1. Trend of the Machine Industry in Japan

1. Trend of the Machine Industry in Japan
1.1

Trend of the production, shipment, etc. of the machine industry(1) Trend of the machine industry in the past five years

The production of the machine industry (excluding steel vessels and railway vehicles) in 2006
showed a high growth of 10.0% over the previous year. It can be pointed out that the factors behind
this were the fact that in addition to the steady situation of transportation machines, the output ofelectronic parts and devices increased by 19.9% year on year and that information andcommunication machines, which had been sluggish in the past two years, entered upon a revival
phase. The shipment was also favorable with an increase rate of 9.4%.
Figure 1-1 shows the trend of the production index, shipment index, inventory index andinventory ratio as compared with the previous year of the machine industry (excluding steel vessels
and railway vehicles) from 2002 to 2006. The ratio of the production index compared with theprevious year in the past five years was on high levels between +8.2 and +10.0 points in 2003 and2004; although the rate fell slightly to +2.9 points in 2005, it rose to +10.0 points in 2006 again. The
shipment index showed similar trends to the production trend and was +9.4 points year on year in
2006. The inventory index in 2006 was as high as +11.7 points y/y, although it decreased a little
from +14.1 points y/y in 2005. But the inventory ratio index in 2006 fell to only +1.9 as comparedwith the previous year.

Fig. 1-1

Trend of the industrial indexes of the entire machine industry(year-on-year base)

Y ear-on-y ear ratio

Production

Shipment

Inv entory

Inv entory ratio

2003

2004

2005

2006

20
15
10
5
0
-5

2002

-10
-15
-20

Source:Based on the Ministry of Economy, Trade and Industry, “Annual Report of Machinery Statistics.”

The trend of the machine industry index by business category is as shown in Figure 1-2. As thisfigure indicates, the index in 2006 increased year on year regardless of the business category.
Noteworthy is the fact that electronic parts and devices registered a high level of +19.9 points y/y1

1. Trend of the Machine Industry in Japanand that information and communication machines, which had had negative year-on-year ratios,
showed +4.5 points in 2006, suggesting a noticeable recovery trend. Transportation machinesachieved a stable growth, keeping a steady tendency with +8.0 points, while +6.0 points (generalmachines), +6.2 points (electric machines) and +6.6 points (precision machines) year on year,
respectively.

Fig. 1-2

Trend of the production index of the machine industry by business category(year-on-year base)
General machines
Electric machines
inf ormation and communication machines
Electronic parts and dev ices
Transportation machines
Precision machines

Y ear-on-y ear ratio
25
20
15
10
5
0
-5

2002

2003

2004

2005

2006

-10
-15
-20

Source:Same as that for Fig. 1-1.

Figures 1-3 and 1-4 show the trend of the production and shipment indexes of the machineindustry (excluding steel vessels and railway vehicles) as a whole and by business category
supposing that the figure for 2000 were 100. First, the production index of the entire machineindustry entered an upward trend in 2004, stood at 109.5 points in 2005 and further increased to as
much as 120.5 points in 2006.
Then for the production index by business category in 2006, the figure indicates that the index
of electronic parts and devices substantially rose to 141.3 points. While transportation machines
continued to keep a high level of 127.6 points, general machines also attained a high level of 114.2
points. More noteworthy is that precision machines, which had been below the 2000 level until 2005,
registered 103.3 points in 2006, exceeding the 2000 mark first. Electric machines also showed asteady growth with 109.4 points. The only exception was information and communication machines;
this sector’s index was 87.6 points, which was still below the 2000 level although a little higher than
the figure for 2005.

2

1. Trend of the Machine Industry in Japan

Fig. 1-3

Trend of the production index of the machine industry (2000=100)
Production index 145(2000=100)
140
135
130
125
120
115
110
105
100
95
90
85
80
75
70

Source:

2002

2003

2004

2005

2006

Machine industry(excluding steel v essels
and railway v ehicles)

89.4

96.7

106.4

109.5

120.5

General machines

81.9

87.8

102.4

107.7

114.2

Electric machines

87.3

92.5

101

103

109.4

inf ormation andcommunication machines

80.9

84.4

84

83.8

87.6

Electronic parts anddev ices

87.6

103.2

116.9

117.8

141.3

Transportation machines(excluding steel v essels
and railway v ehicles)

105.2

108.5

113.5

118.2

127.6

Precision machines

80.1

82.1

94.1

96.9

103.3

Same as that for Fig. 1-1.

The shipment index of the entire machine industry (excluding steel vessels and railway
vehicles) in 2006 supposing the figure for 2000 to be 100 was 124.0 points, a higher level than in
2005. This suggested the favorable condition of this industry.
By business category, electronic parts and devices recorded a growth of 153.6 points in 2006,
higher than the 129.5 points achieved in 2005, indicating that the industry of this sector was verybuoyant. Transportation machines, general machines and electric machines enjoyed a stable growth,too, registering 117.9 points and 114.7 points, respectively. By contrast, information andcommunication machines and precision machines continued to suffer lower marks than the 2000
level with 92.7 points and 83.2 points, respectively.

3

1. Trend of the Machine Industry in Japan

Fig. 1-4

Trend of the shipment index of the machine industry (2000=100)
Production index 155(2000=100)
150
145
140
135
130
125
120
115
110
105
100
95
90
85
80
75
70

2002

2003

2004

2005

2006

92.7

100.2

109.8

113.3

124

General machines

85

91.2

105.8

111.2

117.9

Electric machines

89.6

95.4

104.6

108.2

114.7

inf ormation andcommunication machines

85.6

89.1

91.9

90.1

92.7

Electronic parts anddev ices

90.8

109.1

124.6

129.5

153.6

Transportation machines(excluding steel v essels
and railway v ehicles)

104.9

108.3

113

116.4

126

80

76.3

81.6

81.7

83.2

Machine industry(excluding steel v essels
and railway v ehicles)

Precision machines

Source:Same as that for Fig. 1-1.

(2) Trend of the general machine industry

The production of the general machine industry (civil engineering and construction machines,
special industrial machines, conveying and carrying machines, industrial robots, farm machines,
metal machine tools, metal working machines, textile machines, office equipment, freezers andapplied products, dies and other general machines) in 2006 registered +6.0 points year on year,
achieving an increase for the fourth consecutive year. Main reasons for this are, as described later,that although office equipment suffered a substantial decline and freezers and applied products,
conveying and carrying machines and other general machines decreased, civil engineering andconstruction machines remained favorable and special industrial machines, textile machines, etc.
recovered greatly.
The production index, shipment index, inventory index and inventory ratio of the generalmachine industry in 2006 as compared with the previous year are as shown in Figure 1-5.
4

1. Trend of the Machine Industry in JapanThe year-on-year ratio of the production index of the general machine industry rose to +16.6
points in 2004 and remained on a relatively high level thereafter: +5.2 points in 2005 and +6.0 points
in 2006. The shipment index showed a similar trend. The inventory index was +9.7 points y/y in2005 but fell to +0.4 point in 2006, while the inventory ratio went down to +1.7 in 2006.

Fig. 1-5 Trend of industrial indexes of the general machine industry (year-on-year base)Production index
Inv entory index

Y ear-on-y ear ratio

Shipment index
Inv entory ratio

20
15
10
5
0
-5

2002

2003

2004

2005

2006

-10
-15
-20
-25

Source:Same as that for Fig. 1-1.

The trend of the production index of the general machine industry by business category is asshown in Figure 1-6. As seen in this figure, office equipment registered -28.3 points y/y in 2006, a
decline greater than in 2005, indicating this sector’s marked sluggishness. Freezers and applied
products (-2.0 points), other general machines (-0.8 points) and conveying and carrying machines(-0.1 point) experienced a downward trend, too. On the other hand, civil engineering andconstruction machines (+14.7 points) kept a high level equivalent to that in 2005, and special
industrial machines and textile machines registered over +12.0 points as compared with the figurefor 2005, showing a good recovery tendency. Industrial robots achieved roughly the same points asin the previous year, and dies tended to recover somewhat. Metal machine tools managed to show apositive figure but decreased substantially to +2.4 points.

51. Trend of the Machine Industry in Japan

Fig. 1-6

Trend of the production index of the general machine industry
by business category (year-on-year base)
Civ il engineering and construction machines
Conv ey ing and carry ing machines
Farm machines
Metal working machines
Of f ice equipment
Dies

Special industrial machines
Industrial robots
Metal machine tools
Textile machines
Freezers and applied products
Other general machines

Y ear-on-y ear ratio
50
40
30
20
10
0
-10

2002

2003

2004

2005

2006

-20
-30
-40

Source:Same as that for Fig. 1-1.

(3) Trend of the electric machine industry

Figure 1-7 shows the industrial indexes of the electric machine industry (rotary electricmachines, stationary electric machines, switching devices and equipment, consumer electricmachines, wiring/lighting appliances, electronic application devices, electric measuring instruments
and batteries) as compared with the previous year. The production index and shipment index fell to+2.0 points in 2005 but were +6.2 points in 2006, suggesting signs of recovery. The shipment index
in 2006 stood at +6.0 points, showing a similar trend to the production index. The inventory index
had remained on a negative level of -0.8 point in 2005 but increased to +4.0 points in 2006. The
inventory ratio entered a downward phase again.

6

1. Trend of the Machine Industry in Japan

Fig. 1-7

Trend of industrial indexes of the electric machine industry(year-on-year base)Production index
Inv entory index

Y ear-on-y ear ratio

Shipment index
Inv entory ratio

15

10

5

0
2002

2003

2004

2005

2006

-5

-10

-15

Source:Same as that for Fig. 1-1.

The trend of the production index of the electric machine industry by business category is asshown in Figure 1-8 (excluding wiring/lighting appliances). As seen in this figure, the year-on-year
ratio of the indexes in 2006 were positive on the whole, and batteries recorded +11.9, a high-level
equivalent to that in 2005. Electronic application devices were steady at +8.4 points, though smaller
than in 2005. Stationary electric machines grew sharply from -7.1 points in 2005 to +7.4 points in2006, while rotary electric machines recovered from a negative level to +5.3 points, too. Switching
devices and equipment rose to +6.9 points. Consumer electric machines registered +1.2 points,
showing an upward trend though not very powerful.

Fig. 1-8

Trend of the production index of the electric machine industry
by business category (year-on-year base)

Y ear-on-y ear ratio

Rotary electric machines
Switching dev ices and equipment
Electronic application dev ices

Stationary electric machines
Consumer electric machines
Batteries

25
20
15
10
5
0
-5

2002

2003

2004

-10
-15

Source:Same as that for Fig. 1-1.

7

2005

2006

1. Trend of the Machine Industry in Japan(4) Trend of the information and communication machine industry

The trend of the industrial indexes of the information and communication machine industry(communication machines, consumer electronic machines and electronic computers) is shown in
Figure 1-9. As seen from this figure, the industry registered a production index of +4.5 points y/y in
2006, achieving a positive figure first in three years. The shipment index was a negative one in 2005
but became +2.9 in 2006. By contrast, the inventory index rose to +9.5 points y/y in 2005 but
entered a downward phase again in 2006 with -8.0 points. The inventory ratio jumped from -1.7
points in 2005 to +9.0 points in 2006.

Fig. 1-9

Trend of the industrial indexes of the information and communication
machine industry (year-on-year base)Production index
Inv entory index

Y ear-on-y ear ratio

Shipment index
Inv entory ratio

15
10
5
0
-5

2002

2003

2004

2005

2006

-10
-15
-20
-25

Source:Same as that for Fig. 1-1.

Figure 1-10 shows the trend of the production index of the information and communication
machine industry by business category. As evident from this figure, consumer electronic machines
showed a stable growth, rising to +12.7 points as compared with the previous year. Communication
machines were still in a downward phase in 2005 but exhibited slight signs of recovery in 2006,
registering +0.6 point. Similarly, electronic computers recorded +0.5 point, indicating a slow upward
trend.

8

1. Trend of the Machine Industry in Japan

Fig. 1-10

Trend of the production index of the information and communication
machine industry by business category (year-on-year base)Communication machines
Consumer electronic machines
Electronic computers

Y ear-on-y ear ratio
20
15
10
5
0
-5

2002

2003

2004

2005

2006

-10
-15
-20
-25

Source:Same as that for Fig. 1-1.

(5) Trend of the electronic parts and device industry

Figure 1-11 shows the industrial indexes of the electronic parts and device industry. In 2006,
this industry enjoyed a substantial increase in the production index of +19.9 points y/y, showing a
recovering tendency. The shipment index moved in a similar way to the production index, increasingfrom +3.9 points y/y in 2005 to +18.6 points in 2006. The inventory index recorded a high after 2004,
jumping from -2.3 points y/y in 2005 to +37.7 points in 2006. By contrast, the inventory ratio
substantially fell from +17.7 points in 2005 to +6.4 points in 2006.

Fig. 1-11

Trend of the industrial indexes of the electronic parts and device industry(year-on-year base)Production index
Inv entory index

Y ear-on-y ear ratio

Shipment index
Inv entory ratio

50
40
30
20
10
0
-10

2002

2003

2004

-20
-30
-40

Source:Same as that for Fig. 1-1.

9

2005

2006

1. Trend of the Machine Industry in Japan

The production index of the electronic parts and device industry by business category is asshown in Figure 1-12. The production index in 2006 as compared with the previous year turned
positive in all the business categories. Integrated circuits showed an especially remarkable rise from
-2.2 points in 2005 to +21.8 points in 2006. Semiconductor parts rose from +8.3 points in 2005 to+22.9 points in 2006, electronic parts, from +5.0 points in 2005 to +18.8 points in 2006, andsemiconductor devices, from -8.2 points in 2005 to +9.7 points in 2006.

Fig. 1-12

Trend of the production index of the electronic parts and device industry
by business category (year-on-year base)
Electronic parts
Integrated circuits

Y ear-on-y ear ratio

Semiconductor dev ices
Semiconductor parts

35
30
25
20
15
10
5
0
-5

2002

2003

2004

2005

2006

-10
-15

Source:Same as that for Fig. 1-1.

(6) Trend of the transportation machine industry

Figure 1-13 shows the trend of the industrial indexes of the transportation machine industry. As
seen in this figure, the production index registered a steady growth of +8.0 points in 2006. Similarly,
the shipment index also rose from +3.0 points in 2005 to +8.2 points in 2006. On the other hand, theinventory index showed a substantial increase of +46.3 points in 2005 but fell to +12.3 points in2006, while the inventory ratio decreased from +8.7 points in 2005 to +3.1 points in 2006.

10

1. Trend of the Machine Industry in Japan

Fig. 1-13

Trend of the industrial indexes of the transportation machine industry
Production index
Inv entory index

Y ear-on-y ear ratio

Shipment index
Inv entory ratio

50
40
30
20
10
0
2002

2003

2004

2005

2006

-10
-20

Source:Same as that for Fig. 1-1.

The trend of the production index of the transportation machine industry is as shown in Figure
1-14. As the figure indicates, in 2006, passenger cars were more favorable at +11.4 points, andautomotive parts were steady at +6.7 points. By contrast, two-wheeled vehicles declined from +12.8
points in 2005 to +2.3 points in 2006. Similarly, buses and industrial vehicles suffered decreases in2006. Trucks were still sluggish.

Fig. 1-14

Trend of the production index of the transportation machine industry(year-on-year base)
Passenger cars
TrucksTwo-wheeled v ehicles

Y ear-on-y ear ratio

Buses
Automotiv e parts
Industrial v ehicles

20
15
10
5
0
2002

2003

2004

-5
-10
-15

Source:Same as that for Fig. 1-1.

11

2005

2006

1. Trend of the Machine Industry in Japan(7) Trend of the precision machine industry

Figure 1-15 shows the trend of the industrial indexes of the precision machine industry. As seenin this figure, the production index was +6.6 points in 2006, indicating signs of recovery again. The
shipment index also showed a similar move, though the figure was small, registering +1.8 points in2006. Meanwhile, the inventory index sharply rose from -12.3 points in 2005 to +25.5 points in 2006.
The inventory ratio had been in a downward phase until 2005 but entered a positive one in 2006,
recording +2.1 points.

Fig. 1-15

Trend of the industrial indexes of the precision machine industry
Production index
Inv entory index

Y ear-on-y ear ratio

Shipment index
Inv entory ratio

30
25
20
15
10
5
0
-5

2002

2003

2004

2005

2006

-10
-15
-20

Source:Same as that for Fig. 1-1.

The trend of the production index of the precision machine industry by business category is asshown in Figure 1-16. As this figure indicates, optical machines and parts recorded +16.8 points in2006, keeping the buoyancy in 2004 and after. Measuring instruments slightly increased from +1.6
points in 2005 to +6.4 points in 2006, showing signs of recovery. By contrast, timepieces suffered afurther decline from -2.6 points in 2005 to -4.6 points, remaining stagnant.

121. Trend of the Machine Industry in Japan

Fig. 1-16

Trend of the production index of the precision machine industry bybusiness category (year-on-year base)Measuring instruments
Optical machines and parts
Timepieces

Y ear-on-y ear ratio
25
20
15
10
5
0
-5

2002

2003

2004

2005

2006

-10
-15
-20
-25
-30

Source:1.2

Same as that for Fig. 1-1.

Trend of the industrial indexes of the machine industry in 2006

(1) Trend of the production index in 2006 by quarter

Figure 1-17 shows the trend of the production index (seasonally adjusted; 2000=100) in 2006
by quarter of the entire machine industry and its main branch industries. As shown in this figure, theentire machine industry (excluding steel vessels and railway vehicles) kept up a high level of 116
points or more in all the quarters of 2006; in particular, the figure in the IVth quarter was as high as
126.0 points. By main branch industry, the electronic parts and device industry enjoyed very highlevels, recording nearly 150 points in the IVth quarter. The transportation machine industry(excluding steel vessels and railway vehicles) also showed higher levels than those in 2005, reaching
134.8 points in the IVth quarter. The general machine and electric machine industries also indicatedfavorable trends with about 110 points. The precision machine industry had less than 100 points inmost quarters of 2005 but exceeded 100 points in all the quarters of 2006, showing signs of revival.
By contrast, the information and communication machine industry was unable to reach even 90
points in any of the quarters of 2006.

13

1. Trend of the Machine Industry in Japan

Fig. 1-17

Production index of the machine industry in 2006 by quarter

Seasonally adjusted
index

150

140

130

120

110

100

90

80

Source:Ist quarter

IInd quarter

IIIrd quarter

IVth quarter

Machine industry (excluding
steel v essels and railway
v ehicles)

116.2

118.5

121.2

126

General machines

109.6

115.4

114.3

117.5

Electric machines

107.5

107.7

110

112.5

Inf ormation andcommunication machines

86.1

87.2

88.3

88.5

Electronic parts and dev ices

136.2

135.8

143.8

149.1

Transportation machines(excluding steel v essels andrailway v ehicles)

123.5

124.7

127.9

134.8

Precision machines

100.3

101.4

105.8

105.4

Same as that for Fig. 1-1.

(2) Trend of the shipment index in 2006 by quarter

The shipment index (seasonally adjusted; 2000=100) in 2006 by quarter is as shown in Figure
1-18. As indicated in this figure, the entire machine industry (excluding steel vessels and railway
vehicles) enjoyed remarkably favorable performance of about 120 points in all the quarters,
registering nearly 130 points in the IVth quarter. By main branch industry, the electronic parts anddevice industry attained high levels in all the quarters and reached 160 points in the IVth quarter.
The transportation machine industry (excluding steel vessels and railway vehicles) was always atover 120 points maintaining higher levels than those in 2005. The general machine and electricmachine industries were also on high levels at 110-120 points. On the other hand, the precision
machine industry showed some indications of recovery in the production index but was only at about
80 points in all the quarters in the shipment index, and went down in 78.7 points in the IVth quarter.
Similarly, the information and communication machine industry had a little higher points than thosein 2005 but was unable to return to the 2000 level staying only at the first half of the 90 point-range.

141. Trend of the Machine Industry in Japan

Fig. 1-18

Shipment index of the machine industry in 2006 by quarter

Seasonally adjusted
index

160
150
140
130
120
110
100
90
80
70

Source:1.3

Ist quarter

IInd quarter

IIIrd quarter

IVth quarter

Machine industry(excluding steel v essels
and railway v ehicles)

119.7

122.7

125.3

128

General machines

113.7

119.5

117.7

120.5

Electric machines

113.3

113.2

115.2

116.9

Inf ormation andcommunication machines

90.3

91.4

94.7

93.8

Electronic parts anddev ices

147.6

147.9

157.8

160

Transportation machines(excluding steel v essels
and railway v ehicles)

122.1

124.9

126.5

131.2

Precision machines

84.4

84.4

84.7

78.7

Same as that for Fig. 1-1.

Situation of capital investment of the machine industry(1) Situation of capital investment of the general machine industry

Figure 1-19 shows the situation of capital investment of the general machine industry from theIst quarter of 2005 to the Ist quarter of 2007. As evident from this figure, the capital investment of
the general machine industry decreased to ¥227.7 billion in the IInd quarter of 2005 but thereafter
entered an upward phase again; it increased to ¥413.5 billion in the Ist quarter of 2006 and then to¥521.9 billion in the Ist quarter of 2007. From this it is supposed that from 2005 to 2006, theinvestment of the general machine industry had cyclic changes but entered an upward phase as aresult of very vigorous investment activities.

151. Trend of the Machine Industry in Japan

Fig. 1-19

Situation of capital investment of the general machine industry

Investment (¥100 million)

Increase rate (%)

6,000

50
Inv estment
Increase rate

5,219

42.1

40.4

5,000

40
4,230

4,135

34.2
4,000

32.8

3,785

3,562
3,115

21.7

3,018

3,000

30

25.4

26.2

2,772

2,277

18.8

20

2,000

10

1,000

0
-6.7

0

-10
Ist Q
2005

Note:
Source:IInd Q
2005

IIIrd Q
2005

IVth Q
2005

Ist Q
2006

IInd Q
2006

IIIrd Q
2006

IVth Q
2006

Ist Q
2007

Increase rate figures are those as compared with the same quarter of the previous year.
Based on the Ministry of Finance, “Statistical Survey of Incorporated Enterprises.”(2) Situation of capital investment of the electric machine industry

Figure 1-20 shows the situation of the capital investment of the electric machine industry fromthe Ist quarter of 2005 to the Ist quarter of 2007 (The sum of the investment in electric machines andinformation and communication machines is used). As seen in the figure, the capital investment of
the electric machine industry substantially increased to ¥1,115.2 billion in the Ist quarter of 2006 andthen entered an upward phase, reaching a very high level of ¥1,283.8 billion in the Ist quarter of
2007. This suggests that the industry’s capital investment activities have become more positive.

Fig. 1-20

Situation of capital investment of the electric machine industry

Investment (¥100 million)

Increase rate (%)

14,00012,00010,00012,178Inv estment
Increase rate
9,683

11,152

8,002

7,820

8,000

35
30

9,740

25.1
9,782

9,282

12,838

31.2

25

21.7

15.2

20
15.1 15
10

6,000

5

3.2

2.1

4,000

0

-1.7

-5
2,000

-8.5

-10

0

-15
Ist Q
2005

Source:IInd Q
2005

IIIrd Q
2005

IVth Q
2005

Ist Q
2006

Same as that for Fig. 1-19.

16

IInd Q
2006

IIIrd Q
2006

IVth Q
2006

Ist Q
2007

1. Trend of the Machine Industry in Japan(3) Situation of capital investment of the transportation machine industry

Figure 1-21 shows the situation of the capital investment of the transportation machine industry
from the Ist quarter of 2005 to the Ist quarter of 2007. In this industry, the amount of investment was¥925.4 billion in the Ist quarter of 2005 and reached ¥1,024.2 billion in the Ist quarter of 2006 after
repeating increases and decreases. But in the IInd quarter of 2006 and after, this industry’s
investment decreased to the ¥600.0-700.0 billion mark and also showed marked slowdowns on
year-on-year base. In the Ist quarter of 2007, the investment was expanded again to ¥1,066.4 billion,
keeping the cyclic characteristic of investment activities concentrated in the Ist quarter.

Fig. 1-21

Situation of capital investment of the transportation machine industry

Investment (¥100 million)
12,00010,000Inv estment
Increase rate

9,254

10,242
49.1

8,773
34.5

8,000

Increase rate (%)
60
10,664
50
40

8,047
7,461

5,620
6,000

18.9

7,694
30

6,328

21.8

20
10.7

4,000

12.6

10
4.1
-4.4

2,000

-10

-15

-20

0
Ist Q
2005

Source:1.40IInd Q
2005

IIIrd Q
2005

IVth Q
2005

Ist Q
2006

IInd Q
2006

IIIrd Q
2006

IVth Q
2006

Ist Q
2007

Same as that for Fig. 1-19.

Situation of export of the machine industry(1) Situation of export of the entire machine industry

Figure 1-22 shows the trend of the amount and growth rate (year-on-year) of the export ofmachines and equipment (general machines, electric machines, transportation machines andprecision machines) from 2002 to 2006. As this figure indicates, the export of machines andequipment was on the ¥37,500.0 billion mark in 2002 and grew to the ¥43,700.0 billion mark in
2004. It continued high growth thereafter and reached nearly ¥51,700.0 billion in 2006.

17

1. Trend of the Machine Industry in Japan

Fig. 1-22

Situation of export of machines and equipment

Total export (¥100 million)

Growth rate (%)
20

550,000
500,000

Export amountGrowth rate

450,000
13.7

400,000
350,000

11.21

300,000
516,989

250,000
200,000
150,000

15

375,4165.68

437,001

392,96810

456,820

4.68

5

4.54

100,000
50,000

0

0
2002

Note:
Source:

2003

2004

2005

2006

Growth rate figures are those as compared with the previous year.
Based on the Japan External Trade Organization (JETRO), “Trade Statistics Data Base.”(2) Situation of export of general machines

Figure 1-23 shows the situation of export of general machines. As seen in this figure, the exportof these machines greatly decreased by -24.61% y/y to ¥7,633.1 billion in 2002. But it favorably
entered a revival phase after that and expanded to the ¥10 trillion level in 2005 and to about ¥12
trillion in 2006, which suggests that the general machine industry’s ability to export became greater.

Fig. 1-23

Situation of export of general machines

Total export (¥100 million)
140,000
Export amountGrowth rate
120,000

Growth rate (%)
25

10.19

100,000

20

18.64
7.34

12.46

15
10
5

80,000060,00099,79140,00076,331

107,114

120,457-10

84,110-15-20-24.61

20,000

-5

-25
0

-30
2002

Source:

2003

2004

Same as that for Fig. 1-22.

18

2005

2006

1. Trend of the Machine Industry in Japan(3) Situation of export of electric machines

Figure 1-24 shows the situation of export of electric machines. As evident from this figure, theexport of electric machines in 2005 was ¥15,400.0 billion and tended to stagnate. But in 2006, itrecorded a high level of nearly ¥17 trillion and the growth rate was 9.54%, the highest after 2003.
Thus it is considered that there has been a growing tendency for the electric machine industry toregain the ability to export.

Fig. 1-24

Situation of export of electric machines

Total export (¥100 million)

Growth rate (%)
35

180,000
160,000

29.08

Export amountGrowth rate30

140,000
25

120,000

20

100,000
80,00060,000137,789

141,889

153,918

154,793

8.48

9.54

40,00015
10
520,000

2.98
0.57

0
2002

Source:169,556

2003

2004

2005

0
2006

Same as that for Fig. 1-22.

(4) Situation of export of transportation machines

Figure 1-25 shows the situation of export of transportation machines. The export of thesemachines had lower growth rates in 2002 and after, but in 2006 increased to nearly ¥18,500.0 billion
and the growth rate reached 19.71%, too.

19

1. Trend of the Machine Industry in Japan

Fig. 1-25

Situation of export of transportation machines

Total export (¥100 million)

Growth rate (%)
25

200,000
Export amountGrowth rate

180,000

19.71

160,000
140,000

20

16.75
15

120,000
100,000

184,640

80,00060,000133,954

131,222

142,80910

154,2418

6.61
540,00020,000

2.08
0

0
2002

Source:

2003

2004

2005

2006

Same as that for Fig. 1-22.

(5) Situation of export of precision machines

Figure 1-26 shows the situation of export of precision machines. The export of precision
machines reached the ¥4-trillion level in 2004, a high growth, and recorded a little over ¥4,200.0
billion in 2006, continuing to show an upward trend.

Fig. 1-26

Situation of export of precision machines

Total export (¥100 million)

Growth rate (%)

50,00025

22.62

Export amountGrowth rate

20

40,00015
10

9.78
30,0004.09
40,48320,00030,0750.47
40,67242,33533,0150-5-10

10,000-13.73

-15
-20

0
2002

Source:

5

2003

2004

Same as that for Fig. 1-22.

20

2005

2006

1. Trend of the Machine Industry in Japan

1.5

Situation of import of the machine industry(1) Situation of import of the entire machine industry

Figure 1-27 shows the situation of import of machines and equipment from 2002 to 2006. As
seen in this figure, the import amount of machines and equipment increased to a little over ¥19,200.0
billion and the growth rate reached 14.18% in 2006. This suggests that the machine industry has
expanded its global trade, mainly in Asia.

Fig. 1-27

Situation of import of machines and equipment

Total import (¥100 million)

Growth rate (%)

250,000

20
Import amountGrowth rate

200,000

14.18

15

150,000
10.13
100,000
134,578
50,000139,969

154,153

10

9.29
168,472

192,363
5

4.01
1.68

0

0
2002

Source:

2003

2004

2005

2006

Same as that for Fig. 1-22.

(2) Situation of import of general machines

Figure 1-28 shows the situation of import of general machines. As evident from this figure, theimport of general machines sharply decreased and the growth rate fell to as low as -57.87%. After
that, the import tended to recover gradually, and since 2004 the growth rate has been on a two-digit
level. The amount of import also rose to the ¥2,700.0 billion mark in 2005 and then reached nearly¥3,300.0 billion in 2006. However, because the figure has not gone up to the 2001 level of justbelow ¥4,600.0 billion, it is supposed that the situation of the general machine industry will notallow any rapid increase in the amount of import in the near future, contrary to the vigorous export
activities from Japan.

21

1. Trend of the Machine Industry in Japan

Fig. 1-28

Situation of import of general machines

Import amount (¥ 100 million)

Growth rate (%)

40,00030
Import amountGrowth rate

21.79

16.81

10

14.6

30,000

20

4.29

0
-10

20,000-20
32,887

10,00020,171

19,341

23,56227,003-40-50-57.87

-60

0

-70
2002

Source:

-30

2003

2004

2005

2006

Same as that for Fig. 1-22.

(3) Situation of import of electric machines

The import of electric machines in Figure 1-29 shows that favorable growth was achieved,
though not to the extent of the sharp increase in 2002, and that the import reached ¥10,700.0 billion
in 2006. This suggests that the global trade of the electric machine industry was growing very brisk.

Fig. 1-29

Situation of import of electric machines

Import amount (¥ 100 million)
110,000

Growth rate (%)
60
Import amountGrowth rate

90,000

50

48.15

40
70,000107,194
50,00078,58581,42189,57530

96,25720

30,000

10.01

11.36
7.45

10

3.61
0

10,0002002

Source:

2003

2004

2005

2006

Same as that for Fig. 1-22.

(4) Situation of import of transportation machines

The situation of import of transportation machines in Figure 1-30 shows that the import reachedthe ¥2-trillion level in 2005 and registered a stable growth rate thereafter, too, and that the figure221. Trend of the Machine Industry in Japancame up to nearly ¥2,300.0 billion in 2006. It is considered that the tendency like this suggests more
active global trade in the transportation industry and diversified needs in the domestic market.

Fig. 1-30

Situation of import of transportation machines

Import amount (¥ 100 million)
25,000Growth rate (%)
25
Import amountGrowth rate

22.26
20,00020

15,00015

10,00018,95618,003

19,51520,984
7.53

22,897
10
9.12

5.29

5,000

5
2.95
0

0
2002

Source:

2003

2004

2005

2006

Same as that for Fig. 1-22.

(5) Situation of import of precision machines

As Figure 1-31 shows, the import of precision machines recorded a growth rate of over 10% in
2004 and after. The amount of import reached a little over ¥2,400.0 billion in 2005 and thenapproached ¥3 trillion in 2006 with a growth rate of 21.28%.

Fig. 1-31

Situation of import of precision machines

Import amount (¥ 100 million)

Growth rate (%)
25

35,000
Import amountGrowth rate

30,00021.28

25,00015
12.68

20,00010.71

1015,00010,00029,384
18,649

5,000

4.14

21,501

24,227

5

19,421
0

-0.19

0

-5
2002

Source:

20

2003

2004

Same as that for Fig. 1-22.

23

2005

2006