On June 2, 2023, Japan released the 2023 edition of the Manufacturing White Paper. This is the 23rd white paper issued by the Japanese government since 2002, and it is co-authored by the Ministry of Economy, Trade and Industry, the Ministry of Health, Labour and Education and Science. The white paper is divided into two parts, the first part describes the current situation and challenges of the Japanese manufacturing industry; The second part describes the main measures taken by the Japanese government to promote the development of the manufacturing industry in the past year.

This article will look at what the 2023 edition of the Manufacturing White Paper says about the new trends in global manufacturing and what Japan will do under this new trend.

1. The changing trend of the international environment of manufacturing industry

1.1 / Characteristics of manufacturing industry in major countries (regions)

In order to identify the characteristics and international competitiveness of the manufacturing industry in major countries (regions) in the changing international environment, Japanese Companies’ International Competitive Position in iot Services and Software (Japanese companies のモノと IT サービス, ソフトウェアの International competition ポジション), released by the New Energy and Industrial Technology Development Agency of Japan (NEDO) in March 2022, selected 803 final products in 14 sectors. As well as 281 products in 6 key technology areas, it analyzes the advantages of major countries (regions) such as Japan, China, the United States, Europe and South Korea in the global market, as well as their share in the global market, including representative final products, intermediate products and components.

The 14 final product areas are: 1. Automotive (160 products); 2. Aircraft (19 products); 3. Industrial machinery (136 products); 4. Industrial vehicles (10 products); 5. Household appliances (87 products); 6. Mobile phones (50 products); 7.OA equipment (30 kinds of products); 8. Network communication equipment (54 kinds of products); 9. Energy supply facilities/equipment (141 products); 10. Medical equipment (47 products); 11. Pharmaceuticals (10 products); 12. Inspection and analysis instruments (15 kinds of products); 13. Housing-related (6 products); 14. Robots (38 products).

1336-L5

The six key technology areas are: 1. Semiconductors (84 products); 2. Storage related (37 products); 3. Small motor (9 kinds of products); 4. Battery related (65 products); 5.LED related (23 products); 6. Materials (63 products). The white paper ranked Japan (220), the United States (99), Europe (50), and China (44) in terms of the number of varieties with a global market share of more than 60 percent in 2020.

◉ Features of Japanese manufacturing: According to the data analyzed by the white paper, the number of major products produced in Japan is 825, the number of products with a global market share of more than 60% is 220, and 18 products with sales of more than 1 trillion yen. The global share of more than 60% of the varieties far more than the United States, Europe and China. About 70% of them are components such as electronics and automobiles, which are the strengths of Japan’s manufacturing industry. Compared to the U.S., Europe, and China, sales of more than 1 trillion yen were small, and sales of more than 10 trillion yen were only cars and hybrids. According to the white paper analysis, Japan is heavily dependent on the automobile industry. The Japanese manufacturing industry has an advantage in parts and materials products, but in the end products with large sales, other areas except automobiles, compared with the United States, Europe and China, sales and global share are small, and there are fewer varieties.

◉ The characteristics of the U.S. manufacturing industry: data show that the number of main products produced in the United States is 576, and the number of varieties with a global market share of more than 60% are 99. There are 33 products with sales of more than 1 trillion yen, which is the most compared with Japan, Europe and China. In the global market share of more than 60% of the products, logic ics and MOS microcomputers and other electronic components materials accounted for about 40%. There are 11 products with a global market share of more than 60% and sales of more than 1 trillion yen, including logic ics and components. With sales of more than 10 trillion yen in various fields such as medicine, automobiles, mobile phones and parts, the U.S. manufacturing industry has advantages from parts to final products.

◉ The characteristics of the European manufacturing industry: the number of major products produced in Europe is 497, the number of varieties with more than 60% of the world market share is 50, and the number of varieties with sales of more than 1 trillion yen is 25. Among the varieties with a global market share of more than 60%, there are 18 automotive parts and materials products, including aircraft fuselages with sales of more than 1 trillion yen. Of the categories with sales of more than 1 trillion yen, more than 10 trillion yen were automobiles, pharmaceuticals and carbon steel. Europe has an advantage in cars and pharmaceutical products.

◉ Features of China’s manufacturing industry: According to the white paper, 474 major products are produced in China, 44 of which account for more than 60 percent of the world market, and 28 of which have sales of more than 1 trillion yen. In the global market share of more than 60% of the products, electronic component materials account for about half. Among the varieties with sales of more than 1 trillion yen, the sales of carbon steel, automobiles, mobile phones, and electric vehicles exceeded 10 trillion yen, in addition to a number of electronic terminal products such as household air conditioners and household frozen refrigerators. China’s manufacturing industry is characterized by advantages in the automotive and electronic end products.