Japan – what can we learn? - Construction Labour Research

Maintenance and repairN ew construction Maintenance and repair Ratio of M aintenance and repair90.023.023.022.680.070.011.612.4 12.913.0 12.515.914.713.421.021.422.021.0Trillion yen60.050.040.030.020.010.070.014.273.0 73.314.515.018.417.869.8 69.9 70.3 68.015.715.263.117.513.2 13.819.618.757.4 56.714.052.613.549.513.2 12.744.3 43.520.019.018.017.016.015.014.00.01991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004year13.0Construction investment has decreased in Japan. Although the totalamount of construction and building investment has decreased, themarket scale still accounts for 12.7 percent, and the total value for10.6%, of GDP. This is still a higher rate as compared to otheradvanced economies, for instance, Britain at 10.4% and 5.2%, Franceat 10.0% and 5.2%, Germany at 9.0% and 4.5%, and U.S. 8.8%(available data only for the total value) etc. To summarise thecharacteristics, I list the following sections as the main areas ofinvestment in Japan: commercialised private housing investment,private commercial and industrial investment for office buildings andfacilities, and public direct and indirect investment largely substitutedfor industrial infrastructures.4. Intensification of competition in a shrinking market: how tomaintain the orders?Long-term recession in Japan’s economy has compelled theconstruction industry to transform dramatically. To put it simply, theconstruction industry can no longer manage to work as the pulling andregulating function of Japan’s economy under globalisation. Theindustry cannot survive if it continues to depend on a national policyof economic stimulant. It cannot but seek a more self-sustained wayand take a role of strengthening national policy. Private constructionenterprises also need to aid the national fiscal crisis along privatemanagement lines. This is the opposite of what it has been donehistorically. Furthermore, increasing competitive pressure in theCLR News No 2/200626