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Survey Results of Factory Location Trends in 2018 (Preliminary Report) (January-December)

March 29, 2019

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 that acquired 1,000 m2 or more of land in 2018 (January-December) for the purpose of constructing factories. METI hereby announces that it has compiled the results into a report.

Outline of the report

The number of new factory locations acquired by the manufacturing and other sectors was 1,123 (up by 8.5% on a year-on-year basis), marking the highest number for the first time in five years, while the new locations cover a total area of 1,293ha (down by 12.9% on a year-on-year basis), showing a decrease from the previous year (see page 4 of the Appendix).
Note: 1ha = 10,000 m2

Locations (number)

  2012 2013 2014 2015 2016 2017 2018
First half 436 361 511 478 467 525 661
Second half 509 487 526 592 559 510 462
Annual total 945 848 1037 1070 1026 1035 1123

Total areas (ha)

  2012 2013 2014 2015 2016 2017 2018
First half 623 442 639 570 623 645 727
Second half 557 758 670 638 674 839 566
Annual total 1180 1200 1309 1208 1297 1484 1293
Looking at the trends of new factory locations by sector, the metal products, production machinery, general-purpose machinery and other sectors showed significant increases in both the number and areas of new locations from the previous year. Transportation machinery showed an increase in the number of new locations and a decrease in the areas thereof, while the food sector showed a decrease in both the number and area from the previous year (see page 11 of the Appendix).
The number of new factory locations that companies acquired in the same prefectures as those in their head office remained unchanged, i.e., 60% to 70% in the total of such locations. As for the reason why they selected the locations, 301 respondent companies said that they placed the highest weight on the “closeness to the head office or their own factories,” accounting for the largest share, followed by the “land price,” accounting for the second largest share (see page 18 of the Appendix).
Regarding the region-based number of new factory locations and the total areas, the list thereof is as follows (see page 21 of the Appendix).
Locations (top 5 municipalities)   Total areas (top 5 municipalities)
Municipality Locations   Municipality Total areas (ha)
Aichi Prefecture 77   Ibaraki Prefecture 147
Gunma Prefecture 69   Aichi Prefecture 76
Ibaraki Prefecture 68   Gunma Prefecture 75
Shizuoka Prefecture 67   Chiba Prefecture 71
Hyogo Prefecture 56   Shizuoka Prefecture 62

References: Press releases by Bureaus of Economy, Trade and Industry

Division in Charge

Regional Business Innovation Promotion Division, Regional Economic and Industrial Policy Group

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