Feasibility to export a Finnish log home to meet the New Zealand market demand

Abstract

The log home has significant place in Finnish history. Through technological advancements in processing and design, Finnish log homes have become a competitive commodity meeting domestic and foreign market demand. New Zealand has a buoyant economy and is experiencing a construction upswing due to population growth from net migration, ex-pats returning due to volatile labour markets and the destruction of housing caused by major earthquakes. The aim of the thesis is to determine the feasibility to export Finnish log homes to New Zealand, versus New Zealand domestic building demand conditions. In accordance with the literature review Porters Diamond model was used as the theoretical framework for the macro analysis research. The method of research for the macro and micro analysis is qualitative. Qualitative research was used to justify the findings of the theoretical framework and allow direct and indirect comparisons considering the research questions. The micro analysis was a cost comparison of exporting a Finnish log home kit to New Zealand (including all associated costs) compared with the New Zealand kit price. Both the macro and micro analysis consisted of primary data in the form of e-mail conversations and triangulated secondary data. Based on the findings from the macro analysis Finnish log home industry does have a competitive advantage to meet the market demand conditions of New Zealand for log homes. This advantage comes primarily from abundance of high quality timber and technologically advanced production methods. The micro analysis in the form of cost comparison between a Finnish log home exported to New Zealand (including associated costs) against a log home produced in New Zealand show the Finnish log home is cheaper. The major limitation to the research was Finnish log home companies were unable to be contacted by email or phone calls. Further research on the engineering of the Finnish log home to meet NZ standards, the council consent for this type of structure, and the resale value of a Finnish log home kit.