TOKYOOctober 21 (News On Japan) – With the weakening yen and growing demand for semiconductors, Japan’s manufacturing industry is experiencing a revival. New industrial clusters are emerging, such as those on Kyushu’s ‘Silicon Island’. However, there is an increasingly apparent shortage of suitable ‘industrial land’ โ land with easy transport links and easy access to materials.
The development of large-scale industrial parks proceeded rapidly during Japan’s period of high economic growth, driven by national initiatives. These parks provided ample land for industries to set up their facilities. However, after the economic bubble and subsequent yen appreciation, many companies moved their manufacturing base to China and Southeast Asia, leaving industrial land unused.
Yet signs of change have appeared recently. In Chiba City’s Midori district, a bustling industrial park covers an area of โโapproximately 160 hectares, equivalent to 34 Tokyo Domes. Factories and research facilities are quickly filling the available space, with more than 50 companies setting up operations. This industrial park, which stagnated after the bubble burst, is now fully occupied.
There is also a high demand for even more industrial land, about 50 kilometers away. The Chiba Prefectural Government reports that the number of inquiries from companies seeking to secure industrial land has increased by 20% in the past five years, receiving about 150 inquiries per year. A prefectural official expressed hope that this could create jobs and boost the local economy.
Nevertheless, Japan faces a general shortage of industrial land. The Japan Industrial Location Center, a foundation established in 1962 to provide advice on industrial land development, attributes the shortage to the continued depletion of available land. During the bubble and global financial crisis, excess land remained in supply, but as companies resumed domestic operations, that supply decreased. Local governments, wary of financial risks, are reluctant to develop new industrial parks, leaving them with a significant deficit.
The lack of experience in industrial land development, coupled with a dwindling workforce with knowledge in this area, has made it even more difficult to expand the offering. This problem has persisted over the past thirty years, with many councils now unsure of how to restart industrial land development from scratch.
To address this problem, the Japan Industrial Location Center has dispatched experienced personnel to assist local governments throughout Japan. An 11-hectare site has already been secured in Nagano for semiconductor-related manufacturers, with plans to attract more companies to boost the region’s economy.
Professor Kazuo Kadokawa from Tokai University’s Department of Political Economy noted that increasing demand for industrial land needs to be addressed, but supply-side constraints remain a significant challenge. As companies show renewed interest in moving production facilities inland, the shortage of industrial land could hinder Japan’s economic recovery.
Source: BIZ
