In the tapestry of global manufacturing, Japanese small and medium-sized enterprises (SMEs) have emerged as pivotal players, contributing significantly to Japan’s thriving semiconductor, electronics, and advanced machinery sectors.
These industries have long been synonymous with Japan’s technological prowess and commitment to innovation, and SMEs play a crucial role in upholding this reputation on the global stage.
Japan’s journey in manufacturing excellence dates back decades, with the post-World War II era witnessing a remarkable resurgence fueled by a relentless focus on quality, precision, and continuous improvement. This era birthed iconic names like Toyota, Sony, and Panasonic, setting the stage for Japan’s dominance in various technological domains.
However, the landscape has evolved, with regional competitors emerging and global dynamics shifting. Masayoshi Imoto, President of IIX INC. – a display technology manufacturer – notes this evolution, stating: “There is often an assumption that Japanese high-quality and highpricing can be considered over-specification, and to some extent, I do agree with this assumption. However, multiple Japanese companies are able to compete in the global market as niche players.”
Mr. Imoto emphasizes the unique strengths of Japanese SMEs, particularly their ability to provide bespoke, high-quality solutions. “Japanese companies can provide special unique services that cater to specific needs and things that no one can copy,” he says.
Niche Excellence and Global Competition
Ken Kitano, Chairman of Logic &Design Co. – a specialist in enhancing and restoration technology – echoes this sentiment, highlighting Japan’s attractiveness in the global market due to supply chain disruptions, favorable exchange rates, and the reliability of Japanese products.
“Japan is at a very interesting time right now, due to the supply chain disruptions caused by COVID-19 and the tensions between China and the U.S.,” he says. “Japanese products on the global scene are very attractive once again.”
Michihiro Tamenori, President of Seishin Trading – a manufacturer of switchgear and switchboard apparatus – further elaborates on Japan’s strengths, especially amidst challenges like the COVID-19 pandemic and geopolitical tensions.
“The yen’s depreciation is indeed driving increased business demand,” says Mr. Tamenori. “Despite the growing dominance of China and Southeast Asia in the market, Japanese products maintain a reputation for superior quality. And although Japanese companies might not be as quick to act, their longstanding and consistent business practices over the years serve as an advantage for us.”
Challenges and Opportunities
Tadashi Naruse, President of Shinhokoku Material, agrees with this sentiment, whilst also highlig
