Saturday May 26, 2012

Handling the big exodus out of Japan

Handling the big exodus out of Japan
Joseph Webber Managing Director Santa Fe Relocation Services Japan

TOKYO —

A few hours after the March 11 earthquake and tsunami, Joseph Webber’s phone started ringing. It has hardly stopped since. As managing director of Santa Fe Relocations Japan, Webber has found himself and his team inundated with calls from clients wanting to move out of Japan or just relocate to another city in Japan.

Unlike other relocation companies, Santa Fe offers a greater range of services, including tenancy management, as well as helping clients get visas and re-entry permits. All those services have been in demand. Many clients who panicked and fled Tokyo with little or no notice have even asked Santa Fe to make sure their personal effects are checked for radiation before having them shipped home.

Hailing from Hawaii, Webber has been in the moving business since 1976 when he started out sweeping up the nails from a warehouse floor so the trucks wouldn’t get flat tires. During his career, he has worked in China, Thailand and the Philippines and has spent the last six years in Japan.

Japan Today editor visits Webber at the Santa Fe offices in Roppongi to hear more.

What’s been going on since March 11?

My phone started ringing on the Friday night of the quake. I had people in the U.S. and Europe calling to know what was happening with their shipments to and from Yokohama. Then the following week, the exodus began. It got to the point where I had to start turning business away. We haven’t seen the entire household leaving at this point, but we’ve seen a dramatic rise in emergency relocation services. Santa Fe is not just a moving company. We can handle visa and immigration, tenancy management, whereas most of my competition in the moving side doesn’t do that. So we have had requests from clients to get them re-entry permits, or to get them and their family out of here to Osaka and book them domestic transport and hotel accommodations.

Some didn’t even inform us in advance that they were leaving. They called and informed us that they were not even coming back for the packing. They’d say: “Go into my house and send me these things that I need because I am back in Europe or the States.” We’ve been asked to clean out refrigerators, throw out trash, forward their mail and so on. In other cases, the HR department of the company they worked for contacts us. The physical movement of the personal effects takes a little longer because we have to make a survey; we have to know what volume and what specifics we need to pack. Then we have to schedule the crew.

We are also working on some turnarounds – people who were supposed to come and now are not. They asked us that as soon as their stuff arrives in Japan to just send it back.

Have there been any requests for radiation checks?

Yes, more and more people are asking us to test their belongings for radiation before we ship them. We are not trained to do this, so we found a company that is willing to do it. The problem is they are so busy up north that scheduling such checks is very difficult and takes time.

What does all this mean for your business?

It’s not good because most of our business now is outbound, but in this industry, you need tonnage going in both directions – in and out. There is usually a nice flow of executives and corporations rotating their people. That is how our business is sustained.

Is there any inbound at all?

Some. Everytime someone asks me for inbound services, I really thank them for it. One of the problems with inbound business is that some steamship companies have diverted from Yokohama to Kobe and they are taking everything down there. So we have to deal with the issue of who pays to get the freight back to Tokyo.

Did you try to talk some of your clients out of making rash decisions?

I tried to talk some clients out of acting on panic. You have to do this on a person by person basis. Everyone reacts differently. If they are frantic, it’s best just to agree with them. With others, I can say, “Why don’t you wait a week before you take this action?” You have to read your customer.

The foreign media created a panic not just on a local basis but on a global basis and this was unconscionable. They should be brought to task over that. I had friends in the States calling me up asking me what was really going on and if I was leaving. The foreign press did a large disservice to Japan and sensationalized some information that was going to get everybody crazy.

I guess you saw a similar exodus after the Lehman Shock in 2008.

This is different. After the Lehman Shock, everybody said, “Let’s get rid of the expensive expats,” which they did. Then a year or 18 months later, they thought about it and realized they needed to send them back here.

I don’t think we’re going to see that happen this time. You have to look at it on a regional basis. The yen is strong; you’ve got this nuclear crisis and ongoing quakes which are forefront in the minds of many families. You’ve also got one of the highest costs of living in the world. Another couple of hours from here are Vietnam, China, South Korea, Thailand and Indonesia, which are less expensive. Expat execs can get maids and drivers and all the perks that many have become accustomed to. Why would they want to be stationed here?

For many people, moving under these circumstances can be traumatic. How do you deal with it?

Moving just in itself, without natural disasters or without getting fired, is stressful and disruptive. This whole situation brings out the best and worst in people. We have always had to act the part of counselor at some level. Some of our best people come from the hospitality industry where they have a certain level of empathy. I have a great staff with very little turnover. My longest-serving employee has been with us for 37 years.

How do you market the company?

We support the international schools and the various chambers of commerce. However, the business has changed over the last 10 years. Companies have refocused on global control and we are now dealing with a single point of contact in London, New York or wherever. The HR departments control the moving. It used to be that you would get a phone call informing you of your transfer from A to B. And you would call a moving company. Now, the HR department says you are going from A to B and here is the company that’s going to do it and this is the day you will do it. Most of my business is through global contracts.

Is it a seasonal business?

Yes, normally, June, July and August is the busiest time. There is a little peak in December because of the tax structure.

What are some of the unique characteristics of the Japanese market?

I used to do a lot of business to and from Japan from other locations and I could never fully comprehend why the prices were so high. Now I know. We’ve got additional requirements to offload the containers in Yokohama, and then they are transferred to a number of smaller trucks that are shuttled into and out of the residence. There is a lot of extra handling in Japan that is not the case anywhere else.

Overseas, you can take a 40-ft container right to a house, back it up the driveway and load it. Here we can’t do that. We cannot take containers right to the door because of smaller roads and parking restrictions. Sometimes, when we are moving furniture and fittings in and out of an office, we have to have a second driver sitting in the truck waiting for a policeman to come along so he can drive around the block.

What should potential clients look for in choosing a relocation company?

Trust is important. How do you feel about the person coming into your home because you are asking that company to send people into your home to pack, transport and deliver personal effects and treasured items. So we build that trust by visiting the client, seeing what they have, what we need to do and explaining the entire moving process to them.

When you are not working, how do you like to relax?

I play the guitar and sometimes, I play golf. I also like to get back to Hawaii now and again.

  • 0

    MYRB2011

    After the quake, hundred thousands of foreigners flying out of Japan. The surge peak of moving services was high. This kind of business can be managed by a family.

  • 0

    smartacus

    Mr Webber should tell those idiots who want everything checked for radiation that their place has been sealed since they left, with all their belongings inside, so their stuff is unlikely to be radioactive.

  • 0

    noriyosan73

    It is important that the government make clear and accurate statements on any situation. When a tragedy such as Fukushima is not honestly reported to the public, the next time something happens, the public does not believe the government. It is "crying wolf" that caused the complacency moments before the tsunami. (A JT article reported this fact.) Accurate planning and reporting is necessary, and companies dealing with dangerous elements and possible contamination must be held accountable for losses. Leave the taxpayers out of it, as reported in another JT article.

  • 0

    herefornow

    It’s not good because most of our business now is outbound, but in this industry, you need tonnage going in both directions – in and out.

    IMO that is the scariest part of the article. Not that lots of folks fled. If there is an expat "brain drain" to other locations, because multinationals cannot get folks to come here, but instead send them to other locations, as he suggests, this country will suffer long-term. This country needs more foreign investment not less. But if managers are not here to make a strong case for Japan with HQ, Japan will lose out.

  • 0

    Virtuoso

    But if managers are not here to make a strong case for Japan with HQ, Japan will lose out.

    A few articles in Japanese business magazines have alluded to the short-term economic impact of foreigners leaving. This is an ideal opportunity to return to the policy of national seclusion -- which would also requires Japanese to stay in their own country. I think Japan should try it for 10 years, and see how they enjoy a modern-day reminder of the consequences of their inbred xenophobia.

  • 0

    mrsynik

    I may have to pack up and leave in the next few months myself - but not for fear and paranoia about radiation that has caused many have leave - but because I will be made redundant and there are pathetic employment opportunities here these days.

  • 0

    kujiranikusuki

    MORE JOBs openigs for me!!!! thank you cowards!

  • 0

    DentShop

    MORE JOBs openigs for me!!!!

    Perhaps in Tokyo and the North.

    Job market in Osaka is absolutely dead.

  • 0

    Zenny11

    Even in Tokyo applicants from the north/evacuees are given preference now.

    Job market right now looks bad and will get worse over the next 6-8mnths once the full impact starts hitting.

    Many companies now struggling for supplies, etc are still holding on(companies as fart as Kyushu, etc).

    The full economy impact won't hit yet for a few more months.

  • 0

    PenelopePitstop

    People who depend on expats to make a living because their business provides specific expat-orientated services will definitely suffer for the next couple of months... some friends who have been living here for more than 20 years and are finding themselves out of work are thinking of throwing in the towel and going home, it's very sad....

  • 0

    MokiDugway

    Weird. I know a lot of folks in Tokyo from England, Australia, Canada, the US and elsewhere. Yet I don't know even a single person who left due to the events over the last month.

  • 0

    nec123

    `@MokiDugway - and yet I know people from each of those countries who have left Tokyo specifically because of the disaster/s. And good on them. In a well functioning free market labour is mobile. I just love it when I here businesses cry about people leaving them in tough times. Ever been let go because times are tough for a business? Loyalty is just PR for these guys. If the job, conditions or other factors don't suit you. Give your 3 weeks notice, pack up and shift to greener pastures. Be in charge of your own destiny.

  • 0

    haran3375

    I am based in Kansai and heard of a few people that happen to be leaving at this moment-coincidence or not I don't know but a few more mishaps would lead me to consider that too

  • 0

    stevecpfc

    This is all about rich people leaving as the majority have been including Japanese.

  • 0

    EUcitizen

    The job market sure seems to be slowing badly. I freelance and the phone isn't ringing much. Could have stayed in my home country longer than those 2 weeks. There will be a 2nd wave of "flyjin" soon - because of jobs lacking here but emerging in some other country.

  • 0

    ihavegreatlegs

    The overseas media really messed things up for Japan. What a shame.

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