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Innovation in the Japanese Construction Industsry

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Innovation in the Japanese Construction Industsry INNOVATION IN THE JAPANE SE CONSTRUCTION INDUSTRY A 1995 APPRAISAL QC 100 U57 NO. 898 1996 INNOVATION IN THE JAPANESE CONSTRUCTION INDUSTRY A 1995 Appraisal Project Sponsors: Asia Pacific Technology Program Office of Technology Policy NIST Special Publication 898 Technology Administration U.S. Department of Commerce Marck 1996 U.S. Department of Building and Fire Research Laboratory Commerce National Institute of Standards and Technology Ronald H. Brown, Secretary Technology Administration U.S. Department of Commerce Technology Administration Mary L. Good, Under Secretary for Technology Structural Systems and Construction Processes Program National Science Foundation National Institute of Standards and Technology Arati Prabhakar, Director Office of Building Technologies Assistant Secretary for Energy Efficient and Renewable Energy U.S. Department of Energy National Institute of Standards U.S. Government Printing For sale by the Superintendent and Technology Office of Documents Special Publication 898 Washington: 1996 U.S. Government Printing Natl. Inst. Stand. Technol. Office Spec. Publ. 898 Washington DC 20402 254 pages (March 1996) CODEN: NSPUE2 The U.S. Panel on Innovation in the Japanese Construction Industry: Dr. Richard G. Gann, ParTel Chair Chief, Fire Science Division Building and Fire Research Laboratory National Institute of Standards and Technology Dr. Thomas L. Anderson Charles I. McGinnis East Coast Regional Manager Associate Director Fluor Daniel Technologies Construction Industry Institute Dr. Steven J. Bomba Professor Boyd C. Paulson, Jr. Vice President, Technology Construction Engineering and Johnson Controls, Inc. Management Program Department of Civil Engineering Richard A. Cemenska Stanford University Manager, New Technology Caterpillar Inc. Noel J. Raufaste, Jr. Manager, Cooperative Research Programs Edward E. DiTomas Building and Fire Research Laboratory Chief Engineer National Institute of Standards The Turner Corporation and Technology Lloyd A. Duscha, P.E. Dr. Kenneth F. Reinschmidt Consulting Engineer President, Stone & Webster Advanced Systems Development Services Professor Ezra Ehrenkrantz Sponsored Chair Dr. Arthur H. Rosenfeld Architecture and Building Science Senior Advisor New Jersey Institute of Technology Energy Efficiency and Renewable Energy Department of Energy Burton Goldberg Senior Analyst Economics and Policy Analysis National Association of Home Builders Research Center TABLE OF CONTENTS Page ABSTRACT ix EXECUTIVE SUMMARY xi I. INTRODUCTION 1 D. CHARACTER OF THE JAPANESE CONSTRUCTION INDUSTRY 5 A. Character of the Japanese People 5 B. Historical Perspective of the Japanese Construction Industry 6 C. The Japanese Construction Industry Today 7 1. Similarities to 1990 7 2. Differences from 1990 16 III. UNDERSTANDING INNOVATION AND R&D IN THE JAPANESE CONSTRUCTION INDUSTRY 23 A. Background 23 B. Definition of Research and Development 23 C. Support for Advanced Technology and R&D 24 1. Driving Forces and Objectives 24 2. Funding of R&D 26 3. Where Does Innovation Occur? 30 4. Nature of Construction Industry R&D 31 5. Implementation of Construction R&D 39 6. Impressions 41 IV. INNOVATION IN COMPONENTS OF THE CONSTRUCTION PROCESS 43 A. Process Integration 43 1 . Benefit of Vertical Integration 43 2. General Findings 43 3. Specific Organizations: Corporate Software 44 4. Field Software 46 v B. Construction Materials and Products 49 1 . Introduction 49 2. Concrete Research 49 3. Building Envelope Materials 51 4. Metals Research 51 5. Other Materials 52 C. Structural Systems 54 1. Introduction 54 2. New Construction 55 3. Retrofit 59 4. Seismic Design 62 D. Field Operations and Construction Equipment 69 1 . Introduction 69 2. Field Operations R&D 69 3. Current Construction Equipment and Practices 70 4. Technological Innovations and Trends 73 5. Summary 76 E. Fire Protection 77 1. Introduction 77 2. Fire-Resistant Construction 77 3. Fire Detection 78 4. Active Suppression 78 5. Egress 79 6. Furnishings 79 7. Performance-Based Fire Codes 79 8. Summary 80 V. INNOVATION BY CONSTRUCTION SECTOR 81 A. Industrial Construction 81 B. Large Commercial, Residential and Institutional Buildings 89 1 . Introduction 89 2. Examples of Current Construction 89 3. Other Aspects 90 4. Summary 92 C. Residential Construction 93 1 . Introduction 93 2. The Government Role in Housing 94 3. Historical Trends 95 4. Factors Influencing Trends 98 5. The Status of Japanese Housing 102 6. Residential Energy Conservation 110 7. Summary and Conclusions 114 vi D. Public Works 116 1. Definition 116 2. Scope 116 3. Government Role 117 4. Procurement Practice 118 5. Contract Payment ." 119 6. Public Works Research 119 VI. CONCLUSIONS 121 VH. REFERENCES 125 APPENDIX A: SITE VISIT REPORTS A-l APPENDIX B: JAPAN SOCIETY OF CIVIL ENGINEERS' OVERVIEW OF THE JAPANESE CONSTRUCTION INDUSTRY B 1 APPENDIX C: PANEL BIOGRAPHIES C I vii LIST OF TABLES 2.1 Comparison of Japanese and U.S. Construction Industries 8 2.2 Comparative Data on the 20 Largest Japanese Construction Firms in 1994 and the 10 Largest Firms in 1987 10 2.3 Fatal Injuries per 100,000 Construction Workers, 1990-1992 data 12 2.4 Fatal Injuries per ¥1 Trillion Construction Investment 12 2.5 Comparative Data on Housing in World Capitals 15 2.6 Magnitude of the Top 25 Global Construction Contractors 20 2.7 1993 International Market Share 21 4.1. Properties of the Replark Prepreg 60 4.2. Field Operations Equipment Sales in Units 71 5.1 Comparison of 1993 Engineering Rates 84 5.2. Japanese Gross National Expenditures (GDP) for Housing and Total Construction, Percent of Total GDP and Percent Change, 1992 and 1993 97 5.3. U.S. Gross Domestic Product (GDP), Investment in Residential Structures, Housing GDP and Total Residential GDP 98 5.4. Housing Starts and Cost in Japan, 1993 102 5.5. Dwellings By Type Structure in Japan 104 LIST OF FIGURES 3.1. Organization of R&D in a Typical Japanese Construction Company 34 4.1. Construction of Geodome 74 4.2. Radio Controlled Operation System 75 viii INNOVATION IN THE JAPANESE CONSTRUCTION INDUSTRY: A 1995 Appraisal ABSTRACT As part of a national effort to benchmark the competitiveness of U.S. industries, this study evaluates the state of technology and innovation in the Japanese construction industry. That industry is large, solid and progressive, leading the world in the size of its construction industry relative to GDP, in the modernity and quality of its constructed facilities, in the size and quality of its physical research laboratories, and in its private and public investments in construction research and development. The Japanese have built an integrated approach toward incorporating new technologies into their design and construction projects and lead in such areas as large-scale bridges, tunnels, soft-ground construction, congested area construction, high performance construction materials, automated "jack-up" erection techniques for high-rise buildings, and computer visualization of residences for prospective buyers. The United States leads in computer integration of design and construction, the economy of constructed facilities, and global positioning systems. The Japanese are generally faster in providing nationwide acceptance of innovations. The Japanese industry has taken strong measures to increase the pace of its internationalization, but still lags both United States and European competitors in market penetration, in large part due to the currently strong yen. Recent economic pressures have reduced the Japanese allocation of resources to construction R&D. The United States and its construction industry can benefit from the practices and innovations developed by the Japanese. While a direct transfer of the Japanese R&D approach and the emerging technologies may not always be feasible, the opportunities for modified application and the potential value of increased U.S. investment in construction R&D should not be overlooked. The U.S. industry would derive considerable benefit from the establishment of a U.S. public/private sector program both to conduct multidisciplinary R&D and to efficiently disseminate evaluated technology focussed in the construction field. KEY WORDS: Construction; construction industry; innovation; Japan ix EXECUTIVE SUMMARY Construction is a major U.S. industry, and the quality of the constructed facilities it produces is important to the competitiveness of all U.S. industry and the quality of peoples' lives. In 1994, new construction amounted to over $500 billion, 8% of the GDP, and employed 6 million people. The global industry is manyfold greater. There is thus both an opportunity for international trade in construction products and services and a concurrent risk of substantial foreign penetration into the U.S. market. Technical leadership is essential to competitiveness in construction in the developed world. Therefore, as part of an effort to benchmark the international competitiveness of major U.S. industries, the Technology Administration of the U.S. Department of Commerce requested this appraisal of technology and innovation in the Japanese construction industry. The project was co- sponsored by the National Science Foundation, the National Institute of Standards and Technology, and the Department of Energy. The study was conducted by an interdisciplinary panel of experts from the private and public sectors. Following collection and review of earlier studies of the Japanese construction industry, especially two organized in 1990 by the Japanese Technology Evaluation Center (JTEC) and the Civil
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