IWA Initiative Issues Japanese Market Report

As a result of a Marketing Develop- ment Initiative by IWA-CANADA, a report on a fact finding mission to Japan has been generated by acontin- gent of union and industry observers. The report, released in December, 1988 by Keith Johnson, Special Lab- our Representative of a Co-operative Overseas marked Development Pro- gram, expresses optimism for increas- ing shipments of British Columbian manufactured wood products to the Japanese market.

The mission was made possible by funding from the Western Economic Diversification Office in addition to contributions from Fletcher Challenge Canada, Canadian Forest Products, Balfour Forest Products and the [WA National office along with its Vancou- ver, Kamloops and Prince George Locals.

From October 29 to November 11 of last year, eight delegates fulfilled an extensive tour of Japanese sawmills, plywood plants and construction sites. In addition the Canadians met with Japanese wood importing asso- ciations to gain particulars about the Japanese market.

Among the recommendations pre- sented by Johnson is that IWA- CANADA work with industry to become more involved in quality as- surance programs. This is seen as a necessity if we are to penetrate Japan- ese markets where product quality is the most important demand.

The delegation also recommends that the Western Wood Products Forum sponsor quality control semi- nars. To ensure this market it is required that quality consciousness be extended from mill managers to

supervisors to the shop floor.

The report notes that British Columbian industry had begun to successfully promote Platform Frame Construction (PFC) in the Japanese housing industry. Since 1975, changes in Japan’s National Building Code have allowed the limited acceptance of North American dimensional lum-

ber. At present at least 50,000 annual housing starts are of the PFC design.

The current log harvesting activity in Japan accounts for production of approximately 30 million cubic meters of wood annually. Japan has been steadily increasing log imports over the past 20 years to about 8.5 million cubic meters by 1988.

Several Japanese companies are now responding to international pres- sure to restrict whole log exports. Joint manufacturing facilities over- seas in such nations as Malaysia and Indonesia have been established as a result of increased political pressure from those countries of supply.

British Columbian timber supplies are facing similar constraints, the report notes. Growing demands of domestic secondary wood manufac- turers, which require existing timber supplies, should eliminate log exports from Canada in the future.

In British Columbia at present six plywood mills have been granted cer- tification from Japan Agricultural Standards to stamp plywood to rigid Japanese specifications. A transition from 3'x 6’plywood panels to 4’x 8’ sizes is taking place slowly.

It is noted that since 1978, when IWA representatives visited Japan, improvements in shipping procedure have been made. Dunnage blocking and corner strapping have helped to minimize damage to B.C. products.

The report recommends that com- ponents for an entire Japanese house be assembled, packaged, and contain- erized in B.C. before shipment to Japan. This could assure timely deliv- ery of quality goods to the Japanese market.

The report mentions that produc- ers in the U.S. Pacific Northwest have been promoting their products in a sophisticated, strategic, and well funded manner.

Additional funding must be sought for a greater promotional presence in Japan for B.C. producers.

spruce logs.

Sawmill Workers in Sanki City handle lumber cut from Soviet white

Anegasaki City, near Tokyo.

Traditional Japanese construction at new housing development in

SPECIAL LABOUR REPRESENTATIVE KEITH JOHNSON

The IWA-CANADA Market Devel- opment Initiative began in December of 1987 with the appointment of a special labour representative, Keith Johnson into a joint union-industry Co-operative Overseas Market Devel- opment Program. The December,

1988 report on Japan will be com- bined with future reports from Europe and the U.S. Atlantic Coast to form a final analysis of the marketing initia- tive.

Brother Johnson is the former [WA International President.

Delegates on the Outbound Mission to Japan were, left to right: Phillip Legg, [WA-CANADA: Keith Johnson, Forest Industrial Relations Ltd.; Doug Rickbiel, IWA Local 1-424; John Fenton, Fletcher Challenge Canada; Harry Bains, IWA Local 1-217; Jack Munro, IWA-CANADA: Keith Johnson, Special Labour Representative (COMDP); and Ted Delanowski, IWA Local 423.

J

He was recently asked some ques- tions about trade with Japan.

Q. What do you think would hap- pen to political relations between Can- ada and Japan if our country put an absolute ban on raw log exports to Japan?

A. It is important to remember that Canada is not a big part of the Japanese log market, so a complete restriction of our log exports would not have a serious impact on Japan’s sourcing of logs. However, such a restriction would send a clear signal to Japanese customers that Canadais a dependable source of high quality manufactured wood products. That’s the message we are sending right now through programs like COMDP.

Q. Many union members are sus- pect of an employees ulterior motive when quality control seminars are introduced. Can you further explain why the mission delegates recom- mend that IWA-CANADA be involved in quality assurance programmes?

A. In markets like Japan, finding new opportunities for wood products depends an awful lot on quality. If the IWA is serious about making sure that our industry pursues opportuni- ties which provide good stable em- ployment for our members, then our union has to become more involved in the quality question. From my per- spective, it is just as valid for us to be concerned about the kinds of wood products we produce as it is for us to be concerned about the health and safety of our workplace. And rather

than be passive in that whole process, the IWA needs to be actively involved in those kinds of issues.

Q. Japanese producers are very protectionist. Can you see these barri- ers to our products removed in the near future?

A. The short answer is yes. The Canadian industry and the federal government are both pushing for bet- ter access to the Japanese market. They are currently pursuing a_re- assessment of Japan's tariff against SPF lumber products. And they are also involved in other areas to negoti- ate the removal of many non-tariff barriers which restrict access of Cana- dian wood products, such as Japanese building codes.

Q. How well has the B.C. Forest industry received this IWA initiative?

A. The industry has been very pos- itive about our initiative. Wood prod- ucts customers are also very support- ive. I think woodworkers have a role to play in market development and our initiative is showing producers and customers just how interested we are in that process.

6/LUMBERWORKER/MARCH, 1989