Issuance of the Ota City Industrial Guide
Ota City is one of Japan’s leading manufacturing cities where SMEs with advanced processing technologies areconcentrated. The city has been the backbone of the entirety of Japanese industry since the postwar period of
rapid economic growth and has supported the development of cutting-edge technologies by taking advantage ofthe strengths in the concentration of a wide variety of processing technologies.
Companies in the city have overcome many crises. These include the collapse of the bubble economy from 1991
to 1993, the global financial crisis in 2008, the Great East Japan Earthquake in 2011 and the spread of COVID-19
in 2020. These companies have survived with their advanced technologies. Ota City and the Ota City Industrial
Promotion Organization Promotion Organization are developing various projects to serve as concrete measures
to stop the decrease in the number of factories and to secure the future of manufacturing in Ota City. These
projects include those on support toward the maintenance and development of industry concentration, support fortechnological and management innovation, and support to secure and develop manufacturing personnel. In
addition, we are organizing efforts to develop original products and to ensure young workers smoothly inherit
techniques by the companies themselves utilizing their advanced processing technologies and development
capabilities. We have seen some companies take on the challenge of entering next-generation industries such as
the growing industries of medicine and nursing care, aerospace, and robots in recent years. Industry in Ota City
is about to approach a new transition phase.
We hope that many people in Japan and overseas in addition to those living and working in Ota city come to further
understand and take an interest in the industry in Ota City through this Guide.

Ota City Industrial Promotion Organization

Table of Contents for the Ota City Industry Guide
1
2

Location and Characteristics of Ota City
Number of Factories in Ota City

Overview of Factories in Ota City
Strengths of the Factories in Ota City
Nakama Mawashi Network
History of Industry in Ota City from the Viewpoint of the Economic Situation
Situation During the COVID-19 Pandemic
Expansion of Business Opportunities and Entry into New Industries at
Exhibition & Business Meeting Events
9 Entry into New Industries
10 Measures and Prospects of the Ota City Industrial Promotion Organization
3
4
5
6
7
8

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1

Location and Characteristics of Ota City

Ota City is located at the southernmost tip of Tokyo’s 23 cities. It has the largest area of those 23 cities.
The population is the third largest after Setagaya City and Nerima City. A major feature is that the daytime andnighttime populations are almost the same. The
city has different characteristics in each area
(e.g., industrial districts, commercial districts andresidential districts). Corporate activities andliving spaces coexist throughout the entire city.
In addition, the city is replete with a national
highway and ring road that runs through the north,south, east and west of the city. There is also a
substantial railway network (e.g., JR, Keikyu andTokyu), Furthermore, the number of flights andusers has been increasing significantly atHaneda Airport, a leading airport of Japan, due tointernationalization. It is playing a greater role
than ever before as a gateway connecting theworld●Area: 61.86 km2(Current as of January 2021 and including Reiwajima)●Population: 734,493(Current as of January 1, 2020 and including foreign residents)

2

Number of Factories in Ota City

2◼

Number of Manufacturing Plants (Number of Factories) Located in Ota City◼

Number of Manufacturing Plants Located in the 23 Cities of Tokyo (2016)

The number of manufacturing plants in Ota City is approximately 4,000. This makes it one of the leading
concentrations of small factories in Japan. However, this number has been on a consistent downward trend
since peaking at 9,177 in 1983. The main reasons for the decrease include the economic downturn due to thecollapse of the bubble economy and the financial crisis in 2008, a slump in demand due to the relocation ofcompanies overseas and companies changing business or going out of business due to a shortage ofsuccessors. Nevertheless, many small factories that have overcome this difficult time by developing their own
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products and refining their own technologies are found concentrated in Ota City.

Overview of the Factories in Ota City

3

Number of Employees in the Entire Company◼

20～49人 50人以上
8.6%
7.2%
10～19人11.1%

Approximately half of factories in Ota City
employ three people or less. If we add
factories that employee four to nine people,

3人以下
47.5%

just under 80% of factories employ ninepeople or less. A major feature is that there

4～9人
25.6%

◼

is a concentration of small factories in Ota
City.

Major Industries in Ota City
More than half of factories in Ota City are
プラスチッ
ク製品
6.2%

その他
18.0%

輸送用機械
4.4%
電気機械
11.0%

金属製品
21.7%

鉄鋼・非鉄
金属
3.7%

involved in the metal products and generalmachinery industries. With those factories
in the electronic machinery andtransportation machinery industries added,
more than 80% are involved in machinery

一般機械
34.9%

and metal processing. Another feature of
the factories in Ota City is that there aremany factories specializing in the high-mix,
low lot production of prototypes and jigs
with high added value.

◼

Existence of a Business Successor
決まっておらず、候補者もいない
17.9%

決まっていないが、候補者はいる
31.3%

Despite the concerns about a shortage ofsuccessors, more than half of companies in
決まってい
る
50.8%

Ota City replied that they have determined abusiness successor. In addition, if we add
those who have not made a determination
yet but which have candidates to be
successor, more than 80% of companies
replied that they are planning to solve theirsuccessor problem.

4◼

Functions/Operations and Areas Handled by Plants in Ota City
0%

10%

20%

30%

40%

50%

60%

70%

製品企画

21.9%

12.4% 1.1%

64.6%

開発・設計

22.6%

13.8% 1.4%

62.2%

40.5%

試作・少量生産量産

26.8%

アフターサービス
・メンテナンス

27.9%

全て内製化

37.8%

33.8%

5.4%

12.8% 1.8%

一部外注

全て外注

80%

90%

3.3%

18.4%

100%

33.9%

57.5%

手がけていないA conspicuous number of plants in Ota City handle prototypes / small lot production and mass production as
their functions/operations and areas. If we check the status of in-house production and outsourcing, we cansee that the ratio of outsourcing (some outsourcing and all outsourcing) is large and that the outsourcing
network between companies is also very important to firms in Ota City.

5

Strengths of the Factories in Ota City

4◼

Strengths with Respect to Customers
The response most considered by plants

Relationshipof trust withcustomers:
40.4%

to be their strength with respect tocustomers is their “relationship of trust

Skills ofexperienced
technicians:
31.4%

Strengthswith respecttocustomers

Ability torespond to
customerneeds:
39.0%

with customers” at 40.4%. This wasfollowed by their “ability to respond to
customer needs” at 39.0%, “production toshort deadlines” at 33.2%, “prototype andsmall lot production” at 32.7% and “skillsof experienced technicians” at 31.4%.

Prototypeand small lot
production:3
2.7%

Production to
shortdeadlines:
33.2%

The strength of the small factories in Ota
City is that they have gained the trust of(We extracted responses chosen by 30% or more of plants)

their customers by responding to theneeds of their customers (e.g., support for detailed specifications and fine processing adjustments) with theskills of experienced technicians.

6◼

Advantages of Operating in Ota City

26.9%

1.道路交通の利便性が高い

21.7%

2.材料・工具などが入手しやすい

3.多様な外注先が多く立地

18.4%

4.従業員の通勤の便が良い

18.0%

5.相談できる仲間企業が多い

16.5%

The transportation network in Ota City is substantial. Therefore, a high percentage of responses gave this as
an advantage of operating in the city: “road traffic is highly convenient” and “convenient for employees tocommute to work.” In addition, we can see that many plants consider the concentration of factories and theformation of a thriving networks in the same types of industry in Ota City to be an advantage: “it is easy to obtainmaterials/tools,” “Ota City is a location with many diverse subcontractors” and “there are many friendly
companies with which we can consult.”7◼

Concentration of Plants in the Manufacturing Industry Located in Ota City (Number ofPlants Located in Each Town District in 2016)

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5

Nakama Mawashi Network

Source: “Kagayake! Factories of Ota”
on the Ota City website

The factories in Ota City each have their own field of specialty and have mastered advanced processing technologies by specializing in those fields. As a result, factories
with various processing technologies are concentrated in the city. These factories have built a collaborative structure called the “Nakama Mawashi Network.” The fact
these factories with a compact scale of management have advanced processing technologies enables multiple product and small lot production under short delivery
deadlines. This is a major feature of the network. The following is an example of this processing technology.

(1) Cutting(4) PlatingThis is the process of whittling down metals and plastics.

This is the process of covering the surface of metals with

There are also factories that specialize in the high-precisionfilm. The purpose of this is to prevent corrosion of the baseprocessing of special metal materials (e.g., tungsten).

and to improve the texture of the surface.

(2) Drilling(3) PolishingThis is an example of ultra-fine drilling at the micron level

This is the process of polishing and smoothing the surface of(1/1,000 mm). It is even possible to drill holes in a 0.5 mm

metals and glass. This work is also done by the hand of

mechanical pencil lead.

craftsmen in addition to machines.

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History of Industry in Ota City from the Viewpoint of the Economic Situation

・

Oil shock to the bubble
economy(Around 1973 to 1990)

Shift from companies dependent on one firm in the period of rapid growth after the war tocompanies accepting orders from multiple firms

・Specialization in processing technologies in specialized fields

・Formation of the Nakama Mawashi Network

Burst of bubble to the twolost decades

・

Spread of numerically controlled machine tools due to digitalization and IT

・Reduction in the number of factories due to the stagnation of the Japanese economy(Around 1991 to 2011)

・

Surfacing of the aging of managers/engineers and the problem of a lack of successors

Economic and monetary
policies of Prime Minister Abe(Around 2012 to 2020)

・Advance from contracted processing to research and development

・

Entry into new industries (e.g., aviation/space and medical/nursing care)・Formation of a new network

・Development of new products planned by the companies themselves

・

Entry into new industrial fields

・

Change in management in line with the new era

COVID-19 pandemic(From around 2020)

The uncertainty about the future of the business environment is growing due to the spread of COVID-19. Against
this background, it is now possible to see cases in which companies in Ota City are developing new businesses
and new products in new industrial fields by firms planning/developing in-house and by cooperating with those indifferent industries.
The Ota City Industrial Promotion Organization is showcasing the manufacturing industry in the city by promoting
the planning/development capabilities in companies in addition to their inherent strengths (e.g., the Nakama
Mawashi Network, advanced processing technologies and the ability to support tight delivery deadlines).
Moreover, we are supporting companies that are cooperating with firms inside/outside the city and taking onchallenges in new fields under the aim of changing management in line with the new era. In this way, we arelooking to support companies in their attempts to acquire orders from inside/outside Japan and to create innovation.

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7

Situation During the COVID-19 Pandemic◼

Spread of COVID-19

COVID-19, which was first discovered in Wuhan, Hubei Province in China in December in 2019, spread all over
the world in the blink of an eye. Restrictions on travel and going out were enforced through 2020 as measures toprevent COVID-19 in many countries. Nevertheless, the arrival of the winter brought an increase in the pace ofthe disease’s spread. Lockdowns, regulations on the opening of stores and restrictions on residents from goingout have been enforced overseas in 2021.
As the spread of COVID-19 continued, the restrictions on the movement and interaction of people and theoperation of stores severely restricted normal economic activities. This had a massive impact on people’s
consumption and production activities. In particular, demand for food and drinks, tourism, and aviation plummeted
on an unprecedented scale. Both this slump on the demand side and limits on the supply side due to self-restraintof operations has led to a new kind of economic crisis with an expanding economic impact. Each country isproviding large-scale economic support.
With COVID-19 spreading all over the world, Japanese companies have been forced to take measures (e.g.,
temporary suspension of operations at factories in Japan/overseas and adjustment of production) due to thedisruption in the overseas supply chain, the sudden decrease in demand and disease countermeasures. The vast
majority of SMEs responsible for industry in Ota City operate by directly or indirectly accepting orders from major
companies. Therefore, the economic situation changes completely depending on the situation in those major
companies. Under such circumstances, companies in Ota City have started new efforts to overcome COVID -19.
◼

Efforts by Companies in the Time of COVID-19

First, let’s look at the products developed in-house by companies to deal with COVID-19 as the efforts tackled byfirms in Ota City.

We worked on developing an acrylic panel to prevent droplet infections by asking multiple companies for theircooperation utilizing our Receiving and Placing Orders Consulting Service Desk while consideringcountermeasures against COVID-19 in the Ota City Office buildings in early April. We realized a short delivery
deadline of one week for this acrylic panel. These panels were then installed in those buildings. This effort was
widely reported in the media. That led to approaches to develop goods to prevent COVID-19 from other companies
in the city.

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There are few companies with their own in-house products in Ota City. The overwhelming majority of companies
process parts used in electronic devices and automobiles. These companies have used their ingenuity to develop
products as countermeasures against COVID-19 in response to the spread of this disease. These have included
face guards for medical professionals, bottles of disinfectant sprays and contact-free touchless tools in addition tothese acrylic panels to prevent droplet infections. Furthermore, some products have been manufactured incooperation with companies in Ota City. These efforts have not only increased sales; free donations have led todaily telephone calls and e-mails expressing gratitude. This has helped improve the motivation of employees.

Another effort being undertaken by companies is to prevent COVID-19 in their firms.
In addition to wearing masks and washing/disinfecting hands, companies have been adopting staggered working
hours and reduced working hours while recommending the use of private cars, motorcycles and bicycles whencommuting. Moreover, companies have been making efforts to reduce opportunities for contact with people toreduce the risk of infection (e.g., restrictions on meetings and reviews of cafeteria layouts).
Furthermore, the number of companies in the City that have introduced telecommuting has increased. There arecompanies which have improved efficiency by establishing the facilities and an environment that enable employees
to work at home in terms of software and hardware. There are also companies that have done this by making it
possible to complete on-site meetings and business negotiations by teleconferencing (e.g., Zoom) or by e-mail.
Although some types of occupation and company do not allow for the introduction of teleworking, COVID-19 has
led to a transformation in work styles at a rapid pace.

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The use of the Internet has also progressed in sales activities. Some companies have increased B-to-C productsales by establishing their own stores on major electronic commerce sites in addition to their own sites. There arealso companies that have registered their technologies and products on B-to-B technology databases. In this way,companies are strengthening sales on websites. In addition, we have seen new efforts to appear at exhibitions.
For example, companies have been using video conferencing systems to appear remotely at online businessmeeting events and real exhibitions.
The number of companies that applied for our New Product and Technology Competition in FY2020 doubled to 43
compared to the previous fiscal year. The number of companies working on the development of new products isincreasing due to COVID-19. We have observed various efforts for new product development. There arecompanies working with other firms to develop new products. There are companies raising funds throughcrowdfunding. There are also companies utilizing social networking sites as a marketing tool. Companies are being
asked to flexibly respond to the new environment starting from what they are capable of during the COVID-19
pandemic.

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8 Expansion of Business Opportunities and Entry into New Industries with Exhibition &Business Meeting Events
We hold various self-planned exhibitions and business meeting events by purpose to showcase advanced
processing technologies and to create new business opportunities. We introduce examples of them here.

Ota Industrial Fair

Processing Technology Exhibition
and Business Meeting Event

The Ota Industrial Fair is held over three days every

This is a one-day exhibition focused on the theme ofyear in February. It is the largest event forprocessing technology. Even factories with 10

manufacturing companies in Ota City.

employees or less find it easy to participate in thisevent.

Ota Research and Development Fair

Manufacturing Order BusinessMeeting Event in Ota

The Ota Research and Development Fair is an

This is a business meeting event that brings together

exhibition focused on the theme of “industry-companies from all over the country centered on Ota

academiatechnical

City under one roof to cultivate new manufacturingcolleges and research institutes from all over Japan

company business partners and collect information.

collaboration.”

Universities,

exhibit cutting-edge technologies and products here.

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9

Entry into New Industries

In a difficult business environment with declining domestic demand and intensifying competition, we have seen
companies entering new industries by utilizing the advanced technologies they have cultivated over many years
to acquire new business opportunities. We can see in the graph below the intention of many plants to cultivate
new next-generation industries (e.g., medical/nursing care, environment/energy and aerospace) expected to growin the future from fields that serve as their main business (e.g., manufacturing devices / production machinery andelectrical/electronic/telecommunications machines).

Fields for Which Plants Have an Interest in Cultivating New
Customers and New Business Fields
47.1%

製造装置・生産用機械
22.2%

自動車

33.9%

電気・電子・情報通信機械
11.0%

IT

32.9%

医療・介護
20.6%

航空・宇宙

20.0%

環境・エネルギー
8.2%

農業

8.7%

食料品

6.6%

衣料・生活用品
1.7%

化学品

9.3%

土木・建築構造物

8.2%

その他
0%

10%

20%

30%

40%

50%

B-MAX made in Ota Tokyo Model is a wheelchair for

We showcase the new products and processing

basketball developed jointly by SMEs in Ota City and atechnological capabilities of companies in Ota City towheelchair manufacturer.

those concerned at manufacturers by exhibiting productsamples at exhibitions and HICity.
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10

Measures and Prospects of the Ota City Industrial Promotion Association

COVID-19 has been threatening the whole world since last year. The industrial world in Ota City has been pressed
into a situation it has never faced before. Demand and services have changed significantly. For example, face-toface services have decreased while non-contact services have increased. In addition, the introduction of IT anddigitalization have progressed rapidly. There is also a need to change conventional management and work styles.
Under these circumstances, the Ota City Industrial Promotion Association has been working to support companies
in the city by taking countermeasures against COVID-19 (e.g., decentralization of workplaces and shift work). In
particular, products as countermeasures against COVID-19 have made a big splash. These include the droplet
infection prevention panel developed through our Receiving and Placing Orders Consulting Service Desk.
Furthermore, as events were canceled one after another, we held online exhibition and business meeting eventswith thorough measures taken to prevent COVID-19. We use real and online spaces to build relationships between
companies and to develop new customers in the time of COVID-19. We will continue to provide support so thatcompanies in Ota City can adapt to the changes while taking into account various changes in the businessenvironment in the future. At the same time, we will develop the following businesses to develop industries in Ota
City while retaining a mid- to long-term perspective.
First, we opened a Haneda Base Office in Haneda Innovation City built on the site of Haneda Airport. We will use
the potential of Haneda to attract customers to support cooperation with companies inside/outside Japan andresearch institutes and companies in Ota City in the future. This will lead to the strengthening of international
competitiveness and the creation of new added value. Moreover, we are providing displays and translations foroverseas exhibitions and overseas company credit check services as support for expansion outside of Japan.
Next, factories with advanced processing technologies (e.g., parts) in a wide range of product fields areconcentrated in Ota City. We will widely support industry-academia collaboration and conduct open innovation
activities by linking up with our Kamata and Haneda bases to continue to build a vibrant regional economy in the
future. We will then develop business to form industrial clusters in eight fields: (1) life science, (2) robotics, (3)next-generation mobility, (4) rare earth elements, (5) environment/marine plastic waste, (6) agriculture-industry
cooperation, (7) new energies and (8) anti-terrorism/defense.
Furthermore, we have prepared founder support, business succession, management consulting and otherassistance programs to offer a business environment in which companies in Ota City can work on manufacturingwith peace of mind. We will provide receiving and placing order services in addition to exhibition and businessmeeting events to strengthen the foundations of corporate management.
Society and the economy have changed greatly due to the spread of COVID-19. As the business environmentchanges from moment to moment, companies must act in anticipation of the new normal after the COVID-19
pandemic. We will continue to work on revitalizing industry in Ota City by supporting the growth and developmentof companies in the city in the future with top priority given to the on-site feeling so as not to stop the progress ofcorporate growth.
16We hold various exhibitions in the HANEDAxPiO interaction zone.
*Note: The statistical data comes from the 2019 Ota City Manufacturing Industry Fact-finding Investigation Report(issued in May 2020).

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