Export Dynamics, Strategies and Performance within Japan's Machine-Tool Industry

Abstract

Despite increased global market competition, Japan remains a leading producer of metal-cutting machinery. Exporting plays an important role in firm-level strategies, an approach that has occurred with much success in many of Japan's capital goods sectors. This article examines the dynamics of exporting within Japan's machine-tool sector in the context of recent industry changes and in terms of evolving product make-up. Evidence from a recent series of interviews mainly conducted in 2006 suggests that firms use a variety of strategies to succeed in export markets, with an emphasis on increased precision and service. These strategies continue to keep many Japanese producers in prominent market positions, despite spatial redistributions of world manufacturing activities.

Keywords:

• Employment
• exports
• Japan
• machine-tools
• manufacturing
• product life cycle

Acknowledgement

The author would like to thank the Japan Foundation for its generous support of this research.

Notes

¹ Japan's metal forming machinery industry is also a leading performer internationally.

² For a detailed explanation of the product life cycle, please see Hirsch (1967).

³ The term ‘mother machines’ was used on both Mori Seiki's website http://www.moriseiki.com.tr/hakkimizda.asp?dil = eng and within an announcement on Yamazaki Mazak's website: www.mazak.jp/english/whatsnew/cyberworld/2006/21/pdf/n21e07.pdf (accessed 15 August 2007)

⁴ The use of computer numeric controls (CNC) was an important advance for the industry. Essentially it involves integrating a programmable computer interface into the actual cutting machinery. Japanese firms were at the forefront of CNC integration. One company in particular, Fanuc, is a world CNC leader.