Over the past year and a half, BC Wood has been working with its Canada Wood partners in Japan to build large-scale wood structures under the Canada-Tohoku Reconstruction Project. The first of these buildings was a small library completed in January. The second project was the high-profile rebuilding of the Yuriage Market which was the largest fisherman’s/farmer’s market in northern Japan before the 3/11 tsunami. The beautiful new facilities were just opened to the public on May 4th during the Golden Week holidays.

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.

Welcome to the 10th anniversary of the Global Buyers Mission™ (GBM) – a three-day, invitation only networking/tradeshow event developed to bring together pre-qualified international buyers of wood products from around the world, with Canadian manufacturers of products that include finished materials, building supplies, and remanufacturing products.

The GBM continues to be the best business building event in Canada for wood products manufacturers interested in growing their export market opportunities – and developing new business relationships with architects, designers, developers, builder & contractors – and other exhibiting wood products companies. Response from our 2012 Exhibitors surveys indicated an estimated $48+ million in new business from attendance at the event.

To celebrate our 10th Anniversary, we are also putting on a little competition to see who can come up with the best booth design/display. This will be judged by a committee of your peers and international buyers, and the incentive is to win back the cost of one booth space! (That’s better than an ipad, right?!)

We are very pleased to be partnering once again with the Western Red Cedar Lumber Association (WRCLA) on the event, as they deliver their Cedar Summit program on the 4th and 5th. We will also draw the important architect / designer / contractor / builder decision makers with our popular Wood First program, which will run through the whole event. Last year, pre-qualified wood products buyers came from Australia, Austria, Belgium, Eastern Canada, China, India, Japan, Korea, Malaysia, Mexico, the Netherlands, Taiwan, Vietnam, the United Arab Emirates, the United States, the United Kingdom, and Vietnam.

We will be back at the beautiful Whistler Conference Centre and have negotiated unbeatable hotel rates for our delegates in Whistler Village.

You will not want to miss this opportunity to showcase your products to over 250 pre-qualified international buyers plus North American specifiers!

Exhibit space is limited and will be available on a first-come / first-served basis. If you haven’t already registered, contact us for your online registration link at gbm@bcwood.com or call 604-882-7100. The link will include a floor plan showing the space and showroom layout for exhibitors.

In case you haven’t seen them yet, here are some links to a few short videos from last year’s event:

2012 Global Buyers Mission Video: http://youtu.be/75FB6QDMv1o
2012 Wood First Video: http://youtu.be/2oAK2n6Vf8U
2012 Global Buyers Mission Exhibitor Testimonials: http://youtu.be/C5j5u6ShUP8
2012 Global Buyers Mission Buyer Testimonials: http://youtu.be/c2Xwy8yRbio
BC Wood YouTube Channel: http://www.youtube.com/user/BCWoodAssociation

Proposed Program Schedule

Thursday – September 5th
Association Business & In-Market Representatives Meetings
Evening Welcome Event at the spectacular Roundhouse Lodge at the Peak of Whistler Mountain for all participants

Friday – September 6th
Morning Networking/Tradeshow/Meetings
Afternoon WRCLA Sponsored Golf Tournament; Architects in-booth presentations; or Whistler free time
Gala Evening Event

Saturday – September 7th
Morning Networking/Tradeshow/Meetings

2013 Exhibitor Fees

BC Wood, WRCLA or Canadian Wood Products Association Member:
10 x 10 booth – $2,079 (includes 2 exhibiting participants)
Non-member:
10 x 10 booth – $3,129 (includes 2 exhibiting participants)
Each additional company participant: $400 / Spousal Program: $150 (includes 2 Evening events)

Exhibit Registration Includes:

• 2 full participants per booth space
• Basic electrical, pipe & drape, covered table & 2 chairs, carpet & Wi-Fi
• All meals during the event including the Thursday night Welcome Event at the Roundhouse Lodge & Friday evening Gala Event
• Full access to Thursday Association Programs
• Complete multi-lingual company listing in the Mission Program Guide

Don’t hesitate to contact us if you would like more information on the GBM or how it could benefit your company.

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!

BC Wood just recently received confirmation that the funding for our 2013-2014 trade show activities has been approved. We began this year’s proposal writing with some concerns over just how much our members would want to take on in the coming year. Our early December sector meetings with member companies provided some good input on how much companies wanted to do this year and where they wanted BC Wood to focus its’ efforts.

BC Wood took this input and put together a comprehensive package of market development activities. Upcoming activities will focus on expanding market share in the United States while maintaining the hard won presence we have gained in Asian markets and Eastern Europe. Recognizing the possibility of a new and emerging market opportunity in India, BC Wood has scheduled a mission and participation in a trade show in Bangalore in February 2014. The Global Buyers Mission, our 10th, will be a highlight, with over 200 buyers coming to Whistler in early September.

I would like to recognize and thank the staff of BC Wood for the extra effort they put towards writing these funding proposals. The result was that BC Wood has another strong program of approved trade event activities for 2013-2014. For those of you wanting to see the updated list of trade show activities, please visit the BC Wood website at www.bcwood.com and select Trade Events from the Programs & Services tab. Any comments or questions regarding these planned activities can be directed to me at bhawrysh@bcwood.com or by calling our office at 604-882-7100.

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!

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.

Our 2012 Global Buyers Mission videos have now been uploaded. All of our videos can be seen on our YouTube channel: https://www.youtube.com/user/BCWoodAssociation?feature=watch

Global Buyers Mission Video

Wood First Program Video

Buyer Testimonial Video

Exhibitor Testimonial Video

Every January in Japan is consumed with New Year’s parties and people wishing their friends, family, and clients a Happy New Year. This year, however, actually feels like a “Happy” New Year.

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.

With the GBM over, BC Wood’s Japan office is now working on bringing members into the market through two major fall shows. One of course is the famed Japan Home Show (Nov 14^th – 16^th) that has been welcoming overseas suppliers for more than three decades. The other, the Osaka Living and Design Show (Oct 24^th -26^th), is a new show for us and is a part of our continuing efforts to brand Canadian wood products in the high-end, Japanese commercial construction and interior design market. This is the last chance for members looking to take advantage of these exciting programs. Only a few spaces remain so please act fast if you are interested.

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.

Another year has passed and another great GBM is upon us. I am happy to report that we have an excellent 24 member delegation coming from Japan, many of whom are first time participants. The Japanese buyers are looking for everything from flooring and millwork to WRC products, engineered wood products, packaged homes, and lumber. Some of the companies are new to Canadian wood products while others are looking to expand on items they are already importing from BC. We also have a reporter from Nikkan Mokuzai which is the largest wood products industry newspaper. Make sure to find him if you have some new and innovative products that you would like promoted in Japan.

We are also honoured to have the construction company that has been selected to build one of the Canada-Tohoku Reconstruction Projects. This project consists of the reconstruction of the largest and most famous public market in northern Japan. This market project has received extensive media coverage as it will lead the economic rebirth of this area and the return of communities destroyed in the tsunami. The builder selected for this very important assignment is the largest Canadian imported house builder in Japan and is coming to look at products for both the market project as well as their main home building business. Please feel free to ask me if you would like set a meeting with this company or any of the other eager buyers in our delegation.

If you follow the Japanese construction industry, you already know that the housing market is very strong right now with both pent up demand as well as the reconstruction efforts in Tohoku. Labour shortages in various construction trades have been reported across the country which is pushing up wages. Some market analysts are even predicting that starts will top 900,000 for 2012 which would be the first time in 2008. Despite these significant time and work pressures our Japanese delegates are still making the long trip over to BC showing how much they value the opportunity given to them by the GBM. I look forward to seeing you all in Whistler!

I am pleased to announce that, effective immediately, Jim Ivanoff will assume the position of Director – Asia Pacific Region with BC Wood. Jim’s broader role within BC Wood will include the responsibility for the day to day operations of BC Wood in the Asia Pacific Region with specific focus on Japan, China, and South Korea. Providing support for its members in these Asian markets is a critical component of BC Wood’s mission and we will maintain our current staffing in Japan, China, and South Korea to carry out this mission. BC Wood’s representatives in these markets will continue their efforts on behalf of our members with an added level of coordination and direction from Jim in Tokyo.

As most of you know, Jim has been valuable asset to BC Wood and its members in Japan since he joined the BC Wood team nine years ago. Jim’s new role and responsibilities will help to integrate BC Wood’s program across the Asian markets and provide even better services for our members going forward. Please do not hesitate to contact Jim at  Ivanoff@canadawood.jp for any additional information on BC Wood’s programs in Asia this year.

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.

I am very excited about this year’s Japan Home Show as the housing market overall has been strong this year and the show organizers have been working hard to bring more value to exhibitors. 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.  I will be booking booth space soon so for more information please e-mail me at ivanoff@canadawood.jp.

Over the past few years there has been a lot of interest in the “reform market” (renovation) amongst industry people in Japan. This is due to the fact that homes built since the early 1990s are quite structurally sound, but they have a reached a point where they need upgrades. In the past, 20+ year old homes would almost automatically be torn down and rebuilt, but many consumers are now comfortable with the idea of renovating over rebuilding both to save money and to reduce waste.

For these reasons, I had wanted to take space at the Reform Industry Newspaper’s annual show at Big Sight and I got the opportunity to do so this year. BC Wood exhibited on behalf of the value-added industry and used sample products ranging from doors, mouldings, windows, kitchen cabinet doors, flooring, as well as WRC furniture and fence systems in our 3m x 6m space. I also made-up picture panels of renovation projects in Canada to cover the walls.

Visitors to our booth were very impressed with the pictures of “extreme renovation” projects that doubled the floor space on homes as well as how renovating a kitchen in Canada can completely change the character of the homes main living space. In talking to the reform specialists that came by, I learned that many of them want to use more natural materials on their projects to also offer a completely new level of comfort to their clients. This is in contrast to the image of “reform” in the past when it was mainly seen as replacing worn-out kitchens and flooring with new “material” or “equipment” with little consideration for space design. I think this shift provides Canadian building products a much greater opportunity in this market.

Going forward, I will follow-up with some of the key contacts I made at the show to do more research on how BC Wood can best approach this niche market. I believe that this will be a growing market segment and that we need a sound strategy in targeting it.

On Friday June 8^th I was invited to take part in the Japan Log Home Association’s AGM and Design Award ceremony. Every year the AGM brings in log home builders from around Japan making it a great opportunity to catch-up with clients. Everyone seemed to be in good spirits this year as the strengthening Japanese economy has been driving housing starts higher.

The main topic of discussion at the AGM was the toughening of building codes for log homes to be used as public facilities. The Japan Log Association is working with the Japanese government to draft the updates, but a lot of the members were concerned that new rules would limit log structures. One particularly worrying development was that machine cut logs might require JAS certification (handcrafted logs would remain exempt) when only a very few companies are able to provide such material. However, this is only for public structures and these new demands are a signal of Japan’s own “wood first” initiatives starting to take hold leading to more opportunities for large-scale log structures. As a result, the government wants to make sure that such large structures will be built properly.

The interest in using log structures as public buildings was also clear amongst this year’s Design Award winners. Notable projects included an elementary school library building, a senior’s daycare facility, a medical clinic, and even temporary houses built in Fukushima after last year’s triple disaster. However, the most impressive award recipient to me was a beautiful WRC post & beam home supplied by our very own Peter Sperlich. Congratulations to Peter and his Japanese partner!

It has been many years since BC Wood organized a log home program in Japan so last week’s event made me think that this might be the right time to offer members such an opportunity. The Japan Home & Building Show from November 14^th – 16^th would be the ideal show to anchor such a BC Wood program around. Any log builders interested in such a program should contact me at ivanoff@canadawood.jp.

From May 13^th to 16^th Premier Christy Clark visited Japan to reinforce the importance of both trade relations and the friendship long enjoyed between BC and Japan. While she had many high-level meetings and important trade promotion events during her stay, her announcement of the first “Canada-Tohoku Reconstruction Project” was the most demonstrative of the depth of the relationship.

The tsunami of March 11^th, 2011 devastated the coast from Ibaraki to Aomori and has created a need to rebuild entire communities in many places. Together the governments of both BC and Canada along with the forest industry pledged to help in the rebuilding with a combined fund of $4.5 million. Since this initiative was announced last November by Minister Joe Oliver, BC Wood and its Canada Wood partners have reached out to the affected communities looking for projects that our industry could take up as a part of the massive reconstruction effort underway in the Tohoku Region.

The first project to be approved by the industry committee managing this humanitarian effort is the Yuriage Market in Natori City, Miyagi Prefecture. Before 3/11 this was the largest fish and farmers market in Tohoku attracting about 600,000 visitors a year. The tsunami not only washed away this crucial economic driver, but also destroyed the community around it. Despite the fact that 5 of the market vendors and 10 of their family members were killed in the tsunami, the association that manages the market on behalf of the city vowed to reopen Yuriage Market as quickly as possible in order to help bring both people and commerce back to what is now a barren landscape.

The city government and local 2×4 builder Selco Home together proposed to Canada Wood to rebuild the formerly concrete market with Canadian wood as well as incorporating a Canadian atmosphere. They hope that the new unique and attractive structures will help to quickly lure back customers and tourists to boost the shattered local economy. In this way, the market will become a centerpiece of Natori City’s revival as well as a symbol of Canada and Japan’s strong friendship. Additional projects will be announced in the coming months.

Last week the BC Wood Japan Office once again organized a Canadian Pavilion on behalf of our wood products industry at the Nikkei Architectural and Construction Materials Show in Tokyo with eight member companies participating. We were very much looking forward to this show as it is one of the main venues for our promotional activities in Japan. However, it was on the final afternoon of last year’s Nikkei Show that the 9.0 magnitude earthquake wreaked havoc across northern Japan and for this reason there were many mixed emotions around the show this year.

Many of the participating BC Wood members also took part with us last year and thus experienced firsthand the violent shaking at Tokyo Big Sight and the resulting chaos in getting home. We all remember the horror we felt after reaching the relative safety of our hotel rooms and homes only to see on TV that the entire coastline north of Tokyo had been literally wiped out. Relief in the fact that Tokyo survived the earthquake and tsunami quickly turned to great fear as nuclear reactors began exploding and spewing radioactive material into the atmosphere. At the time it seemed like a never ending disaster. As we braced for aftershocks, we could only wonder what would happen next.

With TV crews from around the world flocking to Sendai, fear and despair was replaced by pride and respect as the people of Tohoku admirably worked together to survive the harsh conditions and begin the arduous process of rebuilding. There were no riots, only organized queues. People helped each other and the Japanese military moved in immediately to support them. The international community led by 35,000 American troops came rushing with shovels, heavy machinery, food, and blankets. Next, BC Wood with its members stood ready as the Japanese government turned its attention to building temporary housing for the thousands of homeless and emergency shipments of lumber and plywood began to flow.

Along with our Canada Wood partners, I made several trips to the worst hit areas. It was shocking to see the level of destruction first hand and to see the resolve of the local people in their desire to rebuild their towns. Mayors and other city officials who were lucky to survive the killer wave were working 16+ hour days to make sure that this would happen (most have not taken a single day off since last March). Despite the usual politicking in Tokyo, these towns were able to secure budgets to move their populations to higher ground and begin new communities.

This year as the country marked the sorrow of March 11^th, 2011, many people wondered how these communities were fairing. The TV shows that I watched explained that the affected area has seen on average a 10% drop in population as young people left to find work in Tokyo and beyond. Many of those who have stayed so far are also looking to leave as the lack of substantial reconstruction so far has meant that there has been no revitalization of the local economies and thus very few jobs.

In fact, in the hard hit town of Minami-Sanrikucho only 10% of the neighbourhoods have been able to put together plans to move to higher ground and rebuild. However, as of this March 11^th, not even one such project has been started. Hopes of moving the first groups of people into their new homes by early 2013 seem impossible. People with the financial means are deciding not to wait and are buying homes in neighbouring towns unaffected by the tsunami. The future of towns like Minami-Sanrikucho seems almost as bleak now as it did one year ago. However, the message that those towns wanted to give on this dark anniversary was that they are not giving up.

On the floor of the Nikkei Show, you could also feel the energy of a country trying to move forward. Attendance was good and people were discussing real projects along with new business opportunities. Maybe things have not moved as quickly or as smoothly as had been hoped, but progress is being made on both the reconstruction and nuclear fronts as well as the economy overall.

Let us not forget, but let us move forward.

The BC Wood Japan office participates in 6-7 trade shows per year in addition to organizing various seminars, responding to inquiries, and conducting countless client visits. In all of these trade promotion activities we give out copies of our BC Wood Japanese brochure to both explain about our value-added industry and to introduce specific member companies that have ads inside. We are currently putting together a new version of this brochure so this is your chance to be a part of this great promotional activity.

For a small investment, your company will be featured in the members section of this brochure. All we need is your logo, contact information, a product picture, and a brief company/product profile. If you do not have a profile in Japanese, we can translate it from English for you.

The BC Wood Japan office has been conducting a media campaign and this brochure will be sent out to all of the inquiries that we are receiving as a result. Additionally, as the tsunami devastated Tohoku region moves into reconstruction mode, we will be doing a large mail out with this brochure to the importers, builders, and developers in the affected areas.

Even if you cannot take advantage of our trade show programs directly, our new Japanese brochure will get your company in front of a wide cross-section of the Japanese building products industry. Time and space is limited so hurry and don’t miss out!

For more information about the new Japanese brochure program, please contact Jim Ivanoff at ivanoff@canadawood.jp.

While many major economies around the world have been suffering high unemployment since the Lehman Shock, Japan has faired relatively well with rates in the range of 4.4% to 5.5%. The current rate in Japan is still around 4.5%, but within the construction industry many people are talking about labour shortages.

The shortages are being caused by reconstruction efforts in the Tohoku area coupled with strong demand from consumers across most of the country. The number of housing starts per year in Tohoku were not that large so as result there were not as many construction workers available there. In fact, due to weak demand before 3/11, many carpenters actually left to work in the Kanto region. Now that there is so much reconstruction work, these people are being called back while workers from other areas are also being recruited with the lure of higher wages.

This is leading to a domino effect where construction companies as far away as Kyushu are having to pay higher wages or risk losing their workers to Tohoku. This year the Sea of Japan side of the country has seen record snowfalls and the labour shortages are even hampering snow removal efforts. In places such as Aomori local communities in the past could count on construction workers and their dump trucks to help with cleaning roads. This year both the workers and the heavy equipment are working overtime in tsunami devastated areas.

The biggest concern to many industry people is that real reconstruction efforts have not even begun yet. Removing debris is still the main task, but this is expected to transition to full scale reconstruction as the summer approaches. Additionally, the Japanese government has announced its intentions to raise the consumption tax to 10% from 5% within a few years which means that many people considering to build new homes will push up their plans to avoid paying the extra tax. Full scale reconstruction in conjunction with increased demand will inevitably lead to even more pressure on the construction labour market.

This situation is very reminiscent of the period after the Kobe earthquake. Just as reconstruction of the city was in full swing, homebuyers were preparing for the consumption tax to be raised from 3% to 5% in 1997. This is leading people in the industry to predict a return to Kobe era trends such as bringing in carpenters from North America as well as a boom in imported housing packages.