Canada Wood 2021 Impact Report

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Asian markets are critical to the health of the Canadian forest industry. Canada’s already-established wood-building sector continues to expand in China, Japan, and South Korea. Through funding from NRCan, BCFII, Alberta government and other industry partners, Canada Wood’s programs enhance trade and market diversification goals for the Canadian forest industry; generating a steady long-term demand for Canadian wood products, providing significant opportunities for our producers, and playing a key economic role by supporting the Canadian communities that depend on the forestry industry for their livelihood. Here, in the 2021 Impact Report, data developed by a noted independent economist based on Statistics Canada’s Input-Output Model shows the following economic returns realized by Canada Wood programs between 2016 – 2020:

$1=$21 Helped support Canadian lumber prices by an average of

Total Canada Wood expenditures vs. return

Generated additional demand for offshore shipments annually by

$97/mfbm

Lumber exports to Asia provide overarching annual economic benefits of

300 mfbm

$228m

The simulation model also presents below the potential impact on industry output, jobs and industry revenue if Canada’s offshore lumber exports had not taken place.

$11b

15,600

Revenue loss for the Canadian lumber industry*

Jobs dependent on offshore shipments annually (approx)*

$9.8b

$345m

In GDP would be impacted*

In production taxes would be impacted*

Diversity and inclusion are important for us.

OUR INDUSTRY strives to create an inclusive culture that empowers people.

1,400+

Indigenous-owned forestry businesses across Canada including sawmills, silviculture, supplier businesses, and biomass energy facilities

12,000

Indigenous peoples employed by Canada’s forest sector

10%

of Canada’s wood supply directly controlled by Indigenous peoples

8 7

Commercialization

Business Development & Network 6

5

Technology Adoption

Technical Knowledge Transfer 4

Policies & Regulations

Demonstrations

3 1

Codes & Standards

Research and Development

2

Our programs are designed to build foundations for the commercial adoption of Canadian systems and wood products by navigating a clear roadmap with eight key areas. Thanks to our funders’ support and dedicated in-market teams, Canada Wood Group was able to continue to deliver remarkable results during what was a very challenging year for many. The 2021 impact report highlights projects and achievements in each key step, demonstrating Canada Wood Group's dedication to pursuing innovative initiatives to promote wood building as a climate solution that captures exciting new opportunities in Asia markets.

RESEARCH & DEVELOPMENT Testing and researching wood-building systems are integral pathways to the formation of modern building codes. Canada Wood Group commissions and leads critical research and development projects that provide the necessary scientific foundation for drafts and updates to building codes and standards in the areas of seismic and fire safety.

NLT USE IN CHINA’S TALL WOOD BUILDINGS A comprehensive test program, led by Canada Wood China, explored both the structural and fire-resistant behavior and capability of a composite NLT-concrete floor system. The resulting data provides the basis for building code revisions; as well as for developing design guidelines for NLT’s use in tall wood buildings in China.

PHOTO: FIRE TESTING ON NAIL-LAMINATED TIMBER PANEL IN BEIJING | CANADA WOOD CHINA

LPL FLOOR BEAMS IN JAPAN Canada Wood Japan conducted a series of full-scale, 8-metre-span bending tests for Lumber Panel Lumber (LPL) floor beams; a structurally stronger and more cost-effective new application that can replace competing beam products. SPF horizontal diaphragm tests are also underway for future expanded use of SPF in large-scale, non-residential structures.

KOREAN DESIGN CHOICES EXPAND Responding to heightened interest in seismic design considerations, Canada Wood Korea proposed that the Small Scaled Building Code – Timber Structure (SSBC-TS) be expanded to include more wood shearwall design options. Canada Wood Korea conducted exploratory testing to determine the performance of several innovative wood wall-bracing options; including how exterior, interior, and narrow-wall configurations can provide improved strength and versatility over the existing methods — thus expanding designers’ choices

CODES & STANDARDS Canada Wood contributes to the development of codes and standards which set the foundation for wood construction and favor the use of Canadian wood products.

NEW NATIONAL TIMBER CODE PUBLISHED IN CHINA Starting January 1, 2022, a new Chinese national standard will take effect. The General Code for Timber Structures (GB55005-2021) is a full-text mandatory engineering construction code; intended to improve standardization by replacing mandatory provisions scattered throughout existing codes. With support from Canada Wood China, the Chinese fire code is also under revision and it’s expected that revised codes will allow mass timber buildings up to eight stories. ▲ PHOTO (UP): CHINESE NATIONAL CODE COMMITTEE MEETING | CANADA WOOD CHINA

JAPANESE NLT MANUAL PUBLISHED Following a multi-year, multi-disciplinary - testing effort, Canada Wood Japan and the Japan 2x4 Home Builders Association published a comprehensive instructional guide.

The NLT manual provides architects and builders with detailed practical guidance on how to design with, fabricate and install Nail Laminated Timber Assemblies in platform frame construction. ◤ PHOTO (LEFT): SCHEMATICS OF NAIL-LAMINATED TIMBER DESIGN MANUAL | CANADA WOOD JAPAN

BUILDING HIGHER IN KOREA With input from Canada Wood, the Korean government eliminated prescriptive height restrictions for wood structures and adopted performance-based practices opening the door for a greater usage of taller wood buildings; and creating an enormous potential opportunity in the non-residential construction sector. ▼ PHOTO (DOWN): HAN GREEN BUILIDNG, KOREA’S FIRST FIVE STORY HYBRID MASS TIMBER BUILDING | NATIONAL INSTITUTE OF FOREST SCIENCE, KOREA FOREST SERVICE

Canada Wood Group is committed to aligning the benefits of wood building with government policies and regulations, providing meaningful input on the use of wood as a key carbon strategy, and influencing policymakers at all levels of government. With China, Japan, and Korea having announced goals of reaching carbon neutrality as critical priorities, new regulations in support of green building innovation will be spurred — creating opportunities for wood construction as a sustainable alternative.

POLICY ENCOURAGES WOOD USE IN XIONGAN CHINA Chinese governments now promote the use of wood construction both nationally and provincially, as a means to further decarbonization in the building industry. A recently released urban-development policy from XiongAn New Area encourages the extensive use of wood in industrial, residential, and low-rise public buildings as well as roof-renovation projects.

PHOTO: VISITOR CENTRE OF BAIYANGDING, XIONGAN NEW DISTRICT, CHINA | CANADA WOOD CHINA

JAPANESE SUBSIDY IMPACT REPORT Canada Wood Japan completed a comprehensive report on Japanese forest industry subsidies and their impact on trade. The report informs Canadian wood stakeholders on possible export ramifications of the incentive programs offered by the Japanese government. The report will serve as a key reference for future bilateral government discussions, and monitoring of Japanese programs.

KOREA’S NEW GREEN DEAL The New Green Deal, announced by the Korean government in July 2020, includes a key task : turn public facilities into zero-energy buildings. Canada Wood Korea is a leader in introducing wood-based, low-energy construction in support of this initiative.

DEMONSTRATIONS

The goals of demonstration initiatives are to highlight the use of wood construction in architecturally dramatic projects to overcome barriers in the advancement of expertise and construction prowess; and to solidify Canada as a leader in advanced wood products, technologies, and services.

NLT LIGHTENS THE LOAD FOR NON-RESIDENTIAL CONSTRUCTION SECTOR IN KOREA The Jinju Community Centre in South Gyeongsang Province showcases how Nail-Laminated Timber can be used in roofing systems. Panels manufactured off-site (in Busan) show how easy prefabrication can be, utilized in different building scenarios. Canada Wood Korea provided technical support throughout the planning and construction of the project; in order to impart best practices and assist the developer in overcoming the learning curve associated with the design, manufacturing, and installation of the NLT system. As the first NLT project in South Korea, the Jinju Community Centre serves as a ‘proof of concept’ case for NLT use in the South Korean construction market’s non-residential sector.

GROUND BROKEN AT INNOVATIVE JAPANESE CENTRE

DEMONSTRATE NEARLY NET-ZERO IN CHINA

Canada Wood Japan, in collaboration with the Tokyo

With support from Canada Wood China, the Changzhou

Building Works Branch of Maeda Construction

Nearly Net-Zero hotel project utilizes architectural

Company, has broken ground on Japan’s first NLT

strategies that minimize heating, cooling, and lighting

large-scale demonstration project. The project, funded

demands. This beneficial combination of renewable

in part by the Alberta government, is a five-storey

energy, green building practices, and the inherent

International Exchange Centre at Tokyo’s University of

low-carbon nature of wood-frame construction proves

the Arts, located in the heart of the Ueno

that wood-frame construction dovetails with the

neighbourhood. The building is an innovative hybrid

Chinese Nearly Net-Zero Building standards.

combination of steel and wood construction.

TECHNICAL KNOWLEDGE TRANSFER Canada Wood Group supports the Asian wood construction industries by providing application-specific education, and by developing and disseminating comprehensive technical guidelines and practical tools for wood design and construction.

NEW ONLINE PLATFORM PROVIDES TARGETED TRAINING When the COVID-19 virus limited travel and in-person events, Canada Wood China developed an online classroom platform combining live events and pre-recorded sessions, expert speakers with professional technical knowledge, and up-to-date training materials. This platform reaches industry professionals across China, and has hosted 63 webinars to 3,594 registered users since it launched in November 2020. User-activity provides feedback on the content that industry professionals are most interested in learning, and helps Canada Wood China to connect with people across different regions. Popular topics include energy efficiency, prefabrication, structural design, and mass timber.

JAPANESE TECHNICAL GUIDEBOOK ENCOURAGES USE OF CANADIAN STRUCTURAL MATERIALS In 2021, Canada Wood Japan published the MAPLE BOOK: A technical guidebook explaining how to use Canadian structural materials in Japanese post-and-beam construction, and encouraging architects, structural engineers, and builders to use Canadian structural materials.

The book includes information about material properties, shearwall systems, horizontal diaphragms, plus voluntary evaluations with each topic accompanied by attractive photos and illustrations.

NEW TRAINING COURSE FOR ENERGY EFFICIENCY LAUNCHES IN KOREA In partnership with RDH Engineering, Vancouver-based specialists in building science and engineering, Canada Wood Korea developed a 16-hour training video series for a new Energy Efficient Technology (EET) program — an enhanced version of the previous Super-E® training. The new training videos, produced at Vancouver’s BCIT, focus on the different aspects of building science; from energy modelling to exterior insulation and moisture control strategies specific to Korean climate conditions. Delivered as a package of videos, live presentations, and printed training manuals, the new course provides its audience with valuable, actionable takeaways in the most digestible manner.

BANNER PHOTO : SCREENSHOT OF ENERGY EFFICIENT TECHNOLOGY TRAINING VIDEO | CANADA WOOD KOREA

TECHNOLOGY ADOPTION

Canada Wood Group works with targeted companies to position wood-building systems as scalable technologies from the get-go; supporting the development of projects with a clear ‘go-to-market’ strategy by helping companies adopt the technology into their business plan.

KEY PARTNERSHIPS STRENGTHEN OPPORTUNITIES IN CHINA An early adopter of wood infill wall technology, Shanghai Electric Matechstone Engineering Group (MTS) is a good example of how Canada Wood’s partnership with key players in China can incubate hybrid wood solutions to meet local construction needs. Canada Wood and MTS worked together to devise a wood-infill wall system with a precast concrete superstructure, known as the Prefabricated Energy-Saving Cladding (PEC 1.0) system. A PEC 2.0 concept was further refined to improve integration of insulation and exterior cladding, and to optimize the sequencing, air tightness details, and thermal bridging at floor level. MTS obtained new patents for the connection details for PEC in China, launching it as the “MPEC system” targeted to the non-residential and industrial building segments and built within applicable codes. ▼ PHOTO: MTS’S FIRST COMMERCIAL WOOD INFILL WALL PROJECT IN CHINA| CANADA WOOD CHINA

CANADA WOOD KOREA INFLUENCES BUILDING INDUSTRY TOWARD SUSTAINABLE PERFORMANCE The Five-Star Wood Construction Quality Certification program, with support from Canada Wood Korea, has encouraged the building industry to raise the bar on the build quality and the sustainable performance of single-family homes. The certification program recently expanded into non-residential construction, representing a significant foray into a new growth segment for wood-building systems. A new aspect of this program focuses on tech transfer from Canada Wood Korea, and industry partners, to large chaebol builders.

3,000 HOMES IN JAPAN ADOPTING MIDPLYTM SHEARWALL A notable advancement in Japan’s single-family market is Ichijo Komuten’s rapid adoption of MidplyTM Shearwalls for commercial use. Ichijo Komuten, one of the country’s leading 2×4 single-family home builders, used this technology to complete more than 3,000 homes over the past two years. MidplyTM shearwall, invented by FPInnovations and the University of British Columbia, is oriented strand board sandwiched between 2x4 lumber. The second generation Midply Shearwall has been redesigned and tested, proven to be 1.8 times stronger with enhanced vertical and out-of-plan load resistance, and suitable for exterior wall application. These advances allowed the technology to gain popularity in Japan’s earthquake-prone areas.

BUSINESS DEVELOPMENT & NETWORKS The market expansion, and growth, of wood use in targeted sectors hinges on strong business development strategies and activities. Canada Wood leverages the reach and influence of industry networks and events, to propel advocacy and drive relationship building — key ingredients to successful commercialization.

TAP IN KOREA’S MAINSTREAM CONSTRUCTION SECTOR Korea’s construction market is highly concentrated by conglomerates builders like Samsung and SK. Canada Wood Korea partners with the Korean Institute of Building Construction (KIC) to tap into the country’s mainstream construction sector. KIC was established in 2001 with a membership of 5,000, representing Korea’s biggest builders. Canada Wood leverages KIC’s influence and network to promote the use of wood infill walls, MidplyTM Shearwall, and Nail-Laminated Timber systems in larger,

KEY PARTNERSHIPS EXPAND MARKET UNDERSTANDING

higher, wood-construction applications.

RELATIONSHIPS MATTER IN BUSINESS

Given China’s size, with 1.4 billion people

Relationships with large Japanese general contractors like Maeda

spread across 34 provincial-level jurisdictions,

Construction enable Canada Wood Japan to explore scalable use of

local partnerships are of key importance.

innovative building systems like Nail-Laminated Timber and Miply

Partnering with industry associations and

shearwall in the non-residential sector. The NLT demonstration project at

local stakeholders, Canada Wood China works

the Tokyo University of the Arts is the direct result of Canada Wood’s

to identify and engage with relevant networks

engagement with Maeda Construction; a relationship nurtured since 2017

of contacts across different regions. One

when Canada Wood helped Maeda make inroads into the wood-building

example of this type of partnership is the one

business. By participating in/speaking at industry events like the

Canada Wood established with the Chinese

WOODRISE Conference, Canada Wood continues to strengthen its

Real Estate Association (CREA), China’s largest

connections via direct business leads and opportunities.

real estate association; established in 1985 as

▼ PHOTO : SHAWN LAWLOR SPEAKING AT 2021 KYOTO WOODRISE CONFERENCE |

a national-level industry organization of

TM

CANADA WOOD JAPAN

enterprises, institutions, and individuals. CW and CREA co-hosted the 2020 Sino-Canadian Wood Forum, as well as a high-level summit in Beijing with key construction-industry stakeholders and policymakers that led to expanded networks and better market understanding of wood construction. ▲ PHOTO : CANADA WOOD CHINA SIGNING MOU WITH CREA

COMMERCIALIZATION WOOD TRUSS INCREASES LUMBER USAGE BY 17% IN JAPAN Canada Wood Japan promotes wood truss use in Japan’s residential and non-residential wood frame construction sector, where roofing systems are dominated by rafter design.

Canada Wood’s joint efforts with the Japan Wood Truss Council in developing and promoting the nail-plate truss system have recently enabled this unique combination of strength, precision, and quality to gain a growing following of Japanese builders and architects. According to JWTC, more than 2,000 projects utilized the nail-plate truss system in Japan in 2020. With a number of larger projects adopting this system, the amount of lumber consumed in trusses increased by 17% over the previous year. ▼ PHOTO : FACTORY BUILDING IN HOKKAIDO USING TRUSS SYSTEM | ARCHIVISION21

SUPPORT CHINA’S GLULAM MANUFACTURING INDUSTRY As China gravitates toward a low-carbon era, the construction sector offers great potential for meaningful improvements in energy conservation and emission reduction. Wood products such as Glue-Laminated Timber (GLT) provide natural and renewable building materials with excellent structural strength, reliable fire resistance, and flexible design. These products open new possibilities for architectural expression using wood structures in large-scale public facilities and commercial buildings — which are seeing steady market growth.

Since 2019, Canada Wood China has worked with the China Academy of Building Research (CABR) to introduce quality certification for the manufacturing of GLT. Through this program, Canada Wood China has identified 25 GLT manufacturers across China, and worked with them to improve product quality. In 2021, a milestone

KOREA’S SUPER-E PROGRAM NOW SELF-SUSTAINING ®

was reached: the first plant certification with GLT was made with Canadian Douglas-fir, paving the way for progressive improvement of GLT products and improving market reputation. Through this program, Canada Wood

Launch of Canada Wood’s Super-E® program generated

China positioned sustainably harvested Canadian wood

interest in Korea's residential sector, driven by consumers’

species as one of the preferred materials for Chinese GLT

heightened interest in healthy and energy-efficient homes.

production.

Since the program’s inception, twenty Super-E® builders have been certified. Super-E® training/certification has now been transferred to our partner the Korean Wood Construction Association, in the process becoming self-sustaining and completely independent from Canada Wood’s financial support. The Super-E® program enables the Korean wood building industry to take a phased, progressive approach to net-zero construction performance. As the industry aspires to shift toward sustainable solutions for housing construction, Super-E® has catalyzed growth of South Korea’s low-energy wood-frame single-family housing market.

◢ PHOTO : SUPER-E® HOUSE AT THE STAY VILLAGE IN GAPYEONG, SOUTH KOREA | CANADA WOOD KOREA

▲ PHOTO : WORKER INSTALLING GLULAM ON XIAN SKYTRAIN STATION CHINA | CROWN HOMES

OUR MEMBER ASSOCIATIONS Funded by Canada’s federal and provincial governments as well as the forestry industries, Canada Wood Group supports the diversification of global markets by promoting Canadian wood products and wood construction systems through advancing technologies.

GOVERNMENT PARTNERS

CANADAWOOD.ORG PHOTO: YANGXIN VISITOR CENTRE DEMO, SHANDONG PROVOINCE CHINA | CANADA WOOD CHINA