Ms. Rose Braden, Research Analyst, CINTRAFOR,
University of Washington, Seattle, WA
Conduct an assessment of wood
frame housing and glulam beam market for Softwood Export Council and the Foreign
Agricultural Service
Summary of Activities
The purpose of this trip was
to complete an assessment of the Taiwan market for US softwood products,
particularly wooden building materials, glulams, and 2x4 wood frame
construction. To complete this
assessment, I interviewed Taiwanese government officials, importers, designers,
and academics, and US trade representatives involved in the wood frame
construction market. The areas of discussion are detailed in the following
research objectives.
Research Objectives:
1. Describe constraints and opportunities for wood frame
housing and building materials in Taiwan.
2. Establish a baseline of wood frame housing starts and
active wood frame home builders.
3. Identify what types of wood products are being
imported by Taiwan from the U.S.
4. Identify leading firms that are importing and
distributing building products and softwood products for interior use.
5. Describe consumer, builder, architect, and government
perceptions about wood frame construction and interior use softwood products.
6. Identify market constraints (tariff and non-tariff)
that impact, or may impact, the competitiveness of U.S. wooden building
products and softwoods in Taiwan.
7. Identify the distribution channels for building
materials in Taiwan.
8. Describe housing land development plans, home
financing systems, and insurance aspects associated with wood frame
construction.
9. Identify how 2x4 construction technology is
transferred to Taiwanese architects and carpenters.
10. Determine the status of the wood frame construction
codes.
11. Identify recommendations for changing the Taiwan
building codes to facilitate the efficient adoption of wood frame construction
technology.
12. Identify foreign competitors supplying wooden building
materials to Taiwan and provide recommendations for improving U.S.
competitiveness.
On March 26 I met with Eddie Yen, Director of the State
of Idaho-Asia Trade Office to discuss his view of the market opportunities and
obstacles for softwood products. Mr. Yen estimates that less than five percent of the
wood imported and used in Taiwan is high-quality US softwoods, however, he said
niches for higher quality wood products do exist. While the majority of the lumber imported by Taiwan is low-grade
pallet stock, the volume of high-quality treated softwoods imported for outdoor
decking, railings, and buildings at government funded tourist developments has
increased substantially during the last three years. The Republic of China (ROC) is
focusing on developing the domestic tourism market and since it shortened the
work week to five days domestic travel to rural tourist areas has surged. Treated Southern yellow pine dominates the
outdoor construction market because it is characteristically easy to treat
(compared to D.Fir). However, Mr. Yen
said there may also be opportunities for treated lumber from the Western US
states since the shipping time from the US West Coast to Taiwan is shorter than
that of the Southern US. Mr. Yen says
it takes an average of 2 1/2 months for customers to receive lumber from the
South once an order is placed.
Wood Frame Housing Market
According to the Foreign
Agricultural Service 2000 Wood Products Report, approximately 500 wood frame
housing starts were completed in 2000.
Mr. Yen estimates that of these 500 starts, less than 125 are post and
beam construction and 200-225 are 2x4 construction.
Hualien, located on the coast
of west central Taiwan (Appendix A), is one of the main geographic markets for
softwood construction. The surrounding
region is a popular resort area and the location of government funded and
privately owned recreation areas. In
addition to outdoor structures made of wood, cabins made of Structural
Insulated Panels (SIPS) produced by Idaho-based Precision Panels, have been
well received in the Hualien area.
Mr. Yen said developers of a 1,729 acre (700 ha) resort in Hualien
had planned to use SIPS cabins as temporary structures then later build a 14-16
story five-star hotel of concrete.
However, the project manager was so pleased with the SIPS cabins that
the developer decided to build the remaining buildings of SIPS.
Hsin Chu, located approximately
35 miles (56 kilometers) southeast of Taipei, is considered the Silicon Valley
of Taiwan and another potential location for western-style wood-frame housing
(Appendix A). An estimated 70,000
high-income workers and their families live in this area, many of whom were
educated in the US. While these
individuals have been exposed to western style housing, making them a potential
market, there is no high-end western style housing available, so developers are
reportedly attempting to build western style houses in the area.
Glue-laminated Beams
Mr. Yen also said there is promise for the use of glulam beams in Taiwan. Glulam beams are being used in public buildings, bridges, rural museums, and parks (Photos 1 and 2). Government officials and architects appear to like using glulams for the design flexibility that they provide. To promote the use of glulams in Taiwan, The State of Idaho, Asia Trade office with support from the American Forest & Paper Association (AFPA), held a seminar in May 2000 to educate builders and architects about glulams. Mr. Yen said after the conference sales of glulams increased as well as the number of inquiries about glulams received by the Idaho Trade Office. The State of Idaho office is organizing another glulam seminar for May 2001, with sponsorship and input from the Agricultural Trade Office (ATO) Taipei, APA - The Engineered Wood Association, the Softwood Export Council, the Western Wood Products Association, the Architecture & Building Research Institute (Ministry of the Interior) (ABRI), the Republic of China (ROC) Sustainable Development Committee, the Forestry Research Institute (Council of Agriculture), CABC, the Taiwan Architects' Association, the ROC Wood Construction Association, the Forestry Department of the National Taiwan University, and the Economic Daily News.
On March 26 I met with Jessie Lin, Assistant Director
of the Oregon Trade and Information Center to Oregon activities to promote
softwood products in Taiwan and related perceptions about the market. She
said Oregon was somewhat reluctant to devote resources to promote US softwoods
in Taiwan since Taiwanese primarily use low-grade lumber for pallets. The Oregon office is active, however, in the
Green Building Products Council, a group that promotes green building products
to government officials. The ABRI is
coordinating two seminars to be held in April 2001 to promote green building
materials to builders and contractors.
The concept of green building materials and "healthy homes"
has not reached customers yet, however.
Overall, Ms. Lin was not
positive about the prospect of developing the Taiwan market for wood
products. The Oregon trade office
attempted to arrange meetings for US-based Hampton Lumber however Taiwanese
firms were not interested in receiving anything other than pricing
information. She also said that the
public perceives that wood frame construction is less durable than concrete
construction and despite the fact that wood frame homes were undamaged by the
1999 earthquake in Taiwan, the Oregon office did not receive more inquiries
about wood building materials after the earthquake.
On March 26 Jeff Miller, ATO representative and I met
with Michael Craddock, Director of the British Columbia Trade Office to discuss
what the BC government is doing to promote wood frame construction in Taiwan.
COFI guides the policy and
activities of the BC trade office and is the lead organization behind the
Canadian demonstration home project at the ROC Construction Planning
Administration (CPA) earthquake reconstruction development in Nantou, Taiwan
(Appendix A). This project is being undertaken as an effort to provide examples
of properly constructed wood frame housing in Taiwan, which will hopefully
allay consumer concerns about durability and combustibility and remove the
unfamiliarity about what a wood house is. The BC government plans initially to
build five modular homes that meets the ROC established price of CDN$50/ft2
(US$32/ft2) (35,000NT/ping~1 NT=0.03054 US$;
1 ping=32.67ft2). If the BC
trade office finds that builders can meet the price point set by the CPA and
consumer and government response is favorable, they will consider building more
homes.
Mr. Craddock said the CPA is
conducting a survey to determine if consumers prefer wood or concrete housing.
These findings will determine what type of housing will be built and the CPA
will contract with one company to build the houses to the CPA's specifications.
Supporters of wood frame
construction are telling consumers that wood frame construction is more energy
efficient and comfortable than concrete housing. As opposed to concrete construction, wood frame housing is cool
inside in the summer and warm in the winter.
However, promoters must first overcome concerns consumers have about
fire, safety, and durability issues associated with wood frame housing.
Status of Wood Frame Housing and Architect and Builder
Training
In an effort to understand
the quality of the wood frame housing in Taiwan and the skill level of
Taiwanese builders, COFI commissioned a structural engineer to review the
unified (national) building code as well as the city and county codes to
determine which code takes precedence.
The engineer concluded that when architects work closely with suppliers
and importers (i.e. staff architects), they are not very conscientious about
following building codes or proper building methods. In addition, Mr. Craddock said that many examples of wood frame
housing in Taiwan are not high quality and that many of the failings in the
recently constructed wood frame housing have not being realized. For example, many Taiwanese builders use
untreated red cedar because of its naturally insect and decay resistant
properties, yet these properties only last for a few years.
Consumer Perceptions of Wood Frame Housing
The main concern consumers
have about wood frame housing is the potential for fire damage. Many individuals learned that wood-frame
construction is more earthquake resistant from examples remaining after the
Kobe, Japan earthquake. However, proponents of wood frame construction still
need to educate consumers and builders that wood frame construction can be more
durable, earthquake resistant, and comfortable than concrete housing. Consumers and builders should also be taught
that wood is resistant to termites if treated properly.
Main Importers
United Forest Products (UFP),
located in Taichung, is Taiwan's largest importer of lumber that is also
interested in developing the domestic 2x4 home market. Mr. Craddock believes that if the 2x4 market
takes off, UFP is likely to be the main supplier.
On March 23 Jeff Miller, ATO representative and I met
with several representatives of the Architecture & Building Research
Institute (Ministry of the Interior) (ABRI), to discuss the building codes for
wood frame construction in Taiwan.
In the wake of the 1999
earthquake, ABRI and Construction Planning Administration (CPA) officials want
to promote wood frame construction as a safer form of housing. To promote and improve the quality of wood
frame construction in Taiwan the organization has submitted a proposal to the
Director of Construction Planning Administration (CPA) to allow ABRI to review
the existing building code for wood frame construction. The Director has already told officials at
ABRI that he will approve the request.
Once approved, the review is expected to begin by the end of 2001 and
revisions are expected to be completed by the end of 2002.
ABRI recognizes that the
present code is very general and simply “suggests” procedures to be
followed. For example, although the
building code states that wood used within one-meter of the ground should be
treated with insect-resistant chemicals that meet requirements of the Chinese
National Standard, it is not mandatory.
ABRI is seeking technical information
from North American and Japanese sources about proper design and construction
techniques for 2x4 and post and beam structures. Once the revision process is completed, ABRI plans to include
sections on both forms of construction, leaving the final decision about which
technique to use to the builder.
Current Building Codes & Revision Process
According to the building
code public buildings cannot be constructed of wood and the roof must be
non-combustible and fire-retardant, except in cases where a special permit has
been issued, which typically takes approximately two years to issue. However, since the Nantou redevelopment
project is located in an earthquake zone, the government has issued a special
permit for the entire area, allowing the construction of wooden three-story
townhouses, four-story apartments, and single-family homes without going
through the lengthy permit process required to build with wood.
The maximum height allowable
for wood frame construction in Taiwan is 14 meters, and while there is no limit
on the floor area of a wooden structure, hotels must be limited to two
stories. In wood-frame multi-family
housing the building code requires that every 500 m2 be
compartmentalized with one-hour fire separation walls. For non-wood structures, every 1,500 m2
must be compartmentalized with one-hour fire separation walls. If a sprinkler system is installed, the
compartmentalized area allowed is doubled.
However, the ABRI is proposing a higher rating.
While ABRI is reviewing the
building code and developing its revisions, building materials will be tested
for strength and fire resistance. ABRI
suggests that this will be a good time for various interests to provide their
input to ensure that all interests and factors are considered. ABRI is seeking input about building
standards, testing approaches, and structural aspects of engineered wood
products and wood frame construction from ATO and US associations affiliated
with engineered wood products, such as APA-The Engineered Wood
Association. While the organization
will take the findings of fire tests conducted in Canada and the US into
consideration, ABRI's representatives said materials would have to be re-tested
in Taiwan for final approval.
2x4 Construction Market
According to ABRI
representatives, architects and builders understand the concepts of structural
design, yet they are not familiar with proper design and construction of 2x4
construction. They believe 2x4 training programs held in Taiwan will encourage
firms to build more wood frame homes. They also said that they think the wood
frame construction market will be driven by large developers since these firms
have the resources to properly build wood frame homes and the finances to
promote their projects, which will in turn promote the whole industry.
Education at the builder and
consumer level is paramount to the success of the wood frame construction
market in Taiwan. As opposed to
Japanese consumers who expect to rebuild their homes after 20 years, Chinese consumers
want homes they can pass on to future generations, therefore they need to be
convinced that wood frame homes are durable, earthquake resistant, termite
resistant, and comfortable.
On March 27 Jeff Miller and I met with Mr. Thomas
Wang, Director of the Taipei Interior Design Association (TAID) to discuss the
market for softwood products for interior use, consumer preferences, and other
factors that influence the use of softwoods. The term “interior designer”
has a different meaning in Taiwan than in the US. In Taiwan the term refers to decorators and engineers of interior
living and working spaces and manufacturers of interior use products. For the
past ten years the TAID has worked as a professional association that educates
designers and engineers about market developments. It also lobbies government and licenses design
professionals. All 8,000 design firms
in Taiwan are required have at least one architect on staff and to belong to
the TAID. In addition to serving as a
professional association and licensing agency, TAID lobbied and successfully
lowered the luxury tax on interior design projects from 28 percent to 21
percent (not including materials and paid by the supplier). The Association also disseminates
information about international design developments to its members.
According to Mr. Wang, the
natural look of wood is popular interior style and Taiwanese designers and
consumers prefer the straight grain associated with softwoods. Hinoki, called Port Orford cedar in the US,
is particularly popular. Many consumers
remain influenced by the Japanese occupation and have tatami rooms in their
homes decorated with hinoki. Hinoki is
also used for doors, tables, and veneered paneling. Since log harvests in Taiwan are forbidden, Taiwan reportedly
imports most of its hinoki from the US.
Mr. Wang also said consumers prefer natural products versus imitation
wood products. Other designers
interviewed disagreed, saying that generally, only older individuals have
tatami rooms in their homes. They also
said imitation wood products are replacing solid wood products. It is possible these designers cater to
individuals of different income levels and demographic groups.
While many consumers may like
the appearance of wood, their purchasing decisions are highly influenced by
interior designers. Approximately 95
percent of condominiums are sold without kitchens or interior finishing. After purchasing the unit, consumers hire an
interior designer to lend decorating advice and subcontract the interior work. Most Taiwanese consumers do not have
pre-existing ideas about interior design, so the interior designer is very
influential in the material selection process. Therefore, educating the
designer about specific materials and products is very important to accessing
the Taiwan market. Brochures written in
traditional Chinese and product samples are a very effective means of educating
designers about products and species.
Mr. Wang said the American Hardwood Export Council distributes a
brochure of veneer samples that has been well received.
Mr. Wang believes that a
steel frame and wood panel 50-family housing complex built in Tokyo by the
Toyota Group will influence developers and builders in Taiwan. The project, called Universal Home, received attention from the news media in Taiwan
for the fast construction time and lower cost of building with the steel and
wood panel system. Mr. Wang said he
thinks there is great potential in Taiwan for steel/wood hybrid systems and 2x4
construction. He was also one of many
individuals interviewed who said that Taiwan could be a bridge to improve
access to the Chinese market since many businesspeople in Taiwan own companies
and manufacturing facilities in China.
Mr. Wang suggested a
combination of "push" and "pull" marketing approaches to
promote wood products in Taiwan. The first is to develop supplier relationships
with manufacturers and import companies by supplying reliable service and
competitively priced products. The
second is to develop market demand by promoting wood products among interior
designers.
The interior products market
has significant obstacles that are not easily surmounted. Mainland China is Taiwan's leading furniture
supplier since many Taiwanese firms have located their production plants there
to take advantage of the inexpensive labor.
Second, since door, window, and kitchen sizes are not standardized,
interior fittings are built to custom specifications, forcing production to
remain in Taiwan. While it may be
difficult to access the finished interior wood products market, US producers
may be able to supply veneer, plywood, panels, and lumber to custom components
manufacturers in Taiwan.
On March 27 Jeff Miller and I met with Dr. Tsou
Tsung-Che, Head if the Division of Forestry Chemistry at the Taiwan Forestry
Research Institute to discuss product specifications for the wood frame
construction industry and use of engineered wood products, particularly
glue-laminated beams.
The use of glulams in Taiwan
is limited to large buildings for public use such as museums and cultural
centers. However, ABRI and the CPA are
increasingly interested in using wood in large public buildings and government
representatives actively participate in the annual glulam seminar organized by
ATO and the State of Idaho.
Dr. Tsou said teaching
architects how to design and build with glulam beams is vital to increasing
their use since architects select materials based on which material they feel
most comfortable using that also provide the aesthetic and performance
attributes they want. At the point of
design, function and ease of design override cost from the architect's point of
view.
Another important component
for promoting the use of wood in construction is coverage by the news
media. Dr. Tsou said Taiwanese people
are highly influenced by the news and television media, yet there are no
examples of wood frame construction in the local print or television media.
On March 27 Jeff Miller and I met with Dr. Wang
Song-yung, President of the Wood Construction Building Association to discuss
government promotion of wood frame construction. Dr. Wang is considered
the foremost expert in Taiwan regarding wood frame construction, although his
education background is related to Japanese style post and beam construction.
Estimated Market Size & Potential
Dr. Wang said less than one
percent of construction in Taiwan is wood frame. He estimated that the maximum potential for wood frame
construction is 30 percent of the market in 20 years. He also estimated that wood frame construction could occupy 10
percent of the residential construction market if it were promoted among
architects and consumers properly.
Since there are approximately 650,000 empty apartment units the real estate
industry is searching for an angle to stimulate sales and wood frame
construction could be an option.
2x4 Technology Transfer
Understanding of proper 2x4
construction technology is limited in Taiwan.
Dr. Wang said that approximately 20 construction firms in Taiwan employ
architects or carpenters who understand how to design and build 2x4
structures. However, other interview
respondents questioned the level of understanding of some of these individuals
and the quality of their buildings. Dr.
Wang said that aside from post and beam construction built during the Japanese
occupation of Taiwan, builders and architects first introduction to wood frame
construction was log structures, which are now popular as vacation
resorts. He added that as more builders
and architects have been exposed to 2x4 technology they have begun to
incorporate 2x4 techniques into their projects as modified post and beam and
2x4 construction.
Some leading obstacles to the
widespread adoption of wood frame construction in Taiwan include:
1. Lack of technical knowledge among architects regarding
how to design 2x4 structures.
2. Lack of available financing and insurance for wood
frame construction.
3. Lack of education among architects and consumers about
what a wooden house is and how long it will last.
4. Widespread belief among consumers and architects that
wood frame construction will burn down, blow down, or be destroyed by termites.
While consumers are uncertain
about the durability and safety of wood frame construction, the ROC recognizes
that wood frame construction will minimize earthquake damage. The government also supports the use of
green building materials as a means to meet emissions levels set by the Kyoto
agreement. To increase demand for wood frame homes, Dr. Wang said ABRI is
discussing the possibility of sponsoring a 2x4 technology seminar after the
building code revision is complete.
ABRI has also thought about assembling a model home to serve as a test
house that they will set on-fire to allay consumer concerns that wood frame
structures are highly flammable.
Financing is another obstacle
to the widespread adoption of wood frame construction. While the availability
of financing is vital to ensure the success of wood frame construction in
Taiwan, banks are less willing to finance wood frame projects than steel or
concrete projects. Banks will lend up
to US$244 (8,000NT) per square meter for steel or concrete construction, yet
only US$61 (2,000NT) per square meter for wood frame construction.
On March 28, Jeff Miller and I met with Cathy Liu,
President of Tien Peng Industrial Company, a wood flooring distributor and
interior design firm to discuss the interior wood products market and consumer
preferences.
Tien Peng sells most of its
wood and laminate flooring through interior designers who work directly with
homeowners. As part of this
relationship, Ms. Liu has a lot of influence on the choice of flooring that the
interior designer and consumer selects.
While developers used to include wood flooring in condominiums to
attract customers, since the economy has weakened, most customers who want wood
or laminate flooring must install wood it after purchasing the apartment. Ms. Liu said she suggests materials and
species to interior designers based on the designer and customers color
preferences, although she said darker colored flooring is popular. She also said she recommends laminated
flooring because it wears better than solid wood and it is less expensive. Many Taiwanese mop their floors with a lot
of water, which also makes laminate and non-wood flooring and mouldings more
practical. Sales of laminated flooring
have steadily increased since it was introduced and laminated flooring produced
in Mainland China makes up 70% of Tien Peng's sales.
Tien Peng purchases birch and
laminated flooring from Mainland China, and flooring made of other species from
Indonesia, Paraguay, and Africa. Taiwanese manufacturers import semi-finished
tongue and groove flooring and finish the product locally. The bulk of the work is done overseas since
labor costs in many developing Southeast Asian countries are low and tariff
rates for unfinished materials are lower, yet by finishing the flooring in
Taiwan the importer has more control over the quality of the final product.
Finished solid flooring is
1.5 cm, although 1.8 cm flooring is also popular. Reportedly, wood flooring from the US is less attractive to
importers and consumer because suppliers only produce lumber in one-inch
thickness. Finished, the flooring is
2.2 cm, which makes the flooring more costly than its competitors. Ms. Liu also said that termites are
attracted to oak more than other species, although she also said that termites
were not a problem in apartments. While
oak may not be more susceptible to termite damage than other species, the
perception that it is, could be a major obstacle to the use of oak flooring in
Taiwan.
On March 28, Jeff Miller and I met toured the Wuku furniture
district, a street lined with small furniture stores, which is one option
for consumers and decorators to purchase furniture. Although most of the
furniture that we saw was made of hardwoods, we did see pine bookcases that
were made in China. Near the furniture
district there was a park with a gazebo made of what appeared to be treated southern
yellow pine. The Taiwan government is
removing concrete from many parks and building wooden gazebos as a way to
improve the aesthetics of the city.
On March 28, Jeff Miller and I met with James Liu,
Managing Director of Fuer Fu Trading Company, and lumber importer, specializing
in supplying the furniture industry. Fuer Fu imports large volumes of rubberwood and #1,
#2, and #3 grade radiata pine from New Zealand, Chile, and Brazil, yet only
small volumes of US softwoods. Most of
the lumber they supply is lower grade, used in Mainland China for the domestic
and export furniture market since most domestic furniture manufacturing has
moved to Mainland China to take advantage of low labor costs.
While many Taiwanese firms
also own manufacturing facilities in Mainland China, it is difficult and risky
for even Taiwanese firms to do business in Southeast Asia from both the
perspectives of a lumber buyer and seller.
From the buyer's perspective, since there is no lumber grading system in
developing Southeast Asian countries, Fuer Fu must send employees to the
supplier's facilities to inspect the lumber to ensure they will receive the
grade they want. From the seller's
perspective, most obstacles relate to ensuring payment and educating consumers. Taiwanese importers commonly send large
shipments of lumber to their own warehouses in Mainland China for customers to
inspect, and hopefully purchase. This method, however, puts the importer at the
mercy of customers since potential customers know the import firm has to sell
their stock. Letters of credit are also
fallible. Large manufacturing firms
often place orders then try re-negotiate the price when the shipment arrives in
China. Mr. Liu said that while in
general, Taiwanese firms have better credit than firms in mainland China, in
fluctuating or sluggish markets, they will still try to negotiate the price of
their orders down when the shipment arrives.
Customers are also extremely price sensitive. Typically, they do not understand the difference between various
timber species or grades; they want the lowest priced material that will meet
their customer's product specifications in order to maximize profits. Therefore, if the end-customer orders a
shipment of pine bookcases, the manufacturer is not concerned that southern
yellow pine is better suited for furniture than radiata pine if radiata pine is
less expensive. Finally, with the
exception of Shanghai and Hong Kong, it is difficult to import wood products
through Chinese ports due to stringent phytosanitary restrictions.
Taiwan on the other hand has
no phytosanitary restrictions. It also
has five major ports that easily handle all wood imports. Industrial consumers in Taiwan, however, are
extremely price sensitive and they will use some of the same tactics that
customers in Mainland China employ to negotiate lower prices.
Mr. Liu said there might be
opportunities for US pine products in Mainland China and Taiwan if US prices
were competitive with other suppliers' prices. To help develop the market he
suggested US suppliers extend credit to Taiwanese importers.
On March 29, Jeff Miller and I met with the Chairman,
Special Assistant to the Chairman, and General Manager of Pucka Builder and
Developer Corporation, a construction firm that now builds concrete high-rises
and single-family homes that is planning to start building log and 2x4 homes.
Pucka Corporation, a
development company that was established in 1975, owns two construction
companies that build high-rise concrete office and apartment buildings and
concrete single-family homes. One of
the company's next projects will be a development of approximately 300 luxury
single-family homes to be built over 3-4 years. Forty of these homes will be log. If the venture is successful, Pucka representatives said the
company may increase the number of log homes in the Taipei development and
build 2x4 single-family homes and townhouses near Taichung. The company has no
prior experience building wood frame construction and it appears that they have
done limited market research about the potential market size of the wood-frame
housing market. They were part of a
trade delegation that visited Canada, however, to gather information about
earthquake resistance, fire susceptibility, and durability of 2x4 construction.
There are several reasons the
company is interested in building wood frame housing. First, sales of condominiums in high-rise concrete buildings have
slowed considerably as the economy has weakened so offering wood homes is a way
to differentiate the company's projects from those of its competitors. Second, more construction firms are building
homes on hillsides and there is a fear that the weight of concrete construction
will cause slides if there are heavy rains or an earthquake. Third, the
government and the public believe wood frame construction is more earthquake
resistant than concrete. Fourth,
Pucka's directors believe wood frame construction will reduce construction
costs and construction time. While the
Pucka representatives said wood is approximately the same price as concrete,
the construction time for wood frame structures is faster, which they believe
will give Pucka an edge over their competition.
Pucka is choosing to build
log homes because they have a higher selling price, and Pucka's representatives
said consumers consider them more durable and less flammable than 2x4 or post
and beam homes. While Pucka's Director
said the company prefers "D" shaped log home systems, they will
probably use round logs initially since consumers feel more comfortable with
round log homes. The firm also plans to use untreated red cedar because its
directors believe that treated lumber will shorten the life span of the home
and introduce chemicals into the home and to its inhabitants. In fact, the company plans to emphasize that
they use "green" building materials in their marketing campaign.
Pucka's representatives said
it is less difficult to obtain financing for log homes than for other types of
wood frame construction, although financing and insurance for wood frame
projects is a significant obstacle to the adoption of wood frame
construction. To obtain financing the
developer must obtain insurance, and insurance companies are very reluctant to
insure wood projects. Since land is
expensive however, developers typically leverage the land to finance the home
project. Pucka's representatives hope
that recent developments in other countries to adopt 2x4 construction and the
CPA and ABRI's work to improve the building code and promote wood frame
construction may pressure the insurance industry to more readily insure wooden
construction.
Another construction firm
started a similar luxury home development, called Taipei New Town in the early
1990s. The development included five
2x4 homes, yet when one burned down, the project reinforced the public's
perception that wood frame homes are highly flammable. The remaining four homes are still standing
however, and are reportedly holding up well.
Labor is another obstacle to
building wood frame construction in Taiwan. Pucka representatives said it is
difficult to find architects who have experience designing 2x4 or log
structures. They also said they expect
it will be difficult, initially, to find skilled workers to build log and 2x4
homes. However, they said they plan to
either hire 2x4 carpenters to train Taiwanese builders or they will have
workers attend construction seminars. The company has only considered building
2x4 homes as opposed to post and beam because they said consumers who want wood
frame homes typically want very western style homes, yet they don't believe
they can get the same look with post and beam construction.
On March 29, I met with Jessie Yang, General Manager
of Yang’s Design Studio, a 10-year old structural design firm that specializes
in wood frame construction that includes both solid and glue laminated
beams. The firm is a partnership with Yi Tsai Wood Co., a
Taiwanese importer of softwood lumber and engineered wood products and works
cooperatively to design projects with Western Structures a producer of glulam
beams in Tualatin, Oregon. Mr. Yang met
the representatives of Western Structures when he was part of a group of
Taiwanese importers who toured suppliers' facilities in Oregon and Idaho with
Eddie Yen of the Idaho Trade Office.
While there are 5-6
architecture firms in Taiwan who design and build with glulams, Yang's is the
largest. He also said the quality of
the structures built by other firms is highly variable. For example, a museum designed by a
competitor now has water and termite damage because it was designed improperly
and was not built with treated lumber.
On small projects all designs are completed in-house and construction
managers employed by Yang's oversee construction. On large projects he drafts the building plans and then has
architects at Western Structures review them and make modifications or he
provides Western Structures with a conceptual drawing and they draft the
building plans. Western Structures will
also send a construction manager to Taiwan to oversee large construction
projects. Yang's most recent project is
the Buddhist Cultural Center in Hualien, which he said is the first building in
Taiwan to use arched glulam beams. The building permit for the project, which
took two years to obtain since the building is a wood structure, has been
issued and construction will start in October 2001. Mr. Yang said the building permit process typically takes two
years to complete since regulators in Taiwan are not familiar with building large
wood structures, yet he anticipates the permit process will be faster after the
building code is modified to include wood and laminated beams.
Mr. Yang said the Wood
Construction Building Association (WCBA) has been an important component in the
advance of wood frame construction in Taiwan.
While there were only 5-6 members five years ago, there are now
approximately 100 members.
Mr. Yang cited several of the same obstacles wood frame housing faces as other respondents, including concern about termite damage, fire, and cost, and durability. Consumers believe wood frame homes will last only 2-3 years, and builders perpetuate the belief that the life-span of wood frame construction is limited by telling consumers wood homes will last approximately 10 years. Cost is another significant obstacle. Mr. Yang said the average cost for a concrete or brick structure is US$31/ft2 (400,000 NT/ping) and the average cost of a wood frame structure is US$56/ft2. However, higher income consumers may be willing to pay more to own a more earthquake resistant home if their fears about fire and termite damage are dispelled. Consumers in Taiwan also believe wood is a healthy building material, a belief supported by Mr. Yang. He uses spruce and cedar paneling and Douglas fir railings, cabinets, and stairs.
On March 29, I met with Eric Crowley, Director of the
Washington State Trade Office, Taipei to discuss the types of activities the
Washington office conducts to promote the use of wooden building materials, and
what types of support they needed from US industry associations.
The Washington office employs
only two employees to promote Washington's agricultural and manufactured
products, which leaves little time to devote to wood products. They have attempted to arrange meetings
between US and Taiwanese firms, yet Mr. Crowley said, as the Oregon Trade
Office reported, there was no interest from US firms. He said some Taiwanese firms were initially interested in
attending the Evergreen Building Products Association's Winter Gateway Building
Materials Conference in February 2000, yet they were reluctant since the
conference was held during the Chinese New Year. He said he has had greater response from Taiwanese firms
interested in attending the National Association of Home Builders' building
products show.
Mr. Crowley expressed
interest in doing more promotional activities for wood products. We discussed creating an ongoing working
relationship between the Washington, Idaho, Oregon, and British Columbia
offices, facilitated by Jeff Miller, to provide ABRI with information about 2x4
construction technology. Since ABRI
historically attempts to be very even handed about reviewing information
submitted by several countries, cooperation between supporters, particularly
the US and Canada on 2x4 building technology has the potential to more
significantly influence ABRI than if they were approached separately.
It is also clear from my
conversations with the state trade offices that it is imperative that they US
industry organizations provide them with literature about the variety of
species available in the US, lumber grades, and basic promotional literature
about wood frame structures. This
literature should be printed in traditional Chinese and should address the misconceptions
that Taiwanese builders and consumers have about building with wood that have
been noted in this report. CINTRAFOR
has given Mr. Crowley electronic files from a promotional brochure for the
Washington forest sector.
On March 30, I met with Andy Wen, Vice General Mgr.,
Duncan Chang, and Jeffer Kuo, General Manager of Enhanced Forestry Co., Ltd an
importer of softwood lumber. Enhanced Forestry started 14 years ago as an agent for
CanFor and Tiaga, Canada's largest lumber wholesaler. The company primarily imports pallet grade SPF, Douglas fir, and
hemlock lumber from western Canada, used in the domestic pallet industry, and
radiata pine from New Zealand, which is sold to Mainland Chinese furniture
manufacturers. The company also
supplies 90 percent of Taiwan's 8,000 m3 imports of red cedar logs,
most of which are harvested in Alaska.
Small diameter logs are used for log homes and larger logs are
remanufactured. Mr. Kuo added that
Enhanced Forestry has shifted its source for logs and lumber. The company now primarily imports radiata
pine from New Zealand, which Chinese manufacturers stained to look like
cherry. He also said Scandinavian
suppliers are increasing their exports to China because their standard
dimensions are well suited to the furniture manufacturing sector.
Demand for high-grade lumber
and logs in Taiwan, is decreasing as Taiwan's sawmills either close or move to
Mainland China, whose manufacturers' use lower-grade lumber. The Japanese Housing Quality Assurance Law,
which requires builder to provide a 10-year warranty, is also forcing producers
who used to supply Japan with SPF and hem-fir green dimension lumber to sell
green lumber to Taiwan at a lower price.
The average price for SPF and hem-fir green dimension lumber in Taiwan
is US$100/m3.
On March 30, I met with Ben Chen, President and James
Fang, Manager of Woodtek International, a building materials supplier to
discuss the import process for wood products, competitive advantages of various
suppliers, and details about the Taiwan softwood lumber market. Woodtek
is an agent for Hoover treated lumber, Owens Corning building materials, Boise
Cascade, and Martinsons, a glulam producer in Sweden.
Woodtek's main geographic
markets for 2x4 building systems, siding, and treated lumber are Taichung,
Gaulong, Hualien. Mr. Chen said that
since wooden homes are very expensive, there is more opportunity for wood
siding than structural grade lumber. He
also said it is difficult to convince architects to design projects that
include glulam beams for several reasons.
There are no architecture programs in Taiwan that teach architects how
to design wood structures, steel can be used to execute the same designs, and
architects believe the glulam structures are expensive to build and susceptible
to water damage.
The Taiwan fire code is also
a major obstacle to the use of wood in construction. Mr. Chen said even though treated wood has passed UL fire tests
in the US, it is not accepted in the Taiwan fire code, or the Chinese National
Standard (CNS). Woodtek sent supporting
UL documents to ABRI and lending institutions, with no success. The use of interior wood products is also
limited by the fire code. Mr. Chen said
he believes it will take much longer than two years to modify the building code
to accept wood-based building materials.
He added that the most effective way to promote wood products in the
near future is to work to get UL testing results recognized by ABRI as opposed
to re-testing the fire resistance of products in Taiwan.
Concern about flammability of wood products makes it difficult to obtain financing. Lending institutions have said that since wood products have not passed CNS tests, they will finance only 40-50% of the value of wood frame projects, yet they finance up to 90% of concrete projects.
On March 30, Eddie Yen and I met with Tony Kuo,
General Manager of Yi Tsai Wood Co., Ltd., one of Taiwan's largest importers of
US softwood lumber and building materials and partner in Yang's Design. Mr.
Kuo has been very active in his efforts to promote the use of glulam beams and
structural and interior-use wood products in Taiwan. His company, Yang's Design, and the Idaho State Trade Office are
organizing a two-day workshop in May 2001 about using and designing with glulam
beams that will be held separately from the ATO glulam seminar.
Mr. Kuo said the process of
importing wood products was relatively easy and tariffs for primary wood
products are low. Plywood, for example
has a 7.5% tariff rate. He said it was
much more difficult to establish distribution channels however, due to the
shortage of distributors who are knowledgeable about wood species and grades,
who are dependable, and who are interested in participating in trade shows and
producing product brochures.
The most promising end-market
for high-grade US softwoods appears to be publicly funded government
projects. The government is building
more large wooden buildings and outdoor structures as it attempts to develop
the domestic tourism market. While
build large public building projects have a long review and approval process,
they are also designed and built properly.
Finally, these projects use much larger volumes of wood products than
the 2x4 residential market. Mr. Kuo
said that the 2x4 residential construction market has the potential to grow but
it will not reach the size many supporters believe it will due to the limited
amount of undeveloped land. He
speculated the limited availability of land might present an opportunity for
2-3 story multi-family residences however.
The building code is a major
obstacle to both government and private projects however and Mr. Kuo, as well
as other respondents questioned the ability of the ROC to review and revise the
building codes within two years. He said
that Japan has significant influence on Taiwan’s policies so the development of
trade and development policies tends to favor Japanese exports. He suggested the US government negotiate
with the ROC about the wood frame building code by discussing the revision of
the building code in terms of trade negotiations.
Mr. Kuo also said that since
Taiwan has a history of using wood for interior and structural use that dates
to the Japanese occupation of Taiwan, architects like the idea of using wood
and consumers enjoy the aesthetics of wood in their homes. At the same time, consumers and architects
also have many misconceptions and concerns regarding wood frame construction
that should be addressed. One
misconception that Mr. Kuo said was key among architects and consumers is that
if a home is wood frame, then everything in the interior and exterior of the
house is wood. This creates concerns
about both the safety and aesthetics of the home. However, he as well as most other interview respondents stressed
that it is very difficult to obtain promotional materials from US trade
organizations. He added that there was
no central office or individual to answer the technical questions posed by
architects and end-users.
Mr. Kuo said the quality of
the 2x4 housing in Taiwan is variable.
Since many of the wood frame homes in Taiwan are built in rural areas,
they are not regulated. As a result,
very few of the homes that have been built have undergone the permit process
and most of these are poorly constructed. Many consumers are driven by cost,
not quality, and it is reflected in the builders they select and the final
quality of the house. Only very
expensive homes have been reviewed and have received building permits; the
quality of these homes is reportedly good.
On April 2,
Butch Bernhardt (WWPA), Alan Czinger (SEC), Mr. Saheki (private lumber sales)
and I met with Danny Wu, President of WHC Design Engineering to visit several of projects he designed. Wu is a landscape designer who is
self-taught in the design of wooden structures. His projects include wood buildings, gazebos, and walkways at
many publicly and privately funded parks, museums, and research areas in the
Hualien area. These projects ranged
from government fisheries facilities and related offices, viewing platforms and
gazebos, to buildings that housed nature education exhibits. Mr. Wu said he does not receive building
permits for the projects he designs because they are government projects. Although other interview respondents said
that all projects must receive building permits, there may be more flexibility
for county or government projects.
Most of Mr. Wu’s projects
that we visited were built mainly of treated Southern yellow pine with lesser
amounts of western red cedar lumber and Sitka spruce logs that he said he
selected based on information from brochures he received from the Taiwan ATO
office.
On April 3, Jeff Miller, Eddie Yen, Butch Bernhardt
(WWPA), Alan Czinger (SEC), Mr. Saheki (private lumber sales) and I met with
Mr. Kuo, the Director of the Construction Planning Administration (CPA) to
discuss how the CPA plans to incorporate wood frame construction into its
project to rebuild after the 1999 earthquake.
The 1999 Taiwan earthquake
damaged approximately 115,000 housing units in the Taichung area. It completely destroyed half of the 115,000
units and damaged an additional 8,000 to the point that they are not safe to
live in. The CPA, which is responsible
for restoring the area, estimates it will have to rebuild 60,000 units. In light of the high level of destruction,
the ROC is giving the CPA US$3.5 million to help fund the restoration of
existing infrastructure and to build new housing. The CPA is also rezoning
150-200 acres of agricultural land to multiple use. The CPA will install public
facilities and return half to the owner for private development and the CPA
will use the other half for public redevelopment projects.
The Taichung redevelopment
project is particularly important to the promotion of wood frame construction
in Taiwan because the CPA has decided to include model multi-story wood frame
apartments, townhouses, attached single-story senior housing, and single-family
homes for low and moderate-income families whose homes were destroyed by the
earthquake. Half of the buildings in
the redevelopment project will be 2-3 story apartments and townhouses. The wood frame projects will also be exempt
from the permit process and wood will not be considered a "special
material" because the CPA is overseeing the project. If the public responds favorably to the model
homes the CPA plans to build more. The
Canadian government has already committed to build five different modular home
projects starting in August-September 2001.
The CPA has allocated US$56/ft2 (NT60k/ping) for land and
US$37/ft2 (NT40k/ping) for the completed home.
If US firms or organizations
are interested in building homes in the Taichung redevelopment project, they
must first submit a letter of interest to the CPA. Once the CPA approves the offer, the organization or firm must
work with a local Taiwanese architect to ensure that the home design is in
keeping with Taiwanese preferences. In
Canada's case, Canadian firms are donating the materials and Taiwanese
architecture and construction firms are donating the labor and design work.
The CPA has divided the
families who need assistance into two groups for home financing purposes. 1) Those who own land that they can use as
collateral and 2) those who do not own land.
For the estimated 14,000 families who own land the government will grant
a short term loan to help the families build a home. When the home is completed the government will transfer the lien
to the home. For the second category of
8,000 families who do not own land the government has several options depending
on their economic situation. Those
families will either finance their own homes, rent, or if they are elderly or
jobless, the government will provide housing.
While the CPA is financing
most of the redevelopment project, lenders still have the authority to approve
or deny the loans of those considered financially able to pay for their own
home. The central bank will guarantee the local bank will receive the interest
payments from the $3.5 billion fund.
Mr. Ko said there were two
other projects in the Taichung area that are appropriate for wood frame housing
include the replacement of 1,000 homes that are at risk of landslides and 2,000
aboriginal homes. He added that
concrete homes are less appropriate for these projects because the weight of
concrete structures could exacerbate the risk of landslides and because wood
would be better suited for aboriginal buildings.
On April 3, Jeff Miller, Alan Czinger (SEC), and Mr.
Saheki and I met with Jack Lin and Mr.
Shu of United Forestry Products, a
softwood lumber import and wood frame home design firm to discuss how they
select a supplier, their views on prospects of wood frame construction in
Taiwan, and various aspects about the ease of building wood frame construction,
overall quality of the existing wood frame housing, and the level of technical
training for 2x4 design in Taiwan.
United Forestry Products
(UFP) imports treated Southern yellow pine lumber from Hoover, plywood from
Brazil and New Zealand, OSB from Canada, and locally produced moulding. The firm also purchases redwood lumber from
its competitor, Enhanced Forestry. Mr.
Lin said the most important factor affecting his selection of lumber supplier
is price, followed by product quality.
Although UFP buys materials
exclusively through agents, and many other importers depend heavily on agents
for information about the physical attributes and applications for the wood
products they purchase, most agents have limited knowledge about species
differences and technical issues. Mr.
Lin said he gets his information about the species and their applications from
brochures and uses it to place his order.
Since many agents cannot answer customer questions many firms are
bypassing agents and placing orders directly with suppliers.
The company designs and
supplies materials for wood frame construction as well. Mr. She, UFP's in-house architect is a
trained interior designer who taught himself 2x4 design from technical
manuals. He is designing an 18-unit
wood and concrete townhouse project in Taichung and designed a development of
309 log cabins in Southern Taiwan, the largest development of wood residences
in existence in Taiwan. For the
townhouse project, Mr. She designed the first three stories to be built of
concrete and the top floor log construction.
Mr. She said there were several reasons for this design. First customers can enjoy the aesthetics of
a wood frame home at a lower cost than a home built entirely of wood. Second,
since the lower floors are built of concrete there is no risk of termite
damage. Finally, customers feel homes
made largely of concrete are more durable.
Although the final cost of a
home depends upon the interior finishes used, Mr. She estimates concrete homes
cost US$28-37/ft2 (NT30,000-40,000/ping) and 2x4 homes cost
US$37-48/ft2 (NT40,000-50,000/ping). Log homes are higher cost at approximately $48/ft2 for
6x6 logs and $56/ft2 for 6x8 logs.
He added that the knowledge that a home is safe and durable is more
important to consumers than price.
While Mr. She said he was
optimistic that consumer confidence in wood frame construction would increase
the said three key government policies will have a significant effect on the
number of homes that would be built.
First is the rezoning of agricultural land surrounding Taichung for
multi-use development, which would create land to build more housing. Second, the government prohibits
construction on hillsides to minimize mudslide damage caused by typhoons. Mr. She and other importers said wood
construction should be exempt from the law because wood frame structures are
much lighter than concrete, ultimately lessening the danger of mudslides. Finally, he said to ensure higher quality
construction, the building code must be revised to include minimum standards
for proper 2x4 construction.
Mr. She estimated that there are approximately 1,000 wood frame residences located in rural areas throughout Taiwan, the quality of which varies greatly. He also said more than half of the architects who are designing wood frame homes are not trained in 2x4 design, making the importance of technical transfer and a detailed building code imperative. He rates the quality of Danny Wu's projects in Hualien highly, yet said many others are poor quality, largely because the building regulations for 2x4 construction are very vague.
On April 3, Jeff Miller, Alan Czinger (SEC), and Mr.
Saheki and I met with Justin Hsu, President of Asperworld Development Co.,
Ltd., a wood building design and construction firm that specializes in single-family log homes and
resorts. He is also the agent for
Precision Panels, an Idaho firm that manufactures SIPS. In addition to log structures, Mr. Hsu’s
company designs and builds cabins using 2x4 framing and SIPS panels and steel
frame resorts and public buildings with wood wall panels. Asperworld is also
designing Taiwan's first wood frame apartment building at the Ming Tao
agriculture and recreation university near Taichung. The 48-unit project, which was requested by the University's
department chair who studied in Ohio, is being used by the new private
university to attract faculty. The 2.5
story project will include one-hour fire walls in each unit and two-hour fire
walls between units. The exterior
structure will be made of 2x4 framing and SIPS.
Mr. Hsu said Asperworld's 2x4
style building employ steel framing with SIPS panels and 2x4 interiors and
roofs because it takes to long to obtain permits to build multi-family
structures, such as hotels, with wood framing.
It is also less expensive to use SIPS.
He added that it is almost impossible to obtain a building permit to
build wood frame houses due to the fire and building code restrictions on wood
frame construction.
He also said building code
restrictions and lack of available financing have caused the market to dwindle.
He estimated that 8-10 years ago there were 100 firms who could design wood
frame homes, yet now there are only 50.
The quality of the construction in Taiwan reflected the limited
education and experience of the country's architects and builders with wood
frame construction. Examples of poor
construction included gross under-use of studs (24" intervals instead of
6" intervals). Since consumers are
also not familiar with wood construction, it is difficult for them to identify
improper construction.
Mr. Hsu said the market for
packaged wood frame homes in Taiwan is very small, yet he may consider
expanding his business in that direction.
He speculates that the wood frame construction market may increase if
price of imports drops if the WTO agreement is signed, as the government
converts agricultural land to multi-use, and since the ROC shortened the
workweek from 6 days to 5 days, which has encouraged in-country travel and
tourism.
On April 4, Alan Czinger (SEC), and Mr. Saheki and I
met with Michael Craddock of the BC Trade Office and Eric Crowley of the
Washington State Trade Office to recap our meetings and get their
feedback. We discussed ways that the US and Canada could
cooperate to promote wood frame construction in Taiwan.
Preliminary Findings
The market for wood frame
construction and softwood building materials in Taiwan is currently very
limited. As shown in Table 1, the
Foreign Agricultural Service Solid Wood Products Annual Report estimates that
in 2001, less than one percent of new housing starts were wood frame, a figure
that has remained unchanged over the past three years. Some interview respondents speculated that
wood frame construction could reach 10% of the residential construction market,
as personal incomes continue to rise, as construction companies try to
differentiate themselves and stimulate home sales, and as the government seeks
to promote wood frame housing for its earthquake resistant qualities. Others agreed that the 2x4 residential
construction market has the potential to grow, yet they estimated that it will
not reach the size many supporters believe due to the limited amount of
undeveloped, habitable land. They added however, that the limited availability
of land might present an opportunity for 2-3 story multi-family residences, if
the building code accepts wood for multi-family residences. In fact, the number of single-family housing
in Taiwan, typically, the prime market for wood frame housing and an indicator
of the potential size of the wood frame housing market, is small. Single-family houses represented just below
four percent of the residential starts in 2000, and an estimated three percent
in 2001.
Table 1. Taiwan housing starts by type and material,
1999-2001.
|
|
1999 |
2000 |
2001* |
|
Total construction starts
(thousand units) |
64.60 |
73.50 |
70.00 |
|
Of which, wood frame |
0.30 |
0.50 |
0.60 |
|
Of which, steel, masonry, & other materials |
64.30 |
73.00 |
69.40 |
|
Of total starts,
residential |
56.60 |
65.00 |
61.00 |
|
Of which, single-family |
1.50 |
2.50 |
2.20 |
|
Of which, multi-family |
55.10 |
62.50 |
59.80 |
|
Of total starts, commercial |
7.30 |
8.00 |
8.60 |
* -
estimated
Source:
USDA Foreign Agricultural Service Taiwan Solid Wood Products Annual, 2000.
Several recent advances have
occurred in Taiwan, however, that may stimulate the use of softwood building
materials. Perhaps the most significant
development has been government support for wood frame construction, which has
taken several forms. First, the CPA has
assured the ABRI that it will receive approval by the end of 2000 to review and
revise the wood frame building code as a means to improve the quality of wood
frame construction in Taiwan and facilitate the use of wood as a building
material. This process, which ABRIA
said will be completed by the end of 2001, is a particularly important advance
since wood. Currently, wood is
considered a "special material" in the Taiwan building code,
requiring builders to obtain a special permit to build with wood, which
typically takes two years to obtain.
Second, the government is building more public buildings of glulams, and
more outdoor viewing platforms and educational buildings of treated southern
yellow pine as it attempts to encourage domestic tourism. Third, the government
has been active in promoting and attending seminars to promote the use of
glulams in Taiwan. Fourth, the CPA is
including wood frame construction in its earthquake reconstruction project in
Taichung to provide examples of this type of housing in Taiwan. Although all of the wood frame homes so far
are being built by Canadian interests, the project is open countries as well.
While the government appears
to support the use of wood frame construction as a way to reduce earthquake
damage, many obstacles to the increased use of wood in construction must be
overcome if the US is to increase its softwood exports to Taiwan. These obstacles include the following:
Building Code
Not only is the process to
obtain approval to build with wood extremely long, but the codes are
prescriptive, allowing builders significant leeway in the quality of the
finished construction. Fire concern
appears to be a leading barrier in the building code to building with
wood. Respondents from ABRI as well as
private design firms said it takes two years to obtain a permit to use glulams
to build public buildings or to build wood frame homes. Others said it was impossible to obtain a
permit to build wood frame multi-family public buildings such as hotels and
apartments.
Other respondents said even
though treated wood has passed UL fire tests in the US, it is not accepted in
the Taiwan building code, or the Chinese National Standard (CNS). The use of interior wood products is also
limited by the fire code. Respondents
suggested that the most effective way to promote wood products in the near
future is to get ABRI to recognize UL testing results as opposed to re-testing
the fire resistance of products in Taiwan.
There is also widespread
doubt that ABRI will complete revisions on the building code by the end of
2001. Several respondents said part of
the slow progress is because the ABRI is extremely evenhanded about reviewing
information from various countries.
Therefore, it may be effective for the US and Canada to work together to
educate ABRI about North American building codes and wood frame building
systems.
Lack of technical knowledge among architects regarding
how to design 2x4 structures
According to several
respondents, the quality of the wood frame housing in Taiwan is highly
variable. Many of the wood frame homes
in Taiwan are built in rural areas, or out of the view of permitting officials,
and therefore, not regulated. As a
result, very few of the homes that have been built have undergone the permit
process and most of these are poorly constructed. Examples of poor construction
included gross under-use of studs (24" intervals instead of 6"
intervals). Only very expensive homes
have been reviewed and have received building permits, and the quality of these
homes is reportedly good.
The quality of the construction in Taiwan reflects the limited education of the country's architects and builders with wood frame construction. One respondent estimated that more than