How Manufacturing industry X Takes Japanese Industry to the Next Level

This is the second article outlining the key points in Japan’s New Direction of Economic and Industrial Policies. Manufacturing industry X offers a possible solution to how Japanese industries competing for profit worldwide can raise their value added even higher. Just like green transformation (GX) and digital transformation (DX), Manufacturing industry X defines a vision of industrial transformation. This article shares insights on this yet-to-be-familiar concept.

Japanese industries compete on a global scale

Japanese industries have a strong reputation in many fields worldwide thanks to their key strengths in products utilizing unique technologies such as games and other content and automobiles. Japan’s manufacturing industry excels in creating complex parts and products with high levels of precision. This is underpinned by the accumulated knowhow and kaizen (improvement) capabilities in development and manufacturing of Japanese companies.

Issues facing the Japanese manufacturing industry

Yet globally the manufacturing industry is increasingly affected by intense price competition and technological innovation. Consumer needs are diversifying and changing at an ever-faster pace. Japan must also look beyond conventional issues of quantity and quality to proactively invest for growth toward GX and DX, engaging in competition in pursuit of greater value added.

Manufacturing industry X changes the nature of selling and society

A shift toward Manufacturing industry X is the way to achieve this. This is a vision of a high value-added manufacturing industry that drives new demand through the transformation of society by embracing GX and advanced technology (for space, biotech, etc.) and creating services using digitalization. By going beyond conventional means of growth in a shift toward Manufacturing industry X, the industry will expand employment and lift wages.

Efforts to engage with Manufacturing industry X have already begun. One example of an SME doing so is Hamano Products (Sumida, Tokyo), a manufacturer involved in metal processing and the design and development of machinery and devices. The company takes an integrated approach from the planning stage onward, incorporating development, design, manufacturing, and assembly for diverse products such as intra-vehicular robots, parts for semiconductor devices, and drive-through structures. It also provides support for product development to startups and companies creating new businesses aiming to solve social issues. Hamano Products supplies its clients not merely with hardware but also the set of services to go with such hardware. 

To build on and increase more examples like this, we will support proactive investment by companies and encourage the sharing of data.

Division in Charge

Industrial Structure Policy Division
Ministry of Economy, Trade and Industry