Abstract
This paper discusses the development of the domestic lumber industry, focusing on the structure of sawmills, log auction market, and mechanisms for the distribution of lumber. Miyakonojo is cited as the location of Japan's leading sawmill industry. The reasons for this are the regional factors of the local sawmill industry and the directionality of the reorganization of sawmills.
There are three regional factors that affect the success of a company in the local sawmill industry. First, on the outskirts of Miyakonojo, the growth of cedar trees is faster than in other areas. Therefore it has an abundant supply of resources. Second, Miyazaki Prefecture adopted a policy emphasizing timber production. As a result, forestry and the sawmill industry developed. Third, Miyazaki Prefecture was one of the earliest to use the kiln-dried wood production system, which helped it secure a large market share for its kiln-dried wood.
The trends of the industry in Miyazaki Prefecture differ depending on the scale of operations. In large-scale sawmills, sawed log consumption and the volume of kiln-dried wood production are increasing. These sawmills actively reinvest in their operations, promote efficiency, and are increasing the use of unmanned machinery. These changes have enabled these sawmills to shift to a low-cost strategy.
The volume of sawed log in medium-scale factories is stable to decreasing. They are producing kiln-dried wood, but are not actively shifting to the aforementioned low-cost strategy. Some factories also share kiln-drying machines. Such strategic differences illuminate the differing long-term outlooks for these companies.
