Against the backdrop of a shrinking residential market and expanding non-residential building demand, the architectural network 'Craft United Concept' connecting non-residential projects has launched

Wooden Non-Residential Promotion Organization Co., Ltd. (Representative: Masaki Fukuhara) has launched the 'Craft United Concept,' a network that introduces non-residential construction projects such as warehouses and factories to regional construction companies.

Against the backdrop of changes in the residential market due to population decline and the expanding demand for non-residential construction such as logistics facilities and factories, the goal is to create a system where regional construction companies can challenge themselves in new markets.

Background: Long-term shrinkage of the residential market According to the Ministry of Land, Infrastructure, Transport and Tourism's housing start statistics, the number of new housing starts in Japan has been on a long-term downward trend. Due to population decline and changes in the number of households, the residential market is facing a structural turning point, and many construction companies are seeking new markets outside of housing.

### Expanding non-residential construction market On the other hand, according to the Construction Economy Research Institute's construction investment forecast, private non-residential construction investment is expected to maintain a certain scale in the future, backed by increased corporate capital investment. Demand has been particularly growing in the following areas recently: - Logistics facilities - Warehouses - Factories - Business offices One of the underlying factors is the increasing demand for logistics facilities driven by the expansion of the e-commerce market.

### Attention on non-residential wooden structures Under these circumstances, wooden architecture is also attracting attention in non-residential construction. The background factors include: - Soaring steel prices - Rising construction costs - Increasing environmental awareness Technological development of medium-to-large-scale wooden structures is also progressing, expanding the possibilities of utilizing wood in the non-residential sector.

Challenge: Regional construction companies are unable to enter However, many regional construction companies face the following challenges: - Lack of sales know-how for non-residential construction - Inability to acquire project information - Little experience in structure and design As a result, entering the non-residential construction market remains difficult.

### Craft United Concept To solve these challenges, Wooden Non-Residential Promotion Organization Co., Ltd. launched the 'Craft United Concept.' This concept is a network for regional construction companies to collaborate and challenge the non-residential wooden market. Utilizing the 'Low Cost Studio,' a customer attraction platform specialized in non-residential wooden structures, it introduces (refers) construction project information such as warehouses and factories gathered from across the country to member companies. This prepares an environment where even housing-centric construction companies can tackle non-residential building projects.

### Features of the Network The Craft United Concept provides the following mechanisms: - Introduction of non-residential building projects like warehouses and factories - Sharing of non-residential wooden construction know-how - Formation of a regional construction company network By having regional construction companies collaborate, it supports their challenge into new construction markets.

Future Prospects The Craft United Concept aims to build a network of 150 construction companies nationwide over the next five years. By letting regional construction companies take the leading role and expanding the non-residential wooden market, it will create new possibilities for Japan's construction industry.