Japan
BC softwood commodity product sales in Japan
(Softwood lumber, plywood, OSB, MDF and Particleboard)
Market type
- Third largest market for B.C. wood products.
- Mature over-all housing sector, but opportunities in hybrid construction and “green building”.
B.C. position
- Market leader with 25.8 percent share of softwood commodity product imports.
Export sales
- 2010: 2.6 million cubic metres of commodity wood products valued at $688 million.
- 2011 (through June): 1.4 million cubic metres valued at $372 million.
Market overview
Japan’s GDP grew by 4.0 percent in 2010 and growth accelerated in January and February 2011 when export demand improved. The Great East Japan Earthquake in March 2011 disrupted supply chains and caused electricity shortfalls and weak demand, which are likely to hold back economic activity for some time. The building of temporary shelters is underway for the people made homeless by the tsunami. Broad reconstruction of civil infrastructure and housing is not expected to start before late 2011.
Housing starts recovered from the record low in 2009 and grew by 3.1 percent in 2010. Wood construction increased at more than twice the pace (+7 percent) to reach a new high of 56.6 percent of total housing starts in 2010.
Canada returned to being the largest supplier of softwood lumber to Japan in 2010, just ahead of Europe. B.C. softwood lumber exports grew by 23.2 percent to almost 2.5 million cubic metres. B.C.’s share of Japan’s total lumber imports increased from 37.2 percent in 2009 to 39.8 percent in 2010.
Market strategy
B.C. has a long history of forest products exports to Japan and this continued in 2010/11 with exports remaining strong despite weak economic conditions in the market. On a volume basis, B.C. exports of softwood lumber (+23 percent), panels (+15 percent) and pulp (+10 percent) all increased from 2009 to 2010. Although this is a mature market for many products, FII continues to work with the industry to develop niche opportunities in elderly care facilities, post-and-beam, and 2×4 wood frame construction and value-added products. Under the “Living and Building with Wood” strategy, B.C.’s value-added producers have continued to build market share as they inspire Japanese designers and architects with innovative architectural and interior products.
Japan has long been a key market for B.C. cedar and hemlock and work has focused on ensuring optimal building and fire codes and standards to accommodate the use of these important Coastal species. Ongoing work to develop construction guides and undertake testing for applications of cedar, hemlock and OSB in Japan will ensure B.C. maintains its position as a preferred supplier.
Select accomplishments 2010/11
- 18 new wood frame elderly care facilities were initiated or completed in 2010 following aggressive promotion into this new segment.
- 15 million in increased sales of value added products were achieved through trade shows, advertising and media campaigns.
- Technical research was completed to expand the use of OSB and other engineered products for platform frame construction, which lead to Ministerial approval of OSB Shear Wall construction.
- Over 3,500 engineers, students, architects, and trade leads were contacted through promotional and seminar activity.
Activities in 2011/12
Following the devastating earthquake and tsunami in March 2011, FII has been working with the industry to identify opportunities for B.C. to assist with reconstruction efforts. Panel and lumber products are expected to fill a burgeoning demand as affected regions of the country begin to rebuild. Engineered wood products continue to be a priority in the Japanese market and B.C. has been working with Japan to encourage Wood First policies for the Japanese construction industry.
After some years of research and development in the market focus is shifting to new market opportunities for existing products including the expansion of efforts into niche markets such as wood frame elderly care facilities and special purpose non-residential buildings.
For access to FII-funded market research and related data for the Japan market, click here
For B.C.’s current monthly exports of softwood lumber, by species, to Japan, click here
