Professional Documents
Culture Documents
1. Introduction
As a long-time observer of Japanese civil
engineering, I have always been wondering why
Japanese construction firms do not play a larger role on
the international stage.
After studying in France, I came to the University
of Tokyo to research civil engineering and learn the
specifics of earthquake engineering, seismic design and
wind engineering. During the six years of my stay in
Japan (working for French construction group Vinci), I
have been experiencing Japanese firms in their
domestic market. After leaving Japan I continued
working with Japanese contractors and consultants
overseas in America, China, Vietnam and Europe.
Today I have founded a strategy consulting firm based
in Paris. We are advising international contractors,
engineering firms and building materials suppliers to
develop innovations and competitive solutions that
address the challenges of sustainable construction,
energy efficiency in buildings and affordable housing.
It is somehow surprising to observe that Japanese
construction firms with all their capabilities,
technology excellence and domestic-market cash do
not outperform European or Korean firms in
international markets. And how is the Japanese civil
engineering industry prepared for the coming
challenges?
1. Japanese domestic market
The recent construction of the Tokyo Sky Tree, one
of the world's tallest at 634m, is a clear demonstration
of the gigantic scale of Japanese domestic market and
of the capabilities of local firms to match that
excessiveness.
The Construction industry, accounting for about 10
percent of both GDP and all employed persons, has a
much larger role than it has in other countries.
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Country
Figure
Sources: McGrawHill
ENR2:
2010top
Sales
Intl sales
($M)
53,990
52,870
45,247
34,271
33,463
33,196
26,069
25,532
22,637
22,496
18,706
18,276
17,713
17,236
16,322
16,209
16,154
15,571
15,109
14,503
13,863
13,510
12,037
11,710
11,335
2. International
Surprisingly, and despite of the advantages that
Japanese contractors can acquire from a strong
domestic market, the influence of Japanese
construction firms overseas is rather limited. Japanese
top contractors have indeed a relative low reliance on
overseas contracts: Shimizu, Taisei, Obayashi and
Kajima have only 10% to 15% of their sales outside of
Japan. And in many instances, those contracts are
financed by Japan international aid.
NIKKEI 500
CONSTRUCTION
index
+29%
NIKKEI
index
+6%
2010
2011
2012