BMI View: We believe the ongoing decline in Japan's construction growth could be a sign that the economic stimulus implemented by the government in 2013 is already starting to wear off. We have long highlighted that these stimulus measures would need to be accompanied by structural reforms in order to have positive long-term effects, but progress with these reforms remains limited. In particular, we note that rising constraints from within Prime Minister Shinzo Abe's Liberal Democratic Party (LDP) and its coalition partner New Komeito will likely prevent the highly touted 'Third Arrow' from having a major impact on the economy. Along with Japan's serious, long-term fiscal problems, it will be difficult for the government to carry out the necessary reforms that could lift long-term construction and infrastructure demand.
Key Trends And Developments
On June 27, the Japanese government launched the tender for the right to operate facilities at the Sendai Airport, in the city of Natori, Miyagi Prefecture. The tender is managed by the Ministry of Land, Infrastructure, Transport and Tourism and is the first public-private-partnership (PPP) infrastructure tender since Japanese Prime Minister Shinzo Abe was elected into office in December 2012. The airport concession is to initially have a tenure of 30 years, with an option to extend to a maximum of 65 years. The concession is expected to be awarded by end- 2015. The launch of the operating tender is a positive step for the outlook of Japan's infrastructure sector as it could reduce government expenditure on existing assets, generate additional funds for fixed asset investment and increase the competitiveness of the country's infrastructure market.
A consortium comprising Japanese firms Itochu Corporation, Kyudenko Corporation and Mitsui Engineering & Ship Building will construct a 45MW solar park on Kyushu Island, south-western Japan. Itochu will own a 50% stake in the joint venture, while the remaining 30%...
The Japan Infrastructure Report features Business Monitor International (BMI)'s market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Japan Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Japanese infrastructure and construction industry.
- Benchmark BMI's independent infrastructure industry forecasts for Japan to test other views - a key input for successful budgetary and planning in the Japanese infrastructure market.
- Target business opportunities and risks in the Japanese infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Japan.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI's key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant multinational and national company developments.
These are broken down into Construction (social, commercial and residential), Transport (roads, railways, ports, airports etc), and Energy & Utilities (powerplants, renewable projects, pipelines and so on).
Analysis of latest projects across the infrastructure sector (covering the transport, utilities and commercial construction sub-sectors) - including:
Market Overview:Analysis of the key elements driving developments, including evaluations of current capacity and future requirements.
Building Materials Overview
The building materials overview provides industry trend analysis on the global and regional demands for building materials and the impact of this on the emerging and developed markets.
Business Environment Rankings
BMI's Infrastructure Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (construction companies, suppliers and partners) in the regional infrastructure market.
The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data point.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the infrastructure and construction sectors and within the broader political, economic and business environment.
BMI Industry & Economic Forecasts
Historic data series (2008-2012) and forecasts to end-2018 for all key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecast. Indicators include:
Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%).
Infrastructure: Value (US$bn); contribution to construction industry (%); real growth (%) of transport infrastructure (broken down by railways, airports, roads and bridges, ports and harbours) and energy and utilities (broken down by power plants and transmission grids, oil and gas pipelines, and water infrastructure).
Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$).
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.