The Nagoya office covers the key territories midway between Tokyo and Osaka in central Japan. This part of Japan consists of nine prefectures (Aichi, Ishikawa, Fukui, Gifu, Nagano, Mie, Shizuoka, Toyama, and Yamanashi) clustered together in the center of Honshu, Japan's largest island. Taken together, these nine prefectures have a total population of 21 million, making Chubu the third most populous region in the country. The majority of the region's population and industry is concentrated along the Pacific coast, in an area known as the Tokai Region (Aichi, Gifu, Mie, and Shizuoka Prefectures), concentrated around the city of Nagoya. The area is also home to many Japanese tourist sites including Ise Shrine, Takayama, and Mt. Fuji.
The Chubu region is the manufacturing heartland of Japan and an export powerhouse. Supported by a well-developed infrastructure and advanced manufacturing technology, the region is home to many world-class Japanese manufacturers. These include Toyota Motor Corporation, Daido Steel, Brother Industries, Makita, Denso Corporation, Yamazaki Mazak, INAX, Suzuki Motor, Honda Motor, Noritake, NGK Insulators, Olympus Optical, Yamaha and many others. The region is both a logistics hub and a vital economic generator for the nation, which accounts for more than 15% of Japan's total GNP. With Nagoya Port as the largest port in the nation, Chubu is also accountable for amassing roughly half of Japan's total trade surplus with the United States.
The political, economic, and transportation center of the region is the City of Nagoya and surrounding Aichi Prefecture. Aichi ranks first among all Japanese prefectures in terms of the monetary value of its product shipments. Nagoya is one of Japan's premier industrial and technological centers as well as a huge market in its own right. Despite being a major economic center, the city is well known for its high quality of life and competitive business costs. Unlike other major cities in Japan, Nagoya's economy was not significantly harmed by the post-Bubble economic downturn, and has maintained strong economic growth driven by local businesses such as Toyota. Housing costs and office rents are substantially below those found in either Tokyo or Osaka.
The Greater Nagoya Initiative, a collaboration between three prefectures, twenty-three municipalities, and many business organizations is actively working to recruit foreign business into the region. Dana Japan, Cabot Specialty Chemicals, TRW Steering Systems, Pfizer Pharmaceuticals, and PPG Industries are but a few of the many American firms that have set up manufacturing or distribution bases in and around Aichi. American retail giants Kinko's, Office Max, Toys' R Us, and The Sports Authority have also opened outlets in the area. Since the 2000 opening of the JR Central Towers at Nagoya Station, a second major commercial district has emerged within the city proper.
Nagoya and central Japan are comparatively well-off despite a decade-long deflation. Major projects include a new Toyota Motors headquarters across from the JR Central Towers scheduled for 2007, which will further enhance the commercial activity in the area. Also, the 2005 completion of the Chubu International Airport ("Centrair") establishes Nagoya as both a domestic and international destination, as well as an international travel hub. The region maintains unemployment at 5% or lower, and continual profits in exporting industries related to information technology and automobiles.
The Chubu Economic Federation has estimated that approximately $70 billion per annum will be spent on various projects in the Chubu Region within the next few years. This bodes well for cost-competitive U.S. firms that are active in the region. The completion of the new airport coincided with the first world's fair of the 21st century, Aichi Expo 2005. Many foreign dignitaries and business people visited the Nagoya region, along with over 20 million total Expo visitors. Other major projects include construction of segments of the $32 billion Second Tomei-Meishin Expressway, a new six-lane freeway that will connect Tokyo and Kobe through Nagoya and a $30 billion JR Tokai maglev train currently being tested in Yamanashi prefecture.
Through its close relationship with Chubu public and private entities, the Commercial Service in Nagoya works to uncover commercial opportunities for U.S. firms in a variety of sectors. Please let us know how we can help you enter or expand your business in central Japan.