Next Year Will Be “a Big Year For Producers,” Especially If Winter Does Not Bring Record Rainfall, Said Railway Tie Association Executive Director Nathan Irby.

By Michael Popke

No industry, it seems, has been able to escape supply shortages of late. Including the wood segment of the crosstie business. As the Railway Tie Association noted in its midyear purchases report, “production continued in its declining trend, though the rate of decline slowed down.” 

Wood-tie producers have struggled to procure ties, as hardwood lumber — such as grade lumber, wood for flooring and pallet stock — has been the preferred sawing solutions for sawmills, said RTA Executive Director Nathan Irby in an email.  

“Accordingly, wood-tie production has been marginalized, and with railroad purchases outpacing product, inventory levels are quite low,” Irby said. 

The good news? Since June, sawmills have increased their tie-cutting production throughout the United States. The bad news? Production is still slightly stunted, due to labor inconsistencies, supply-chain disruptions for parts and equipment, and trucking woes, Irby said.  

“I postulate railroad wood-tie demand will be strong for the next 12 to 18 months, as tie inventories are too low, production has grossly under-paced purchases, and the constrained sawmill output cannot satisfy the needs before that window of time,” he said.  

Irby declared 2023 will be “a big year for producers” — especially if winter does not bring record rainfall. 

Wood-tie suppliers and treaters tend to agree. Progressive Railroading recently reached out to a sampling of them to gauge their take on 2022 developments and their outlook for the year to come. Edited versions of their emailed responses follow.