Gross and Janes Co.
Winter 2016
Message From the President

Things are looking up for the crosstie industry on several key fronts, thanks to the weather finally cooperating. Inventory is now headed in the right direction and suppliers are starting to get caught up with the backlog of demand for crossties by the major railroads. There was also an optimistic and upbeat feeling about the industry at the recent Railway Tie Association annual symposium and technical conference in Tucson, where the consensus among attendees was that things are getting better.

Another bright spot we see is the expanding demand for our borate pre-treated ties by the Class 1 railroads. Tuff Tie™ was an early leader in borate pre-treated ties, and recent results from the railroads show that these ties are living up to their promise of greater strength and longevity. Today our Tuff Tie™ business with the Class 1 railroads is steadily growing.

I am also pleased to announce that Scott McBride has been named Vice President of Procurement at Gross & Janes, Bill Behan has joined the company as Vice President of Plant Operations and Heather Bridges has been promoted to Controller. Scott has been with Gross & Janes for more than 30 years and has strong working relationships with sawmills that gives him a deep understanding of their needs. Bill has 20 years of sawmill and plant supervision experience and he recently operated a large sawmill in Brookhaven, Mississippi. Heather joined Gross & Janes in 2009 and has helped us strengthen our accounting and financial management processes. These moves will help us maximize our productivity and capacity to meet the inventory needs of the Class 1 railroads in the coming months and years.

Sincerely,

Mike Pourney

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Marketplace Report — Winter 2016
A random survey of selected sawmills was taken the week of October 5, 2015 to develop this non-scientific snapshot of the crosstie purchasing market. This report is broken down into four primary log harvesting regions covering portions of Missouri, Arkansas, Texas and Louisiana (see map). It covers both oak and mixed wood logs.

Hightlights: Log availability is up, although southern Arkansas and East Texas still felt the lingering effects of the wet weather experienced earlier in the year. Log banks have increased dramatically since summer, ranging from 3 – 6 months instead of the average 1 day – 2 months reported earlier in the year. Logs are moving, but sawmills are not carrying any extra log inventory. Fuel prices continue to drop.

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