THE PURPOSE of This Article Is to Study the Special Characteristics
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Japanese Yearbook on Business History•\2000/17 The Development of the Rolling Stock Industry in Prewar Ja pan Minoru SAWAI Osaka University of the process by which the rolling stock industry in Japan devel THEoped PURPOSEfrom theOF thisMeiji articleperiod istoup study to the the yearsspecial of the characteristics Pacific War. The biggest feature distinguishing Japan's machine industry in the postwar period of high growth from that industry in the prewar peri od would probably be the fact that the former's development was led by a mass-production-type of machine industry founded on a market (anticipation)production represented by the two categories of large durable consumer goods,the automobile and electrical whitegoods. In prewar times,however,the type of machine industry that contin ued to occupy the mainstream of the private machine industry was basically one in which,in response to an order,capital goods were produced either one at a time or in small lots(though sometimes this approach was combined with market production).In this sense,even though the same phrase,•gJapan's industrialization,•hmay be used for both periods,we need to be aware of the difference between the post war type of catch-up industrialization that experienced growth in the durable consumer goods sector and the prewar type of catch-up 90JAPANESE YEARBOOKON BUSINESSHISTORY-2000/17 industrialization that did not have such an experience.1 Of course,the existence of huge producers like the military arse nals and naval dockyards had a decisive impact on the way the pri vate machine industry developed from the Meiji period,and during the period between the two world wars progress was made in light machin ery based on market production,such as sewing machines,optical instruments like cameras,and watches;in addition,in the lead-up to World War II and during it,rapid growth was seen in the automotive and aircraft industries.Still,a mass production system founded on a market production geared for an indeterminately large number of customers,of the kind symbolized by the Ford Motor Company's Model T production,never eventuated in prewar Japan.2 In recent economic history and business history studies in the West,a newinterest has been awakened in the historical significance of other things besides the mass production system and the mass sales system:batch production,custom production,and craft production.3 Following on from this new trend,John K.Brown,in his detailed research on the Baldwin Locomotive Works,which was the largest manufac turer of locomotives in the United States,urges us to keep in mind the differences and similarities between the two formats of produc- 1 Tetsuro Nakaoka,•gHatten tojokoku kikai kogyo no gijutsu keisei•\senmon bungyo to shijo no mondai o megutte•h[Technological formation of machine industries in developing countries:On the problems of division of labor by specialty and market],in Yukiharu Takeoka,Hideyuki Takahashi,and Tetsuro Nakaoka,eds.,Shingijutsu no donyu•\kindai kikai kogyo no hatten[The introduction of new technology:The develop ment of modern machine industries](Tokyo:Dobunkan,1993). For more on the establishment2 of the mass production system in the United States , see David A.Hounshell,From the American System to Mass Production,1800-1932:The Devel pment of Manufacturing Technology in the United States(Baltimore:Johns Hopkins oUni versity Press,1984). Representative3 of such research is MichelJ.Piore and Charles F.Sabel's/The Second Industrial Divide/(New York:Basic Books,1984);it discusses•gflexible specialization,•h a new approach to manufacturing that is well suited to small-lot,wide-variety produc tion rather than to•gmass production•h;the political and social conditions conducive to this type of approach;small firms,the successors to the tradition of craftsmanship;and the local communities that nurture such small firms.A recent important work that tries to classify the United States production mode around the period 1870-1930 into four types of production•\custom,batch,bulk,and mass•\on the basis of user class and pro ducer formats,is Philip Scranton's Endless Novelty:Specialty Production and American Indus trialization,1865-1915(Baltimore:Johns Hopkins University Press,1997) . SAWAI:The Rolling StockIndustry in PrewarJapan91 tion in the machine industry:building and manufacturing.His basic argument is that,even though the world of•gbuilding,•hwhich lays its foundation upon order production as typified by the making of such things as machine tools,locomotives,and ships,and the world of typ ical anticipation•gmanufacturing,•hwhich is involved in making such light machinery as small arms,sewing machines,typewriters,and bicycles,both join together to make up the machine industry,the two worlds are very different,and not only because their production methods differ.According to him,each world also differs in the rela tionship between the manufacturer and the customer/user,in prod uct innovation,in business management systems,in sales strategies, in equipment machinery,and in the nature of the labor force employed,and the•gbuilding•hworld in particular constructed a flexi ble production system that responded to market trends.4Fordism may truly be described as the highest point reached by the•gmanufactur ing•hstream in America during the period between the two world wars. The mainstream of the prewar machine industry in Japan,a catch up industrial country,was of the building type,based as it was on order production.Even the bicycle industry,5which in America was a direct forerunner of the appearance of the automobile industry,in Japan evolved its own special production system•\one that,if anything, closely approximated that of many items of general merchandise for export.6 Thus the process of raising the level of Japan's machine industry before the war was one of moving from a technological and managerial accumulation of experience in an order-production-type, building-type machine industry and a production system classically seen in the bicycle industry,to the birth from that seedbed of new industries like the automobile and even the aircraft manufacturing industries. 4See John K Brown,The Baldwin LocomotiveWorks,1831-1915(Baltimore:Johns Hop kins University Press,1995).An important work on the U.S.locomotive industry is AlbertJ.Churella's From Steam to Diesel:Managerial Customsand Organizational Capabilities in the Twentieth-CenturyAmerican LocomotiveIndustry(Princeton:Princeton University Press,19985 Hounshell,From the American System to Mass Production,chap.5. For more on the unique social division of labor6 organized by wholesale merchants in the bicycle industry(known as an•gassembly system•h),see Johzen Takeuchi,The Role of Labour Intensive Sectors in Japanese Industrialization(Tokyo:United Nations University Press,1991),chap.4. 92JAPANESE YEARBOOKON BUSINESSHISTORY-2000/17 The sectors that led the way in Japan's order-production,building type of machine industry included ships,railway rolling stock,and heavy electric machinery.These industries achieved rapid technological improvement and import substitution against the background of a very close relationship with powerful users or the national sector in infrastructure sectors needed for industrial development:marine transport,the railways,electrical power.From the Meiji period on, all these industries continued to rank at the top in terms of volume of production in their own areas of the machine industry,and they were the kind of industries in which large oligopolistic manufactur ers led the way in those respective industries. Within this order-production,building type of machine industry there were great differences among the processes of development in the manufacturing of machine tools and other industrial machinery, an area in which there is a relatively heavy preponderance of small and medium-sized businesses.If we look,for example,at the machine tool industry as it was between the two world wars,we see that its market showed a multilayered composition of:an imported machine monopoly,a concurrence of domestic-made and overseas made machines,a domestic-made machine monopoly,and second hand goods;responding to this market structure was a production structure on the supply side,with a multilayered composition rang ing from the five major manufacturers to tiny producers.The subdi vision of the market limited each manufacturer's scale of mass pro duction,and when one compares the products of the major manufacturers and those of tiny producers,one finds such differences in price and performance that one cannot imagine them to be the same machine tools.7Still,as far as the small and medium-sized mak ers were concerned,the domestic-made machine monopoly market, which could not be penetrated by imported machines,was the basis of their existence and at the same time the arena providing them with an opportunity to acquire and enhance technology.Rising one step at a time up the ladder of the multilayered production structure (a 7Minoru Sawai ,•gKosaku kikai kogyoöno jusoteki tenkai•\1920nendai o megutte•h [The multilayered development of the machine tool industry in the1920s],in Ryoshin Minami and Yukihiko Kiyokawa,eds.,Nihon no kogyoka to gijutsu hatten[Japan's indus trialization and technological development](Tokyo:Toyo Keizai Shinposha,1987). SAWAI:The Rolling StockIndustry in PrewarJapan93 nontariffbarrier,it might be said)was the normal process of business development for individual firms,and the sum total of such process es brought about technological improvement