Summary

The Japanese construction industry declined at a CARC of 1.32% for the period 2003-2008. Non-residential sector's market share was 64.3% in 2008, while residential sector accounted for the balance 35.7%. The share of the construction sector in Japan has continuously witnessed a declining trend. It has reduced from 6.4% in 2003 to 5.6% of total GDP in the year 2007. Japan has continued to maintain its status as the second largest market in terms of construction spending during the year 2007. The investment in the Japanese construction sector during the year 2008 was around US$478.0 billion, contributing to around 8.8% of the GDP of Japan. But, the pace of growth is slow as compared to other countries of Asia in general and China in particular, which is expected to be the second largest market in terms of construction spending after the U.S. by 2009 end. The residential segment has witnessed a slump in Japan from the revision made in the building standards laws which were implemented on June 20, 2007. Some other factors have impacted the performance of residential segment which include:

*The tighter standards have resulted in more stringent and rigorous checking of the building applications, which has increased the time consumed in the screening process to 70 days from the previous 20 days.
*The revelation that data regarding fireproofing materials were produced falsely led to the adjustments necessary in the production and inventory of the building materials industries as well.
Besides these factors, other factors hindering the growth of Japanese construction industry include difficulties for foreign firms to operate in the Japanese market due to the high entry barriers in terms of stringent regulations, strong domestic competition and shortage of labor.

Table of Contents

Japan Construction Market Analysis
Japan Construction Competitive Landscape
Leading Japan Construction Companies
Japan Construction Market Forecast
Appendix