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Module 2 · The species

The hardwoods: what gets made out of them

Level 2 · Working knowledge 13 min read 5 questions

A dozen species carry the North American hardwood trade. The high-value uses are famous and small; the volume buyer of hardwood is something most people never look at.

A cooper raising a barrel from oak staves in a workshop, with finished barrels around him
White oak for cooperage: the barrel trade competes directly with flooring for the best logs.jovkovski1969 · Enhanced licence · Adobe Stock 389757402

Hardwood is a different business from softwood in almost every respect. The trees are older, the stands are mixed, the lumber is sold rough in random widths, the grading is about appearance rather than strength, and the buyers are furniture, cabinet, flooring and millwork plants - plus one enormous industrial buyer that gets forgotten.

The commercial hardwoods

North American commercial hardwoods
SpeciesCharacterPrincipal usesVolume buyer
Red oakHard, strong, open-pored, takes stain well; the most abundant commercial hardwood in the eastern USFlooring, furniture, cabinets, mouldings, pallets from the low gradesFlooring and cabinet manufacturers; pallet makers take the low grades
White oakHarder and more durable than red oak; pores blocked by tyloses, so it holds liquidBarrels, flooring, boatbuilding, exterior joinery, furniture, railway tiesCooperage - bourbon and wine barrels - competes directly with flooring for the best logs
Hard (sugar) mapleDense, pale, fine and even textured, very wear resistantFlooring including sports floors, butcher block, cabinets, bowling pins, instrument partsFlooring and cabinet manufacturers; export to Asia
Soft (red and silver) mapleLighter and softer than hard maple, similar appearanceFurniture frames, cabinets, mouldings, pallets, industrialFurniture and cabinet plants; industrial users
Yellow-poplar (tulipwood)Light, soft for a hardwood, stable, cheap, paints wellPaint-grade millwork, furniture frames and interiors, pallets, plywood coreMillwork and furniture plants; pallet and crating manufacturers
Black cherryModerately hard, fine grained, darkens with light exposureFine furniture, cabinets, panelling, veneerFurniture makers; veneer buyers pay far above lumber value for clean logs
Black walnutRich dark heartwood, stable, machines and carves well; the most valuable common North American hardwoodFine furniture, gunstocks, veneer, turneryVeneer buyers and export - a single clear butt log can outprice a truckload of common lumber
White ashHard, strong, extremely tough and shock resistant, bends wellTool handles, baseball bats, furniture, flooring, cabinetsSporting goods and handle makers; flooring - supply constrained by emerald ash borer mortality
Hickory and pecanThe hardest and toughest common North American hardwoodTool handles, flooring, furniture, smoking wood, charcoalHandle manufacturers; flooring; food-industry smoking wood
Yellow birchHard, fine grained, close to maple in usePlywood and veneer, furniture, flooring, doors, turneryPlywood and door manufacturers
American beechHard, heavy, tough, hard to dry without distortionFlooring, furniture frames, turnery, pallets, railway tiesIndustrial and pallet users; some flooring
BasswoodVery light and soft, fine even texture, odourlessCarving, pattern making, blinds and shutters, food containers, hidden furniture partsBlind and shutter manufacturers; carvers
Quaking aspen and cottonwoodLight, soft, pale, low strengthPallets, crating, panel core, matches, chopsticks, animal bedding, pulpPulp and panel mills; pallet and industrial users
SweetgumModerately hard, interlocked grain, prone to warpFurniture frames, plywood, pallets, boxes, veneer corePanel and pallet manufacturers
Black locust and osage orangeExtremely durable in ground contact, very hardFence posts, decking, outdoor structures, marine pilingAgricultural and landscape users - largely a local trade

Current commercial practice · End uses and buyer categories are editorial, compiled from species properties in USDA Forest Service, Wood Handbook (FPL-GTR-190) and from standard trade practice
Volume buyer is the industry consuming the most board footage of that species, which is frequently not the industry paying the most per board foot. Every species listed has low grades that end up in pallets and ties regardless of what its high grades are famous for.

The buyer nobody mentions

Ask what hardwood is used for and most people say furniture and floors. The volume answer, for decades, was pallets. Low-grade hardwood - the boards that come off the outside of the log, the short lengths, the knotty and stained material that cannot be sold for appearance - goes into pallets, crating, dunnage and railway ties, and that industrial demand is what makes the whole hardwood log economic.

NoteWithout an industrial outlet for the low grades, a hardwood sawmill cannot run. A log yields a small proportion of high-grade lumber and a large proportion of common grades, and if the common grades have no buyer, the mill is paying to dispose of most of what it sawed. This is the single most important economic fact about hardwood, and it is invisible from the furniture showroom.

That industrial market has been changing. The pallet industry has shifted substantially towards softwood:

US pallet lumber, hardwood and softwood share
PeriodHardwoodSoftwood
200860%40%
201645%55%
2024About 2 billion board feetOver 80% of pallet lumber, about 9 billion board feet

2008, 2016 and 2024 as stated · Fastmarkets, annual US pallet estimates
The 2008 and 2016 rows are shares; the 2024 row is stated in volumes with softwood above 80% of the total. The direction is the point: the hardwood industry's biggest volume outlet has been shrinking as a share for well over a decade.

Read the numbers correctlyThis matters more than it sounds. When low-grade hardwood loses its outlet, the economics of harvesting the whole stand change, and marginal hardwood timber stops moving even when demand for the top grades is healthy. A high-value species with no home for its low grades is a species that does not get cut.

NHLA grading: paying for clear area

Hardwood lumber is graded under National Hardwood Lumber Association rules, and the logic is different from softwood grading. The grade is determined by how much clear, defect-free material can be cut out of the poorer face of a board, in pieces of a minimum size. It is a statement about yield to a furniture or cabinet cutting operation, not about strength.

FAS (Firsts and Seconds)
The top grade. Long, wide boards yielding a high proportion of large clear cuttings. What a fine furniture maker buys.
F1F (FAS one face)
FAS on the better face, No. 1 Common on the reverse. Used where only one face shows.
Selects
Similar to F1F but permitting narrower and shorter boards.
No. 1 Common
The cabinet grade. Smaller clear cuttings, which suits cabinet and flooring operations that cut to short lengths anyway.
No. 2A and 3A Common
Lower yields of clear material. This is the industrial material: pallets, crating, frames, flooring blanks.

Two consequences follow. First, hardwood price spreads between grades are very wide - several times, not several per cent - so how a log grades matters more than how much it scales. Second, the buyer's own cutting pattern determines which grade is actually cheapest for them: a cabinet shop cutting short parts often does better buying No. 1 Common than FAS, and paying for clear length it will cut up anyway is a common beginner's error.

Veneer: the grade above the grades

The very best hardwood logs never reach a sawmill. Veneer logs - large, straight, clear, with the right colour and figure - are sliced or peeled into sheets a fraction of a millimetre thick, so that one log covers an enormous area of furniture or panelling. Because the log's value is spread over that area, veneer buyers can pay multiples of sawlog prices for the right walnut, cherry, white oak or maple, and a single exceptional log can be worth more than the rest of the harvest.

This is why a landowner should never sell timber without knowing whether there are veneer-quality trees in the stand. It is the clearest case in this course of value being determined by grade rather than by volume.

What to carry forward
  • Pallets, crating and ties are the volume outlet for low-grade hardwood, and without them the log does not pay.
  • NHLA grades measure clear cutting yield, so grade spreads are multiples and the right grade depends on the buyer's cutting pattern.
  • Veneer logs can be worth several times sawlog value, which is why grade beats volume in hardwood.
Terms introduced here
FAS
Firsts and Seconds: the top NHLA hardwood grade.
Clear cutting
A defect-free rectangle obtainable from a board, which is what NHLA grades measure.
Cooperage
Barrel making; the main non-flooring buyer of high-grade white oak.
Tyloses
Growths that block the pores of white oak, making it liquid-tight.
Go deeper

Check yourself

1. Why does an outlet for low-grade hardwood matter to a hardwood sawmill's economics?

2. NHLA hardwood grades are based on:

3. White oak competes for its best logs between flooring and:

4. A cabinet shop cutting short components may be better off buying No. 1 Common than FAS because:

5. Veneer logs command multiples of sawlog prices because:

Lesson 6 of 15 in Lumber and Timber, Stump to Buyer. Educational content only — not investment, trading, tax or legal advice, not a recommendation to buy or sell any commodity, contract or security, and not a valuation of any asset. Figures carry their reference period and source and are indicative of scale rather than live market quotations. Compiled 2026-09-30; drafted with AI assistance and editorially reviewed, per the editorial policy.

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