BMI View: The rapid decline in construction and infrastructure growth in Japan is a sign that the government's aggressive stimulus measures have already begun to wear off. This once again underscores our long-held view that Japan's fiscal stimulus programme is not a sustainable path forward for either the infrastructure sector or the broader economy, and that significant structural reforms are needed to restore competitiveness. Following an estimated 3.3% rate of real growth in 2014, we expect the construction industry's expansion to slow to 2.3% in 2015.
Key Trends And Developments
In October 2014, Mott MacDonald announced that it will supervise the construction of the USD1.1bn solar photovoltaic (PV) Kuni-Umi plant near the city of Setouchi, Okayama, Japan. Mott MacDonald also acted as the client's engineer during the project's development phase. The firm will oversee civil, electrical, structural and instrumentation system implementation work and assess detailed plant designs against local codes and global practice for PV projects. Toyo Engineering and Shimizu Corporation will undertake the construction. The 230MW plant will sell power for 20 years to Chugoku Electric Power Company through a 110kV, 16km underground transmission line that will travel via a residential area and cross numerous rivers. The plant is scheduled to start operating by Q219.
Japan's Ministry of Land, Infrastructure, Transport, and Tourism in October 2014 approved the Central Japan Railway Company's application to build a maglev train that will connect Tokyo and Nagoya. The project, which will cost an estimated JPY5.5trn (USD45.5bn), will carry passengers at speeds of up to 311mph, cutting the travelling time between the two cities to approximately 40 minutes from nearly 100 minutes currently on the Shinkansen bullet train. It is slated for completion by 2027, with a proposed extension to Osaka tentatively planned for 2045.
JFE Engineering Corporation in September 2014 secured...
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.