Japanese Fastener Industry Encounters Deindustrialization

Japan is the manufacturing powerhouse of fasteners; however, the fastener industry suffered a huge impact due to numerous factors including power shortage, the Yen appreciation, financial crisis and 311 earthquake in 2011. The industry encounters a severe challenge and even a crisis of deindustrialization.

Japan’s fastener production was around 3 million tons in the last decade. The record high production appeared in 2007, reaching 3.335 million tons. Nevertheless, Japan’s fastener production in 2010 and 2011 were merely 2.868 million tons and 2.764 million tons respectively which represented the industry hasn’t returned to pre-crisis levels. In terms of its factors, it was the 311 earthquake that led to the damage of the production facility which further resulted in non-revival of production facility; moreover, power supply remained unstable after the 311 earthquake which also caused the stagnant production.

In addition, the slowdown of Japan’s economy was because of the Yen appreciation, which also brought about the pessimistic outlook for the export. Although the export volume of fasteners only accounted for 10% of production, the domestic demand for fasteners also decreased due to the impeded export of the entire domestic industry. What’s worth mentioning is that electric cars will rise owing to the rising of the world crude oil price and the resuming in environmental consciousness. Therefore, numbers of fasteners applied in the years to come will decrease as well. Fastener manufacturers in Japan need to come up with methods to response to the upcoming crisis.