The Rebirth of Japan Inc. Thanks to a Strong Showing from Exporters, Japan Has Racked up Five Quarters of Uninterrupted Economic Expansion; Its Best Run Since 2006
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#JapanTheWorldfolio Our World #TheWorldfolio Monday, July 31, 2017 This supplement to USA TODAY was solely produced by United WorldJAPAN Ltd., Suite 179, 34 Buckingham Palace Road, London SW1W 0RH – Tel: +44 (0)20 7305 5678 – unitedworld@unitedworld-usa.com – www.unitedworld-usa.com The Rebirth of Japan Inc. Thanks to a strong showing from exporters, Japan has racked up five quarters of uninterrupted economic expansion; its best run since 2006. Its highly-specialized companies have found their footing once more in the global market, injecting a burst of newfound optimism into the economy ince Prime Min- aware we are going to build ister Shinzo Abe a factory in their garden,” ex- returned to office plains Mr. Inoue. “Even just in December 2012, 30 years ago, if a Japanese implementing his company went to Thailand pro-growth policy dubbed they would start ‘mowing SAbenomics, corporate earn- the lawn’. They would make ings have surged, while U.S. a ceremony, put a Japanese and Chinese demand for flag and claim that territory Japanese products has driv- as theirs without reserva- en profits up by nearly 40% tion. I prohibited that. We from fiscal 2000 to 2016. are building our company in Japan, which experienced their garden so we should be breakneck economic growth low profile, and that’s why I throughout the postwar era appoint local people as man- only to plunge abruptly into agers. The Japanese are only recession in the early 1990s, advisors in this case. This is a is now showing encouraging principle I always keep.” signs of emerging from its Indeed, INOAC’s U.S. op- prolonged period of eco- erations are run by American nomic stagnation. Japan, chairmen and presidents with Inc. is back. Japanese advisors. “Our big- gest strength is localization, Growth through our ability to meet local mar- transformation ket demands, and to use lo- While Japan’s first economic cal manpower. We not only miracle was driven by the understand the importance boom of the domestic mar- of producing locally, but we ket as increasing wages cre- also take advantage of the ated consumer demand for unique Japanese high-quality domestic appliances and technology,” says Mr. Inoue. other goods, the next boom Combining this Japanese will come from tapping technology with local needs into new markets. Japan’s is what led to the company’s companies have long been 50:50 joint venture with Rog- household names around ers Corporation, a Connecti- the world – Toyota Land- cut-based specialty materials cruisers can be found on company listed on the NYSE. every continent, including “We are developing many Antarctica, while the ubiq- new applications together,” uitous Sony brand has domi- says Mr. Inoue, who points nated home entertainment to the protective cushions in- over the last few decades side Apple iPhone packaging. – but a new drive from cor- “Those products are made by porations to tap into high- our joint venture.” growth business segments The next step for this out- is seeing them transform ward-bound piece of Japan, from mere manufacturers Inc. is to ramp up its joint to global brands. R&D activities with Ameri- “Japan 1.0 was character- can firms. “America has a big ized by Japanese products chemical industry and many gaining world fame rapidly. leading companies use our Nowadays, we need to take Out with the old and in measure blood glucose in to compete with those com- ufacture of unique devices, products so we are really in- into account the increasing with the new diabetics using current flow panies in terms of volume, whilst America is on the cut- terested in doing more R&D number of competitors from Out with the old and in with caused by enzymatic reac- so we make higher quality ting edge of technology that activities to meet our custom- countries such as China and the new is almost a mantra tion. products instead. This is our then spreads worldwide. By ers’ needs and to keep a good South Korea as well as the for Japan, Inc. today. Re- “Today, they are the most specialty; we don’t compete combining the two, I truly relationship with chemical different desires that each ducing ties with monolithic accurate blood glucose me- with cheap materials or prod- believe that we will be able companies,” says Mr. Inoue, country has. That is why it is conglomerates allows for a ters, and represent more ucts. This means we don’t fo- to create something special, who is also scouting for sales very important to customize nimbler business approach, than 50% of the market share cus on producing volume or for the benefit of humankind,” channel partners to enable each product to its respec- as Hidehito Kotani, Presi- in Japan,” says Mr. Kotani. In sales. Our goal is to establish says Panasonic Healthcare’s INOAC to better serve the tive market,” says Yoshiharu dent, CEO and CTO of Pan- addition, the firm’s biomedi- a good brand and customer Mr. Kotani. “Japanese qual- vast U.S. market. Katsuta, President of Hita- asonic Healthcare explains. cal unit, which deals with re- relationship,” says Soichi In- ity and American innova- chi Maxell, a consumer elec- “Panasonic Healthcare has search and development such oue, Chairman and CEO of tion are the perfect match.” Made in America, by Japan tronics company that pro- a unique setup as Panasonic as cell culture, is placed sec- INOAC Corporation. His company is currently as- With a global shift toward duces among other products still owns 20% of our shares. ond in the world in its indus- Founded in 1926, INOAC sessing M&A opportunities protectionism, getting prod- batteries – the company’s The rest is owned by KKR try segment, behind Thermo has become a global sup- within the U.S. market. “We ucts into new markets and name is a contraction of Private Equity at 58% and Fisher. For Mr. Kotani, Japan’s plier to the automotive sec- want to collaborate with a competing with local firms “maximum capacity dry Mitsui at 22%. We are one of incomparable technological tor, making parts to meet company who has high tech- could pose something of a cell” – beauty appliances, first companies to be cut out prowess will be what drives American safety standards nical competences and most challenge. Hozumi Yoda, wireless charging solutions, of a big conglomerate, which the rebirth of its corporate for Japanese cars such as importantly who has a vision President of Nissei Plastic and a number of industrial means we now have our in- sector. “In the past, Japanese Toyota and Nissan, as well as in line with ours. Acquiring a Industrial, believes he has materials and energy prod- dependent operations and we companies were good at mak- for General Motors and Ford. company with the sole idea of the answer. “For us, America ucts. Its latest development, are growing very nicely with ing machines. Now, these It now counts over 100 facili- generating profit is not part is one of the most important an LED-based lantern that the support of KKR and Mit- machines are able to talk to ties operating in 20 countries of the Panasonic Healthcare markets and we are always generates electricity by us- sui. Our unique history and themselves, and drastically and over 20,000 employees. philosophy.” thinking about it. Americans ing water and salt, runs for business structure makes us improve our results. I be- The company, a world leader “The U.S. market repre- are always willing to pay the around 80 hours and is being one of the most innovative lieve these machines are the in the field of polymer chem- sents a big market for our price for a good product,” he marketed as an emergency companies in the country.” rebirth of Japan Inc.” istry, specializes in polyure- growth,” adds Mr. Inoue of says. In February next year, lamp for times of disaster He adds that “Panasonic thanes, plastics, elastomers INOAC. “If you look at the the company will invest $20 and power failure, as well is a great brand, but it’s not Quality is key and advanced materials for chemical industry, there million in opening a new as for leisure and outdoor a healthcare company. This Japanese companies’ success industries including infor- are many applications over factory in Texas, San Anto- activities. can confuse people, and we continues to revolve around mation and telecommuni- there. America is a very big nio. “We will be assembling After a change in holding want to transform people’s the monozukuri concept – cations, healthcare, cosmet- and important market for heavy machinery there and structure, the company will idea of our brand. We value loosely translated as the art, ics, industrial materials and us.” He adds that the com- selling it in the Midwest area drop the “Hitachi” part of its our history of starting with science and craft of making housing. pany has plants in Kentucky, around Detroit. We are going name later this year, which it Panasonic, and people can things and encompassing the Ohio and Michigan, as well to sell our products under the sees as an opportunity to re- relate to Panasonic. But we concepts of technology and Entering new as Canada. “We keep hiring label of ‘Made in the U.S.A.,’” launch its brand for the global are a new brand dedicated processes integrating devel- markets through global local engineers to work in our he says. market. “We want Maxell to to healthcare, a new brand opment, production and pro- collaborations plants, this means contribut- This new energetic, nimble be seen as a young, reliable dedicated to innovation.” The curement, as well as intangible Gone, too, are the days when ing to their market economy approach to doing business and fashionable brand,” says company’s key product is its qualities such as craftsmanship Japanese manufacturers and also to developing local boosted combined net profit Mr.