• GDP ( Million $ ) - 4.300.621
• GDP Per Capita ( $ ) - 34.358
• Growth Rate (%) – 1,75 
• Population - 125.171.000
• Area ( km² ) - 377.899
• Capital – Tokyo

Japan is still the third largest economy in the world and its economic growth rates are close to the OECD average. However, challenges such as the dwindling and rapidly aging population, declining labor supply, and high public debt remain important. 

Japan, which carries out about one-fifth of its foreign trade with China, continues to be affected by the developments in the aforementioned country's economy, especially in terms of intermediate goods supply. 

In the Japanese economy, the service sector maintains its weight with a share of 69%. The manufacturing industry has a share of 30%, while the agricultural sector has a share of 1%. 

AEROSPACE TECHNOLOGY

Japan’s aerospace industry has a strong international reputation, particularly in the field of research and development (R&D). Recently, however, it has shifted its focus from R&D to the commercialization of space technology. The Basic Space Law, enacted in 2008, has paved the way for the development of Japan’s space industry, and Japan’s key strategy for space is still developing and growing today.

There are many actors associated with the Japanese space program, including government ministries, offices, and agencies. The most important one is the Japanese Aerospace Exploration Agency (JAXA), which has tasks and technology that includes launch systems, satellite development and operations.

Examples of Japanese innovations in this field include the Japanese H-II Transfer Vehicle (HTV) which supports the International Space Station (ISS). The development of the H3 rocket is expected to be launched in 2022, and is the successor of the HII A/B, another example of Japanese innovation.

One of the many objectives of Japan’s space policy is to integrate space infrastructure for social aims and the stimulation of economic growth. 

AUTOMOTIVE INDUSTRY

The automotive industry in Japan is one of the most prominent and largest industries in the world. Japan has been in the top three of the countries with most cars manufactured since the 1960s, surpassing Germany. 

The country is home to a number of companies that produce cars, construction vehicles, motorcycles, ATVs, and engines. Japanese automotive manufacturers include Toyota, Honda, Daihatsu, Nissan, Suzuki, Mazda, Mitsubishi, Subaru, Isuzu, Hino, Kawasaki, Yamaha, and Mitsuoka. Infiniti, Acura, and Lexus are luxury brands of Nissan, Honda and Toyota.

The Japanese automotive industry represents the core of the Japanese manufacturing sector: 8.2% of the population employed in automotive-related jobs in 2021 and automotive shipments (both domestic and export shipments, including motorcycles, auto parts, etc) reached 60 trillion yen in value terms in 2019. Further, the investment in equipment by the industry totalled 1.4 trillion yen and R&D expenditures stood at 3.1 trillion yen in 2019.

The automotive sector is now fully aware of the environmental challenge ahead. For this reason, the Government of Japan has been promoting legislative modifications and technological advancement in order to tackle this problem. The future is looking electric.

ADVANCED MANUFACTURING & ROBOTICS

Japan has long dominated both advanced manufacturing and robotics. In 2022, they’re set to continue.

Being a manufacturing superpower for so many years built Japan into the world’s third-largest economy by GDP. In Fiscal Year 2019-2020, manufacturing accounted for about 20% of Japan’s total GDP. This manufacturing progress  is spread across sub-sectors as diverse as automobiles, industrial robots, semiconductors, and machine tools.

Given Japan’s position at the forefront of robotics, this market is expected to keep growing for some time. The Japanese government has launched their “Connected Industries” strategy to promote and support smart factories. They’ve also created incentives to return production bases to Japan. As part of this strategy, startups can take advantage of tax support for introducing systems, sensors, robots, and other manufacturing productivity equipment.

Startups in Tokyo are also supplying robots and satellites to the growing global space industry – a sector that is on track to generate more than US$1 trillion in revenue by 2040.

STEEL INDUSTRY

According to the World Steel Association (worldsteel), world steel demand is estimated to reach 1.87 billion tons in 2021 and 1.92 billion tons in 2022. Crude steel production is estimated to increase from 1.87 billion tons in 2019 to about 2.7 billion tons in 2050 and to about 3.8 billion tons in 2100, based on forecasts of global population growth and economic growth. 

The greatest weapon of the Japanese steel industry. It is the advanced technology that has been cultivated over many years. The Japanese steel industry specializes in "high-grade steel," which is difficult for overseas steelmakers to produce. Japanese steel makers dominate steel products that require advanced technology, such as steel sheets for automobiles, pipes for oil and natural gas extraction, and pipelines for transportation.

The Japanese steel industry is a much larger scale business than you probably think. Japan's crude steel production in 2020 is 83.19 million tons, ranking third in the world. The steel industry is a representative Japanese business that is recognized by the world market, and along with the automobile and electronics industries, it is an important presence that has an impact on the global economy. 

The business fields of the steel industry are extremely global. Steel produced domestically is exported to other countries. Especially in recent years, exports to the rapidly developing Asian region have increased. Steel is an indispensable material for social infrastructure such as buildings, railways, and bridges. We are also building a global production and supply system to meet the demand for high-grade steel materials. The Japanese steel industry is firmly supporting the growth of the world. 

JAPANESE FASTENER MARKET

History of Japanese Screws and Fastener Industry

In Japan, the first hand-made screws are made for tail valves of firearms, which were introduced in the middle of 16th century to Tanegashima, Kagoshima Prefecture. Then in the middle 19th century, a man called Karakuri Giemon invented threading machines to make screws for Japanese clocks.

Industrial production of screws in Japan began in the end of Edo Period when Japan began constructing steel mills and shipyards to make and repair its own ships in order to protect itself from European powers.

In 1860, a young influential member of the Edo Shogunate, Uenosuke Oguri, visited U.S. and astonished to see a shipyard in Washington building battleships one after another using machines.

Thinking that Japan should have such modern industrial facilities, Oguri brought back one screw. Then he stamped out opposition in the financially bankrupt Edo Shogunate, bravely reformed the government and constructed a shipyard in Yokosuka, which required huge amount of money.

The shipyard which later built battleships that broke the force of the Baltic Fleet was one of foundations of Japan's several industries in and after the Meiji Era.

Import of screw production facilities, machines as well as screw parts began in the end of the Edo Period. In the Meiji Era, machine and bare metal merchants started screws imports in a large quantity from England. In the late 18th century, new trading companies specialized in screw import were established and they formed a screw wholesale district in Itachibori, Osaka Prefecture.

Kazahei and Byokatsu in Itachibori are the first two manufacturers of hand-made brass wood screws established in around 1884. Later in 1904, Tokyo Neji Seisakusho began production of bolts and nuts, and in 1921 Byosada production of rivets.

Screw manufacturers which originally manufactured brass or copper screws by hand gradually incorporated iron screws, manufacturing machines and higher technology, and expanded their range of merchandise into munitions industry.

Full scale industrial production of screws began for the first time in 1906 by the national Yawata Steel Works at its bolts plant. Domestic screw manufacturers supported and played an important part in the rapid modernization of industry, which was almost too aggressively led by the new Meiji government. They played a major part in the history of growth of small and medium companies of Japan.

The World War Ⅱ was serious blows to the fastener industry, but during the Korean War which started a war-time "special procurements" boom, leaders of the industry worked hard together to establish today's solid foundation of the fastener industry.

Japan's super economic growth mainly in the manufacturing area was actually supported by screws as "the salt of industry." In Japan with the economic growth, the fastener industry achieved higher technology, introduced common industrial standards and new facilities, all of which supported establishment of solid industrial foundation.

Japan's industrial association, which was once cynically described as a convoy system, actually promoted sound competitions and progress in each industry. It promotes open communication and cooperation between users and suppliers, companies in the same or different areas, and companies and academic institutions. As a result, companies can close the gap among them and develop whole industry.

Fastener Industry Association

In 1955, the Japan Fasteners Commerce Association and six fastener industry associations, which later formed the Fasteners Institute of Japan, established the Fasteners Commerce and Industry Association with an aim to promote sound coordination between screw manufacturers and distributors.

The purpose of the establishment of the Fasteners Institute of Japan as a sole public interest corporation in the industry was, as in the first article of the rules of its predecessor the Japan Fastener industry Association , to improve the position of the fastener industry and help the whole industry to grow. The idea of completing industrial mission and growth is solidly transposed.

In the severer business environment, which is now information-oriented and highly globalized, companies are required to further improve their technology and service and develop their management to a higher level.

The fastener industry is also engaged in development projects looking to the future in order to turn away from old system and keep up with the advancement and progress of the whole industry. 

Japanese Fastener Industry

The Japanese fastener industry is comprised of approximately 3,000 manufacturers that produce a total of approximately 1 trillion yen worth of fasteners annually and approximately 400 distributers and trading companies that generate a total of approximately 450 billion yen in annual revenue. These companies work day in, day out to improve quality of products and service they offer, with the goal of becoming the world's most advanced producers and suppliers of screws that fully satisfy customers.

The Fasteners Institute of Japan (FIJ) is a key public interest corporation that represents the fastener industry of Japan, and established for the purpose of keeping the industry advanced, enhancing its technical capacity, and also supporting rapidly-evolving Japanese manufacturers as a whole.

Japan has approximately 1,500 screw manufacturers that have 4 or more workers. Each of them produces bolts, nuts, machine screws, wood screws and other specialty items that boost the world-class quality and reliability.

Their annual production volume in total is approximately 3 million tons in weight, or astronomical sum of approximately 300 billion screws.

Their annual sales reach approximately 1 trillion yen, which is one of the highest in the metallic manufacturing segments in the industrial survey.

A midsize screw manufacturers successfully developed ultrafine micro fasteners of 0.3 mm in diameter and 1.2 mm in length for the first time in the world after trials and errors based on ultrafine steel wires developed using Japan's excellent technology in steel manufacturing and material processing.

These super ultrafine micro fasteners get ahead of the future needs for super fine screws. There is, therefore, no actual need yet but it is expected that they will be used for evolutional products in the future.

Source: The Fasteners Institute of Japan