by Terry Cunnew
The potential threat from Japan to Britain’s construction industry is underlined in a newly published report sponsored by Capital & Counties.
The report, the result of a year’s research by the University of Reading, should send a shiver of fear through the boardrooms of even the most complacent of British construction companies.
For the fact is that the Japanese construction industry is huge — larger than that of the USA or of the EEC.
What is more, it is hungry — over the past three years just one of the “Big Six” Japanese construction companies has cornered $2.25bn-worth of business in Australia.
The report warns that Australia is not alone and that the UK is going to have to face the challenge of a construction industry which has no outside competition on its home ground and no restrictions here.
The six leading Japanese construction companies — Kumagai Gumi, Kajima Corporation, Shimizu Construction Co, Ohbayashi Corporation, Taisei Corporation and Takenaka Komuten Co — all now have offices in Europe, and five of them are active in London.
What is more, they have the backing of the Japanese banks in undertaking high-risk projects, and at the same time are likely to be favoured by Japanese commercial concerns looking to build their own facilities both in the UK and the rest of Europe.
Beyond this, unlike most European operators, the main Japanese construction firms put a great emphasis on research, with such departments enjoying staffing levels of 250 to 350 and budgets of up to $40m.
Following on from the report, a series of one-day seminars is being organised by the Centre for Strategic Studies in Construction at the University of Reading, Whiteknights, PO Box 219, Reading RG6 2BU.
The report is also available from the university, at a cost of £30.
