Transcript PowerPoint - Orange County Business Council

JETRO LOS ANGELES
ACTIVITIES
ABOUT JETRO
• JETRO (Japan External Trade Organization) is a
government-affiliated organization that works to
promote mutual trade and investment between
Japan and the rest of the world. Currently, we have
73 offices in 55 countries including 6 in the U.S.
• Originally established in 1958 to promote Japanese
exports abroad, JETRO's core focus in the 21st
century has shifted toward promoting foreign
direct investment into Japan and helping small to
medium size Japanese firms maximize their global
export potential.
2
Domestic and overseas networks of JETRO
Japan External Trade Organization (JETRO)
Offices In Japan ・JETRO Headquarters, Tokyo
・37 regional offices
Overseas 73 offices in 55 countries
No. of employees
In Japan
834 Overseas 718
Total
1,552 (as of April 2012)
3
Copyright (C) 2013 JETRO. All rights reserved.
3
Ministry of Economy,
Trade and Industry
Japanese trade and investment and transition of JETRO’s activitiesAgency for Natural
100,000
(20,000)
0
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
1981
1980
1979
1978
1977
1976
1975
1970
1965
1960
1955
1950
Present
2000s
Lehman Shock
200,000
Financial Crisis
First East Asia Summit
Japan`s First EPA [with Singapore]
0
（
73
）
（
60
）
（
64
）
Attracting foreign firms
Attracting
foreign firms
China`s accession to WTO（01）
Asian financial crisis
Birth of EU
Japan-US Action Plan
20,000
（
85
）
（
79
）
Voluntary restriction on auto exports to US
Second oil crisis
400,000
4
Import promotion
Copyright (C) 2013 JETRO. All rights reserved.
Import
promotion
40,000
（
55
）
（
67
（）
65
）
300,000
（
71
）
Support for Japanese firms operating overseas (service Industry)
Support for
Japanese firms
operating
overseas
（
92 （
） 93
）
500,000
Export promotion (agriculture,
forestry, marine products)
Export promotion
Export
promotion
（
90
）
700,000
1990s
80,000
US-Japan Structural Impediment
Initiative ends
First APEC Ministerial Conference
800,000
1980s
1950s – 70s
（
97
）
（
89
）
（US$ million）
（US$ million）
Current balance surplus peaks 4.3% of nominal GDP,
Maekawa Report（86）
Plaza Accord, Action Plan to Opening Market
900,000
（
81
）
60,000
（
02
）
100,000
（
05
）
120,000
（
08
）
（
07
）
140,000
Outward FDI(flow)
Inward FDI(flow)
Exports
Imports
First oil crisis, yen floating exchange rate system
Nixon Shock
First capital liberalization
Automobile import liberalization
Accession to OECD, Tokyo Olympic Games
Trade Exchange liberalization plan
Economic White Paper “Post-war has ended”（56）
Accession to GATT
600,000
Resources and Energy
FDI
Trade
JETRO LOS ANGELES INITIATIVES
Japanese Food
•Healthy ingredients, sake, proper preparation
Japanese GREEN Technologies
•Energy efficiency, SMART buildings, Sustainable
design, renewables
Japanese Medical Equipment and Bio Technologies
• Promoting partnerships between US and Japan.
Japanese Entertainment
•Manga, anime, independent films, licensing
content
Japanese Restaurants and Retail Shops
• Support to start up restaurants and retail shops.
Investing to Japan
• Support foreign companies establishing business base and
starting up business in Japan, with Invest Japan business
Support Centers(IBSC).
5
The Japanese Economy and
Abe-nomics
6
The Japanese Economy and “ABE-NOMICS “
THREE ARROWS
• FISCAL STIMULUS
•MONETARY STIMULUS
•STRUCTURAL REFORM
7
US and Japan’s Trade
• Exports
• Japan was the United States' 4th
largest goods export market in
2013.
• Imports
• Japan was the United States' 4th
largest supplier of goods imports
in 2013.
•
•
•
•
U.S. goods exports to Japan in 2013 were
$65.1 billion, down 6.9% ($4.8 billion) from
2012, but up 25% from 2003. U.S. exports to
Japan accounted for 4.1% of overall U.S.
exports in 2013.
The top export categories (2-digit HS) in
2013 were: Optic and Medical Instruments
($8.0 billion), Aircraft ($7.1 billion),
Machinery ($5.8 billion), Electrical
Machinery ($4.9 billion), and Meat (pork
and beef) ($3.3 billion).
U.S. exports of agricultural products to
Japan totaled $12.1 billion in 2013, our
4th largest export market. Leading
categories include: pork and pork products
($1.9 billion), corn ($1.8 billion), beef and
beef products ($1.4 billion), and wheat ($1.0
billion).
•
•
U.S. goods imports from Japan totaled
$138.5 billion in 2013, a 5.4% decrease ($7.9
billion) from 2012, but up 17.4% from
2003. U.S. imports from Japan accounted for
6.1% of overall U.S. imports in 2013.
The five largest import categories in 2013
were: Vehicles ($49.8 billion), Machinery
($30.5 billion), Electrical Machinery ($18.4
billion), Optic and Medical Instruments ($6.6
billion), and Aircraft ($3.8 billion).
U.S. imports of agricultural products from
Japan totaled $572 million in 2013. Leading
categories include: wine and beer ($52
million), snack foods (including chocolate)
($47 million), and other vegetable oils ($41
million).
8
Change in real GDP (actual value)
(2005 price basis, annualized)
540
Inauguration of
Abe
administration
(Trillion yen)
Before global
financial crisis
(2008 Q1)
530 trillion yen
530
Latest data
(2014 Q1)
536 trillion yen
520
510
500
Before Great East
Japan Earthquake
(2010 QIV)
515 trillion yen
490
480
470
2014 Q1
Q2
Q3
Q4
2013 Q1
Q4
Q3
Q2
2012 Q1
Q4
Q3
Q2
2011 Q1
Q4
Q3
Q2
2010 Q1
Q4
Q3
Q2
2009 Q1
Q4
Q3
Q2
2008 Q1
Copyright (C) 2014 JETRO. All rights reserved.
9
Abe Administration’s Economic Policy
“Three arrows”for economic revitalization
Japan Revitalization Strategy
Overcoming deflation, expanding employment,
revitalizing the economy
Monetary
policy
• Setting a 2%
inflation target
• Fund supply by
Bank of Japan
(monetary
easing)
Fiscal
policy
Growth
strategy
• Promoting
disaster
prevention and
reduction
programs
• Accelerating
reconstruction
efforts for
areas damaged
by the
earthquake
• Promoting
investment to
expand energy
conservation and
renewable energy
• Enhancing
assistance for SME
financing
• Focusing on
investment in areas
such as healthcare,
agriculture and
education
Simultaneous implementation of the “three arrows” for
reviving the Japanese economy: (1) bold monetary policy; (2)
flexible fiscal policy; and (3) a growth strategy that
encourages private sector investment.
Copyright (C) 2013 JETRO. All rights reserved.
【Efforts by JETRO to realize the policy】
Expansion of FDI, expansion of agricultural, forestry,
fishery and food exports, tapping into emerging
markets, etc.
Aggressive implementation of economic policy, carving
out new growth sectors both domestically and
internationally, and mobilizing human talent, goods and
10
funds.
10
Survey of Japanese Companies
In Southern California 2014
11
Scope/Method of Survey
• The survey covers Japanese companies having a base in Southern
California and meeting one of the following conditions: [1] A company
with 10 % or more of its capital owned (directly or indirectly) by a
company headquartered in Japan;
[2] a branch or representative office of a company whose headquarter
is located in Japan; or [3] a company established and operated by
individuals of Japanese origin.
• Southern California is defined as a region that comprises 10 counties
including Los Angeles, Orange, Ventura, Santa Barbara, Kern, San Luis
Obispo, San Bernardino, Riverside, San Diego and Imperial.
• JBA/JETRO asked the 673 of these Japanese companies on their record
to take part in the survey, and received a positive response from 626
companies. Survey forms were later collected electronically from 435
companies (rate of collection: 69.5%) (Survey period: February 2014).
12
Geographic Distribution
Los Angeles
Torrance
Los Angeles
O ran ge
Irvin e
Cypre ss
San Diego
San Diego
San Bernardino
Riverside
Other
Total of Southern California
Number of Companies
Ratio
70.4%
474
28.5%
192
14.3%
96
2 0 .2 %
136
8 .0 %
54
3 .0 %
20
7.1%
48
4.3%
29
1.0%
7
0.9%
6
0.3%
2
100.0%
673
13
Industrial Distribution Statistics
9
5
15
2.1% 1.2%
3.5%
Manufacturing
34
7.9%
Service
Wholesale/Retail
129, 29.9%
55, 12.8%
Trading
Transportation
Financial
Construction/Real Estate
67
15.5%
Other
117, 27.1%
n=431
14
Industrial Distribution Statistics by Area
Number of
Companies
LA
OC
Others
Manufacturing
129
61
35
33
Trading
117
98
17
2
Wholesale/Retail
67
39
24
4
Transportation
55
39
10
6
Financial
34
31
2
1
Construction/Real Estate
15
14
1
0
Service
9
7
2
0
Other
5
3
0
2
Total
431
292
91
48
15
Japanese Manufacturing Companies in USA
CA
135
N=661 (2013 JETRO)
16
Timing of Incorporation
80
70
60
50
40
30
20
10
0
Numbers of Companies
72
35
46
22
44
25
36
43
41
34
36
17
Year of Establishment by County
Before 1970
1971-80
1981-90
1991-00
2001-10
After 2011
40
49
85
50
46
24
14
20
18
18
15
7
(37companies)
3
1
12
9
11
1
Others
(11companies)
0
2
1
3
5
0
LA
(294companies)
OC
(92 companies)
SD
18
Total Sales
26 (6.0%)
$1billion or more
13
$500 million -$999.9 million
n=433
(3.0%)
38
$100 million- $499.9million
26
$50 million - $99.9million
(Unit: Number of Companies）
(8.8%)
(6.0%)
73 (16.9%)
$10 million -$49.9 million
41
$5 million -$9.9 million
(9.5%)
96
$1 million -$4.9 million
(22.2%)
120 (27.7%)
Less than $1 million
0
20
40
60
80
100
120
140
19
Job Creation
Locally
hired
55,628
96.5%
n=57,617 with 414 companies' responding
20
Job Creation by Industry
Responding
Companies
Number of employees
Ratio
128
27,091
47.0%
Wholesale/Retail
67
15,950
27.7%
Service
111
6,677
11.6%
Trading
53
3,905
6.8%
Transportation
32
2,017
3.5%
Financial
15
1,319
2.3%
Construction/Real Estate
7
525
0.9%
Other
5
133
57,617
0.2%
100%
Manufacturing
Total
418
21
Salaries and Wages
(Thousand Dollars)
Total salaries and wages paid
Average salary paid
(per employee)
263,163
84.40
N=284 Companies’ responding
22
Change in Sales
0%
20%
Current
Survey(2014)
50.1%
2012 Survey
2010 Survey
2008 Survey
40%
30.9%
22.9%
48.6%
Increased over previous year
Decreased from previous year
80%
31.4%
46.5%
25.4%
60%
18.4%
22.7%
51.8%
31.4%
Did not change
100%
19.9%
n=385
23
Change in Profit
0%
Current
Survey(2014)
2012 Survey
2010 Survey
2008 Survey
20%
40%
60%
42.7%
35.1%
Increased over previous year
Decreased from previous year
100%
36.1%
36.8%
25.8%
80%
21.1%
38.0%
29.4%
24.4%
Did not change
25.2%
44.8%
40.5%
n=379
24
Future Outlook
0%
Current
Survey(2014)
2012 Survey
2010 Survey
2008 Survey
Will likely increase
20%
40%
60%
54.2%
44.2%
36.8%
43.9%
Will likely not change
80%
100%
35.6%
7.4%
39.1%
36.8%
11.2%
16.9%
43.4%
Will likely decrease
2.7%
5.5%
9.5%
12.7%
Unknown
n=404
25
Business Advantage of CA
0%
10%
20%
30%
40%
50%
65.8%
65.6%
38.1%
Logistics/Transportation
36.3%
35.9%
35.9%
Size of Japanese Community
36.0%
42.5%
35.2%
Climate
2014 Survey
70%
59.3%
Size of Market
Geographical proximity to
Japan
60%
29.5%
37.9%
25.1%
20.0%
22.2%
2012 Survey
2010 Survey
26
Concerns with Operation Business in CA
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
75.9%
Economic Slowdown
83.8%
88.7%
Labor Cost Increase
26.2%
29.7%
47.4%
45.0%
Influence of Exchange
Rate
60.4%
47.7%
20.4%
Energy and Material
Price
30.9%
23.9%
Tougher Regulations
(including environmental
and security regulations)
20.4%
17.8%
22.3%
2014 Survey
2012 Survey
2010 Survey
27
Concerns with Operation Business in CA
0%
20%
40%
60%
Labor costs (including
benefits)
60.9%
80%
67.8%
50.5%
42.8%
Taxes
46.5%
58.6%
Permit approval
procedures
16.8%
21.3%
Export/Import
procedures (including
security regulations)
Transportation
infrastructure
2014 Survey
21.6%
19.5%
19.4%
33.9%
14.9%
13.4%
23.4%
2012 Survey
2010 Survey
28
Specific Examples of Disadvantages
◆Labor Costs
・Minimum wage
・Medical Insurance costs increase
◆Tax
・Higher taxes than other states
◆Permit/License Procedures
・Long time to obtain permits and approvals
29