General Edition Sunday, October 23, 2005 Issue No. 348
+++ INDEX
- What's new
- Services lineup
- News
- Candidate roundup
- Upcoming events
- Property
- News credits
New ad research Ameritest assesses television and print advertising campaigns for their ability to provoke and persuade their audience. Our patented research involves administering a non-verbal process that allows one to pin-point frame by frame and upon multiple experiential dimensions, the low and high points in advertising film and graphic layout and to clearly show how these ads can be made more sales effective. Contact Dominic Carter on 03-5464-1990, or visit www.ameritestjapan.com for more details. |
| +++ WHAT'S NEW |
We subscribe to the theory that after 14 years of "Heisei Malaise" (Darrel Whitten, that is a great term!), Japanese major companies have learned a big lesson in capitalism -- now they've started making money again, they are hanging on to it rather than re-distributing to the employees. Indeed, in 2004, personnel costs were slashed 4% among the top 1,600 listed firms, as companies replaced full-time workers with part-timers. So much for lifetime employment.
Our feeling is that such companies have become much more paranoid about the world in general, and: a) are beefing up on R&D and advanced production facilities to stay ahead of advancing Korean and Chinese competitors, and b) don't believe the current upturn can last and thus are storing up their surpluses for hard times ahead.
The R&D angle is nothing new, in 2003-04 Japan spent 2.39% of its GDP on R&D, one of the highest rates for a major industrial nation, while the USA -- ahead in terms of sheer spend -- consumed 1.79% of its GDP in new research. Instead, the fresh developments are in the rebuilding of advanced manufacturing here in Japan again -- after a long hollowing out period to China.
The Nikkei recently ran a survey of 160 major manufacturers and found that 60% of them are planning to upgrade or build new manufacturing facilities in Japan. It seems that while these companies still plan to keep massive manufacturing operations in China, they need the quality and responsiveness of local production units to launch new and complex technologies and reduce the time-to-market for new designs. This makes sense, because it is Japanese IP and design which is the main seller of their products now -- certainly it isn't price.
In the Nikkei survey, 35.3% of companies said they are actively planning to build new Japan-based factories, while another 23.5% said they are considering doing so. Perhaps most interesting is the fact that an amazing 93.4% of the companies polled will make the investments from their own funds, versus an overlapping but much smaller 28.9% saying that they will borrow from the banks. Capital spending has always been a strong indication of profit accumulation within Japanese firms, and to be doing it with your own money, considering the low interest rates, says a lot.
Still, you don't have to look far ahead to feel pessimistic and to understand senior management's piggybank mentality. As just one example, the Japanese government revealed this week that it will convene a cabinet advisory panel to address how to reduce the country's blown-out public debt. At the top of the agenda are popular reforms such as shrinking the government and reforming the pension system. However, what worries business leaders are public comments/rumors that a range of taxes, not just consumption tax, may also be increased. If this happens, it will hit both consumer and business confidence hard and kill off the emerging recovery. But not, we hope, until after September 2006 when PM Koizumi bows out as head of the LDP.
So putting aside the external factors such as the health of the US economy, that leaves us with a year of continued stock market gains and corporate profit accumulation. We predict that not only new factories, but also a significant increase in M&A of IP-rich companies will occur, as senior managers figure out how to best use their cash piles strategically -- and of course use them fast enough to beat the likes of the Murakami Fund and other shareholder activists to the cash...
...The Information Janitors/
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| +++ SERVICES LINE-UP |
Contact [email protected] if you want your company here.
- Personal International Investor -- a convenient source of ideas and information on how to invest profitably as an expat in Japan. Every Thursday, 48 weeks of the year. Completely free.
http://japaninc.typepad.com/personal_intl_investor/
- Advertise with Japan Inc newsletters. JIN and Terrie's Take cost just 2 yen per person to reach 51,000 people. Great for last minute offers and event advertising.
[email protected].
- Get a low-cost office in Tokyo, at the Venture Gas Station incubator. Just JPY80,000/month, in Minami-Aoyama. Spaces closing fast -- enquire now.
[email protected]
- J@pan Inc. magazine has gone quarterly. Subscriptions now just JPY3,600 a year. Sign up at
http://www.japaninc.com/mag/subs.html
- Find new bilingual sales staff -- a specialty for DaiJob.com,
[email protected]
- Anyone can buy a .JP domain...online...real-time...in English! Register now at:
http://www.JapanRegistry.com
Internship The J@pan Inc magazine currently has an internship opening for a web programmer. The Intern will assist the Design Manager with design programming in the HTML, CSS, PHP languages at the Japan Inc Communications office twice a week and be reimbursed for travel. For further information, contact Naomi Shirogane (03-3499-2099; [email protected]) |
| +++ NEWS |
- Flagellum action slowed
- Auto parts recyclers start paying
- Airborne mercury from China?
- "Junk food" good for breastfeeding babies
- Yen to go to 119 to the Dollar?
-> Flagellum action slowed
A Nagoya University research team has figured out how to slow down the rotation of bacteria flagellum, so that they can observe its action and perhaps harness the organelle for next-generation nanomachines. Normally the flagellum of a unicellular organism spins rapidly, and in so doing provides the organism with the ability to move around. The team has discovered that with E. coli bacteria, this motion can be slowed by adding additional sodium ions into the culture fluid. They have found that the flagellum works like a stepper motor, completing a full rotation in 26 steps (in the case of E. coli, which contains 26 proteins) of 14 degrees. ***Ed: Just thought you'd like to know...!** (Source: TT commentary from nikkei.co.jp, Oct 20, 2005)
http://www.nni.nikkei.co.jp/AC/TNKS/Nni20051019D19JSN07.htm
-> Auto parts recyclers start paying
In a sure sign that foreign exports of Japanese second-hand vehicles are really starting to peak, second-hand dealers of stripped auto parts are now having to buy scrapped cars that they once got for free. The decision to buy is being led by the NGP Group which will use its network of about 200 member car wreckers as well as a new Web site to find 25,000 suitable cars and assemblies annually. NGP says that the biggest demand is for engines, bumpers, and windshields. In a normal year, about 4m cars are scrapped in Japan, but in the first 9 months of this year, only 1.9m vehicles were scrapped. ***Ed: We guess the other 2.1m cars went to Asia and Africa -- and wherever else they drive on the lefthand side of the road.** (Source: TT commentary from nikkei.co.jp, Oct 21, 2005)
http://www.nni.nikkei.co.jp/AC/TNKS/Nni20051021D20JFA13.htm
-> Airborne mercury from China?
Although an article about Korea, one wonders if the same problem isn't drifting our way as well? A research team at the Sejong University has found that not only yellow sand and acid rain are drifting over South Korea from China, but also airborne mercury particles as well. The team recently found 5.4 nanograms of mercury per cubic meter of air in central Seoul, about 400% that of the "international average". The mercury is most likely caused by excessive coal burning in China. (Source: TT commentary from joongangdaily.joins.com, Oct 22, 2005)
http://tinyurl.com/aqce3
-> "Junk food" good for breastfeeding babies
We kid you not. A recent study of 3,600 breastfeeding babies and their moms' diets, conducted by the National Research Institute for Child Health and Development, has found that mothers who consumed milk and eggs while breast-feeding had kids with substantially less allergies to these foods than those who didn't imbibe. Furthermore, those moms consuming high levels of oily foods had kids that were less likely to suffer from atopic dermatitis later in childhood. ***Ed: In a case of what doesn't kill you makes you stronger, the study found that almost 4 times as many kids had allergies to eggs and milk if their mothers didn't consume these products during breastfeeding than those whose mothers did. This finding completely turns upside down the Japanese pedatric common wisdom that mothers should stick to traditional foods, and that consumption of Western and junk foods may cause allergies in breastfeeding infants later.** (Source: TT commentary from mainichi-msn.co.jp, Oct 22, 2005)
http://tinyurl.com/axrtv
-> Yen to go to 119 to the Dollar?
A number of leading financial firms are predicting that the yen will weaken by the end of this year to 117-119 to the dollar, largely caused by large outflows of private and institutional investment capital looking for higher interest rates overseas -- particularly US treasuries as the US-Japan interest rate gap widens with anticipated increases by the US Fed by year end. According to Australia's Commonwealth Bank, each 0.25 point increase by the Fed lifts the dollar an average of 2 yen -- thus another two expected rate increases is creating an expectation that the Yen rate will be JPY115+4. In just the week ending October 15th, Japanese investors bought JPY191.9bn ($1.7bn) in foreign bonds, JPY41.8bn in stocks, and JPY1.2bn in short-term securities. ***Ed: Exporters like Toyota and Canon must be absolutely LOVING this. Their spectacular profits this year will rise dramatically if this FX trend continues...** (Source: TT commentary from bloomberg.com, Oct 20, 2005)
http://tinyurl.com/amo27
NOTE: Broken links
Many online news sources are now removing their articles after just a few days of posting them, thus breaking our links -- we apologize for the inconvenience.
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| +++ CANDIDATE ROUND UP |
DaiJob, Inc's executive placement team, AMBITION Consulting
-----------------------------------------------------------------------------------------------
DaiJob has great candidates. Contact Alex Burr at
[email protected], or Ph: 03-3499-3040 for details.
-> HR Manager/HR & GA Manager
Female, Mid-40s, Native Japanese, Fluent English
Experience:
- 9yrs HR + 4yrs HR Manager at global pharmaceutical and high-tech companies
- 8yrs office management
- Strength in starting up all HR functions
- Direct reports to top management on HR strategy
- Extensive knowledge in Japanese Labor Low
* Looking for JPY9.0M. Available immediately
--------------------------------------------
-> Finance & Business planner
Male, Late 30s, Native Japanese, Business level English
Experience:
- 6 yrs in managerial and financial accounting
- Analyze and evaluate cash flows
- Experience in design and analysis of asset liquidation
- 11 yrs experience in financial field
- Knowledge of USGAAP
* Looking for JPY7.5M+. Available in 2-4 weeks
--------------------------------------------
-> Accounting Manager
Male, early 50s, Native Japanese, Business level English
Experience:
- Over 20 yrs in accounting at financial field
- Strong management skills
- Involved in various projects as a representative of Finance Division
- Analysis on the variance between actual and budget
- Assistance of employees in handling cost-related matters including the sourcing functions
* Looking for JPY8.0M. Available at 1 month notice
| +++ UPCOMING EVENTS/ANNOUNCEMENTS |
No announcements this week.
IT events announcements are priced at JPY50,000 per week. |
| +++ THIS WEEK'S PROPERTY |
-> Beachfront Estate, Kahala, Honolulu, Hawaii
125 feet of sandy beachfront near the Kahala Mandarin! Estate is graceful in style, yet totally functional for island living. Resort amenities include fabulous tropical gardens and grounds, tennis court, swimming pool/waterfall and elegant living spaces, all gated and private. Separate maid's quarters. Central air, fountain, porte cochere. Additional rooms include a Den/Study, Dining Area, Dining Room, Eat In Kitchen/Nook, Family Room, Laundry Room, and Open Lanai.
Kahala, east of Diamond Head, is one of Oahu's most prestigious neighborhoods with 50,000+ residents. The Kahala neighborhood consists of a group homes surrounding the Waialae Country Club, home of the Sony Open Golf Tournament. The main shopping center is Kahala Mall, home to big name chains such as The Gap and Banana Republic. It features many fine stores, movie theatres, and a variety of restaurants.
List Price: $9,500,000
Bedrooms: 7, baths: 6.5
Interior Living Area: 7,140 sq. ft.
Land Area: 35,896 sq. ft.
Monthly Taxes: $2,209
Year built: 1982
http://www.hawaii-realty.com/aol/2505548.htm
E-mail us at [email protected] for more details on any property listed here.
JIC Sponsored Interviews You read Terrie's Take and JIN, and so do 54,000 other executives inside and outside Japan. Let them know what your company does, with our new Sponsored Interviews service. We create a lead-in for the interview, and run it within the newsletters, with links back to the page holding the full interview. For a small additional charge, we will also run it in the Japan Inc magazine, the www.japan.com website, and the www.japan.com web site for archiving. Cumulatively, your message will be seen by at least 120,000 English-language readers. |
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| +++ ABOUT US |
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