The manufacturing industry consists of various industries including food, fiber, pulp and paper, chemical, petroleum and coal products, ceramic, stone and clay products, iron and steel, non-ferrous metal, metal products, general machinery, electric machinery, transportation machinery, and other manufacturing industries. The manufacturing industry is said to account for slightly less than 20% of the gross domestic product (GDP), being a major industry following the service industry that supports the Japanese economy.
However, the manufacturing industry is now in a challenging environment. This is because it is facing severe market competition such as achievement of low cost through mass production as well as cross-border expansion of emerging-country manufacturers and acquisition of consumer electronics manufacturers by EMS (electronics manufacturing service) companies mainly in the short life-cycle consumer electronics segment.
In order to overcome this market competition, there are two trends in the manufacturing industry in Japan.
There are companies that expand into overseas markets in pursuit of low costs and broader markets as well as companies that remain in Japan with the aim of producing high-quality and safe products.
BDO supports a variety of manufacturers in the manufacturing industry that operate and thrive in this challenging environment. In addition to areas where our expertise lies such as audit and accounting, we have accumulated extensive knowledge and expertise in characteristics of industrial structure and business environment where our clients operate.
BDO has established a framework to hone our expertise and provide high-quality services to companies both in Japan and abroad as well as those planning to expand globally. We are confident of our abilities to support clients to grow and increase corporate value.