Revitalizing Forestry

It's 2022, and Japan is facing an acute lumber shortage.

A worldwide wood shock driven by American demand for home construction

caused the cost of imported lumber to more than double in Japan.

For years, Japanese homebuilders relied on low-priced foreign lumber.

Now, some homebuyers are seeing their dreams put on hold.

It's been really tough.

And to make matters worse, sanctions have cut off plywood materials from Russia.

These factors are driving unprecedented domestic demand, and new, innovative ideas.

Around 40% of the lumber used in Japan is harvested domestically.

Two-thirds of the country is forested, but the forest industry has withered under competition from imports.

Now, with a pressing need to increase production, equipment and labor are in short supply.

But Japan's Wood Shock still looks like a priceless opportunity to expand the use of home-grown lumber.

Let's look at the seismic shifts that are starting to revitalize Japan's forest industry.

I'm Vayu.

I'll be your navigator.

Imported lumber has made it hard for Japan's foresters to turn a profit.

But new business models are emerging that could help transform the industry.

Despite its remote setting, Hinohara Village is part of the Tokyo Metropolis.

Aoki Ryosuke manages a forestry company based in the village.

Japanese forests mostly grow on steep slopes.

Harvesting and transport costs are high, and profits are limited.

This cedar is 25 by 400 centimeters.
It's worth roughly 20 dollars.

It stood here for 60 years.

We've harvested and trimmed it,
and will transport it to market.

Twenty dollars for a tree like this
is extremely cheap.

Japan opened its doors to foreign lumber in 1964.

The result: over the last 40 years, the price of cypress lumber has dropped 75%.

Falling prices have had a drastic impact on the industry.

In 1965, over a half a million people worked in forestry.

By 2020, that number shrunk by about 90% to around 60,000.

Many forests were left untended, further reducing productivity.

How can the industry boost profits and attract young workers?

Aoki believes he has a solution.

He wants to maximize the value of every tree.

His warehouse cum showroom is devoted to the unique appeal of wood.

Everything on display was crafted from pieces that would otherwise have been discarded.

Branches like this are usually discarded.

But peel off the bark
and you find treasure inside.

When a tree is harvested, only the thick lower trunk is offered for sale.

The rest becomes waste.

But waste wood can be transformed into everything from coasters and toys to

odor-absorbing material and daily necessities.

The possibilities are endless.

This might sell for 2 or 3 dollars.

But slice it into coasters
or make toys...

and you might get
4 or 5 dollars per piece.

All that for a little extra labor.

Aoki's showroom is a frequent stop for interior designers.

- That's a beautiful piece.
- It was peeled and dried.

It almost looks like
playground equipment.

These visits often lead to projects, with dozens moving forward every year.

Shiromoto Eiji is an interior designer.

He uses Aoki's all-wood construction concept to create unique offices.

Cedar chips are a fragrant floor covering.

Curved branches form a partition that evokes a forest.

The fractal shapes of these hanging branches have a natural elegance.

Maximizing the hidden potential of wood can make a single tree worth upwards of 10,000 dollars.

We're getting more customers,
and they're giving us ideas.

The concept of using every part
of the tree is gaining traction.

We think it's great.

We're looking forward
to watching this trend develop.

Making the most of Tokyo's forests is a growing trend.

One construction company is offering residences that promote local wood production and consumption.

This model house is on display in a Tokyo suburb.

It's a showcase for locally-grown wood.

From pillars, crossbeams, and flooring,
to bathroom, stairs, and kitchen,

the house features wood grown and harvested in the mountains around Tokyo.

Kojima Tomoaki built this house to promote local production and consumption of wood.

We used to use imported lumber.

But we're based in Tokyo,
and everything is here...

from forests to lumber mills.

To make better use of Tokyo's abundant forest resources, he worked closely with local foresters and lumber mills.

Every bit of wood used in his Tokyo Wood-brand houses is grown, harvested, and milled locally.

Because his company uses only locally grown lumber, their houses cost 20 or 30 percent more.

How does Kojima convince home buyers to pay a premium?

Quality is a key value proposition.

Pillars and crossbeams used in the houses exceed government standards for hardness and moisture content.

The lumber is dried naturally.

This slow approach delivers a higher oil content than other drying processes.

That means greater termite resistance and longer useful life.

Kojima even takes prospective buyers into the mountains of Tokyo,

where they can get a first-hand feel for the environment.

It's great to see where the wood
for our house came from.

It's a valuable experience.

It will make our home
even more precious.

Homebuyers like what they see.

Over the past ten years, Kojima has sold 600 homes.

In 2021, Japan's Ministry of the Environment recognized his company's efforts to

support a healthy forest life cycle and cut CO2 emissions, with its Good Life Award.

The ultimate goal would be
to sell trees before harvesting.

A tree is planted and tended
for three generations.

What would you pay for it?

We want to auction individual trees
direct to customers.

When the tree is cut down,
the owners will plant a new one.

By the time their children
are about 30...

the tree can be used
to remodel the house.

We see lots of potential.

The growing interest in domestic lumber isn't limited to home builders.

A revolution in construction technology is unlocking the potential of wood for Japan's biggest construction companies.

More and more large-scale construction projects using domestic lumber are rising in and around Tokyo.

This condominium was completed in 2021.

It's a hybrid structure built from wood and reinforced concrete.

Elements of the 14-story building were constructed with Japanese lumber.

This wall is really solid.

During an earthquake the other day,
it didn't move at all.

Bonding wood in alternating layers delivers great stability in multiple dimensions.

The resulting structural element has the strength of concrete.

To protect the building from fire, pillars are also designed with multiple layers.

If the wood exterior catches fire, a second layer of gypsum protects the wood core.

This gives residents ample time to evacuate.

Smaller trees that are thinned to make room for larger ones can also be used in laminated materials.

Technological progress is helping drive demand for domestic lumber.

Moreover, construction projects that use more wood emit less CO2.

Producing the steel used in construction emits huge amounts of CO2.

This project under way in Yokohama is set to be Japan's first high-rise built exclusively with wooden structural elements.

Once complete, the project will have emitted around half the emissions of steel-reinforced construction.

We used to minimize cost
and maximize productivity.

Today, we have to consider
the environment and future generations.

As a tree grows, it absorbs more carbon.

But once it matures, which takes around 20 years, absorption starts to decline.

It's therefore important to harvest mature trees, so that new seedlings can replace them.

This will maximize the potential of trees in absorbing CO2.

It will also increase the supply of domestic wood.

A bigger domestic wood supply opens up new possibilities.

One Japanese construction company has announced plans to build a 70-story wood building.

They aim to complete the 350-meter structure in 2041.

In the not-so-distant future, eco-friendly skyscrapers using domestic lumber may become a familiar part of Japan's built environment.

People are waking up to the need for reliable access to scarce resources,

access that's unaffected by international economic fluctuations.

The peace of mind that brings will help nurture the global community of the future.