MaterialsXchange and Mickey Merge

Commodities trading startup Mickey and digital lumber and panel marketplace MaterialsXchange announced that they are merging.

The two companies had become more widely known during pandemic construction materials shortages for their analysis and insights into lumber supply chains.

Both had entered markets that were crying out for improved visibility and greater transactional efficiency.

“MaterialsXchange has spent the last few years developing an amazing front-end platform that has served the lumber industry well,” said Alex Rabens, Mickey’s co-founder and CEO. “Combining their experienced team and platform with our back-end technology, we have created a true, end-to-end solution for the lumber market – as well as other commodities in the long-term.”

Mike Wisnefski, co-founder and CEO of MaterialsXchange, becomes president of Mickey Group. Ashley Boeckholt, co-founder and chief revenue officer of MaterialsXchange, continues in the same role at Mickey.

Back in May, Mickey had debuted an automated lumber marketplace. “The Mickey Marketplace offers a variety of hardwood lumber sourced directly from NHLA-certified producers harvesting logs from, sustainable and renewable forest resources around the United States – giving more small and medium sized suppliers, as well as large forest product firms, access to sell their inventory directly online to purchasers,” the announcement said at the time. Mickey already had an energy trading group and expected to enter metals, agriculture, and chemicals at some point in 2022.

Producers could upload real-time inventories to the marketplace so that potential customers can see what is available. The company partnered with a number of freight and logistics firms, including J.B. Hunt, Coyote Logistics, and Uber Freight, to provide shipping services. Buyers could purchase full truckloads of product.

But even with more efficiency in an online process, there may be limitations to how well the building industry adapts to this. A developer, contractor, or other user of wood can’t easily inspect the goods for moisture content, bends or warping, knots and imperfections, or color.

MaterialsXchange described their business as “modernizing the inefficient, ‘call around’ structure of buying and selling lumber.”

“Sellers on MX list their wood products daily, offering Buyers on MX total price transparency as they bid, in real-time, on what is available,” the description continued. “When their prices match, a transaction occurs instantly. Updating the process further, MaterialsXchange transfers the funds electronically and arranges the delivery via truck or rail.”