Report on Developing the Forestry and Wood Product supply chain in Japan

Report on Developing the Forestry and Wood Product supply chain in Japan Fiscal Year 2016

Michal Gryko

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Table of Contents

Supply Chain Overview ..............................................................................................3 Chapter I Stable Supply System of Wood ................................................................. 4‐5 Chapter II Timber Sourcing and Management .......................................................... 6‐9 Chapter III Government Incentives .......................................................................... 10‐11 Chapter IV Infrastructure and transport ................................................................... 12 Chapter V Wood processing and Products ................................................................13‐15 Chapter VI Prefabricated wooden housing ................................................................16‐22 Summary…...................................................................................................................23‐24 References…................................................................................................................25‐26

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Supply Chain Overview

Strategies for establishing a stable supply chain for developing a structural composite lumber (SCL) market in Japan This report works to identify the elements required to establish steady demand for the utilisation of current wood stock in Japan with the ambition to create a Stable Supply System of Wood to benefit all involved. The main objective is to propose a strategy for structural composite lumber (SCL) stake holders and propose a reasonable collaborative relationship with a construction company with the end goal of developing the SCL market in Japan. The proposed supply chain focuses on the implementation of new wood engineering technology, specifically Cross laminated Timber (CLT) and its application in prefabricated housing for driving demand in the industry. This report has been structured to go through the main issues and companies involved from the felling of a tree to the construction of a wooden house (figure 2‐3).

Figure 3: Modern/traditional mix wooden house

Supply Chain improvement

The current state of Japan’s wood supply chain has improved from previous years but still maintains issues with profitability, co‐ordination and demand creation.1 Three main points for improvement will be covered when analysing the entities involved in the supply: 1. Creating a steady demand for timber for housing and timber product export in order to establish a stable supply system of wood not susceptible to decline.

2. The process of facilitating cooperation and coordination between stakeholders, from forest owners, national forest offices, forest management programs, loggers, lumber mills, wood product factories and house makers.

3. Raising people’s awareness of the importance of forestry and wood products in relation to culture, environment and economy.

1 Forest Agency. Ministry of Agriculture, Forestry and Fisheries, Japan “Annual Report on Forest and Forestry in Japan." FSL 2015 : 2.2 Approaches to a Stable Supply System of Wood pg.4

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Chapter I Stable Supply system of Wood Identification of Companies/individuals/associations involved The entities involved in the supply chain can be broken down into categories from raw material to end product: 1.    2.   3.    4.    5. 

Timber Sourcing and Management Private Forest owners National forest associations Management of forestry contractors

Government Incentives Ministry of Agriculture, Forestry and Fisheries (MAFF) Ministry of Land, Infrastructure, Transport and Tourism (MLIT)

Infrastructure, transport and equipment Logging Transport Rationalization of Timber Distribution

Wood processing and Products Round wood lumber yards Other wood products SCL Factories (e.g. meiken kogyo)

Prefabricated wooden housing House builders (e.g. Sekisui Heim)

The export focus is on plywood and domestic round wood (figure 4). The new proposed supply chain places an emphasis on utilising domestic forest as a source and increasing advanced wood products including laminated lumber and prefabricated homes/components (figure 5). The resulting effect would be one that creates a steady demand needed to maintain work for all entities along the supply chain. Exporting engineered products is more profitable than exporting raw materials and a more expansive supply chain provides more skilled job opportunities for the Japanese youth. As well as economic benefits, domestic wood supply would help maintain healthy forests in Japan which cover almost 70% Japan.2

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Food and Agriculture Organization of the United Nations. “Global Forest Resources Assessment 2015” Rome 2015, www.fao.org/3/a‐ i4808e.pdf pg. 13

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Figure 4: Current Overview of wood processing and distribution 2015

Figure 5: Proposed Overview of wood processing and distribution for 2017

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Chapter II Timber Sourcing and Management With 68.5% of Japan covered with forests3, there is no lack of raw construction material.

Growth of forest stock is not a problem (figure 6), however the geography and the ownership of these forests are. These two complications result in issues relating to reaching the steeply growing forests and to co‐ordinating both privately and nationally owned forests.

Figure 6: Distribution of forest cover rate (500x500 metre pixel)

Figure 7: Forest ownership status by forest type in Japan

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Food and Agriculture Organization of the United Nations. “Global Forest Resources Assessment 2015” Rome 2015, www.fao.org/3/a‐ i4808e.pdf pg. 13

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Private Forest Ownership As seen from the data collated by the Ministry of agriculture, Forestry and Fisheries, Privately owned forests make up almost 60% of the total (Figure 7). With almost double the amount of nationally owned forests, private ownership needs special attention in regards to addressing their locations, boundaries, management and potential in the market. What exasperates the situation more is that of the 14,440 hectors comprising the private forests, approximately 90% of forest owners have less than 10 hectares of forest.4 This creates a tremendous amount of forest boundaries and co‐ordination issues. MAFF is currently tackling this issue with three methods which need enforcement5:  Mandatory forest notification system: The “Forest Act” in 2011 announced a notification system that necessitates new forest owners to register with the local authorities, with the additional intention to promote the sharing of information within relevant forestry organisations.  Availability of Forest Management Planners: Private forests are becoming increasingly neglected with the age of forest owners rising and owners moving away from the forest location. The government have introduced Forest Management Planners who can coordinates forest owners and unite forestry practices.  Promotion of production management for forestry contractors: To increase the utilisation of wood stock and encourage using the forest for profit, management schemes are being offered to forestry contractors which many private owners intrust the management of their forests.

National Forest Association The second largest portion of forest ownership belongs to the National forest association with 30% of the total forest area.6 These National Forests not only contribute to round wood production but play vital roles contributing to the country’s ecological functions of forests, including watershed, land and biodiversity conservation. All of Japan’s need to be consolidated in order to establish a forestry practice which balances the country’s need for raw material and environmental welfare.

Figure 8: Location of National forests

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Forest Agency. Ministry of Agriculture, Forestry and Fisheries, Japan “Annual Report on Forest and Forestry in Japan." FSL 2012 :

Forestry and Rural Mountain Communities pg.21 5

Forest Agency. Ministry of Agriculture, Forestry and Fisheries, Japan “Annual Report on Forest and Forestry in Japan." FSL 2015 : 3.1.5 Coordination and Consolidation of Forestry Practices pg.6, 16 6 Forest Agency. Ministry of Agriculture, Forestry and Fisheries, Japan “Annual Report on Forest and Forestry in Japan." FSL 2015 : 1.1 Distribution of National Forests and Their Roles Expected pg.23

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Forestry Stock 4.9 billion m3 of forest stock is available in Japan and over 51% of Japanese forests, naturally occurring and especially those forests planted after World War II have reached the matured harvesting age (figure 9). Around the age of 50 years, trees are matured (figure 11), whereby afterwards, growth is reduced and the aging forests can risk a variety of environmental issues such as fires, landslides and soil erosion7. Now is the ideal time of selective logging.

Figure 9: Growing forest stock

Figure 10: Maturing of forests

Figure 11: Disasters caused by unmaintained forests

7 Forest Agency. Ministry of Agriculture, Forestry and Fisheries, Japan “Annual Report on Forest and Forestry in Japan." FSL 2015 : Matured Forest Resources and Trends of Demand/Supply of Timber pg 3

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Environmental Benefits Forests and their regeneration through thinning, play a multifunctional role in contributing to people’s lives as well as national economy. In relations to the environment and people’s wellbeing, forests are essential for activities such as water resource and soil, landslide and fire prevention, health preservation and recreation, culture, biodiversity and global environment conservation. Planned thinning of forests (figure 12) and felling of mature trees not only provides raw material for construction demands but is essential for forest health.

Figure 12: Forest Management Cycle

A few of the benefits of thinning include the encouragement of new growth and strong root development of remaining trees which allows the forest to become more weather‐resistant from natural elements such as strong winds and heavy rain. 8

Gaps in forest canopies allows sunlight to reach deeper into the forest, providing opportunity for lush greenery to grow below which in turn prevents soil erosion. This rich environment attracts encourages of various plants and attracts animals to live and breed, resulting in greater biodiversity.

8 Forest Agency. Ministry of Agriculture, Forestry and Fisheries, Japan “Annual Report on Forest and Forestry in Japan." FSL 2013 : Multiple Functional Roles of Forests and Forest Management Activities pg 4‐5

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Chapter III Government Incentives

Ministry of Forestry Plan to Create Dynamism through Agriculture, Forestry, and Fisheries and Local Communities

In December 2013 the Government established a plan for “creating new wood demand”9.

The ideas promoted in this plan align to ideas explored in this report’s proposal for a new improved distribution strategy. The key three points outlined in the plan were:

• Promotion of new engineered wood products and technologies such as Cross Laminated Timber.

• Update guides, regulations and plans to develop cities with more wood construction.

• Utilise the country’s rich supplies of natural resources and new technologies

Roadmap for Disseminating CLT

The following year in November 2014, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) publicized the Roadmap for Disseminating CLT. The document laid out the steps and schedule in relation to popularising the use/ production of CLT with an ultimate goal by 2024 of pushing the ‘annual production capacity to 500,000 m3 of CLT.’ 10

Figure 13: CLT Road Map

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Forest Agency. Ministry of Agriculture, Forestry and Fisheries, Japan “Annual Report on Forest and Forestry in Japan." FSL 2013 : Emergence of Technologies that Facilitate Mid‐to‐High‐Rise Wooden Construction pg 3 10 Eastin, I., & Sasatani, D. (2016, October 19). Japan CLT Roadmap: Lessons for North America. unece.org, www.unece.org, Summary of the CLT Roadmap

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The MLIT is particularly encouraging the use of sugi and hinoki for CLT panels11 through the roadmap, promotions and a number of incentives:

 Compile data on the properties of CLT and develop CLT‐related building standards

by FY2016 (which has been already completed)  Increase construction of exemplar CLT projects and wood use in commercial and public buildings with a 6% share of buildings up to 4 stories  Construct new Laminated lumber mills providing subsidies to offset costs up to 50% of the investment  Set a target of 500,000 m3 CLT production capacity by 2024  Overall aim to reduce CLT production cost by over 50% from ¥150,000m3 to ¥70,000m3 by increasing demand and production  Yearly targets to increase CLT production capacity by 50,000 m3

As seen through these plans, publications and incentives, the Japanese government are committed to advancing wood culture and associated technology. What is required now is co‐ordination and awareness of these situations.

11 Forest Agency. Ministry of Agriculture, Forestry and Fisheries, Japan “Annual Report on Forest and Forestry in Japan." FSL 2014 : “Roadmap for Disseminating CLT” was Publicized pg 1

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Chapter IV Infrastructure and transport

Introduction of Efficient Log Production System

With over 70% of Japan’s area being mountainous12, being able to cut and move these steeply located trees efficiently is an essential part for making forestry profitable. Logging is positioned at the forefront of the supply chain, emphasising its importance. The forestry agency is currently tackling this issue through two methods13:

1. Developing second‐generation cable‐yarding forestry machines which essentially utilise cables to vertically move logs in steep forest sites.

2. Training people and equipping them with techniques to operate the newly developed cable‐yarding devices.

Development of Forestry Road Network

With both national and private forests widely distributed across the country and along mountainous regions, developing a road network which can reach all these areas is crucial for the supply chain. With no transport link, the idea of commercialising these small scattered forests becomes unfeasible and they will be left unused.

A well planned out road network the key infrastructural component to enable efficient forestry practices and distribution. Currently the Forestry Agency is working on developing three types of forest road14:

1. General traffic forest roads 2. Heavy truck and forestry exclusive roads 3. Forestry machinery and forestry operation roads

This approach not only develops infrastructure for the wood related industries but allows access for the public to reach more remote areas which can encourage people to make a living in rural areas instead of moving to the urban cities.

12 Ministry of Land, infrastructure, Transport and tourism. https://www.mlit.go.jp/river/basic_info/english/land.html, Land and Climate of Japan 13

Forest Agency. Ministry of Agriculture, Forestry and Fisheries, Japan “Annual Report on Forest and Forestry in Japan." FSL 2015 : 3.1.2 Introduction of Efficient Log Production System pg 5 14 Forest Agency. Ministry of Agriculture, Forestry and Fisheries, Japan “Annual Report on Forest and Forestry in Japan." FSL 2015 : 3.1.7 Development of Forestry Road Network pg 7

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Chapter V Wood processing and Products

Lumber Production

The percentage of domestic forests used in the raw material inputs for lumber mills is over 70% (Figure 14). If this strategy keeps momentum, it could be possible to see complete self‐ sufficiency in raw food supply in the near future, acting in line with the proposed supply chain strategy.

Figure 14: Material inputs for lumber production

Timber Products

Wood supply self‐sufficiency (including raw timber and wood products) was 31.2% in 2014 which was a benchmark of Japanese wood supply since it was the first time to exceed 30% in 26 years15. Since then, the ratio has been rising in recent years as domestic stock and demands are increasing.

The reason behind this are that planted forests are getting mature and use of domestic wood for plywood has become popularised (the second largest wood export behind round wood Figure 16). The plywood industry has been flourishing in recent years and uses more domestic timber than every recorded, combined with improved processing technology.

As forest co‐ordination is gradually improving, recently, large processing mills are constructed closer to available forests in the vicinity (Figure 15). With the effectiveness of the supply chain being proven, it is possible to do the same with CLT.

Over recent years MAFF has been trying to emphasise that point that ‘In order to strengthen the competitiveness of the wood products industry, it needs to supply wood products in a way that it meets consumers’ and demanders’ requirements in terms of quality, quantity and time of delivery, while securing stable procurement of roundwood.’16 The culture, associated costs and construction standards linked with wood needs to rise over well‐established materials such as concrete.

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Forest Agency. Ministry of Agriculture, Forestry and Fisheries, Japan “Annual Report on Forest and Forestry in Japan." FSL 2015 : Self‐ Sufficiency Ratio of Wood pg.1 16 Forest Agency. Ministry of Agriculture, Forestry and Fisheries, Japan “Annual Report on Forest and Forestry in Japan." FSL 2015 : 3.2.

Challenges to be tackled by the Wood Products Industry pg 8

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Figure 16: Japan’s wood exports

The total value of wood exports reach 22.9 billion yen in 2015 which is almost a 314% increase in fourteen years (figure 16). Round wood, sawn wood and plywood dominate this market, however to further increase export and profit; exporting more processed wood products in key.

Potential target countries could include China and South Korea. With dramatic projected increases in GDP (Nominal) Rankings for 2030 (1st and 7th world wide ranking respectively)17 and sharing cultural similarities in their architecture, these countries have great potential.

Exporting laminated wood products and wooden housing components to these countries which have already popularised views of Japanese wood architecture, is one strategy.

MAFF already has taken several steps in starting initiatives to promote exports of wood through exhibiting wooden houses, products and components at housing exhibitions abroad. In addition to this, the government is participating in the revision work of Chinese wooden building standards as a platform to introduce Japanese wood products into the market.18 This would however require further opening of foreign branches for distributing and promoting wood products.

Figure 15: Newly constructed large mills

The supply chain proposed in this report is targeting 100% domestically supplied wood for laminated lumber mills. The share of domestic wood inputted for laminated lumber mills has been rising, but it still a low figure at 16% in 2014. Plywood production is leading the way with utilising domestic wood supply for its factories with the supply being 70% in 2014.

19 However when the figures for imported plywood are included in the sum, the domestic share of wood is reduced to 30% (figure 16). There is still a high reliance on foreign wood products.

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International Monetary Fund World Economic Outlook (October‐2016). statisticstimes.com/economy/projected‐world‐gdp‐ranking.php GDP (Nominal) Ranking 2030 18

Forest Agency. Ministry of Agriculture, Forestry and Fisheries, Japan “Annual Report on Forest and Forestry in Japan." FSL 2015 : 1.5 Wood Exports pg 20 19 Forest Agency. Ministry of Agriculture, Forestry and Fisheries, Japan “Annual Report on Forest and Forestry in Japan." FSL 2015 : 2.2 State of the Major Wood Products Manufacturing pg 20‐21

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Figure 17: Major wood products

Figure 18: Newest CLT wood product

The newest addition to the wood products is Cross Laminated Timber (CLT‐Figure 18). CLT is similar to plywood in terms of layers of wood being glued together in odd numbers and at alternating at right angles. The main difference is that CLT uses dimensional timber rather than thin veneers in its layers and the panel thickness has a much greater range from 50mm to 500mm panels.20 In 2015 there were six laminated lumber factories operating in Japan. Three of them currently have to converted/ adapted for CLT production.21 If demand for this product can be increased, then other factories can be built or converted for CLT production near maturing forests. (Figure 19)

Non‐CLT Producing capabilities CLT Producing capabilities

www.length.or.jp www.meikenkogyo.com

Figure 19: Location of Laminated Lumber producing factories

www.woodist.co.jp

20 Trada CLT Publication. Timber 2016 Industry yearbook. Trada.co.uk. A short introduction to cross‐laminated timber 21 Japan Lumber Manuel. Volume 56 Number 7, Wednesday, April 15, 2015 Interview with the Japan Cross Laminated Timber Association

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Chapter VI Prefabricated wooden housing

Wood in Housing

In reference to the use of standard dimensional timber and plywood, there is still a large demand for these products in the construction of new dwellings. Almost 40% of wood demand and over 50% of domestic wood demand are for building construction.22

Timber frame construction is still the cheapest form of construction in Japan, resulting in half of new housing starts in Japan created from wood. Even though new house builds are decreasing, the utilisation of wood as a building material is increasing. The table below shows a 10% increase in wooden construction from 2010 to 2015 (Figure 20). The streamlining process of using standard wooden construction in housing has drastically reduced cost and time, resulting in its popularity. If this popularity could be transferred to laminated wood products, the market could greatly expand.

Figure 20: New construction starts of Dwellings by owner and construction method

Figure 21: Wood Demand

Figure 22: New housing starts and production

22 Forest Agency. Ministry of Agriculture, Forestry and Fisheries, Japan “Annual Report on Forest and Forestry in Japan." FSL 2015 : 3.2 Wood Use in Housing Sector pg 21

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From the 1970s, wood prices declined while forest management costs increased, crippling profitability of forestry causing forests to go neglected and unused (Figure 21). To meet wood demand, the volume of imported wood increased, peaking in 1996. The volume of imported wood products overtook that of imported round wood in 1987. Previous incentives and government plans explain in previous chapters have resulted in positive effects with around a 10% rise in the share of wooden houses from 2002 (figure 22).

Similarly imports, particularly of round wood are being gradually reduced.

Prefabricated Homes

From the 1970s to the modern day, demand and construction of prefabricated homes have remained stable relative to other detached houses and dwelling units (Figure 23). There has been a 9% increase in prefabricated homes from 2010‐2015 (figure 20). Proven a stable industry, the prefabricated housing market makes a suitable target for implementing CLT construction to increase its demand. There are five major reputable pre‐fab housing builders (Figure 24), however Sekisui Heim has the largest production of modular housing rather than panelized housing. A modular construction system has more potential benefits in relation to finished product quality and simple implementation of CLT for the modules.

However, in the future, CLT could be used by other companies for panelized construction methods too with the benefits that it is easy to transport (especially abroad) due to the flat‐ pack style approach.

Figure 23: Construction type and housing built in Japan 1970‐2002

Figure 24: Largest Japanese house builders

Sekisui Heim has been selected as a possible exemplar company to begin the application of CLT into their prefabricated homes. The main reasons for this are that the wooden modular production utilised by Sekisui Heim could be adapted to assemble CLT modular wooden units instead. This would greatly reduce startup costs and allow for a much quicker implementation of new design and construction.

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Figure 25: Types of prefabrication in the Japanese prefab housing industry

Sekisui heim currently has two different models for modular design. One utilises a steel frame, while the other, a wood‐frame. (Figure 25) CLT suits modular construction because the panels are already large and strong enough to make individual walls of the modular without any intermediate connections. Modular housing also allows for airtight and stronger construction in factory, providing greater quality housing (Figure 26‐27).

Figure 26: A sample modular unit created from CLT

Figure 27: Illustration of the layers comprising a CLT panel

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Prefab capable factories

Sekisui Heim claims that nearly 80% of housing components used for building a house can be assembled at their factory.23 With its current eight factories in Japan producing wood‐ and/or steel‐frame modular homes they process expert knowledge on modular production and have one of the highest mechanised assembly lines in Japan.

Of the factories which Sekisui heim possess, five have wooden modular production facilities:  Tohoku Sekisui Heim Industrial Co., Ltd.  Kanto Sekisui Heim Industrial Co., Ltd.  Chubu Sekisui Heim Industrial Co., Ltd.  Medium Shikoku Sekisui Heim Industrial Co., Ltd.  Kyushu Sekisui Heim Industrial Co., Ltd.

Figure 28 shows a summary of a typical production line for producing steel modular units by Sekisui Heim. A very similar production approach can be taken when utisling CLT panels instead of a framing method. In fact, the production line would be shorter as the wall panels need less finishing and openings can be quickly pre‐cut.

Figure 28: Factory production line of a Sekisui modular steel home When these factories are aligned with the location of CLT producing facilities, a potential starting point for the supply chain becomes obvious. The meiken kogyo CLT factory and the Sekisui Hemi Shikoku modular producing factory are in close proximity (Figure 30).

Therefore, with improved forestry co‐ordination, management and utilisation, local forests can be utilised in the Shikoku region and then processed in the neighbouring factories. This is just one potential supply link, but it shows the opportunity for an efficient process.

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Sekisui Chemical. sekisuiheim.com. Production Line page

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Non‐CLT producing capabilities

CLT producing capabilities Steel Prefab Factories Chubu Sekisui Heim

Wood Prefab Factories

Tohoku Sekisui Heim www.length.or.jp

www.meikenkogyo.com Kanto Sekisui Heim

Kyushu Sekisui Heim

Shikoku Sekisui Heim

www.woodist.co.jp

Figure 29: Sekisui Heim’s modular producing factories and Japan’s laminated lumber producing factories

CLT producing capabilities Wood Prefab Factories

www.meikenkogyo.com

Local Forests Shikoku Sekisui Heim

Figure 30: Proposal for initiating a supply chain between local forest, CLT factory and Prefabrication facilities.

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Marketing Strategy

Japanese affinity with wood and the culture surrounding its use, is still apparent and alive in modern day Japan. By appealing to Japanese tradition while adhering to modern day fireproofing/ earthquake resistance regulations with modern lifestyle luxuries, an effective branding strategy can be formulated. Comparing the images of an edo‐period, traditional town house to a modern day, prefabricated CLT house produced in Austria by Bruno Klomfar, one could see the potential of merging a design into a Japanese style CLT house.

Figure 31‐32: Interior and exterior of traditional town house in Nara

Figure 33‐34: Interior and exterior of modern prefab CLT house in Austria

Figure 35: Modern and traditional mixed style house by architecture Kengo Kuma 21

Target Market

Generally in Japan, pre‐fabricated housing targets the upper‐middle, upper wage classes. A prefab house constructed by Sekisui Heim is about ‘16% higher than conventional post and beam traditional housing’.24 However, what is offered in return is supreme quality, service, convenience and customability. A survey conducted in 2008 shows how reliability and superior product quality and performance are the highest motivational factors for purchasing such as house (Figure 36). In this sense, although CLT as a product is more expensive that standard wood frame, the superiority of the product and the marketing from a reputable company such as Sekisui Heim is a plausible strategy.

Figure 36: Japanese Buyer’s motivation for buying prefabricated housing

Prefabrication approach

Using the facts provided in the survey, the solid wood modules would be marketed as traditional style Japanese home with the additional benefits of:

• Structural strength • Durability • Resource saving and generating • Amenities • Customization and design

24

Vogler, Andreas, and Mick Eekhout. "The Development of the Industrial House." The House as a Product.

Amsterdam, The Netherlands: IOS, 2015 pg 69

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Summary

Benefits of a Stable Supply System of Wood Below comes an elaboration on the benefits of the suggested wood supply chain, which are important in relation to convincing, stakeholders, government committees and the public in the need to drive these changes.

Figure 37: Proposal for supply chain targeting the production of laminated lumber for prefabricated housing It has a threefold impact on the demand side, supply side and environmentally. Figure illustrates a focus on local raw material use and high end‐ engineered wood for high end housing products to be used domestically and exported. The benefits affect the following entities:

1. Lumber mills It provides lumber mills in the demand side, with opportunities to procure timbers in a stable amount with specific requirements, assisting the optimized operation and cost reduction of the selected mills.

2. Forest owners and log producers Such a system also helps forest owners and log producers as supply side to secure stable clients contributing to their stable management.

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3. Environmental benefits Necessitates the maintenance and replantation of forests, reduces natural disaster risk and promotes a healthy landscape for long‐term operation of the supply chain.

4. Building contractors and housing makers Building contractors and housing makers also benefit from procuring building materials, within a specified period and at a specified cost. They have potential new marketing strategy and new generation housing model with export potential.

5. Public Public can celebrate their culture of wood without sacrificing modern luxuries of homes and enjoy a superior home.

Figure 38: Placement of prefabricated hotel room modules for a hotel in Austria

Figure 39: Exposed wooden interior of the modular hotel room

Figures 38‐39 show a precedence for CLT modular construction for a hotel in Austria. The Alpen hotel Ammerwald by Oskar Leo kaufmann and Albert Ruf is a 16 meter tall building stacked with 96 units all constructed from CLT.25 The speed and quality of manufacture is one to be admired. On the factory line 96 units were constructed in only 31 days. This equates to a rate of about 3 a day. If government associations and ministries such as MAFF continue to promote an improved and updated wood supply chain, then such projects can be realised in Japan with great benefits to the country.

25

Kaufmann, O. Ruf, A (2015). Hotel bei Reutte. www.detail.de

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References Images: Figure 1 Kaufmann, O. Ruf, A (2015). Hotel bei Reutte. [Photograph]. Retrieved January 19, 2017, from www.detail.de, http://www.detail.de/inspiration/hotel‐bei‐reutte‐106093.html Figure 2 unknown, conifer‐tree. [Photograph]. Retrieved January 19, 2017, from wisegeek.com, http://images.wisegeek.com/conifer‐ tree.jpg Figure 3 fujitsuka, mitsumasa. Kengo‐kuma‐PC‐garden‐house. [Photograph]. Retrieved January 19, 2017, from designboom.com, http://www.designboom.com/wp‐content/uploads/2014/04/kengo‐kuma‐PC‐garden‐house‐designboom‐01.jpg Figure 4 Forestry Agency (MAFF). Annual Report on Forest and Forestry in Japan Fiscal Year 2014. Fig. I‐4: Overview of wood processing and distribution Figure 5 Figure adapted from Forestry Agency (MAFF). Annual Report on Forest and Forestry in Japan Fiscal Year 2014. Figure. I‐4: Overview of wood processing and distribution Figure 6 Forest Agency. State of Japan’s Forests and Forest Management ― 2nd Country Report of Japan to the Montreal Process ―.

[Figure]. Retrieved January 19, 2017, from rinya.maff.go.jp, http://www.rinya.maff.go.jp/j/kaigai/pdf/countryreport‐1.pdf pg 11 Figure 7 Forest Resources Development Service. (2007, June ). BRIEF ON NATIONAL FOREST INVENTORY NFI JAPAN. [Figure]. Retrieved from fao.org, http://www.fao.org/docrep/016/ap187e/ap187e.pdf pg 6 Figure 8 Forestry Agency (MAFF). Annual Report on Forest and Forestry in Japan Fiscal Year 2011. Fig. 6‐1: Location of National Forests distribution pg27 Figure 9 Forestry Agency (MAFF). Annual Report on Forest and Forestry in Japan Fiscal Year 2015. Fig.II‐1: Growing stock in forest pg9 Figure 10 Forestry Agency (MAFF). Annual Report on Forest and Forestry in Japan Fiscal Year 2015. Fig.I‐1: Change of forest age structure of planted forests pg3 Figure 11 Created by author. Deterioration of forests Figure 12 Forestry Agency (MAFF). Annual Report on Forest and Forestry in Japan Fiscal Year 2013. Fig. I‐2: The forest management cycle pg5 Figure 13 Eastin, I., & Sasatani, D. (2016, October 19). Japan CLT Roadmap: Lessons for North America. [Figure]. Retrieved January 19, 2017, from unece.org, https://www.unece.org/fileadmin/DAM/timber/meetings/20161018/coffi74‐item3c‐01‐eastin.pdf Figure 14 Forestry Agency (MAFF). Annual Report on Forest and Forestry in Japan Fiscal Year 2015. Fig.IV‐3: Material inputs for lumber production pg 21 Figure 15 Forestry Agency (MAFF). Annual Report on Forest and Forestry in Japan Fiscal Year 2015 Fig.I‐2: Major large mills newly constructed in recent year pg 4 Figure 16 Forestry Agency (MAFF). Annual Report on Forest and Forestry in Japan Fiscal Year 2015. Fig.IV‐2: Japan’s wood exports pg 20 Figure 17 Forestry Agency (MAFF). Annual Report on Forest and Forestry in Japan Fiscal Year 2014. Fig. I‐2: Major wood products pg 4 Figure 18 Trada. (2016). A‐short‐introduction‐to‐cross‐laminated‐timber.Pdf. [Figure] CLT diagram pg 1 Figure 19 Created by author. Map of Laminated Lumber producing factories Figure 20 2013 Housing and Land survey, New dwellings started. Retrieved January 19, 2017, http://www.e‐stat.go.jp Figure 21 Forestry Agency (MAFF). Annual Report on Forest and Forestry in Japan Fiscal Year 2014. Fig. I‐5: Wood demand, pg 5 Figure 22 Forestry Agency (MAFF). Annual Report on Forest and Forestry in Japan Fiscal Year 2014. Fig. I‐5: number of new housing starts, and production of paper and paperboard, pg 5 Figure 23 Vogler, Andreas, and Mick Eekhout. "The Development of the Industrial House." The House as a Product. Amsterdam, The Netherlands: IOS, 2015. Pg 59 sourced from Information and Research Department, Policy Bureau Ministry of Land, infrastructure and transport Figure 24 Vogler, Andreas, and Mick Eekhout. "The Development of the Industrial House." The House as a Product. Amsterdam, The Netherlands: IOS, 2015. Pg 66 sourced from 1993:Gann, 1996;2003: Annual reports of companies;*Inoue, 2004 Figure 25 Bock, Thomas, and Thomas Linner. "Large Scale Building System Manufacturing in Japan."Robotic Industrialization: Automation and Robotic Technologies for Customized Component, Module, and Building Prefabrication. New York: Cambridge UP, 2015. Pg 130 Figure 26 Ruault, P. Gallery of 50 modular timber apartments / PPA architectures ‐ 29. [Photograph]. Retrieved January 19, 2017, from archdaily.com, http://www.archdaily.com/787698/50‐modular‐timber‐apartments‐ppa‐architectures Figure 27 Trada. (2016). A‐short‐introduction‐to‐cross‐laminated‐timber.Pdf. [Figure] CLT diagram pg 1 Figure 28 Sekisui Chemical. sekisuiheim.com. [Figure] Factory production line Figure 29 Created by author. Map of sekisui heim modular factories based from sekisuichemical.com Figure 30 Created by author. Factory supply proposal Figure 31 Photographed by author Interior of traditional town house in Nara Figure 32 Photographed by author exterior of traditional town house in Nara Figure 33 CLT House. Retrieved January 19, 2017, from clthouse.com, [Photograph]. Interior model http://clthouse.com/wp‐ content/uploads/2015/10/PIX‐0041.jpg Figure 34 CLT House. Retrieved January 19, 2017, from clthouse.com, [Photograph]. Exterior model http://clthouse.com/wp‐ content/uploads/2015/10/PIX‐0041.jpg Figure 35 fujitsuka, mitsumasa. Kengo‐kuma‐PC‐garden‐house. [Photograph]. Retrieved January 19, 2017, from designboom.com, http://www.designboom.com/wp‐content/uploads/2014/04/kengo‐kuma‐PC‐garden‐house‐designboom‐01.jpg Figure 36 Noguchi, M. Int. J. Mass Customisation, Vol. 4, Nos. 1/2, 2011 Enhancement of industry initiative through the Zero‐energy Mass Custom Home Mission to Japan experience towards commercialisation pg116 Figure 37 Created by author. Proposal for supply chain targeting the production of laminated lumber for prefabricated housing

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Figure 38 Kaufmann, O. Ruf, A (2015). Hotel bei Reutte. [Photograph]. Retrieved January 19, 2017, from www.detail.de, http://www.detail.de/inspiration/hotel‐bei‐reutte‐106093.html Figure 39 Kaufmann, O. Ruf, A (2015). Hotel bei Reutte. [Photograph]. Retrieved January 19, 2017, from www.detail.de, http://www.detail.de/inspiration/hotel‐bei‐reutte‐106093.html

Websites: detail.de designboom.com wisegeek.com archdaily.com sekisuiheim.com clthouse.com

Reports: Forestry Agency (MAFF). Annual Report on Forest and Forestry in Japan Fiscal Year 2012 Forestry Agency (MAFF). Annual Report on Forest and Forestry in Japan Fiscal Year 2013 Forestry Agency (MAFF). Annual Report on Forest and Forestry in Japan Fiscal Year 2014 Forestry Agency (MAFF). Annual Report on Forest and Forestry in Japan Fiscal Year 2015 Forest Resources Development Service. (2007, June ). NATIONAL FOREST INVENTORY NFI JAPAN. fao.org Forest Agency. State of Japan’s Forests and Forest Management ― 2nd Country Report of Japan to the Montreal Process rinya.maff.go.jp Eastin, I., & Sasatani, D. (2016, October 19). Japan CLT Roadmap: Lessons for North America. unece.org, Trada. (2016). A‐short‐introduction‐to‐cross‐laminated‐timber. Trada.co.uk 2013 Housing and Land survey, New dwellings started., www.e‐stat.go.jp

Books: Noguchi, M. Int. J. Mass Customisation, Vol. 4, Nos. 1/2, 2011 Enhancement of industry initiative through the Zero‐energy Mass Custom Home Mission to Japan experience towards commercialisation Vogler, Andreas, and Mick Eekhout. "The Development of the Industrial House." The House as a Product. Amsterdam, The Netherlands: IOS, 2015 Bock, Thomas, and Thomas Linner. "Large Scale Building System Manufacturing in Japan."Robotic Industrialization: Automation and Robotic Technologies for Customized Component, Module, and Building Prefabrication. New York: Cambridge UP, 2015

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