Rising Warehouse Shortages Due to Expanding Logistics Demand: The Background Behind Growing Interest in Non-Residential Wooden Architecture

Mokuzou Hijukyo Suishin Kiko Co., Ltd. (Representative: Masaki Fukuhara) has launched the 'Craft United Concept', a network of regional construction companies, in response to the growing nationwide demand for non-residential buildings like warehouses and factories driven by expanding logistics needs.

While the demand for logistics facilities continues to rise due to the rapid growth of the EC market, supply is struggling to keep up due to rising construction costs and labor shortages.

Amidst this situation, the utilization of wooden architecture in the fields of warehouses and business facilities is attracting significant attention.

## Expansion of the EC Market and Growing Demand for Logistics Facilities

In recent years, the continuous expansion of the EC market in Japan has rapidly increased the demand for logistics facilities.
According to surveys by the Ministry of Economy, Trade and Industry, the EC market size is growing year by year, driving up the construction demand for warehouses and distribution centers.
As logistics hubs multiply, the need for warehouse construction is rising nationwide.

## Expansion of the Non-Residential Construction Market

According to the construction investment outlook by the Research Institute of Construction and Economy, private non-residential construction investment is predicted to maintain a certain scale going forward, backed by growing corporate capital investment.

Non-residential construction includes the following facilities:
- Logistics warehouses
- Factories
- Business offices
- Retail stores

Since these are directly linked to corporate activities, they represent a sector with stable expected demand.

## Non-Residential Wooden Architecture Attracting Attention

The reasons why wooden architecture is gaining attention in non-residential buildings like warehouses and business facilities are as follows:
- Rising construction costs
- Soaring steel prices
- Increasing environmental awareness

Technological development for medium-to-large-scale wooden buildings is also advancing, broadening the possibilities for using wood in the non-residential sector.

## New Possibilities Expanding for Regional Construction Companies

Historically, non-residential construction projects such as warehouses and factories have mostly been dominated by major construction companies.
However, the expanded use of wooden architecture is creating new market opportunities for regional construction companies.
An increasing number of regional builders are beginning to challenge the non-residential sector by leveraging the wooden construction expertise they cultivated in residential building.

## What is the Craft United Concept?

Mokuzou Hijukyo Suishin Kiko Co., Ltd. has started the 'Craft United Concept', a network designed to help regional construction companies collaborate and challenge the non-residential wooden market.
Utilizing the portal site 'Low-Cost Kobo', it introduces (forwards) construction project information for warehouses and factories gathered from across the country to member companies.
This creates an environment where even residential-focused construction companies can take on non-residential construction projects.

## Features of the Network

The Craft United Concept undertakes the following initiatives:
- Introduction of non-residential construction projects
- Sharing of wooden construction know-how
- Formation of a nationwide construction company network

By uniting regional construction companies, the initiative aims to pioneer new construction markets.

## Future Outlook

The Craft United Concept aims to build a network of 150 construction companies nationwide over the next five years.
By expanding the non-residential wooden market through the collaboration of regional construction companies, it will generate new possibilities in the construction industry.

## Information Session Announcement

We are currently holding information sessions for construction companies.
The sessions will explain the following topics:
- The future of the housing market
- The non-residential wooden market