Since 3/11, the association that manages Yuriage had been able to keep the market alive by renting space in a shopping mall parking lot just outside the devastated area. However, both the tenants and the customers wanted to see a return to the Yuriage site so that they could have proper facilities while also bringing economic activity back to the desolation left by the tsunami. In fact, this Canadian funded project became the first reconstruction effort in the area and thus now stands as a beacon of hope for this once thriving community.

Opening day saw over 15,000 people overflowing the Yurage Market grounds starting at 6:00am. By the time of the official opening ceremony at 11:00, many of the vendors were sold-out. Walking past the many stalls, it was wonderful to see locals benefiting from our contribution. In fact, as Canadian delegates went past, you could hear a chorus of “arigato” from the vendors matched with heart-warming smiles. Many member companies worked hard supplying materials for this project and it made me very proud to see the results of all our efforts.

The market consists of three areas. The largest building is the “Maple Pavilion” which was constructed using Douglas fir glulam posts and beams while finished in high-quality WRC paneling, siding, and decking in addition to engineered white oak flooring and CLT panels used in a decorative application. The Maple Pavilion will be used as a food court and outdoor seating area in addition to being a gallery documenting the history of Yuriage as well as Canada’s contributing to its reconstruction. The main shops are housed in two long 2×6 structures, also clad in WRC, each with seven individual stalls. In front of these is an open area for additional vendors to set-up in tents. The market association is now applying for loans to build permanent structures there as well, which are also planned to be constructed using Canadian building products.

During this fiscal year, one more large project will be undertaken with the remaining funds from this initiative. Prior to the tsunami, many of the commercial buildings in this area were drab concrete structures. The Canada-Tohoku Reconstruction Projects will serve as demonstration projects of how Canadian wood products and technology can be utilized in developing warm and inviting facilities that encourage people to return.

For the past three years, BC Wood has had a special partnership with the WRCEA for the Japanese market. This relationship has allowed us to deliver higher impact promotions through seminars and trade shows in order to introduce Western Red Cedar to a new generation of architects and designers. These efforts are targeted at the growing use of wood in exterior applications as new certifications and installation methods help WRC meet Japan’s tough fire-code regulations.

The WRCEA has developed an extensive library of resources and presentation materials which by working together with in-market distributors, we were able to localize into a comprehensive seminar program for Japanese architects. We first delivered the program on behalf of the WRCEA in 2012 in Tokyo and Nagoya and the feedback from both the WRC distributors and attendees was overwhelmingly positive. For this reason, we expanded the program for this year and delivered it in Tokyo, Osaka, and Fukuoka. Once again we had great turnouts in each city and were able to inspire participants through our lecturers’ great presentations on WRC projects both in Japan and around the world.

It was interesting to see local wood distributors who in the past had handled WRC take part. Speaking with these companies after the seminars, it was clear that they also have seen a renewed interest in WRC and are looking at putting effort into promoting the species again. Before the American housing bubble pushed up cedar prices, WRC was considered a standard species for decking. However, as Japan’s own wood first policies are creating more demand for wood products, many in the wood industry realize the potential to use WRC on the exterior of not only homes, but also commercial buildings, whether they are built in wood or concrete. I believe the positive reaction of the architects at the seminars helped further demonstrate this latent potential and will hopefully lead many of these distributors back into our WRC network.

These seminars also offered us a great venue to promote the Global Buyers Mission (GBM) to architects interested in wood first inspired designs. We look forward to inviting some of them to our 10th annual event in Whistler this September!

Once again BC Wood organized the Canadian Pavilion at the Nikkei Newspaper’s construction industry trade show. This year, seven BC Wood members took part covering a variety of products including log & timberframe homes, kitchen cabinets, WRC, mouldings and flooring, as well engineered wood. Our Canada Wood partner, Canada Tsuga, took space with us as usual. We also included a special display on the Canada-Tohoku Reconstruction Project so that show visitors could see the efforts being made by Canada in helping to rebuild after the March 11th, 2011 earthquake and tsunami.

Having Japan’s most influential newspaper behind the show means that it will always be a well-attended event. The show is only open to industry people and yet attracted 242,353 visitors over four days. This represents a 2.6% increase in attendance over 2012. In total, there were 1,279 exhibitors (for a total of 3,640 booths) representing 13 countries. The show organizers are looking to further build this event by clearly branding it as a “Nikkei Show”. Therefore, from this year, they started using “Nikkei Messe” as the overriding name connecting the various sections such as “Architectural and Construction Materials 2013,” “Japan Shop 2013,” “Lighting Fair 2013,” etc.

Aside from the strong numbers, you could also sense the bullish housing sector in talking with the visitors. While there is a concern of what might happen after next year’s consumption tax increase, many people that I spoke with are now feeling optimistic that the economic recovery will keep housing starts strong past the tax hike. More importantly, participating members reported a good number of business leads and strong sales figures by the end of the show.

During the week, BC Wood also worked with COFI to put on a seminar for the Japanese committee members working on the new CLT JAS code. This is a crucial time in these deliberations as the first draft is expected to be tabled by this spring and the final draft brought into effect by next spring. Therefore, we seized the opportunity to have Colin Chornohus speak to the committee as Structurlam was participating in the Nikkei Show. Colin was able to address their questions about using mixed species such as SPF as well as the types of glue used in Canada and Europe.

All in all, it was a very busy and successful week!

Timberframe house under construction

The housing starts for 2012 are in and are better than had been anticipated. Last year when the Japan Forest Journal surveyed 15 top home builders, the forecast for the year came in at 870,000. However, with starts rising 10% in December to total 75,944, the housing market for the year finished at an impressive 882,797 units. This was an increase of 5.8% over the previous year and also marked the third straight year of growth after the market began to recover from the Lehman Shock.

Demonstrating the soundness of this recovery, growth across all housing sectors continues to be seen. According to MLIT statistics, custom homes increased by 9.2%, rental units by 11.2%, and spec homes by 9.8%. Looking at the numbers by the type of wood construction method, we see that zairai grew by 6.3% to 31,840, 2×4 by 10.5% to 10,258, and wood pre-fab by 12.9% to 1,454.

Perhaps the best news for the Canadian lumber industry though was the fact that 2×4 starts were up 9.4% on the year to end at 107,487. This number is just shy of the record set in 2008 emphasizing the continuing strength and market penetration of the 2×4 system.

Going forward, high SPF prices and a weaker yen versus the dollar is creating some concerns. However, as all input prices in the Japanese construction industry are under pressure, this is not a problem unique to 2×4. In fact, wages of skilled labourers around Tokyo have jumped by as much as 40% due to the strong housing market combined with reconstruction work in Tohoku. The costs of materials such as concrete are even delaying reconstruction projects as budgets have been stretched.

Despite cost concerns, most of the industry people I have been speaking to since the beginning of the year are predicting a strong 2013. The major push continues to be the planned rise in the consumption tax in 2014, but favourable sentiment is now also being driven by the new Prime Minister’s economic policies. A similar survey of the 15 major builders for 2013 resulted in a projection of 920,000 starts. With the current positive climate in Japan it is quite likely that this forecast will also be easily surpassed.

As always, JC lined up meetings for the attending members with key clients. However, this year he also arranged an opening day reception inside the pavilion in order to create a networking opportunity for members with invited Korean wood industry VIPs. Both the BC Government Office in Seoul and the Canadian Embassy were partners in this event. Over 100 Korean clients attended this event.

BC Wood also organized an architect’s seminar on the day before the show in collaboration with KIA (the Korean Institute of Architects) in order to promote the use of Canadian wood products in commercial building projects and particularly for facilities being built for the Pyungchang Winter Olympic Games. The event was held at the historic Old Seoul Rail Station and was attended by close to 100 KIA members. Attendees were able to learn about the various wood solutions offered by Canada while we were also able to gain access to high-value specifiers and influencers in the Korean architectural community. BC Wood is planning to further develop this target segment by taking part in the KIA Convention this October. Please contact Jim Ivanoff (ivanoff@canadawood.jp ) or JC Lee (lee@canadawood.or.kr ) for more information on this upcoming event.

Donguri Anne Library Exterior

Mayor and Ambassador

It has been almost two years since 3/11 and with most of the clean-up now done the reconstruction work is expected to move ahead at full steam this year. The Canada-Tohoku Reconstruction Project has been at the forefront of the reconstruction in Natori City, Miyagi Prefecture and we are proud to announce that the Donguri Anne Library project was completed on January 18^th. Canada’s new Ambassador to Japan Mackenzie Clugston as well as NRCan’s Director General Glenn Mason were on hand to celebrate along with many representatives of the Canadian wood products industry.

Anne of Green Gables Corner

Donguri Anne Library Interior

The library project has been very well received by the local community. The mayor and other town officials repeatedly praised the Canadian effort to rebuild this crucial community gathering place. The exposed Canada Tsuga (hem-fir) posts and beams created a warm but dynamic interior that will welcome locals for years and years to come. The beautiful WRC on the outside of the building also stands in sharp contrast to the cold concrete structure that is being replaced (the original building suffered extensive damage in the 9.0 earthquake and is currently being demolished). However, watching locals and in particular children rush in to borrow books as soon as the ceremony had been completed was the most rewarding scene of the day.

Yuriage Project Ground Breaking

January 18^th was actually a double celebration as we also held the ground breaking ceremony for the Yuriage Market reconstruction project immediately following the library opening. The market project is much larger and also more complicated as the original facility was ground zero for the tsunami. As a result, reconstruction in that part of Natori City has been slowed by fears of future disasters. One of the countermeasures that has been taken is to raise the ground level between 70-400cm. Natori City finally completed the ground raising for the market area in December which has allowed us to proceed with construction.

Yuriage Project Site

Once again the local community came out to thank Canada for helping rebuild this area. The ground breaking was extensively covered by local print and television media demonstrating the importance of this market which before the earthquake was the largest and most famous in the Tohoku region. The chairman of the association that runs Yuriage on behalf of the city became emotional as he explained how this project will be the cornerstone of the entire area’s rebirth once it is officially open in early May. I am very much looking forward to that day which will see people return to this now empty and eerily quiet former neighbourhood.

In December, Shinzo Abe’s Liberal Democratic Party won the lower house election making him the Prime Minister for the 2^nd time (he had to quit for health reasons in 2007 after being at the helm for less than a year). He campaigned on ending deflation and returning Japan to a solid growth path stating that he was willing to follow the American policy of printing money until the ink runs out if necessary to do so. Apparently believing both his commitment and capability to achieve these goals, the markets reacted bullishly the day after election and the Nikkei has been on a tear rising over 12% since the election.

More importantly, the people actually seem to have faith in him. This is saying a lot in a country that had seemingly lost all faith in politicians and has seen a revolving door of new PMs each year. The mood of the country has changed and for the first time in a very long time people are positive about the economy. The new government’s approval of a Y20 trillion (US$234 billion) stimulus package just three weeks after the election that aims to create 600,000 jobs and add 2% to Japan’s growth rate will further bolster people’s confidence. Economic growth depends a great deal on consumers feeling positive about spending, but the Japanese have held their wallets shut tight for many years. If this newfound consumer confidence sticks, the new PM may actually be able to achieve his economic goals more easily than many had anticipated.

The housing industry is in an even more interesting position. Construction of new homes took off in 2012 with people looking to avoid the consumption tax increases scheduled to begin in 2014. 2013 was expected to be even stronger as the “tax incentive” would be coupled with full-scale reconstruction in Tohoku. Add optimistic consumers with large savings behind them to this mix and the year of the snake could be a bonanza for the construction industry.

Last week I attended a New Year’s reception for the imported lumber industry and was interested in hearing how companies were dealing with higher SPF prices combined with a weaker Yen (like the weak US$, the weak Yen is a result of Abe’s willingness to print money). In the past, the specter of even one of these sent importers into a state of panic. However, at last week’s reception everyone was bullish. People told me the market had to and would accept the price increases. One president confidently told me, “if they don’t pay the increase, there is no lumber for them!” With even the lumber industry in Japan this positive, it is definitely shaping up to be a Happy New Year indeed!

For the past several years BC Wood has been promoting design related products in Japan such as furniture and millwork. We have been successful in having such products specified into several high-profile projects. Recently even one of Japan’s top department stores came to us as they were interested in using some pieces in a display.

Isetan’s flagship Shinjuku store attracts wealthy, fashion conscious shoppers from across Kanto. The Canadian Embassy in Tokyo has worked with them to promote Canadian apparel and recommended BC Wood when Isetan was looking to create a stylish, woody atmosphere to launch a new line of clothing.

We introduced them to a variety of furniture pieces as well as millwork options, but the store’s designers knew they had found exactly what they were looking for once they saw Brent Comber’s work and the WRCLA published Cedar Book. Using selected pieces from Brent as well as a selection of WRC products, Isetan was able to create a sophisticated yet woody display. The store felt that their customers really enjoyed the warmth of the Canadian wood products. Hopefully this will encourage some of their clients to consider using Canadian materials for their own homes in the near future.

As always, BC Wood greatly appreciates all of the support given to us by the Canadian Embassy. We look forward to more such collaborative efforts in the future.

Osaka Living and Design Show

After a long absence from taking members to trade shows in Osaka, BC Wood will be organizing a Canadian pavilion at the new but highly regarded Living and Design Show. Over the past few years we have participated in Tokyo Designers Week, but decided to change to L&D as it is more focused on B to B for interior design and also gives us a chance to target the lucrative but underserved Kansai region in Japan (all foreign competitors go to Tokyo). This area that includes Osaka, Kyoto, and Kobe has a larger economy than all of Canada and is also experiencing a flourishing commercial construction sector. Another benefit of this show for members is that it better covers building products such as flooring and millwork.

Japan Home and Building Show

BC Wood will once again be organizing the Canadian wood products pavilion at the annual Japan Home Show. This year the show will return to its traditional November schedule and run from the 14^th through the 16^th at Tokyo Big Sight.

The JHS typically attracts about 90,000 industry people ranging from importers and distributors to builders and architects and has long been the highest profile building products show in the country, particularly for imported products. This year the organizers have decided to strategically partner with JAPANTEX which is one of Japan’s largest interior trend shows for professionals. With the JHS and JAPANTEX collocated together in Big Sight’s East Hall, it is expected that JHS exhibitors will see a dramatic increase in designers working on non-residential projects.

Also, we expect positive synergies from the HOSPEX show, catering to the owners/operators of medical and elderly care facilities, which will be run concurrently by the same organizers in an adjacent hall. Elderly care facility operators have been adopting 2×4 buildings more and more in recent years because of the perceived therapeutic benefits of wood framed buildings. COFI’s Japan Office has been very active in targeting this market on the structural side and we are endeavouring to find more opportunities for value-added products on such projects.

BC Wood will also be working with the Canadian Embassy on a program timed around the show to target the reconstruction efforts in the Tohoku region. As a result, members attending the JHS will also be able to take part in some match-making activities targeting local companies working on both non-residential and residential projects in the tsunami devastated communities.

This show offers a great opportunity for companies looking to enter the Japanese market and take advantage of the many positive trends we are seeing.  Products sectors covered: cabinetry, engineered wood, millwork, log and timberframe, packaged homes, as well as reman and specialty lumber including WRC.

For more information about either of these shows please contact Jim Ivanoff at ivanoff@canadawood.jp.

Last September, BC Wood participated for the first time in the CIEHI. The show was very well attended and the participating companies reported some very good leads from Chinese builders, developers, and architects. A main theme of the show was green and energy efficient building with wood construction and building products featuring prominently throughout the show. A number of foreign log-home and panelized house manufacturers were promoting their products, in particular a large number of Russian log home builders. To maximize profile and traffic, BC Wood located its’ display area within the Canada Wood booth partnering with the Coast Forest Products Association and Council of Forest Industries.

BC Wood will be returning to the CIEHI show in Beijing this coming November 21st – 23rd. From our previous experience at this show, we expect that the best opportunities for new contacts and increased exposure in the marketplace will be achieved by manufacturers of prefabricated homes, log and timber frame structures, engineered wood products, WRC lumber decking and siding, and construction lumber.

For more information or to register, please contact Jim Ivanoff at ivanoff@canadawood.jp.

Click here for more information on the show