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# Japan’s Competitive Edge

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As a small island nation that is also the fourth-most-powerful economy on Earth, one of Japan’s greatest strengths has long been its competitiveness.

Its businesses have always worked harder and smarter to compete with much larger international rivals across a wide range of industries.

The common factor among these different firms and different sectors is the pursuit of quality, rather than racing to the bottom for lower costs.

That comes in the form of exports, innovation and maintaining high standards—even in today’s turbulent geopolitical climate.

Hiroshi Yano, president of Nippon Fine Chemical Co., Ltd., reported that flexibility was crucial to navigating modern global trade.

“During this uncertainty, it is hard to know what is coming next. As such, we have to respond to whatever comes our way in a timely manner,” said Yano. 

“One thing to note is that procurement routes are important, especially when sourcing various plant-based ingredients in bulk from overseas,” he added.

The same holds true for Okamoto Machine Tool Works Ltd., according to President Tsuneyuki Ishii.

“Globally, there are many changes affecting markets and a lot of volatility. Because we have been making deals across borders for some time, we are used to working in U.S. dollars, Japanese yen or even euros,” said Ishii.

“Thanks to those circumstances, naturally, we are hedging risks that come with changes to the global business climate,” he added.

The ability to change with the times and adapt is particularly important in Japan considering its aging population and associated workforce shortfall.

Daiki Ishikawa, Executive Officer in charge of AI at Rikei Corporation, believes that connected smart technology can help in this regard.

“The labor shortage remains a very significant problem. Via solutions or solutions support, such as digital twin or AI technology, we are exploring product development cycle changes,” Ishikawa said.

“Fully automated factories are the next step for addressing demographic challenges. We can reduce manpower, exceed efficiency targets, and produce products to market as soon as possible,” he added.

Saitama Kiki Co., Ltd. President Norio Yamamoto has predicted that industries such as heavy truck manufacturing will experience significant evolution in the near future.

“I think we will see something of a paradigm shift as soon as next year, as major manufacturers in Japan, at least the main four, reorganize and adjust,” said Yamamoto.

“We still need manual labor for our work and there are production processes that require specific skilled workers. To address the problems with the labor shortage, we try to make at least one production line automated at our factories each year,” he added.

At face mask firm Shirohato Co., Ltd., President Takanao Yokoi has prioritized production quality and insists Japan is a leader in the field.

“Japanese mask manufacturers are excellent in terms of technology, as well as the quality of the production equipment,” said Yokoi.

“When you compare made-in-Japan masks with those made in China or Vietnam, while the products themselves may look similar, the key differences can be found in the production process,” he added.

Japan’s business tradition of monozukuri, meaning to always pursue the highest quality standards and customer service, is just as important today as it has ever been. 

Nittoseiko Co., Ltd. President and COO Makoto Araga is a firm believer in this ideal.

“The driving force behind Japanese monozukuri is the desire to make something better than the originator of a product. For cars, we ensure the quality of products so that they can excel on the global market. In our case, we produce 2.2 billion screws and fasteners monthly for the global market, underpinning the overall manufacturing scene,” said Araga.

In the food sector, With Link Inc is thriving with global business links stretching as far as Scotland and Australia.

“One of our most distinctive qualities is our unwavering commitment to food quality and safety. What sets us apart globally is our specialized technique for extracting umami flavor from ingredients, along with our meticulous approach to selecting the right materials,” said President and CEO Daisuke Akizuki.

“The way we blend elements to craft the perfect taste reflects the precision and expertise of Japanese culinary culture,” he added.

Atsuhiko Yamazaki, President and Representative Director of Yamashin Filter Corporation, is targeting expansion in The U.S.

“We have to dig out the U.S. market more because it really is nothing short of a gold mine,” said Yamazaki. 

“We started to enhance our outreach to the U.S. with a wide portfolio of products. From their perspective, they believe a good supplier ensures quality and top-notch delivery times,” he added.

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