6. Machine Element Sector

6. Machine Element Sector
6.1. Dies
6.1.1

Supply and demand trend(1) Outline

The domestic production of dies in 2008 amounted to ¥448.30 billion or a decrease of 6.7%
from 2007. Specifically, the amount of production fell for all types of products, including dies forpresses and dies for plastics. It should also pointed out that even in the recession the trend ofdecreasing numbers of production and increasing average weight and average unit price of diescontinued in general.
The export of dies in 2008 was ¥343.13 billion or a decrease of 3.87% from 2007. The top threeexport counterparts were the same as in 2007: China + Hong Kong, the U.S. and Thailand. Export tothese three countries accounted for about 55% of the total dies export from Japan. The import of dies
totaled to ¥87.05 billion or a fall of 4.48% from 2007.
(2) Production

Let’s look at the trend of production of the dies industry in Japan. Figure 6.1.1. shows the trendof output of dies in Japan (manufacturers having 20 or more employees) based on the Ministry ofEconomy, Trade and Industry, “Annual Report of Machinery Statistics.” According to the figure, theproduction of dies in 2008 dropped by about ¥32.0 billion from the previous year to ¥448.30 billion(down 6.7% year on year). This was a decline for two consecutive years and tells the fact that theglobal recession caused by the Lehman shock directly hit the dies industry in Japan, an
equipment-based industry.
Then let’s look at the trend of production by the type of product. In 2008, all types of dies
experienced a smaller amount of output: dies for presses (down 10.2% year on year), dies for plastics(down 5.0%), die-casting dies (down 1.9%), forging dies (down 0.8%), dies for rubber (down 7.6%),
casting dies (down 5.0%), powder-metallurgy dies (down 2.7%) and dies for glass (down 9.2%).
In 2008, the amount of production of dies for presses and dies for plastics combined accounted
for about 80% of the total dies output: 39.0% and 37.9%, respectively. Thus, this section discusses
the situation of production of the dies industry in Japan focusing on dies for presses and dies forplastics.

906. Machine Element SectorFig. 6.1.1 Trend of production of dies(at manufacturers having 20 or more employees)(Calendar years, Unit: ¥100 million)
2004

2005

2006

2007

2008

Dies, total

4,122.6

4,392.7

4,879.6

4,804.2

4,483.0

-6.7%

100%

Dies for presses

1,710.5

1,748.4

1,909.5

1,945.0

1,747.0-10.2%

39.0%

Dies for plastics

1,594.7

1,680.9

1,821.0

1,790.9

1,700.8

-5.0%

37.9%

Die-casting dies

297.2

384.7

527.2

483.4

474.3

-1.9%

10.6%

Forging dies

157.8

176.7

211.1

205.5

203.8

-0.8%

4.5%

Dies for rubber

113.1127.3

125.8

119.9

110.8

-7.6%

2.5%

Casting dies

108.6

135.8

151.0

136.3

129.4

-5.0%

2.9%

Powder-metallurgy dies

73.8

78.7

79.4

77.9

75.8

-2.7%

1.7%

Dies for glass

66.9

60.4

54.6

45.3

41.1

-9.2%

0.9%

Source:Year-on-year ratio (2008)

Ratio (2008)

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

Fig. 6.1.2 Changes in the average weight and average unit price of dies(2006 vs. 2008)15%

Amount
金額

Quantity
数量Unit price単価

Average weight
平均重量10%
5%
0%-5%
-10%
-15%
-20%

Source:Dies for presses
プレス用Dies for plastics
プラスチック用

Die-casting dies
ダイカスト用Same as that for Fig. 6.1.1.

◆Average unit price and average weightLet’s look at changes in dies produced in Japan from three viewpoints: quantity of production,average weight and average unit price. The quantity of dies made in Japan has been decreasing inrecent years. The quantity of output of all types of dies has continued falling recently. Behind thefalling quantity of dies production is the situation where the dies produced in Japan are being
concentrated in high value-added dies as called “super complex,” “super precision” and “superlarge.” This is the same even under the worldwide recession. To examine this situation, let’s look at
the trend of the amount and quantity of production, average weight and average unit price of dies forpresses, dies for plastics and die-casting dies in 2006 and 2008 (Fig. 6.1.2).
From Figure 6.1.2, it is evident that while the amount and quantity of production dropped

91

6. Machine Element Sector

sharply, the average unit price and average weight of dies for presses, dies for plastics anddie-casting dies increased. Structural changes in production at the dies industry in Japan steadily
continued even during the global recession.
(3) Export and import

Now let’s look at the trend of export and import of the dies industry in Japan. In 2008, the total
amount of export of dies declined by about ¥14.0 billion to ¥343.153 billion (down 3.87% year onyear). As shown in Figure 6.1.3, the amount of dies export dropped for two years running. On theother hand, the amount of dies import stopped an upward trend and began to decline recently. As aresult, the import of dies in 2008 amounted to ¥87.05 billion, which was a fall of about ¥4.0 billion
or 4.48% from 2007. The export of dies for presses and dies for plastics also decreased year on year,
although the size of decrease was small. In 2008, the export of dies for presses amounted to ¥131.74
billion (down 1.77%) and that of dies for plastics, ¥132.28 billion (down 3.00%).
Figure 6.1.3 shows the international competitiveness of the whole dies industry in Japan using
the indicator known as “coefficient of specialization.” This indicator tells us that the internationalcompetitive power of Japanese dies manufacturers has lowered since 2004.
Finally, let’s look at the trend of the trade partners of the dies industry in Japan from Figs. 6.1.4
and 6.1.5. The top three export counterparts were China + Hong Kong, the U.S. and Thailand, while
the three largest import trading partners were South Korea, China + Hong Kong and Thailand. Thisranking has not changed greatly since 2005.

Fig. 6.1.3
2004

Trend of export and import of dies12005

2006

2007

2008

Growth rate in2007-2008

Dies, total
Export

3,719.1

3,488.5

3,816.03,569.5

3,431.3-3.87%

Import

607.7

780.6

861.5

911.3

870.5

-4.48%

Trade balance

3,111.4

2,708.0

2,954.5

2,658.2

2,560.8-3.66%

Coefficient of specialization

0.719

0.634

0.632

0.593

0.595

-

1,461.2

1,309.9

1,484.4

1,341.1

1,317.4-1.77%

1,466.6

1,354.1

1,451.4

1,363.8

1322.8-3.00%

Dies for presses
ExportDies for plastics
ExportSource:1

Ministry of Finance, “Trade Statistics of Japan.”

Note that because the source adopts the classification “dies for molding rubber or plastics” the figures forthe export and import of dies for plastics include those for the export and import of dies for rubber, too.
Coefficient of specialization: One of the indicators of international competitiveness. Calculated by theequation: (export amount - import amount)/(export amount + import amount). It is considered that thecloser the coefficient is to 1, the higher the international competitiveness (export competitiveness) is, andthe closer the coefficient is to 0, the lower the international competitive power is.

92

6. Machine Element SectorFig. 6.1.4

Export amount of dies by countryChina+ Hong Kong
中国＋香港

Source:Thailandタイ

Others
その他

Ministry of Finance, “Trade Statistics of Japan.”Fig. 6.1.5
South韓国 Korea

Source:U.S.
米国

Import amount of dies by country
China + Hong Kong
中国＋香港

Thailandタイ

Others
その他

Same as that for Fig. 6.1.4.

Let’s look at the situation of the import trading partners of dies to Japan, too. At present, about ahalf of dies imported to Japan comes from South Korea, and Japan has a trade deficit in its dies tradewith South Korea. Moreover, it can be said that China + Hong Kong is increasing their presence as
dies exporters to Japan.
Also noteworthy is the fact that adopting a motto, “Detroit in Asia,” Thailand, which has many
Japanese automobile-related subsidiaries, ranks third in both dies export to and import from Japan.
Considering the tendency of dies production abroad, including South Korea, China, Thailand andASEAN nations, the trends mentioned above, that is, “super precision,” “super complex” and “superlarge,” will become more remarkable in the dies manufacture in Japan.

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6. Machine Element Sector

6.1.2

Results of operations and the trend of the dies industry(1) Trend of management

The dies industry is characterized by a very high percentage of small manufacturers. This
makes it difficult to study the trend of management of individual manufacturers. But some Japanesedies businesses have listed on the stock exchange and present their financial statements to theoutside. Figure 6.1.6 utilizes these materials and summarizes the dies-related sales and operating
profit in 2007 and 2008 of the main dies manufacturers in Japan involved in the production of diesfor plastics, dies for presses, forging dies and dies parts.
As shown in Figure 6.1.6, most dies businesses recorded an operating profit in 2008 but had asubstantial drop in sales and operating profit as compared with those in 2007. The very sluggish
trend of management of main Japanese dies manufacturers in 2008 was just because of theworldwide recession and resultant decline in capital investment. What special attention should bepaid to is the fact that the dies manufacturers suffered a sharp fall in operating profit.

Fig. 6.1.6

Consolidated settlement of accounts of main dies businesses(the most recent announcement)(Consolidated; ¥10,000; rounded off to the ¥10,000)
FY2007

Dies for plastics

FY2008Growth rate vs. 2008

Sales

OperatingprofitOperatingprofitSales

38,332,400

679,200

29,742,200

438,700-22.4%-35.4%

666,800

38,700720,208

43,272

8.0%

11.8%

1,197,201-39,539

1,076,711-170,465-10.1%-531.1%

690,078

103,874

507,230

18,703-26.5%-82.0%

351,800-284,200--19.2%-352,777

58,645342,927

55,340-2.8%-194.4%

287,500

49,500511,800

76,100

78.0%

53.7%

712,600

122,600

699,400

96,200-1.9%-21.5%

754,806

68,244623,228

11,737-17.4%-82.8%

4,030,300

200,400

3,407,900-1,149-15.4%-100.6%

Sales

Operatingprofit

ARRK Corp.
Sekisui Machinery Co.
Dies division
Dies for presses
Fuji Technica Inc.
Dies for presses for automobiles division
Kuroda Precision Industries
System equipment division
Dies for presses
Hoden Seimitsu Kako Kenkyusho
Die division
Marujun Co.
Dies business division
Mitsui Hi-TechDies for presses division
Forging dies
Nichidai Corp.
Net-Shape division
Dies parts
Futaba Corp.
Manufacturing equipment division

Note: 1.
3.
4.
Source:The description following the company name is the name of the segment to which the product’s business belongs. 2.
Sales figures include those of sales between different segments.
Figures for ARRK Corporation are those of the company’s total sales and operating profit (Sekisui Machinery is
ARRK’s subsidiary).
Kuroda Precision Industries announces figures of sales of dies for presses in the data for the system equipment division.
Based on the financial statements of the companies.

946. Machine Element Sector(3) Future prospects and problems

In this section, the present and future direction of dies industries in South Korea will beoutlined briefly so as to give some suggestions to Japanese dies manufacturers. South Korean diesindustries have achieved a rapid growth in technical levels and in a wide range of transactions,
including those overseas, by cooperating with universities and public organizations. The populationof South Korea is less than 40% of that of Japan; as evident from this fact, the scale of machineindustry, the user of dies, in the country is smaller than that in Japan. The natural result is that South
Korean dies manufacturers turn their eyes to overseas markets. In fact, the export amount of diesfrom South Korea in 2008 was over twice that in 2003, recording a big trade surplus.
Aram Metal Industry, a manufacturer of dies for presses (20 employees) based in Kwangju,South Korea, for example, generates 70% of sales from export, and 90% of the export is to Japanand the U.S. The company’s website is written not only in Korean but also in English, Chinese andFrench. In 2002, it acquired an ISO9001 certification. Woosung Precision, a manufacturer of dies forplastics (60 employees) based also in Kwangju, succeeded in receiving orders for dies from a
Swedish automaker by joining hands (in the R&D of laminated dies) with public organizations anduniversities in the city. This company got an ISO9001 certification in 2002 and an ISO14001
certification in 2004.
As described above, South Korean dies industries have positively opened overseas markets on
the basis of the fact that the owner once worked for the purchase department of a big business and so
has plenty of contacts, the acquisition of an ISO certification, the securing and training of people
proficient in foreign languages, such as English and Japanese, or cooperation with universities andpublic organizations. Japanese dies manufacturers will face falling domestic demand in the years
ahead due to population decrease and expanding overseas business by large companies. In such acircumstance, they will have much to learn from the efforts of their South Korean rivals to find new
overseas demand.

956. Machine Element Sector

Fig. 6.1.7

1,600

Trend of South Korean export and import of dies (US$ million)
Export
輸出金額
Trade balance/ (on the left scale)
収支：左軸Import
輸入金額
Export index(2003=100)(03=100)
輸出指数：右軸(on the right scale)
250

1,400
200

1,200
1,000

150

800
100

600
400

50

200
00
2003

2004

2005

2006

Calendar year
Source:Prepared by the authors based on the Global Trade Atlas.

96

2007

2008