the sawmill game backwards.  Had the hand tools with exception to the can't hook.  Had used the ton truck, trailers, Kubota, and countless hand tools that paid for themselves over many years.  

The advantage I have experienced may not be a realistic model in this day and age but over the past close to 40 years all my gear has multi tasked and morphed into my reflection.

As a sawyer I am rather green but as a worker preforming heavy, dirty, greasy,nasty, physical labor I am fully seasoned.  I am of the nature one is required by the other to see the full picture.

This is just the way it worked out for me, no easy street but with rewards just the same.

[mike_belben]

Im sorta similar.  I will have built probably 20 excellent tractor and skid steer attachments before i ever have a decent tractor or skid steer.  But i wont experience what most buyers of new tool carriers experience.  Holy crap this new machine cost a bundle and cant do anything without a quiver of attachments!
 

[Walnut Beast]

I've had about every skidsteer attachment. Harley rake, Ashland scraper, CAT backhoe, mulching head , mower brush cutter, 4 in 1 bucket  just to name a few. Some worked great and others didn't. I know one thing if you want something to run good you need power and hi flow hydraulics. If it's going to be something like a brush cutter mower on low flow it will do it but you probably will be disappointed 

[Joe Hillmann]

People have lots of free money.
Fear of inflation,  buy it now before prices go up.
High lumber prices.
More free time but still getting a paycheck
Low intrest rates on borrowed money.
Production is down due to lack of components.
People want a oil powered mill now  instead of the only option being electric mill in the near future.
Probably lots of other reasons as well.

[Wattwood]

YouTube community college...

Out of the Woods, Iron and Oak, Matt Cremona, Fall Line Ridge, Josaljo Won... Every time a bucket of water gets thrown on a walnut slab another order goes in for a new mill.

[jbjbuild]

YouTube community college...

Out of the Woods, Iron and Oak, Matt Cremona, Fall Line Ridge, Josaljo Won... Every time a bucket of water gets thrown on a walnut slab another order goes in for a new mill.

I was just going to say the same thing. I think YouTube has a lot to do with it.

[VB-Milling]

Every time a bucket of water gets thrown on a walnut slab another order goes in for a new mill.

This literally made me spit out my coffee while laughing!  Laughing because its so darn funny and rings so true!

[WV Sawmiller]

  Oh! So now it's Nathan's fault? He should be getting a commission on all new sales. :D :D :D 

[Walnut Beast]

People keep buying regardless of price 😂. Throw back Monday to 2010. 

Now it's 46,000

[Jeff]

Youtube and every offgrid show made in Alaska and fear. 

[hacknchop]

As a lumber grader and sawmill operator i wish it was necessary for someone to actually learn how to produce quality lumber before setting up a business either selling or custom milling material that is below grade.I have started to set up 2 visits with those who decide to cut the lumber for their own projects first one to educate as to what defects to watch for when sawing and how to maximize the grade of the lumber they produce and the second after they are done sawing to grade it. 

[hacknchop]

Everybody has to learn but it should be on their own dime.

[Brucer]

There are lots of factors driving demand:
More money to buy a mill.
Less travel = more money in the bank.
Less eating out = more money in the bank.
More working from home = fewer expenses.
Low interest rates.
More time to run a mill.
Less commuting = more time available to saw.
Less visiting with people = more time available to saw.
Higher lumber prices.
More home renovations = more demand.
Huge forest losses due to fire = less supply.
Shortfall in supply of sawmills.
Shortage of shipping containers = lack of components from overseas.
Unavailability of foreign products = increase in domestic demand.
Health & safety considerations = decrease in domestic supply.

All of these are driven by Covid-19 on a huge scale, in a very short time frame. As more people get vaccinated the economy will adjust, but this is going to happen over a much longer time period. There's going to be a lot of fluctuation over the next few years. I expect there'll be a lot of mills sitting around barely used -- the owners will try to get back most of what they paid, but the prices of new mills will be falling.

[21incher]

It's  not just mills, it's all big ticket items. I think it has something to do with baby boomers that are looking  for new hobbies and sources of income in retirement.  Most have made a boat load of money  on investments and 401ks over the last 4 years so it's time to cash some in before the Capitol gain tax hikes coming  next year and inflation caused price increases. The prices of used are now skyrocketing due to shortages also. Just another cycle before the next market crash.