Construction industry of Japan

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A construction site in Kawasaki, Kanagawa Construction site , Musashi-Kosugi - panoramio.jpg
A construction site in Kawasaki, Kanagawa

The construction industry of Japan is a large component of the Japanese economy in terms of economic output and employment. Its history is one that mirrors closely the overall economic path of the country, from establishment of the capital during the feudal era, through economic modernization and imperial rule, and until today with the recovery and great economic expansion of Japan's post-war years. More recently, the industry has been influenced by preparations for major events, most notably the 2020 Summer Olympics, and a push towards sustainability. Contemporary challenges include maintaining access to labor and combating political corruption.

Contents

History

Classical and feudal era

The first physical record of a construction industry in Japan is Horyuji, a Buddhist temple that was completed in 607 and is now the world's oldest wooden building. More comparable to a modern industry can be seen starting in Edo, now Tokyo, during the Edo Period. By the 17th century, Edo was the world's largest city, with a population of over one million. [1] Edo carpenters benefited in particular from the Sankin-kōtai (参覲交代) system, which required daimyo , feudal lords, to spend alternating years in Edo. [2] The extent of the development this spurred in Osaka, Edo and traveling stations was such that regulations on logging had to be established to ensure a sustainable supply of construction materials. [2] The typical housing for lower classes was all-wood buildings with the expectation of frequent reconstruction. [2] [3] Due to the frequency of large fires, rebuilding was an expected, and even celebrated as part of life in Edo. [2] [3]

Early modern and imperial era

In the Meiji Period, from 1867 to 1912, seeking to promote industrialization and adoption of Western practices, the government launched infrastructure programs that produced the first construction contractors in Japan, some of which still exist today as major construction firms. [1] Engineers from Europe and the United States introduced Western building techniques, and buildings were constructed in Western architectural styles. [1] During this period, public works projects were contracted to companies based on competitive bidding systems. [1]

This period also saw the first formal studies in Japan of the architectural implications of its many earthquakes. Early efforts in the late 19th century were conducted by the country's pioneering seismological societies and architectural engineering students investigating the aftermath of earthquakes and their effects on buildings. [4] Japan's first building code was enacted in 1919 and additions in later years would include provisions to help prevent earthquake and wind damage. [4]

The following imperial period saw Japanese construction firms involved in building infrastructure in overseas colonial possessions, such as Korea and Manchukuo. These encompassed a vast array of projects, including roads, railroads, ports, and communication networks, as well as various industrial and military installations. [1] [5]

Post-war era

In 1945, immediately after World War II, the construction industry suffered under United States Occupation of Japan despite the scale of rebuilding needed in devastated Japanese cities. Industrial infrastructure was relocated from inside Japan to former enemy territories such as China and the Philippines as war reparations. [5] Furthermore, building resources such as cement were subject to production limits or requisitioned for the construction of US military bases. [5] By 1948, this approach was abandoned in favor of building up Japanese industry. Japan began receiving technology from the United States, and rebuilding of physical infrastructure and key industries expanded significantly, especially after the Korean War in 1950. [5] This led to a construction boom where up to 40% of Japan's public budget went towards construction projects until the 1990s. Important projects during this period included dams, public housing, and transportation infrastructure. [5]

The Nippon Budokan, originally constructed for the 1964 Olympics and today a famous sports, music and event arena. Nippon Budokan 2010.jpg
The Nippon Budokan, originally constructed for the 1964 Olympics and today a famous sports, music and event arena.

The 1964 Summer Olympics, the first Olympic Games to be hosted in Asia, was a significant event for Japan in demonstrating its recovery after the war and the construction industry was heavily involved in its preparation. Thirty venues were used, and total spending to host the Olympics was approximately equal to the entire national budget that year. [6] A number of infrastructure projects were also completed in anticipation of the event, including highways, the modernization of Haneda Airport, and the completion of the first route of the Shinkansen between Tokyo and Osaka. [6] [7]

Contemporary features

Economic impact

In 2018, the Japanese construction industry contributed 28.4 trillion Yen to Japan's GDP. Factors in the short-term growth in the industry around this time include preparations for the 2019 Rugby World Cup and the 2020 Summer Olympics, stimulus spending, and disaster relief projects. [8] [9] During this period, capital expenditure in the industry was growing while significantly exceeding the growth in spending in other industries. [9]

However, despite its size, Japan's construction industry suffers from a shortage of labor, making it one of Japan's least productive sectors. Causes for this include a small labor pool, and a high average age for the industry, where a fourth of skilled workers are over 60. [9] This hampers the industry's potential for output growth. [10] To counteract this, the industry has sought to invest in automation, such as robotics, and expand the labor pool by reaching out to younger workers or workers from overseas. [8]

Sustainability

Energy efficiency and reducing greenhouse gas emissions is a goal of the Japanese government, which has resulted in national standards for energy usage as well as emissions standards set by local governments. [8] There have also been technological approaches, including prefabricated houses produced with minimal CO2 emissions or more energy efficient construction materials. [11]

Corruption

There are a number of interactions between the Japanese construction industry and its government that can be construed as corrupt. Observers note that companies have given political contributions or bribes to the government, particularly in the past when it was actively instituting protective measures or incentives to encourage industrial development. [12] [13] Very common especially in construction is dango (談合) or bid-rigging to arbitrarily raise project costs, enriching contractors at the expense of taxpayers. [12] Even the largest construction contractors in Japan have been found to participate in this type of collusion, which has been investigated by the Fair Trade Commission. [14]

Notable companies

In 2018, the construction industry in Japan included 3.5 million employees working for 451,000 companies, notable among which are five major vertically integrated firms with extensive operations both domestically and overseas: [8]

See also

Related Research Articles

Economy of Japan National economy of Japan

The economy of Japan is a highly developed free-market economy. It is the third-largest in the world by nominal GDP and the fourth-largest by purchasing power parity (PPP). It is the world's second-largest developed economy. Japan is a member of both the G7 and G20. According to the World Bank, the country's per capita GDP (PPP) was at $40,193 (2020). Due to a volatile currency exchange rate, Japan's GDP as measured in dollars fluctuates sharply. Accounting for these fluctuations through the use of the Atlas method, Japan is estimated to have a GDP per capita around $39,048. The Japanese economy is forecast by the Quarterly Tankan survey of business sentiment conducted by the Bank of Japan. The Nikkei 225 presents the monthly report of top blue chip equities on the Japan Exchange Group, which is the world's fifth-largest stock exchange by market capitalisation. In 2018, Japan was the world's fourth-largest importer and the fourth-largest exporter. It has the world's second-largest foreign-exchange reserves, worth $1.4 trillion. It ranks 29th on Ease of doing business index and 5th on Global Competitiveness Report. It ranks first in the world in the Economic Complexity Index. Japan is also the world's fourth-largest consumer market.

Tokyo Capital and largest city of Japan

Tokyo, formerly Edo, historically Tokio, and officially the Tokyo Metropolis, is the capital and largest city of Japan. Its metropolitan area is the most populous in the world, with an estimated 37.468 million residents in 2018. Its metropolitan area is the largest in size and the most populous, with an area of 13,452 square kilometers and its city proper has a population of 13.99 million people. Located at the head of Tokyo Bay, the prefecture forms part of the Kantō region on the central Pacific coast of Japan's main island of Honshu. Tokyo is the political and economic center of the country, as well as the seat of the Emperor of Japan and the national government.

Infrastructure Facilities and systems serving society

Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and private physical structures such as roads, railways, bridges, tunnels, water supply, sewers, electrical grids, and telecommunications. In general, infrastructure has been defined as "the physical components of interrelated systems providing commodities and services essential to enable, sustain, or enhance societal living conditions" and maintain the surrounding environment.

Kantō region Region of Japan

The Kanto region is a geographical area of Honshu, the largest island of Japan. In a common definition, the region includes the Greater Tokyo Area and encompasses seven prefectures: Gunma, Tochigi, Ibaraki, Saitama, Tokyo, Chiba and Kanagawa. Slightly more than 45 percent of the land area within its boundaries is the Kanto Plain. The rest consists of the hills and mountains that form land borders with other regions of Japan.

Construction Process of the building or assembling of a building or infrastructure

Construction is a general term meaning the art and science to form objects, systems, or organizations, and comes from Latin constructio and Old French construction. To construct is the verb: the act of building, and the noun is construction: how something is built, the nature of its structure.

Tokyo Imperial Palace Usual residence of the Emperor of Japan

The Tokyo Imperial Palace is the main residence of the Emperor of Japan. It is a large park-like area located in the Chiyoda district of the Chiyoda ward of Tokyo and contains several buildings including the Fukiage Palace where the Emperor has his living quarters, the main palace where various ceremonies and receptions take place, some residences of the Imperial Family, an archive, museums and administrative offices.

History of Tokyo History of the capital city of Japan

The history of Tokyo shows the growth of Japan's largest urban center. The eastern part of Tokyo occupies land in the Kantō region that together with the modern-day Saitama Prefecture, the city of Kawasaki and the eastern part of Yokohama make up Musashi; one of the provinces under the ritsuryō system.

Chūō, Tokyo City in Tokyo,Japan

Chūō is a special ward that forms part of the heart of Tokyo, Japan. The ward refers to itself in English as Chūō City. It was formed in 1947 as a merger of Kyobashi and Nihonbashi wards following Tokyo City's transformation into Tokyo Metropolis.

Economic history of Japan Aspect of history

The economic history of Japan is most studied for the spectacular social and economic growth in the 1800s after the Meiji Restoration. It became the first non-Western great power, and expanded steadily until its defeat in the Second World War. When Japan recovered from devastation to become the world's second largest economy behind the United States, and from 2010 behind China as well. Scholars have evaluated the nation's unique economic position during the Cold War, with exports going to both U.S.- and Soviet-aligned powers, and have taken keen interest in the situation of the post-Cold War period of the Japanese "lost decades".

Tsukiji fish market Former fish market in Tokyo, Japan

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Sumitomo Corporation is one of the largest worldwide Sogo shosha general trading companies, and is a diversified corporation. The company was incorporated in 1919 and is a member company of the Sumitomo Group.

Nihonbashi Business district in Tokyo, Japan

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Tokyo National Museum Art museum in Tokyo, Japan

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Shimizu Mega-City Pyramid Proposed arcology project in Japan

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Taisei Corporation Japanese construction and retail estate company

Taisei Corporation is a Japanese corporation founded in 1873. Its main areas of business are building construction, civil engineering, and real estate development. Taisei's headquarters are located at Shinjuku Center Building in Nishi-Shinjuku, Shinjuku, Tokyo.

Edo-Tokyo Museum

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The construction industry of India is an important indicator of the development as it creates investment opportunities across various related sectors. With a share of around 8.2%, the construction industry has contributed an estimated ₹670,778 crores to the national GDP at factor cost in 2011–12. The industry is fragmented, with a handful of major companies involved in the construction activities across all segments; medium-sized companies specializing in niche activities; and small and medium contractors who work on the subcontractor basis and carry out the work in the field. In 2011, there were slightly over 500 construction equipment manufacturing companies in all of India. The sector is labor-intensive and, including indirect jobs, provides employment to more than 49.5 million people.

Kajima Japanese construction company

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References

  1. 1 2 3 4 5 Woodall, Brian (1996). "Japan Under Construction". UC Press E-Books Collection. Retrieved 2020-07-12.
  2. 1 2 3 4 Genadt, Ariel (2019-07-22). "Three Lessons from Japan on Architectural Resilience". Architectural Histories. 7 (1): 16. doi: 10.5334/ah.393 . ISSN   2050-5833.
  3. 1 2 Kohtz, Anne (2016-10-25). "Wood, Mold, and Japanese Architecture". nippon.com. Retrieved 2020-07-14.
  4. 1 2 Otani, Shunsuke (2008). "The Dawn of Structural Earthquake Engineering in Japan". The 14th World Conference on Earthquake Engineering: 8.{{cite journal}}: Cite journal requires |journal= (help)
  5. 1 2 3 4 5 Steele, William (2017-07-01). "Constructing the Construction State: Cement and Postwar Japan". The Asia-Pacific-Journal. 15 (11). Retrieved 2020-07-12.
  6. 1 2 Martin, Alexander (2013-09-05). "The 1964 Tokyo Olympics: A Turning Point for Japan". WSJ. Retrieved 2020-07-14.
  7. ↑ Whiting, Robert (2014-10-10). "Olympic construction transformed Tokyo". The Japan Times. Retrieved 2020-07-14.
  8. 1 2 3 4 Teh, Dr Nee-Joo (2019). "Japan Transforming Construction 2019" (PDF). Innovate UK Global Expert Mission.
  9. 1 2 3 Leussink, Daniel; Nakagawa, Izumi (2019-11-05). "Japan's aging, labor-starved construction industry gives economy a capex boost". Reuters. Retrieved 2020-07-12.
  10. ↑ "Construction in Japan: Key Trends & Opportunities to 2022 - ResearchAndMarkets.com". BusinessWire. 2019-06-21. Retrieved 2020-07-18.
  11. ↑ Smith, Carol (2008-12-29). "Greening a Giant: Shrinking the Footprint of Japan's Building Sector". Our World - United Nations University. Retrieved 2020-07-16.
  12. 1 2 O'uchi, Minoru; et al. (2006). "Transparency International Country Study Report" (PDF). Transparency International. Retrieved 2020-07-16.
  13. ↑ Feldhoff, Thomas (2002). "Japan's Construction Lobby Activities – Systemic Stability and Sustainable Regional Development". ASIEN: 9.
  14. ↑ Jiji, Kyodo (2019-08-07). "Japan's FTC demands action from four big contractors who keep cropping up in antitrust cases". The Japan Times. Retrieved 2020-07-17.
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