Nagoya Industry Case Study Toyota

8/12/2019 Nagoya Industry Case Study Toyota

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Greater Nagoya is defined as the area within a 100km radius of the NAGOYA CBD ,the city at the heart of Japan.

The Greater Nagoya Initiative is comprised of local and regional governments, such as the Ministry of Economy Trade Industry, the Japan

External Trade Organization, JETRO, educational and research institutions, business communities, and local corporations are also membersof the Greater Nagoya Initiative.

Greater Nagoya Initiative

Increasing establishment of manufacturing sites contributes to Greater Nagoyas growing economy

Largest manufacturing base in Japan

Change in Component Ratio of Shipment Value of Manufactured Goods (by industry)

8.0

6.0

4.0

2.0

0.0

12.0

10.0

20022001 2003 2004 2005 2006 2007 2008

Greater Nagoya

Tokyo metropolitan area

Kansai region

10.5

10.09.7

Local public entitiesBusiness community

Aichi Prefecture Gifu Prefecture

Nagoya City Partner municipalities

Mie PrefectureParticipation

Governmental organizations GNI Partners ClubAbout 500 companies,

universities,etc.within the area

Universities, researchinstitutes, etc.

Source:Tokai Economic Poin ts 2008, Chubu Bureau of Economy, Trade and Indus try

Greater Nagoya Initiative Committee (GNIC)

Leaders of 3 prefecturesand 1 city, Representatives

of private sectors andacademic experts

GNIC Office(JETRO Nagoya)

Office Chubu Scienceand Technology Center

Working Committee

Chubu Bureau of Economy,Trade and Industry METI

JETRO

Chubu Economic Federation

Nagoya Chamberof Commerce

Partner chambersof commerce

2005

2005

2000

1995

Greater Nagoya

Japan

200 40 60 80 100%

Transportation machinery 31.5

34.2

38.3

18.3 16.6

13.1

12.8

10.1 0.6

0.7

0.4

1.3

4.5

4.4

4.1

3.7

4.2

2.7

1.6

1.6

4.3

3.8

4.5

5.7

4.2

3.6

2.8

2.5

8.6

6.3

5.8

11.8

6.1

5.0

4.3

4.7

4.8

4.9

4.6

9.6

10.8

10.1

10.6

10.6

Electrical equipments

Plastic products

Precision machines & instruments

Machinery ChemicalMetal

BeverageCeramics

Steel

Textiles & Apparel

Participation

Participation

Source: Industrial Location Movements 2001-2008Ministry of Economy, Trade and Industry

US.10,000 20,000 30,000 40,000

41,358Greater Nagoya

16,454South Korea

713India

1,766China

35,675Japan

41,347USA

33,718Germany

Source:Tokai Economi c Points 2008

Data for Greater Nagoya: 2006other countries: 2007

(Unit: US$ 1 billion)3,000 6,000 9,000 12,000

13,811U.S.A.1

2

3

4

5

14

15

16

18

19

4,377Japan

3,297Germany

3,280China

2,728U.K.

893Mexico

822Australia

754Netherlands

17 657Turkey

491GREATER NAGOYA

449Belgium

Greater Nagoya

11.2%

Japan US$4,377 billion

1

Greater Nagoya The most dynamic region of Japan

Nagoya City, with a population over 2.2 million, is located almost

at the center of Japan. It has grown into one of three major

metropolitan regions (Tokyo, Osaka, and Nagoya) as a base for

business and commerce.

Greater Nagoya, centralized in Nagoya City, is the hub of

Japanese manufacturing industries, producing over 40% of major

manufacturing categories such as automobiles, automobile parts,

machine tools and aircraft parts, and exerts its role as a strong

eader in the Japanese economy.

The recent Nagoya economy remains strong. This enables the city

to attract many domestic and international investors as the most

dynamic region of Japan. In front of Nagoya Station, the gateway

to Nagoya, many high-rise buildings have recently been built,

ncrea sing the cit ys vigorou sness.

Nagoya continues to develop as a gateway open to Asia and theworld, with a focus on international business with many visitors.

We sincerely hope you will choose to locate your business in

Nagoya.

The GDP of Greater Nagoya accounts for about 1% of theworld's economy.Compared with the GDP of other nations around the world,the GDP of Greater Nagoya ranks number 18!

Population : over 12 million

Area : 21,094 km2

Economic Scale of Greater Nagoya

GDP comparisonGDP per person worldwide

Greatly exceeds the average in Japan, and almost equivalent to the

United States.

Greater Nagoya also accounts for 11.2% of GDP in Japan, and

70% of that figure comes from Aichi-Nagoya area.

Attractions of Greater Nagoya

Introduction


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AichiPrefecture

GifuPrefecture

NaraPrefecture

OsakaPrefecture

TokyoMetropolis

ShizuokaPrefecture

ToyamaPrefecture

FukuiPrefecture

IshikawaPrefecture

YamanashiPrefecture

NaganoPrefecture

Tokai Ring Expressway

SecondTo

meiExpresswa

y

Hokurik

uExpres

sway

To

ka

i-H

ok

uri

ku

Exp ressway

ChuoExpressway

KanetsuExpressway

SecondM

eishin

Expresswa

y

Higashi-Meihan

Expressway

ShigaPrefecture

NigataPrefecture

GunmaPrefecture

KyotoPrefecture

WakayamaPrefecture

MiePrefecture

NagoyaagoyaNagoya port

Central JapanInternationalAirport(Centrair)

From World To World

5 6

Business Environment in Nagoya

Good access/optimal logistics located in the center of Japan

Central Japan International Airport is the only major airport in

Japan that integrates domestic and international flights, making it

very convenient for transit.

Easy access to domestic and internationallocations by air

Ocean Powerful marine transport infrastructure

Nagoya Station is thelargest terminal in GreaterNagoya.Four train lines as well as subways

and buses connect Nagoya and the

rest of Japan.

All shinkansen trains stop at

Nagoya, and the city lies midway between Tokyo and Osaka.

Therefore, quick transit in either direction is possible.

Trains - Great connections with majordomestic cities

Expressways/Major national route -Highly functional road traffic network

An airport with less time lossOpened in 2005, Central Japan International Airport (Centrair)

services domestic and international routes at the same location,

making it very convenient since transit can be done all in the same

building.

Easy access to downtown NagoyaCentral Japan International Airport (Centrair) is located close to

downtown Nagoya.

t takes only 28 minutes by train to Nagoya Station. From there,

you can go to major cities like Tokyo or Osaka by shinkansen.

Central Japan International Airport (Centrair) operates 24/7Since it is offshore and close to Nagoya Port, Centrair has the

advantage of being a logistics base for marine and aircraft

transportation.

Centrair is only 7 km away from

Nagoya Port. Therefore, various

means of transportation can be

used, such as building a logistics

center along the coast at Nagoya

Port and transporting cargo by jet

from Centrair.

Nagoya lies between the Tomei Express-

way, connecting the Tokyo region, and

the Meishin Expressway, connecting the

Kansai region, only about 4 hours from

Tokyo and 2 hours from Osaka.

Additionally, a No. 2 Tomei and Tokai-

Kanjo Expressways connecting Tokyo

and Nagoya are under construction now.

Cities along the Sea of Japan are also

easily accessible using major national routes and expressways. With even more

convenience on logistics and transportation in the near future, Greater Nagoya

is the optimal location for businesses targeting anywhere in Japan.

For 5 consecutive years, Nagoya

Port has surpassed four other

major ports (Tokyo, Yokohama,

Osaka, and Kobe) in cargo volume,

and for 6 consecutive years in

trade v alue. I t is Japans No. 1

logistics gateway to the world.

Handling approximately 73% of Japans trade surplus, Nagoya Port

is not only the driving force behind the Tokai economy, but also

development of the Japanese economy.

The port is connected to about 150 countries and regions,

enabling companies to easily envision using it as hub for Asia-wide

logistics.

One of the largest ports in Japan, the waterfront area is larger than

Tokyo and Yokohama Ports combined.

Average Access Time between Major Cities by Shinkansen (est.)

76,329,286131,711,305

NagoyaPort

73%

Comparison of 5 Major PortsCargo volume(2006)

Nagoya Port is the most

vibrant port in Japan.

Trade Surplus atNagoya Port(2006)

50 100 150 200

Nagoya Port

Tokyo Port

Yokohama Port

Osaka Port

Kobe Port

40Nagoya Kyoto

50Nagoya Osaka

80Nagoya Yokohama

95Nagoya Tokio

130Nagoya Hiroshima

Tokyo Hiroshima235

Tokyo Osaka155

Source:No. 1 Port in Japan, Port of Nagoya 2007/2008, Nagoya Port Authority

Domestic trade Intl trade

ton

45,858,277 44,952,942

87,339,572

37,045,419

48,684,201 46,814,808

58,489,154

50,854,429

No.1

Central Japan

International Airport(Centrair) was No. 1

n airport service

quality in 2006!

Organized by ACI

(Airport Consulting

International)Evaluating airports

with 5 to 15 million

passengers

Nagoya, connected to the world by Central Japan International Airport, lies at the heart

of Japans transportation network, with convenient access to various areas of Japan.

Nagoya is the optimal place for basing business or logistics.

The No. 2 Tomei and Tokai-Kanjo Expressways that will connect

Tokyo or Osaka and Nagoya are under construction now. These

will be main arteries that will enable even smoother

transportation.

Japan trill ion yen

min

Central JapanInternational AirportNagoya Port

Image of sea and air

Land transportation Ocean transportInternational and

domestic transportation

Tokyo Station Tokyo International Airport (Haneda Airport, domestic flights) is the time by bus. Osaka Station Itami Airport (domestic flights) is the time by bus. Kansai Internatio nal Airport (intl flights) Itami Airport (d omestic flights) is the ti me by bus.Source: JAL domestic flight timetables

Access Times between Airports and Major Stations

28

80

30

65

20

45

90

60

102

Approx. 183 km to Osaka by Meishin Expressway Approx. 325 km to Tokyo by Tomei Expressway

185kmOsaka Nagoya Tokyo325km

Domestic inland

logistics center

(domestic inland factory)

Process and

assembly factory

Nagoya Station

TokyoInternationalAirport(Haneda Airport, domestic flights)

Kansai InternationalAirport (intl flight s)

Itami Airport(domestic flights)

Central Japan InternationalAirport (domestic /intl flights)

Kansai InternationalAirport (intl fl ights)

Itami Airport(domestic flights)

NewTokyoInternational AirportNaritaAirport, intlflights)

Osaka Station

Osaka Station

Yokohama Station

Tokyo Station

Yokohama Station

Tokyo Station

Tokyo Internat ional Airport(Haneda Airport, domestic flights)

Tokyo Internat ional Airport(Haneda Airport, domestic flights)

New Tokyo International Airport(Narita Airpor t, intl flights)

New Tokyo International Airport(Narita Airpor t, intl flights)


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Nagoya - A great place for foreigners to live

No. of Earthquakes(per the Japanese seismic intensity scale)

Hospitals Pharmacies

Pharmacies

11,366

4266

257

25

6

Intensity 1

Intensity 2-3

Intensity 4

Intensity 5

Intensity 6

Tokyo Metropolis

463

251

15

2

0

Yokohama,Kanagawa Pref.

190

101

8

1

0

163

158

6

0

0

Housing is more spacious than in Tokyo, information signs for

foreigners are in use, and a children's international school in

English is located downtown.

Additionally, Nagoya International Center (NIC) provides

information and consulting services on everyday life. NIC also

provides free of charge information and advice for foreign residents

on anything related to government matters.

Volunteers at NIC Nihongo no Kai hold Japanese study courses for

foreigners to learn the language and information on living in

Nagoya ( http://www.nic-nagoya.or.jp/.

Households: 1,011,729 (as of July 2009)

Nominal gross municipal product: 13.5672 trillion,income per capita: 3.6 million (as of FY 2006)

Businesses: 130,013 (as of October 2006)

Municipal libraries: 20 (as of 2007)

Municipal parks (total area): 1.533 ha (as of FY 2007)

Municipal park area /person (as of FY 2007)

Change in Number of Foreign Residents(as of October 10 each year)

Average Employee Commute Time (2003)

20,000 40,000 60,000

500,000All Japan

City of Nagoya

1,000,000 1,500,000 2,000,000 2,500,000

1997

1999

2001

2003

2005

1

2

3

4

5

6

1

0

2

3

4

5

6

7

8

10

20

30

40

50

60

6.3

NagoyaYokohama

45.23.8

36.9

5.1

49.4

Tokyo's 23 wards

U.S.A 214

Germany 63

U.K. 33

No. of University Students and Graduates

Nagoya has created an environment that enables business

activities not only in Japan, but also throughout the Asian market.

High cost performance is one of the benefits compared to other

major cities in Japan.

Safe & comfortable environment with less impact from earthquakesExcellent cost-effective business environment

No. of Hospitals per 100,000 Persons

Foreign-affiliated companies in Nagoya

Starting salaries of new university graduates are lower than in

other regions.

Environment with many outstanding human resources

Source: Nagoya City data

Nagoya City

Japan

Starting Salary of New University Graduates

Nagoya, Aichi Pref.

180 190 200 210

Service sector

Transportation

sector

Wholesale/retail sector

Manufacturingsector

ndustry totalOsaka

Yokohama,Kanagawa Pref.

Tokyo

Switzerland 33

France 24

Others 92

Total

45920,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Tokyo's 23wards

Nagoya HiroshimaCity

Yokohama Osaka City

Graduates

University students

Source:Population Statistics, Aichi prefecture

Source:Nagoya Life 2008 lif e in Nagoya looking fr om the data, Nagoya City

Nagoya International Center

Nagoya Congress Center

Nagoya International School

10 20 30 40 50 60

41.8

53.1

34.2

Source:Nagoya Life 2008 lif e in Nagoya lookin g from the data, Nagoya City

Source:Nagoya Life 2008 lif e in Nagoya lookin g from the data, Nagoya City

Source:Aichi-Nagoya International Business Access Center(I-BAC)

Tokyos23 wards

Yokohama

Nagoya

OsakaCity

NagoyaYokohama Osaka CityTokyos 23wards

Large but reasonableNagoya business environment

Average Rent in Business Areas

100,000 200,000

5 wards of central Tokyo

Yokohama

Nagoya

agoya: Nagoya Station area

Nagoya: Fushimi area

Nagoya: Sakae area

Nagoya: Marunouchi area

Osaka

Average rent/3.3

International Conferences per City (2007)

Nagoya 6%

Yokohama

8%

Kobe5%

Fukuoka

8%Kyoto

10%

Tokyo's 23 wards24% Osaka 4%

Other areas

35%

Population: 2,257,426 (as of July 2009)

Universities: 21 (as of 2007)

(as of December 2007)Source: Miki Shoji Co., Ltd.

Source: Starting salary of new university graduates (basicsurvey on wage structure, company size total), from

Basic Survey on Wage Structure

Source:Nagoya Life 2008 lif e in Nagoya looking f rom the data, Nagoya City

min

33.6

Nagoya, Aichi Pref. Osaka, Osaka Pref.

Source: [JMA Japanese Seismic Intensity Scale Database]

Source:Nagoya Life 200 8 life in Nagoya lookin g from the data, Nagoya City

Hospitals

FY 2002 FY 2007

100

200

300

400

500

11,000

4,000

Jan. 2000 to Jan. 2008

thousand yen


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Nagoya CastleLiterally the symbol of Nagoya, Nagoya Castle

was constructed by order of Ieyasu Tokugawa

in 1612, and was the residence for the Owari

lineage of the Tokugawa family. The castle

tower exhibits and introduces the lives of the

lord, citizens, and others who lived there. Y ou

can also experience stone-pulling, a technique

used to build the castle, or ride in a Japanese

palanquin. The place is also famous for cherry

blossoms in spring.

Nagoya City, celebrating its 400th anniversary in 2010, has many attractive spots, from Nagoya Castle to various historic sites, tourist

spots, art & other museums, aquariums, zoos, and more. You can also experience Japanese culture and seasons year-round at World

Heritage sites, fine beaches, and other spots throughout Greater Nagoya.

Higashiyama Zoo and Botanical GardensThis area boasts about 60 ha of

attractive and green environment youcannot see in just one day, including

a zoo, botanical garden, amusement

park and Higashiyama Sky Tower. Atthe zoo, you can see about 550

creatures, from the popular koala to

large elephants and small rice fish. Inthe botanical garden, about 7,000

types of plants are exhibited utilizing a natural forest.

Port of Nagoya Public AquariumThis aquarium has one of the

largest pools in the world. The

north building mainly shows

performances by dolphins and

killer whales. The south building

exhibits penguins, sea turtles, and

other marine life.

Nagoya City Art MuseumThe white walls of this museum

stand out against the green ofShirakawa Park downtown.

Permanent exhibits include

"Girl with Braids" by Modigliani,

and it is the only museum in

Japan exhibiting a collection of

Mexican modern art.

Nagoya City Science MuseumA comprehensive science museum

with astronomy, science &

technology, and life science

buildings. Everyone from children

to adults can enjoy and learn

about science here. It houses one

of the largest planetariums in

Japan, where you can also enjoy

science shows.

TokugawaenTokugawaen is a traditional

Japanese pond-stroll garden

constructed by order of Mitsutomo

Tokugawa, the second lord of the

Owari clan of the Tokugawa

family, and leader of the three

Tokugawa lineages. After retiring

in 1695, Mitsutomo moved to the

Ozone residence on the outskirts

of the garden.

Tokugawa Art MuseumThis museum stands next to

Tokugawaen. Its main exhibit is acollection of items used by Ieyasu

Tokugawa, his ninth son Yoshinao,

the founder of Owari lineage, andIeyasu's descendents and their

families. The collection comprises

10,000 to 20,000 items that include9 designated national treasures, 57

registered important cultural properties, and 46 important art objects.

Shirakawa-go (World Heritage site)Shirakawa-go was registered as a

World Heritage site in 1995, and ishome to approximately 110

gassho-zukuri (triangular roof) style

houses. Much culture and folklore

arts from olden times still remain in

this quiet mountain village. Some of

the houses are used as hotels,

where you can enjoy local cuisine.

Historic Sites and Tourist Spots

Historic sites and tourist spots in Greater Nagoya

Companies providing photos

Cover sheet (upper section)

Upper left: N700-type shinkansen on the JR Tokai Line

Lower right: Mitsubishi Regional Jet (planning stage) f rom Mitsubishi Heavy

Industries, Ltd.

(Lower section)

Upper right: Automobile assembly line at Toyota Motor Corporation

Lower left: Ceramics for automobile exhaust gas cleansing from NGK Insulators, Ltd.Lower right: 5-axis processor NMV5000DCG from Mori Seiki Co., Ltd.

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Nagoya Business Incubator

Nagoya Business

Incubator

Facilities available for residence use

Introduction to incubators, etc.

Two rental facilities are available for assisting enterprise development of small and medium-sized companies developing computer software,

or research & development companies aiming to work with new technologies, products, or markets.

Additional services are also available, such as subsidies for tenant rents for residing enterprises.

Small and medium-sized companies involved

with software development, etc.

Approx. 25 m2: 8 rooms; approx.50 m2: 16 roomsShared rooms are also available.

Approx. 35 m2: 6 rooms; approx.

50 m2: 23 rooms Approx. 80 m 2: 19 rooms

Shared rooms are also available.

Electric card entry management system

Raised access floor *Optical fiber can be arranged.

Business negotiation corner, conference rooms, lounge, shower room, parking, etc.

Rent: 2,900/m2; common service charge: 1,100/m2(monthly, excluding tax)

Max. 5 years (extension to max. 5 years possible)

Under examination

Small and medium-sized companies involved in

research & development in various markets

Name

Target companies

Areas

Facilities

Rental cost

Rental period

Rentalconditions

Additionalservices

SharedFacilities

(NaBI Kanayama)

Nagoya Business

Incubator Shiragane(NaBI Shiragane)

Nagoya Trade Information Center, Japan External Trade Organization (JETRO)

The Invest Japan Business Support Center (IBSC) located within this center provides investment consultation and advice by full-time

advisors and others in most cases free of charge, so foreign-affiliated companies seeking investment or business in Japan can operate as

smoothly as possible. Temporary offices for foreign-affiliated companies without bases in Japan are also provided.

Foreign-affiliated firms seeking to set up offices in the Chubu area

Conference rooms, library

50 working days (100 working days are required)

Target companies

Approx. 10 m2: 5 roomsArea

Desks, chairs, telephones, fax machines, Internet accessFacilities

Shared facilities

Rental period

to be examined by JETRORental conditions

1 full-time advisor is available on investments in Japan.

Market information and business know-how are provided.

Expert counseling can be arranged on establishing an office in Japan.

Additional services

FreeRental cost

Financial support

Subsidies are available for tenant rent (rent and common service charge) for 5 years after moving in.

Companies established within 1 year of moving in:

Up to 50% of tenant rent (max. 2.5 million /year)

Companies established within 5 years of moving in:

Up to 30% of tenant rent (max. 1.5 million /year)

Other companies:

Up to 10% of tenant rent (max. 1 million/y ear)

Support for technological development/business management

Workshops, consulting, etc. by experts from universities and municipality-related offices

Support for general business management by full-time incubation manager


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Contact for establishing business in Nagoya

Industry Development Division, Industry Department, Civic & Economic Affairs Bureau,

City of Nagoya11 Sannomaru 3-chome, Naka-ku, Nagoya 460-8508, Japan

Nagoya Chamber of Commerce and Industry Building, 11th Floor 2-10-19 Sakae, Naka-ku, Nagoya 460-8508, Japan

Aichi-Nagoya International Business Access Center I-BAC

Published by:

Industry Development Division, Industry Department,

Civic & Economic Affairs Bureau, City of Nagoya 2009/9

Nagoya Industry Case Study Toyota

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