Logistics Facility Demand Surges with E-commerce Expansion: Analysis of High Warehouse Construction Demand Regions

The Japan Wooden Non-Residential Promotion Organization (Representative: Masaki Fukuhara) analyzed the expansion of logistics facility demand in Japan and trends in the non-residential construction market. With the growth of the e-commerce market, demand for warehouses and logistics facilities is increasing nationwide, and the non-residential construction market is attracting attention against the backdrop of expanding corporate capital investment. In light of this situation, the "Craft United Concept" network was launched to introduce non-residential construction projects such as warehouses and factories to regional construction companies. E-commerce Market Expansion and Logistics Facility Demand According to the Ministry of Economy, Trade and Industry's e-commerce market survey, the size of Japan's e-commerce market is expanding year by year. As the e-commerce market grows, the volume of logistics increases, and the demand for construction of warehouses and distribution centers also rises. Logistics facilities are important infrastructure supporting corporate activities, and a certain level of demand is expected to continue in the future. Trends in the Non-Residential Construction Market According to the Construction Economic Research Institute's construction investment outlook, non-residential construction investment is expected to maintain a certain scale in the future, backed by private sector capital investment. Non-residential buildings include the following facilities: • Logistics warehouses • Factories • Offices • Stores With the expansion of corporate activities, there is continuous demand for the construction of these facilities. Regions with High Warehouse Construction Demand Demand for logistics hubs is particularly high in urban areas and major logistics areas. The ranking of regions with high logistics demand is as follows: 1st Kanto region 2nd Kansai region 3rd Chubu region 4th Northern Kyushu 5th Southern Tohoku In the Tokyo metropolitan area, in particular, the development of large-scale logistics facilities is progressing due to the expansion of e-commerce logistics. Focus on Non-Residential Wooden Construction In recent years, interest in wooden construction for buildings such as warehouses and business facilities has been increasing. The background to this includes the following factors: • Soaring steel prices • Rising construction costs • Growing environmental awareness Technical development in medium-to-large scale wooden construction is also progressing, expanding the possibilities for wooden construction in the non-residential sector. New Possibilities for Regional Construction Companies Until now, large construction companies have primarily handled the construction of warehouses and factories, but the spread of wooden construction is creating new market opportunities for regional construction companies. Movements to challenge the non-residential construction sector by utilizing wooden construction techniques cultivated in residential construction are spreading nationwide. Partnership with and Referrals to Construction Companies in Aichi Prefecture The Japan Wooden Non-Residential Promotion Organization is strengthening its efforts to collaborate with regional construction companies. Currently, they have newly partnered with a construction company in Aichi Prefecture and have referred two customers in the Aichi area. With the actual introduction of projects, the movement of regional construction companies entering the non-residential wooden market is becoming concrete. Craft United Concept The Japan Wooden Non-Residential Promotion Organization has launched the "Craft United Concept," a network for regional construction companies to collaborate and challenge the non-residential wooden market. By utilizing the portal site "Low Cost Kobo," information on construction projects such as warehouses and factories gathered from all over the country will be introduced (referred) to member companies. This creates an environment where even residential-focused construction companies can challenge non-residential construction projects. Future Outlook The Craft United Concept aims to build a network of 150 construction companies nationwide within the next five years. By regional construction companies collaborating to develop the non-residential wooden market, new possibilities will be created in Japan's construction industry. Information Session Guide Information sessions for construction companies are currently being held. The following contents will be explained at the information session: • Future of the housing market • Possibilities of the non-residential wooden market • Trends in the warehouse construction market • Mechanism of the Craft United Concept Participation fee: Free Method: Online Learn more • Craft United Concept Official Website https://www.craft-united.jp/ • Information Session Application https://www.craft-united.jp/#contact Company Profile Company Name: Japan Wooden Non-Residential Promotion Organization Representative: Masaki Fukuhara Location: 3-6-7 Sakura-no-machi, Toyonaka City, Osaka 1F Business: Non-residential wooden promotion business Homepage: https://www.craft-united.jp/