October 30, 2018
The Ministry of Economy, Trade and Industry (METI) conducted the Survey of Factory Location Trends, targeting businesses in the manufacturing, gas supply, heating supply, and electricity supply sectors (hereinafter referred to as the “manufacturing sector and other sectors”) that acquired 1,000 m2 or more of land in the first half of 2018 (January-June) for the purpose of constructing factories. METI hereby announces that it has produced a report of the survey results. Along with this, METI also produced a report of the Survey Results of Factory Location Trends in 2017 (final report).
Outline of the report
- The number of new factory locations acquired by the manufacturing sector and other sectors in Japan between January and June 2018 was 527 (up by 0.4% on a year-on-year basis), covering a total area of 635ha (down by 1.5% on a year-on-year basis), showing a slight increase in the number and the largest in the number since the collapse of Lehman Brothers in 2009, while showing a decrease in the total area acquired from the previous year.
Note: 1ha = 10,000 m2
Total areas (ha)
- Looking at the trends of new factory locations by sector, the metal products, chemical engineering and other sectors showed a significant increase in both the number and area of new locations from the previous year, while the food sector showed a decrease in both number and area from the previous year.
- The number of new factory locations that companies acquired in the same prefectures as those in their head offices remained unchanged, i.e., 60% to 70% of the total were such locations. As for the reason for selecting the locations, 144 respondent companies which accounted for the largest share said that they placed the highest weight on the “proximity to the head office or their own factories,” followed by the companies that chose “land price,” which accounted for the second largest share.
- The top five prefectures in the region-based number of new factory locations and the total area are as follows:
|Locations (top 5 prefectures)||Total areas (top 5 prefectures)|
|Prefecture||Locations||Prefecture||Total area (ha)|
|Gunma Prefecture||34||Gunma Prefecture||45.9|
|Aichi Prefecture||34||Niigata Prefecture||43.3|
|Hyogo Prefecture||31||Ibaraki Prefecture||36.9|
|Ibaraki Prefecture||27||Gifu Prefecture||31.0|
|Shizuoka Prefecture||27||Aichi Prefecture||30.2|
Division in Charge
Regional Business Innovation Promotion Division, Regional Economic and Industrial Policy Group