While there are close to 475 thousand licensed construction companies in Japan, a group of five major general contractors, called Super Zenecon, dominates the Japanese construction sector. The five contractors, comprised of Obayashi Corporation, Tasei Corporation, Kajima Corporation, Shimizu Corporation, and Takenaka Corporation, boast annual sales of over one trillion Japanese yen and cover a wide range of business areas.
Infrastructure maintenance, reconstruction, and disaster prevention also play an important role for the construction sector. In natural disaster-prone Japan, floods and typhoons have caused increasing damage in past decades. The government will invest around 15 trillion yen as part of its five-year acceleration plan for disaster prevention, mitigation, and national resilience, which is likely to boost demand for construction work. The Tokyo Metropolitan Government also announced plans to spend around 15 trillion yen on infrastructure as part of the Tokyo Resilience Project to enhance the city’s disaster preparedness by the 2040s.
Recent trends in the construction industry
Over the last decade, the Japanese construction sector has recovered from a period of stagnation that lasted since the burst of the economic bubble in the 1990s. Reconstruction work following the Great East Japan Earthquake in 2011 partly contributed to the recovery. In more recent years, the Tokyo Olympic Games held in 2021 were a key driver of demand. Major construction projects planned in preparation for the World Expo 2025 in Osaka, the construction of the Chuo Shinkansen maglev line, and the Osaka Integrated Resort (IR) are expected to have a similar impact.Infrastructure maintenance, reconstruction, and disaster prevention also play an important role for the construction sector. In natural disaster-prone Japan, floods and typhoons have caused increasing damage in past decades. The government will invest around 15 trillion yen as part of its five-year acceleration plan for disaster prevention, mitigation, and national resilience, which is likely to boost demand for construction work. The Tokyo Metropolitan Government also announced plans to spend around 15 trillion yen on infrastructure as part of the Tokyo Resilience Project to enhance the city’s disaster preparedness by the 2040s.
