ECONOMIC OVERVIEW OF TOHOKU REGION 2016 Tohoku Bureau of Economy, Trade and Industry Contents 1. Overview of the Tohoku Region ..............................................................................................................................1 (1) Overview of the Tohoku Region .........................................................................................................................1 (2) Positioning of Tohoku as Shown in Major Economic Indicators .......................................................................2 2. Economic Structure and Trends in the Tohoku Region ............................................................................................3 (1) Gross Product ......................................................................................................................................................3 (2) Real Economic Growth Rate...............................................................................................................................5 (3) Population ...........................................................................................................................................................6 (4) Demographics .....................................................................................................................................................7 (5) Number of Business Establishments (Private) ....................................................................................................8 (6) Industrial Production .........................................................................................................................................10 (7) Consumption .....................................................................................................................................................12 (8) Private Sector Capital Expenditures .................................................................................................................13 (9) Acquisition of Plant Locations..........................................................................................................................15 (10) Labor Force Population...................................................................................................................................17 (11) Employment ....................................................................................................................................................18 (12) Business Entry and Exit Rates ........................................................................................................................19 (13) Internationalization .........................................................................................................................................20 (14) Tourism ...........................................................................................................................................................25 3. Industrial Structure of Tohoku................................................................................................................................27 (1) Manufacturing ...................................................................................................................................................27 (2) Commerce .........................................................................................................................................................35 (3) Service Industry ................................................................................................................................................36 (4) Agriculture, Forestry and Fisheries ...................................................................................................................39 1. Overview of the Tohoku Region (1) Overview of the Tohoku Region Gross Regional Product (GRP) (6.3% of national total) Aomori 13.7% Fukushima 22.3% Yamagata 11.9% Value of manufactured goods shipped Akita 10.8% (5.5% of national total) Fukushima 30.4% (17.7% of national total) 66,947 km (2015) Akita 17.4% Iwate 13.5% Miyagi 23.7% Yamagata 15.6% Iwate 22.8% Wholesale annual sales value Akita 7.2% (4.4% of national total) Miyagi 10.9% Fukushima 14.5% Yamagata 7.8% Total population (7.1% of national total) Fukushima 21.3% Yamagata 12.5% Retail annual sales value Akita 11.4% Akita 6.8% Aomori 11.3% Iwate 10.3% 15,545.5 billion yen (2013) (7.4% of national total) Aomori 14.6% 8,982,000 people (2015) Miyagi 27.4% 16,760 billion yen (2014) Aomori 14.4% 2 Yamagata 13.9% Iwate 14.0% Aomori 9.5% Total area Fukushima 20.6% 32,226.7 billion yen (FY2013) Fukushima 21.6% Iwate 14.2% Yamagata 12.7% Miyagi 26.0% 8,982.8 billion yen (2013) Akita 11.7% Miyagi 49.4% Aomori 13.7% Iwate 13.9% Miyagi 26.3% Economic Indicators for the Tohoku Region Item Major economic indicators Total area <Square kilometers> (As of October 1, 2015) <Note 1> Item Tohoku 66,947 Data and Source Major economic indicators National Land Area Survey of Income per capita Prefectures and Municipalities <1,000 yen> (Geospatial Information Authority of Japan) Tohoku (FY2013) Total population <1,000 people> (As of October 1, 2015) Preliminary Report on 2015 Population Census No. of business establishments 8,982 (Ministry of Internal Affairs (As of July 1, 2014) and Communications) No. of households <Thousands> (As of October 1, 2015) 3,467 Preliminary Report on 2015 Population Census No. of employees <1,000 people> (Ministry of Internal Affairs (As of July 1, 2014) and Communications) Gross Regional Product (Nominal) <100 million yen> (FY2013) 322,267 Value of manufactured goods shipped <100 million yen> (2014; businesses with four or more employees) (Primary industry) <Note 2> (Secondary industry) <Note 2> (Tertiary industry) <Note 2> No. of municipalities (As of April 1, 2016) FY2013 Annual Report on Prefectural Accounts 8,111 (Cabinet Office) Wholesale sales value 82,475 <100 million yen> Annual Report on Prefectural 2,682 Accounts (Cabinet Office) 424,333 2014 Economic Census for Business Frame (Final Report) (Ministry of Internal Affairs and Communications and Ministry of Economy, Trade and Industry) 3,758 167,600 155,455 (2013) 230,451 76 Cities Number of Municipalities in Each Retail sales value 117 Towns Prefecture <100 million yen> (Ministry of Internal Affairs 34 Villages and Communications) Data and Source 89,828 2014 Census of Manufacture (Ministry of Economy, Trade and Industry) 2014 Census of Commerce (Final Report) (Ministry of Economy, Trade and Industry) (2013) <Note 1> For the areas of prefectures with undefined boundaries, reference values recorded in the National Land Area Survey of Prefectures and Municipalities (Geospatial Information Authority of Japan) are used. <Note 2> Figures by industry are before the deduction or addition of duties, customs and so forth on imported goods. -1- (2) Positioning of Tohoku as Shown in Major Economic Indicators In Tohoku, primary industry has a large share of the overall economy. “Electronic parts, devices and electronic circuits” and “information and communications electronics equipment” have relatively large shares of the manufacturing industry. 0.0 5.0 10.0 17.7 Total area [2015] Total population [2015] 7.1 Working population [2015] 7.0 14.0 (Primary Industry) 7.5 (Secondary Industry) 6.5 (Tertiary Industry) 6.3 Gross Regional Product [FY2013] 15.1 (Primary Industry) 6.7 (Secondary Industry) 6.1 (Tertiary Industry) 7.3 No. of business establishments [2014] 6.5 No. of employees [2014] 5.5 Value of manufactured goods shipped [2014] 7.1 (Foodstuffs) 13.8 (Electronic parts, devices and electronic circuits) (Transportation equipment) (%) 20.0 15.0 2.6 15.2 (Information and communications electronics equipment) 4.4 Wholesale sales value [2013] Percentage of total population: 7.1% 7.4 Retail sales value [2013] 6.3 Department store/supermarket sales value [2015] 3.1 (Department stores) 7.9 (Supermarkets) 7.1 Convenience store sales value [2015] 7.9 New passenger car registrations [FY2015] 6.9 Housing starts [FY2015] 18.4 Value of public works contracted [FY2015] 8.0 No. of factory locations acquired [2015] (Note) The working population is based on the 2015 Population Census (Ministry of Internal Affairs and Communications). -2- 2. Economic Structure and Trends in the Tohoku Region (1) Gross Product The Gross Regional Product (GRP) is 32.2 trillion yen, or 6.34% of the national total. Changes in (Nominal) Gross Regional Product In fiscal year 2013, the Tohoku region’s GRP (nominal) was 32,226.7 billion yen, up 3.3% from the previous year, and 6.34% of the national total. The GRP increased in the three prefectures affected by the Great East Japan Earthquake mainly due to demand driven by reconstruction. 域内総生産(名目)の推移 (Trillion yen) (兆円) 50 6.11 6.11 40 30 20 10 6.34 6.24 6.17 (%) 6.50 6.10 5.93 31.2 trillion yen 32.2 trillion yen 4.5 4.4 4.4 4.5 8.5 8.8 5.30 7.7 3.4 3.6 3.5 3.6 3.5 3.7 3.5 3.8 4.90 7.0 6.9 6.3 6.7 7.2 2009 2010 2011 2012 31.3 trillion yen 30.3 trillion yen 30.4 trillion yen 29.7 trillion yen 4.5 4.2 4.4 4.1 4.4 4.1 4.4 4.2 7.9 7.8 7.8 3.5 3.8 3.4 3.5 7.4 2008 5.70 0 青森県 Aomori 岩手県 Iwate 宮城県 Miyagi 秋田県 Akita 山形県 Yamagata 福島県 Fukushima 全国比 of national total Share (右軸) (right axis) 4.50 2013 (FY) (Note) The past figures in the Annual Report on Prefectural Accounts are revised retrospectively, together with the estimates for the latest fiscal year. Source: Annual Report on Prefectural Accounts, Cabinet Office The Tohoku region’s GRP (nominal) follows those of the Kanto, Kinki, Chubu and Kyushu regions. Its share of the national total increased 0.23 points in fiscal year 2013 compared to fiscal year 2008. 地域別域内総生産(名目) (Nominal) GRP by Region (Trillion yen) 250 FY2008 230.5 227.0 Hokkaido Tohoku FY2013 200 Kanto Chubu Kinki Chugoku Shikoku 150 Kyushu 100 84.8 82.6 Okinawa Hokkaido Aomori, Iwate, Miyagi, Akita, Yamagata, Fukushima Ibaraki, Tochigi, Gunma, Saitama, Chiba, Tokyo, Kanagawa, Niigata, Yamanashi, Nagano, Shizuoka Toyama, Ishikawa, Gifu, Aichi, Mie Fukui, Shiga, Kyoto, Osaka, Hyogo, Nara, Wakayama Tottori, Shimane, Okayama, Hiroshima, Yamaguchi Tokushima, Kagawa, Ehime, Kochi Fukuoka, Saga, Nagasaki, Kumamoto, Oita, Miyazaki, Kagoshima Okinawa 57.4 59.2 50 0 18.3 18.3 Hokkaido 43.6 43.9 31.3 32.2 Tohoku 28.5 28.0 Kanto Chubu Kinki Chugoku 13.5 13.6 Shikoku 3.7 3.9 Kyushu Okinawa 北海道 東北 関東 中部 近畿 中国 四国 九州 沖縄 Changes in Shares of National Total Hokkaido FY2013 3.59 Share FY2008 3.58 FY2013–FY2008 0.01 Tohoku 6.34 6.11 0.23 Kanto 44.63 45.06 -0.43 Chubu 11.63 11.22 0.41 -3- Kinki 16.23 16.58 -0.35 Chugoku 5.51 5.57 -0.06 Shikoku 2.68 2.64 0.04 Kyushu 8.63 8.52 0.11 (Unit: %; points) Okinawa 0.76 0.72 0.04 By industry classification, primary industry accounts for 2.5%, secondary industry for 25.7%, and tertiary industry for 71.8%. Due to work related to reconstruction in the aftermath of the earthquakes, the share of the construction industry rose to10.0%. Changes in the Shares of Industry Sectors in (Nominal) GRP FY2008 31,257.7 billion yen FY2013 32,226.7 billion yen FY2013 508,645.6 billion yen Primary industry Secondary industry Private & nonprofit service producers for households Government service producers Services Information and communications Transport Real estate Finance and insurance Wholesale and retail Electricity, gas and water Construction Manufacturing Japan Agriculture, forestry and fisheries Mining Tohoku Tertiary industry (Note) The above shares are before the addition and deduction of duties, customs and so forth on imported goods. Source: Annual Report on Prefectural Accounts, Cabinet Office -4- (2) Real Economic Growth Rate The real economic growth rate in fiscal year 2014 was 0.5%, a positive growth for three consecutive years. The Tohoku region’s real economic growth rate in fiscal year 2014 was 0.5% (compared to a 1.0% drop in the real economic growth rate of Japan), continuing the trend of positive growth for three consecutive years. Changes in the Real Economic Growth Rate in the Tohoku Region (chain-linking method) Peak: February 2008 Trough: March 2009 Peak: March 2012 Trough: November 2012 Tohoku Japan Great East Japan Earthquake Lehman Shock 2004 2005 2006 2007 2008 2010 2009 2011 2012 2013 2014 2015 2016 2017 (FY) The shaded areas indicate a period of economic recession. (Note 1) The above figures are based on 93SNA (System of National Accounts), and the figures after 2005 are calculated using the chain-linking method (chain-linking price to the calendar year 2005). (Note 2) Business-cycle peaks and troughs are based on the Cabinet Office’s reference dates for the business cycle. (Note 3) The FY2014 figures for the Tohoku region are based on preliminary figures for the six prefectures in the region. (Note 4) The annual national figures are based on the Preliminary Report on Quarterly GDP for January to Mach 2016 released by the Cabinet Office on June 8, 2016. (Note 5) The national figures for fiscal years 2016 and 2017 are taken from the Mid-Year Economic Projection for FY2016 released by the Cabinet Office on July 13, 2016. (Note 6) The figures for the Tohoku region from FY2015 onward are not included, because the six Tohoku prefectures have not yet released them. Source: Early Estimates/Preliminary Report on the Annual Report on Prefectural Accounts for the six Tohoku prefectures; and the National Accounts of Japan (Final Report) and the Preliminary Report on Quarterly GDP by the Cabinet Office With respect to the level of contribution made by different economic activities (industry sectors) to the real economic growth rate in fiscal year 2014, construction and manufacturing made positive contributions of 1.3% and 0.6% respectively, while wholesale and retail had a negative impact of minus 1.0%. In terms of changes in the real economic growth rate of each prefecture in Tohoku, Fukushima and Iwate recorded positive growth for three consecutive years, while Miyagi, Akita and Yamagata turned negative. Contribution to the Real Economic Growth Rate in FY2014 by Economic Activity Changes in Real Economic Growth Rate by Prefecture (Chain-linking method) (Chain-linking method) Fukushima 3.9 Wholesale and retail Services Government service producers Agriculture, forestry and fisheries Electricity, gas and water Information and communications Transport Real estate Mining Private & non-profit service producers for households Finance and insurance Manufacturing Construction Iwate 0.7 Miyagi 0.0 Aomori 0.0 Yamagata -1.9 Akita -2.0 2009 Aomori 2010 Iwate 2011 Miyagi 2012 Akita 2013 Yamagata 2014 (FY) Fukushima Source: (2014) Estimates/Preliminary Report on the Annual Report on Prefectural Accounts for the six Tohoku prefectures (2009 to 2013) Annual Report on Prefectural Accounts, Cabinet Office Source: Estimates/Preliminary Report on the Annual Report on Prefectural Accounts for the six Tohoku prefectures -5- (3) Population The working-age population in Tohoku is projected to shrink by 32.6% between 2015 and 2040. In 2015, the Tohoku region had a population of 8.98 million, accounting for 7.1% of the national population (127.11 million people). Its population started to decrease after peaking in 1995, and is projected to drop 23.6% between 2015 and 2040 to 6.86 million, or 6.4% of the national population. Changes in the Population of the Tohoku Region (10,000 people) Aomori 1.31 million 1.28 million Iwate Share of national total Miyagi 2.33 million Akita 1.02 million Yamagata 1.12 million Fukushima 1.91 million 1955 1965 1975 1985 1995 2000 2005 2010 2015 2020 2030 2040 (Note) The above estimates are based on medium assumptions of births and deaths. Source: (1955 to 2015) Population Census of Japan by the Statistics Bureau of the Ministry of Internal Affairs and Communications (the figures for 2015 are based on the preliminary report on population data) (From 2020 onward) Population Projection by Prefecture by the National Institute of Population and Social Security Research (Projection form March 2013) In terms of population changes in three age groups between 2015 and 2040, the working-age population (15 to 64 year olds) and the child population (0 to 14 year olds) are projected to decrease by 1.71 million and 400,000 respectively, while the elderly population (aged 65 or older) is projected to increase by 100,000. Population Trends of Three Age Groups (10,000 people) 1995 2000 2005 Child population 2010 2015 Working-age population Source: (1995 to 2015) 2020 2030 2040 Elderly population Population Census of Japan by the Statistics Bureau of the Ministry of Internal Affairs and Communications (the figures for 2015 are based on a preliminary report on sample population) (From 2020 onward) Population Projection by Prefecture, the National Institute of Population and Social Security Research (Projection from March 2013) -6- (4) Demographics Tohoku’s population shrank by 47,000 due to natural population decline, and by 22,000 due to net migration loss. In 2015, the number of live births in the Tohoku region was 63,300, down 900 from the previous year, while there were 110,700 deaths, up 900 from the previous year. As a result, natural population decline increased from 45,600 people in the previous year to 47,400 people. 85,700 people moved to the Tohoku region, and 107,500 people moved out of the region. As a result, the region’s net migration loss (arrivals minus departures) increased from 17,400 people in 2014 to 21,800 people. For individual prefectures, Miyagi Prefecture recorded a net migration loss for the first time in four years. This meant that all six Tohoku prefectures incurred net migration loss. Changes in the Number of Live Births and Deaths (1,000 people) Changes in Arrivals and Departures (1,000 people) 2000 2005 2010 2013 2014 Number of Number of live births deaths 2015 2000 2005 2010 2013 Numbers of arrivals (Note) The figures for natural population decline and net migration loss may not match because the number of live births and the number of deaths are rounded. 2014 2015 Numbers of departures (The numbers of arrivals/departures do not include people who moved within the Tohoku region.) Source: Annual Report on the Internal Migration in Japan Derived from the Basic Resident Registers, Ministry of Internal Affairs and Communications Source: Annual Report on Demographic Statistics, Ministry of Health, Labour and Welfare Comparison of Net Migration Loss in Tohoku Prefectures (2014/2015) (1,000 people) Arrivals – Departures Aomori Iwate Miyagi Akita Yamagata Fukushima Tohoku 2014 6.5 3.2 2.4 4.4 3.6 2.2 17.4 2015 6.6 4.1 0.1 4.5 4.1 2.4 21.8 Source: Annual Report on the Internal Migration in Japan Derived from the Basic Resident Registers, Ministry of Internal Affairs and Communications There were approximately 470,000 evacuees and displaced people immediately after the Great East Japan Earthquake. Their number dropped to around 148,000 as of July 2016. (Number of evacuees as of July 2015: 202,000 people) The number of evacuees, etc. of the Great East Japan Earthquake (By prefecture of evacuation) Yamagata Fukushima Miyagi Akita Iwate Out of Tohoku Total of 147,772 people Aomori [Evacuees who moved to other prefectures] 40,982 people from Fukushima, 5,930 people from Miyagi, and 1,390 people from Iwate Source: Reconstruction Agency survey (as of July 14, 2016) -7- (5) Number of Business Establishments (Private) Private business establishments in Tohoku represent 7.3% of the national total, while the number of employees accounts for 6.5% of the national total. In 2014, the Tohoku region had 424,333 private business establishments, or 7.3% of the national total (5,779,072 establishments). The number rose 0.9% from the previous survey conducted in 2012. In particular, Miyagi and Iwate saw a significant growth of 5.4% and 1.7% respectively. Number of Private Business Establishments and Employees by Prefecture Number of business establishments 2012 Aomori Iwate Miyagi Akita Yamagata Fukushima Tohoku Japan 2014 61,549 59,537 98,190 52,285 59,304 89,518 420,383 5,768,489 Number of employees Share in national total (%) 1.1 1.0 1.8 0.9 1.0 1.6 7.3 100.0 Change (%) 1.1 1.7 5.4 2.2 1.7 0.5 0.9 0.2 60,866 60,543 103,505 51,156 58,292 89,971 424,333 5,779,072 2012 2014 503,372 509,979 955,780 418,749 479,223 782,816 3,649,919 55,837,252 508,770 536,313 1,010,795 418,534 480,627 803,372 3,758,411 57,427,704 Change (%) 1.1 5.2 5.8 0.1 0.3 2.6 3.0 2.8 Share in national total (%) 0.9 0.9 1.8 0.7 0.8 1.4 6.5 100.0 Ratios of Private Business Establishments and Employees by Prefecture (2014) Number of business establishments 424,333 establishments Number of employees 3,758,411 people Aomori Iwate Miyagi Akita Yamagata Fukushima (Note) The number of business establishments includes businesses whose business details are unclear. Source: 2012 Economic Census for Business Activity and 2014 Economic Census for Business Frame (Final Report), Ministry of Internal Affairs and Communications and the Ministry of Economy, Trade and Industry In terms of the ratios of private business establishments by industry (large classification), wholesale and retail have the largest share at 26.8%, followed by accommodation and food services at 12.1% and construction at 10.9%. The tertiary industry has a significant share at 81.0%. In comparison to 2012, medical and welfare services increased their share by 0.8 points. Changes in Ratios of Private Business Establishments by Industry (Large Categories) 2012 404,616 establishments Construction Manufacturing 2014 414,900 establishments Construction Manufacturing Agriculture, forestry and fisheries Primary industry 4,062 establishments (1.0%) Mining, quarrying and gravel extraction Secondary industry 74,713 establishments Accommodation and food services Wholesale and retail trade Accommodation and food services Wholesale and retail trade Living-related services and leisure services Living-related services and leisure services Transport and postal services 2.3% Scientific research, professional and technical services 3.5% Finance and insurance Information and communications 0.7% Real estate and goods rental Electricity, gas, heat and leasing supply and water 0.1% Tertiary industry 336,125 establishments (81.0%) Medical and welfare services Medical and welfare services Education/ learning support Services (not classified into other categories) Services (not classified into other categories) Composite services 0.9% (Note) The number of business establishments by industry includes only those for which required values could be obtained. Source: 2012 Economic Census for Business Activity and 2014 Economic Census for Business Frame (Final Report), Ministry of Internal Affairs and Communications and the Ministry of Economy, Trade and Industry -8- In 2014, the total number of employees in the Tohoku region was 3,758,000, representing 6.5% of the national total (6.5% in the previous survey). In terms of the number of employees hired by private business establishments by industry (large categories), primary industry hired 1.2%, secondary industry 26.1%, and tertiary industry 72.7%. In comparison with 2012, the number of employees in medical and welfare services rose by 1.5 points, while those hired in the manufacturing industry decreased by 0.8 points. Changes in Ratios of Employees by Industry (Large Categories) 2012 3,649,919 people Construction Manufacturing 2014 3,758,411 people Construction Manufacturing Agriculture, forestry and fisheries Primary industry 46,216 people (1.2%) Mining, quarrying and gravel extraction Electricity, gas, heat supply and water 0.4% Secondary industry 981,634 people (26.1%) Transport and postal services Transport and postal services Wholesale and retail trade Wholesale and retail trade Information and communications 1.2% Finance and insurance 2.4% Accommodation and food services Accommodation and food services Medical and welfare services Medical and welfare services Education/ Living-related services learning support and leisure services 2.5% 4.5% Scientific research, professional and technical services 2.3% Tertiary industry 2,730,561 people (72.7%) Real estate and goods rental and leasing 2.0% Services (not classified into other categories) Services (not classified into other categories) Composite services 1.3% (Note) The figures for 2012 were as of February 1, 2012, while the figures for 2014 were as of July 1, 2014. Source: 2012 Economic Census for Business Activity and 2014 Economic Census for Business Frame (Final Report), Ministry of Internal Affairs and Communications and the Ministry of Economy, Trade and Industry -9- (6) Industrial Production Recovered in early 2015 but weakened thereafter The Tohoku Region’s Industrial Production Index in 2015 dropped 0.8% from the previous year to 95.3 (2010=100). By quarter, the Industrial Production Index (seasonally adjusted: 2010=100) in the 1st quarter of 2015 recovered from 2014 and rose 3.0%, quarter over quarter, to 98.2, thanks to various factors including an increase in exports to North America due to the better export environment. From the 2nd to 4th quarters, information and communications electronics equipment contracted significantly due to the weak domestic market, and the impact of the slowing Chinese economy became evident in electronic parts and devices and general-purpose, production and business oriented machinery, among others. As a result, industrial production weakened overall and the Industrial Production Index dropped for the three consecutive quarters by 3.4%, 0.5% and 0.4% quarter over quarter, respectively. The Industrial Production Index therefore decreased from 98.2 in the 1st quarter to 94.0 in the 4th quarter. In the first six months of 2016, the quarterly Industrial Production Index rose 3.3% in the 1st quarter from the previous quarter, and reached 97.1 mainly due to the steady production of general-purpose, production and business machinery aided by the impact of an increase in production facilities and semi-conductor related demand, despite poor domestic demand in some industries and items and the continued impact of the slowing Chinese economy. In the 2nd quarter, the Index dropped 0.5% to 96.6 quarter over quarter, due to the impact of the Kumamoto earthquake in April and the continued impact of the slowing Chinese economy, although there was steady production of some items thanks to some factors including an increase in production facilities. Changes in the Industrial Production Index (Index) Peak March Trough 2012 March Trough November 2009 2012 Peak February 2008 Annual index: original index; quarterly index: seasonally adjusted, 2010 = 100 Consumption hike from 5 to 8% Great East Japan Earthquake 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 Lehman Shock 2010 2011 Production in Tohoku 2012 2013 2014 2015 2016 Production in Japan (Note) Business-cycle peaks and troughs are based on the Cabinet Office’s reference dates of business cycle. (The shaded area represents a period of economic recession.) The Production Index for Japan is prepared by the Ministry of Economy, Trade and Industry, while the Production Index for Tohoku is prepared by the Tohoku Bureau of Economy, Trade and Industry. The Indexes for both Tohoku and Japan are annualized for the period from January 2015. The Indexes for both Tohoku and Japan are revised based on the figures for 2010 as the base values. - 10 - In 2015, the following industry sectors had negative year-over-year Production Index growth: foodstuffs and tobacco (down 11.8%), information and communications electronics equipment (down 10.6%), among others. On the other hand, the 2015 Production Index rose year over year for electrical machinery (up 13.2%), metal products (up 10.2%) and others. In terms of the level of contribution by industry sector, foodstuffs and tobacco, for which factories were closed for some items, and information and communications electronics equipment, which had poor performance due to the weak domestic market, had negative contributions to the overall result, at minus 1.16 and minus 0.78, respectively. Meanwhile, positive contributions to the Production Index were made by electronic parts and devices, which had steady performances helped by the demand for in-car products (0.84), electrical machinery, whose performance was solid as it was supported by reconstruction demand (0.57), and metal products (0.45), among others. 2015 Year-on-year Growth 2015 Industry Sector Contribution (% point) to in Production Index (%) Year-on-year Production Growth (minus 0.8%) Electrical machinery Electronic parts and devices Metal products Electrical machinery Electronic parts and devices Metal products Pulp, paper and paper products Pulp, paper and paper products Plastic products Plastic products Chemical and petroleum products Chemical and petroleum products General-purpose, production and business oriented machinery Mining Non-ferrous metals Non-ferrous metals Iron and steel Iron and steel Transportation equipment Textile products Other manufacturing Ceramic, stone and clay products Ceramic, stone and clay products Other manufacturing Mining General-purpose, production and business oriented machinery Textile products Transportation equipment Information and communications electronics equipment Information and communications electronics equipment Foodstuffs and tobacco Foodstuffs and tobacco The figures in parentheses show the weight of the relevant industry sector. (Note) Weight: The share of each industrial sector in the total (Total of mining and industrial production = 10,000) Contribution: Breakdown of the percentage change of the entire production by industry sector. It shows the impact of any changes in the production of the relevant industrial sector on the entire production. Prepared by the Tohoku Bureau of Economy, Trade and Industry By product category, capital goods production rose 2.5% in 2015 over 2014 levels thanks to contributions from water gates, cameras, electric testers and so forth, while construction materials production shrank 1.7% year over year due to the smaller production of general materials and aluminum exterior materials. The production of consumer durables contracted by 2.8% from 2014, led by PCs and car navigation systems, among other products. The production of consumer non-durables also dropped 5.1% compared to 2014 as the production of tobaccos, beers and other products dwindled. The production of producer goods also shrank by 0.1% from a year earlier due to the smaller production of hydraulic equipment, glass fiber products and ball bearings and so forth, although the production of silicon wafers, connectors, lithium ion storage batteries, and others increased. Changes in Production Index (Seasonally Adjusted) by Industry Sector Industrial Production Trend (By Goods) 2008 2014 2015 General-purpose, production and business machinery Information and communications equipment Transport machinery Food and tobacco 2009 2010 2011 2012 2013 2014 2015 2016 Electronic parts and devices Prepared by the Tohoku Bureau of Economy, Trade and Industry Capital goods Construction goods Consumer nondurable goods Producer goods Consumer durables Prepared by the Tohoku Bureau of Economy, Trade and Industry - 11 - (7) Consumption Department store/supermarket sales value Sales at department stores and supermarkets increased four years in a row on an all-store basis, while sales at existing stores dropped for the third consecutive year. In 2015, department stores and supermarkets in the Tohoku region recorded 1,258.8 billion yen in sales on an all-store basis, up 0.6% from the previous year and marking 2015 the fourth consecutive year of sales growth. Meanwhile, sales at the existing stores shrank 0.7% year over year, declining for three consecutive years. In terms of year-over-year comparison of sales by store type (on an all store basis), department store sales decreased 1.9%, the third consecutive year of decrease, while supermarket sales increased 1.1%, recording the fifth consecutive year of growth. Department Store/Supermarket Sales Value and Year-on-year Changes (All Store Basis) (Sales value; 100 million yen) (Year-on-year comparison; %) Department stores + supermarkets (all stores) Supermarkets (all stores) Department stores + supermarkets (existing stores) Department stores (all stores) Supermarket sales value Department store sales value 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (Note 1) Existing stores refer to the stores that existed both in the month when the survey was conducted and in the same month of the previous year. (Note 2) In July 2010 and July 2015, a review was conducted on the business establishments covered by the survey. As a result, the year-on-year changes related to these establishments are calculated using figures obtained by applying the link coefficient to eliminate any discontinuity. Source: Current Survey of Commerce, Ministry of Economy, Trade and Industry Sales value in 2015 (existing stores) was smaller than that of the previous year until March due to a reaction to the last-minute surge in demand ahead of the consumption tax rate hike in the previous year. This was especially evident for high-ticket items and cosmetics sold in department stores and long-shelf-life drinks and food items sold in supermarkets. However, sales increased in April and May for many products. From June onward, despite the weak performance of clothing items, sales of beverages and foodstuffs were steady, and high-ticket item sales improved, mainly in the Sendai region. Throughout 2015, sales were affected by uncertain weather conditions such as the record heat, disasters caused by heavy rain, and a warmer winter. The sales value for department stores and supermarkets in the 1st to 2nd quarters of 2016 remained steady for items such as drinks/foods and cosmetics, but sales of high-ticket items such as overseas brand products and expensive watches slowed in the 2nd quarter. Year-on-year Changes in Quarterly Sales at Department Stores/Supermarkets (All Stores) Supermarkets Department stores Total 2013 2014 2015 Year-on-year Changes in Quarterly Sales at Department Stores/Supermarkets (Existing Stores) 2nd quarter of 2016 (all stores) Total: -0.4 Department stores: -1.1 Supermarkets: -0.3 2016 Supermarkets Total 2013 Source: Current Survey of Commerce, Ministry of Economy, Trade and Industry - 12 - 2nd quarter of 2016 (existing stores) Total: -0.8 Department stores: -1.1 Supermarkets: -0.7 Department stores 2014 2015 2016 Source: Current Survey of Commerce, Ministry of Economy, Trade and Industry (8) Private Sector Capital Expenditures The private sector’s capital spending plans expanded for the third consecutive year in FY2016. The private sector in the Tohoku region YOY Changes in Capital Expenditures plans capital expenditures worth 418.7 in the Tohoku Region billion yen (according to the June 2016 survey) in fiscal year 2016, up 13.2% from their actual capital spending in the previous fiscal year. The manufacturing industry plans to spend 17.4% more than the previous year, which will be the first increase in two years, while the non-manufacturing industry plans to increase its capital expenditures by 8.5% from the previous year (or by 27.4% for the nonmanufacturing industry excluding FY2011 FY2012 FY2013 FY2014 FY2015 (actual) FY2016 (plan) electricity). According to the capital spending Manufacturing All industries Non-manufacturing (excl. electricity) plans as of June 2015 when the survey Non-manufacturing was conducted, the amount of capital Source: Survey on Planned Capital Spending in the Tohoku Region, expenditures in fiscal year 2015 was Development Bank of Japan * The published data were recalculated for the six Tohoku prefectures. projected to be 4.4% smaller than the The same shall apply hereinafter. actual amount spent in fiscal year 2014. However, the actual amount spent in fiscal year 2015 turned out to be 2.1% larger than that of fiscal year 2014. This reflects a 7.0% year-over-year decrease in capital spending by the manufacturing industry and a 4.8% year-over-year increase in capital spending by the non-manufacturing industry (or a 16.7% drop in capital spending by the non-manufacturing industry excluding electricity expenses). By industry sector, capital expenditures in fiscal year 2016 are projected to increase over the previous fiscal year in chemicals, for which investments will be made to increase production capacities of pharmaceutical products, as well as of foodstuffs and general machinery, whose production facilities are also to be expanded. Meanwhile, reduced capital expenditures on paper/pulp, petroleum products and precision machinery, among others are planned. In the non-manufacturing industry, capital spending will increase for wholesale and retail, real estate and so forth, while it will decrease for electricity, gas, and rental and lease of equipment, among others. Capital Spending Trend (FY2016 Plan) YOY change in FY2016 (%) Foods Chemicals Ceramic, clay and stone products NonGeneral ferrous machinery metals Electrical machinery Iron and steel Paper/pulp Other nonmanufacturing Real estate WholeConstruc- sale and retail Transpor- tion trade tation Transport equipment Precision machinery Communications and information Services Other manufacturing Electricity Textile Petroleum YOY change in FY2016 Percentage ratios in FY2015 Percentage ratios of capital spending by industry sector in FY2015 (%) Source: Survey on Planned Capital Spending in the Tohoku Region, Development Bank of Japan - 13 - Gas Leasing By prefecture, Aomori and Akita plan to reduce their fiscal year 2016 capital expenditures by 22.1% and 6.9%, respectively, compared to the previous year, while Iwate, Miyagi, Yamagata and Fukushima plan to increase their capital spending by 12.3%, 11.2%, 63.0%, and 25.9%, respectively. Changes in Capital Expenditures by Prefecture (100 million yen) Nonmanufacturing YOY change of FY2016 plan Nonmanufacturing Manufacturing Manufacturing FY2015 Actual FY2016 FY2015 Plan Actual Aomori FY2016 Plan Iwate FY2015 Actual FY2016 Plan Miyagi FY2015 Actual FY2016 FY2015 Plan Actual Akita FY2016 Plan Yamagata FY2015 Actual FY2016 Plan Fukushima Source: Survey on Planned Capital Spending in the Tohoku Region, Development Bank of Japan - 14 - (9) Acquisition of Plant Locations Plant location acquisitions decreased for three consecutive years. In 2015 (from January to December), the number of plant location acquisitions in the Tohoku region decreased by 5 (or 5.6%) to 84 from the previous year, making it the third consecutive year of decrease. The region’s share of the national total also dropped 0.7 points to 8.0%. By prefecture, Miyagi had the largest number of plant location acquisitions at 35 (32 in 2014), followed by Yamagata at 16 (eight in 2014), Fukushima at 15 (25 in 2014), Iwate at seven (12 in 2014), Akita at seven (five in 2014) and Aomori at four (seven in 2014). The number of plant location acquisitions increased significantly in Yamagata by eight. Plant location acquisitions in the coastal area, which was affected by the Great East Japan Earthquake (acquisitions with a plan to close down all or part of an existing plant), increased by two to nine from the previous year. Changes in Number of Plant Location Acquisitions (Acquisitions) Aomori Iwate Miyagi Akita Yamagata Share of national total (right axis) Fukushima 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (Note 1) The above figures include the acquisition (including leasing) of land of a size of 1,000 square meters or larger for the purpose of building a factory, business office or research center for the manufacturing, gas or heat supply industries. They do not include the acquisition of locations in vacant plants and for-lease plants, which seem to have increased after the earthquakes. (Note 2) Hydraulic power plants, geo-thermal power plants and solar power plants were excluded from the 2015 and subsequent surveys. Accordingly, the above comparison is made excluding the electricity industry. Source: Survey of Factory Location Trends (2015 Preliminary Report), the Tohoku Bureau of Economy, Trade and Industry The top five industry sectors (excluding electricity) in terms of the number of plant location acquisitions are: foodstuffs (15), metal products (12), lumber and wood products (seven), plastic products (six) and production machinery (six). Of the 84 location acquisitions in 2015, the number of “new” locations dropped by eight to 67 from the previous year. In terms of the source of capital, 37 locations were acquired with capital raised within the Tohoku region (46 in the previous year), while 30 locations were acquired with capital from outside the region (29 in the previous year). Capital from outside the Tohoku region accounted for 44.8% (up 6.1 points from the previous year). - 15 - Distribution of Plant Location Acquisitions by Industry Sector and Prefecture (2015) (Number of acquisitions) Foodstuffs Metal products Lumber and wood products Plastic products Production machinery Textile products Transportation equipment Chemical products Non-ferrous metals Beverages/tobacco/feedstuff Ceramic, clay and stone products Business oriented machinery Electronics/devices Furniture/fixtures Pulp/paper Printing Rubber products Iron and steel General-purpose machinery Changes in Number of New Locations Acquired by Source of Capital (Within or outside the Tohoku region) (Number of acquisitions) Ratio of capital from outside the region (Right axis) Outside the region: 30 locations Aomori Iwate Inside the region: 37 locations Miyagi Akita Yamagata Fukushima (Note 1) Excludes electricity. Source: Survey of Factory Location Trends (2015 Preliminary Report), the Tohoku Bureau of Economy, Trade and Industry - 16 - 2013 2014 2015 (Note 1) Excludes electricity. (Note 2) Capital from outside the region refers to capital provided by companies whose head office is located outside the Tohoku region or by a separate company established in Tohoku. Source: Survey of Factory Location Trends (2015 Preliminary Report), the Tohoku Bureau of Economy, Trade and Industry (10) Labor Force Population 4.45 million people are employed, 160,000 people have no jobs, and 3.28 million people are not classified as part of the labor force population. In 2015, the number of people with jobs in the Tohoku region was 4.45 million, while the number of people without jobs was 160,000. Both figures are below those for 2010, before the Great East Japan Earthquake occurred. The unemployment rate remained flat from the previous year at 3.6%. People in employment (10,000 people) (10,000 people) Changes in the Unemployment Rate and People without Jobs 4.45 million 160,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 People without jobs Tohoku Japan Source: Labor Force Survey, Ministry of Internal Affairs and Communications (Note) The figure for 2011 is an estimate made as supplementary data due to the impact of the East Great Japan Earthquake. Source: Labor Force Survey, Ministry of Internal Affairs and Communications All six Tohoku prefectures have a higher employment rate than the national average among women aged 25 to 44 who have a young child (or children). Yamagata has the second highest employment rate among this group of people following Shimane (74.8%). By industry, wholesale and retail hire the largest number of people at 700,000 (15.8%), followed by manufacturing with 670,000 people (15.1%), medical and welfare services with 570,000 people (12.8%), construction with 490,000 people (11.0%), and agriculture and forestry with 280,000 people (6.3%). Employment Rate of Women Aged 25 to 44 Who Have a Young Child (or Children) Number of People Employed by Each Industry Sector (2015) Unclassified 4 Public services 18 Fisheries 4 1,000 people (or 100,000 people for national figures only) Services 26 Composite services 6 Mining, stone quarrying, gravel extraction 0 Agriculture and forestry 28 Construction 49 Medical and welfare services 57 10,000s of people (Total 4.45 million) Education/learning support 19 Living-related services/leisure services 16 Electricity, gas, heat supplies and water 3 Accommodation/ food services 25 Aomori Iwate Miyagi Employed Akita Unemployed Yamagata Fukushima Japan Employment rate Scientific research, professional and technical services 10 Real estate and goods rental and leasing 5 Source: Employment Status Survey, Ministry of Internal Affairs and Communications - 17 - Manufacturing 67 Information and communications 7 Wholesale and retail trade 70 Finance and insurance 9 Transport and postal services 21 (11) Employment Both the new job openings-to-applicants ratio and active job openings-to-applicants ratio remain high. In 2015, the active job openings-to-applicants ratio in Tohoku remained high as in elsewhere in Japan. It reached 1.23 in July (1.23 openings per applicant), and the annual average (1.21) was 0.08 points higher than the previous year. By prefecture, all prefectures except Aomori had a ratio higher than 1.0. In addition, the new job openings-to-applicants ratio also remained high, and was over 1.0. It rose to 1.73 in October. The annual average was 1.69, which was 0.09 points higher than the previous year. Changes in the Job Openings-to-Applicants Ratio (Times) (Times) 2010 2011 Japan (New job openings-toapplicants ratio) 2012 2013 Tohoku (New job openings-toapplicants ratio) 2015 Average Aomori Iwate Miyagi Akita Yamagata Fukushima Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. Jan. Mar. May Jul. Sep. Nov. 2015 Average Japan (New job openings-to-applicants ratio) 1.80 Tohoku (New job openings-to-applicants ratio) 1.69 Japan (Active job openings-to-applicants ratio) 1.20 Tohoku (Active job openings-to-applicants ratio) 1.21 Active Job Openings-to-Applicants Ratio by Prefecture 2014 Japan (Active job openings-toapplicants ratio) 2015 2016 2010 Tohoku (Active job openings-toapplicants ratio) 2011 Aomori Source: Employment Referrals for General Workers, Ministry of Health, Labour and Welfare Iwate 2012 2013 Miyagi 2014 Akita 2015 Yamagata 2016 Fukushima Source: Employment Referrals for General Workers, Ministry of Health, Labour and Welfare With respect to fiscal year 2015 prospective high-school graduates, both the jobs-to-applicants ratio and the percentage of those who had found a job as of March 2016 were higher than the same time the previous year. The ratio of non-regular employees/staff to the total number of employed people is lower than the national average, but rose in 2015 from the previous year. Prospective High-School Graduates Who Found employment (as of March 31 each year) Changes in the Ratio of Non-regular Employees/Staff (Times) 2007 2008 2009 2010 2011 Ratio of prospective high-school graduates who have found a job 2012 2013 2014 2015 2007 (FY) Jobs-to-applicants ratio (right axis) Source: State of Unofficial Acceptance of Employment for Newly Graduates of Junior and High Schools, Ministry of Health, Labour and Welfare 2008 2009 2010 2011 Japan 2012 2013 2014 2015 Tohoku (Note) No data was collected in 2011 due to the Great East Japan Earthquake. Source: Labor Force Survey, Ministry of Internal Affairs and Communications - 18 - (FY) (12) Business Entry and Exit Rates The business entry rate decreased for the third consecutive year, while the business exit rate increased slightly. According to employment insurance statistics, in fiscal year 2015, the business entry rate in the Tohoku region was 4.22%, decreasing for the third consecutive year. After the Great East Japan Earthquake, the business entry rate rose in fiscal years 2011 and 2012 mainly in Miyagi, Fukushima and Iwate. However, it started to decrease from fiscal year 2013. The business entry rate for Japan has risen for the fourth consecutive year, to reach 5.2%. The business exit rate rose slightly to 3.3%, compared to 3.8% for Japan as a whole. Changes in Business Entry and Exit Rates in Japan and Tohoku Changes in Business Entry Rate in Tohoku Prefectures Business entry rate in Japan Miyagi Business entry rate in Tohoku Fukushima Business exit rate in Japan Iwate Yamagata Aomori Business exit rate in Tohoku Akita 2010 2011 2012 2013 2014 2015 (FY) 2010 2011 2012 2013 2014 2015 (FY) (Note) The business entry and exit rates are calculated using the following formulas, based on data from the Annual Reports on Employment Insurance Services: Business entry rate=Number of business establishments newly applying for employment insurance in the relevant business year / Number of business establishments covered by employment insurance as of the end of the previous business year x 100 (%) Business exit rate=Number of business establishments that ceased to be covered by employment insurance in the relevant business year / Number of business establishments covered by employment insurance as of the end of the previous business year x 100 (%) * The business establishments covered by employment insurance mean business establishments that have an insurance relationship for employment insurance pursuant to the provisions of the Act on the Collection, etc., of Insurance Premiums of Labor Insurance. An existing business establishment does not become a business establishment covered by employment insurance until it hires an employee. Source: Monthly and Annual Reports on Employment Insurance Services, Ministry of Health, Labour and Welfare In terms of the difference between the business entry rate and the business exit rate in fiscal year 2015, the business entry rate exceeded the business exit rate by 1.4 points for Japan and by 0.9 points in Tohoku. By prefecture, the business entry rate exceeded the business exit rate in Miyagi, Yamagata and Fukushima, while the business exit rate was higher than the business entry rate in Aomori, Iwate and Akita. Business Entry and Exit Rates in FY2015 Business entry rate Business exit rate Japan Tohoku Aomori Iwate Miyagi Akita Yamagata Source: Monthly and Annual Reports on Employment Insurance Services, Ministry of Health, Labour and Welfare - 19 - Fukushima (13) Internationalization Trade Exports increased for the fourth consecutive year, while imports decreased for the first time in four years. In 2015, exports(Note) from the Tohoku region rose 3.4% from the previous year to reach 656.1 billion yen, for the fourth consecutive year of growth. This was mainly attributable to an increase in the export of ships and office equipment. The region’s exports stood at 101.2% compared to 2010, exceeding the level recorded before the Great East Japan Earthquake. Meanwhile, imports(Note) decreased 19.0% year over year to 1,517.6 billion yen, marking the first decrease in four years. This reflected decreases in the imports of major items such as crude oil, raw oil, and metallic ores/scrap metals, and an increase in the importation of electronic parts such as semiconductors. The Tohoku region accounted for 0.9% of Japan’s exports (0.9% in 2014) and 1.9% of its imports (2.2% in 2014). Changes in Exports and Imports in the Tohoku Region (100 million yen) 2005 2006 2007 Exports 2008 Imports 2009 2010 2011 Share of Japan’s exports (right axis) 2012 2013 2014 2015 Share of Japan’s imports (right axis) (Note) The value of cargos that passed through export and import customs clearances at the customs offices in the six Tohoku prefectures Source: Overview of Trade in the Tohoku Region, Yokohama Customs, Ministry of Finance By port, Sendai-Shiogama Port handles the largest volume in the Tohoku region based on the value of exports, followed by the Port of Hachinohe and Sakata Port. Based on the value of imports, Sendai-Shiogama Port ranked first, followed by Onahama Port and the Port of Hachinohe. In comparison to the previous year, imports to many ports shrank. In particular, imports to Sendai-Shiogama Port dropped significantly. 2014/2015 Trade Value by Port in the Tohoku Region (100 million yen) Aomori Port Exports 2014 2015 Port of Hachinohe Miyako Port Kamaishi Port Port of Ofunato Ishinomaki Port Sendai-Shiogama Port Sendai Airport Akita Port/ Funagawa Port Sakata Port Soma Port Onahama Port Source: Ranking of Major Ports Based on the Value of Trade, Yokohama Customs, Ministry of Finance - 20 - Imports 2014 2015 Major destinations of Tohoku’s exports are the United States (U.S.), the People’s Republic of China (PRC) and the Republic of Korea (ROK), while the major sources of imports are Australia, the PRC and the U.S. Major export items include office equipment, rubber products, and iron and steel, while major import items include metallic ores and metal scraps, crude oil and raw oil, and coal. 2015 Major Destinations of Exports (Countries/Regions) 2015 Major Sources of Imports (Countries/Regions) Australia Other U.S. Vietnam PRC 12.1% Other Liberia Philippines Malaysia PRC Thailand U.S. 10.7% Chile Singapore Taiwan Kuwait 7.2% Indonesia ROK Netherlands ROK United Arab Emirates (UAE) Source: Overview of Trade in the Tohoku Region, Yokohama Customs, Ministry of Finance Source: Overview of Trade in the Tohoku Region, Yokohama Customs, Ministry of Finance 2015 Percentage Ratios of Export Items by Value Other Office equipment Rubber products Organic compound Iron and steel Russia 2015 Percentage Ratios of Import Items by Value Electronic parts including semiconductors Metallic ores/scrap metals Crude oil/raw oil Other Lumber Petroleum products Memory devices (including those containing recorded data) Motors Coal Grains/grain products Seafood/seafood products Petroleum products Paper/paper products Wood and cork products (excl. furniture) 3.7% Metallic ores/scrap Ships metals Source: Overview of Trade in the Tohoku Region, Yokohama Customs, Ministry of Finance Natural gas/ manufactured gas 7.1% Source: Overview of Trade in the Tohoku Region, Yokohama Customs, Ministry of Finance ● Approximately 33.4% of cargos produced in the Tohoku region and exported in marine containers were loaded in the Port of Yokohama, while 29.2% were loaded in the Port of Tokyo. A large proportion of cargos, therefore, were loaded in ports located outside the Tohoku region. In addition, 32.8% of cargos consumed in the Tohoku region were unloaded in the Port of Tokyo, and 17.1% in the Port of Yokohama. Loading Ports of Export Cargos (tons) (November 2013) (Place of production: Tohoku) Unloading Ports of Import Cargos (tons) (November 2013) (Place of consumption: Tohoku) Other ports outside the Tohoku region Other ports in the Tohoku region 4.6% 2.4% Other ports in the Tohoku region Other ports outside the Tohoku region 5.4% 5.8% Port of Hachinohe 5.4 % Port of Hachinohe 4.1% Akita Port 5.9 % SendaiShiogama Port 19.1% Port of Yokohama 33.4% Akita Port 12.3% Port of Yokohama 17.1% Port of Tokyo 29.2% Port of Tokyo 32.8% SendaiShiogama Port 22.4% (Note) This survey is conducted once every five years to gain a grasp of the movements of international marine containers in detail. Source: FY2013 Survey Results of Japan’s Export and Import Container Cargo Movements, Ports and Harbors Bureau, Ministry of Land, Infrastructure, Transport and Tourism - 21 - Internationalization of corporate activities The number of overseas subsidiaries of companies headquartered in the Tohoku region and their direct exports both decreased. The number of overseas subsidiaries and affiliates owned by companies headquartered in the Tohoku Region (the number of companies that responded to the survey: 1,536 companies) dropped by 23 from the previous year to 218, as of the end of March 31, 2014. (When a company owns over 50% of the voting rights of another company, the latter is the former’s subsidiary; if a company owns 20 to 50% of the voting rights of another company, the latter is the former’s affiliate.) The largest percentage of these overseas subsidiaries/affiliates are in China (84 companies, or 38.5% of the total), followed by other Asian countries (84 companies, or 38.5%) and North America (21 companies, or 9.6%). (Companies) Changes in the Number of Overseas Subsidiaries/ Affiliates Owned by Companies Headquartered in the Tohoku Region FY2007 FY2008 FY2009 Asia (excl. China) FY2010 China Europe FY2011 FY2012 North America FY2013 (as of March 31, 2014) Other regions (Note) The Basic Survey of Japanese Business Structure and Activities surveys companies with 50 or more employees and a capital amount or equity investment amount of 30 million yen or more, that own a business establishment that engages in mining, manufacturing, electricity and gas, wholesale, retail, services or other businesses. Source: Basic Survey of Japanese Business Structure and Activities, Ministry of Economy, Trade and Industry ●With respect to overseas transactions of companies (fiscal year 2013), the value of direct exports (based on answers from 146 companies) decreased to 413.7 billion yen year over year. The ratio of exports to sales at the companies that responded the survey was 22.5%. Meanwhile, the value of direct imports (based on answers from 161 companies) rose for the second consecutive year, reaching 378.2 billion yen. The ratio of imports to total purchases at importing companies was 24.2%. Changes in Values of Direct Exports and Imports by Companies Headquartered in the Tohoku Region (100 million yen) 2007 2008 Value of direct exports 2009 2010 Value of direct imports 2011 Ratio of exports (right axis) 2012 2013 (FY) Ratio of imports (right axis) (Note) The value of direct exports is the value of exports whose customs clearance procedures were taken in the name of the exporting company (excluding services). The value of direct imports is the value of imports whose customs clearance procedures were taken in the name of the importing company (excluding services). Source: Basic Survey of Japanese Business Structure and Activities, Ministry of Economy, Trade and Industry - 22 - International Arrivals/Departures and Foreign Residents The number of non-Japanese nationals arriving and departing through ports and airports in Tohoku is increasing. The total number of people arriving and departing through ports and airports in Tohoku was 272,212, a 3.0% rise from 264,216 in 2014. In particular, the number of non-Japanese nationals arriving and departing through Tohoku is growing after a dramatic decrease following the Great East Japan Earthquake. While the number of non-Japanese nationals arriving in and leaving Japan is rapidly increasing throughout the country, the number of non-Japanese nationals who arrived or departed through ports or airports in Tohoku represented 0.4% of the total arrivals and departures of non-Japanese nationals. Changes in International Arrivals and Departures through Ports and Airports in Tohoku No. of departures (1,000 people) Changes in the Number of International Arrivals and Departures (Japan) No. of arrivals No. of departures 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 Non-Japanese nationals/others Japanese Japanese Non-Japanese nationals/others Non-Japanese nationals/others (1,000 people) Japanese Japanese No. of arrivals Non-Japanese nationals/others Source: Annual Report on Overseas Arrivals and Departures Statistics, Ministry of Justice There were 48,683 foreign residents in the Tohoku region as of the end of December 2015, a 5.8% rise from the previous year and 2.2% of the national total. By nationality, there were 43,555 foreign residents from Asian countries, representing 89.5% of the total. In particular, Chinese nationals (16,666 people, or 34.2%) and the ROK/Korea (9,486 people, or 19.5%) account for a significant portion of foreign residents in Tohoku. - 23 - Changes in the Number of Foreign Residents (Number of people who used to be registered under the now-obsolete alien registration system) (Note) (No. of people) Other regions 681 Other Asian countries South America 733 North America 2,295 Europe 1,419 ROK/Korea China 2010 China ROK/Korea 2011 Other Asian countries 2012 Europe 2013 North America 2014 South America As of Dec. 31, 2015 Other regions YOY change (right axis) Share of national total (right axis) (Note) Following the revisions to the Immigration Control and Refugee Recognition Act and the introduction of a new management system for foreign residents in Japan in July 2012, the Alien Registration Act was abolished. Accordingly, the above statistics cover “medium- to long-term residents” and “special permanent residents” who are managed under the new foreign resident management system (hereinafter, collectively referred to as “foreign residents”). As a result of these changes to the system, the figures for foreign residents under the new system and registered aliens under the old system do not match. It is therefore impossible to simply compare the number of foreign residents and the number of people who used to be registered under the alien registration system. Source: Statistics on Foreign Residents in Japan (formerly Statistics on Registered Aliens), Ministry of Justice - 24 - (14) Tourism The total number of overseas overnight guests is increasing. The number of inbound tourists to the Tohoku region decreased considerably in 2011 due to the Great East Japan Earthquake, but recovered to 243.8 million in 2014. Changes in the Number of Inbound Tourists to the Tohoku Region (Million people) YOY change (right axis) 2014 2010 2011 2013 2012 Source: Graphic Illustration of Transport in Tohoku, Tohoku District Transport Bureau; statistics on tourism in each prefecture The total number of overseas overnight visitors to the Tohoku region was 608,000, a 51.2% increase from the previous year. This growth rate was higher than the national growth rate of overseas overnight visitors (46.4%). In particular, the number of overnight visitors from Taiwan rose significantly by 38.4% year over year. Changes in the Total Number of Overseas Overnight Guests Changes in the Total Number of Inbound in Each Prefecture (1,000 people) Overnight Tourists by Nationality (People) National total 2009 ROK 2010 2011 2012 2013 2014 2010 2011 China 2012 Hong Kong 2013 Taiwan 2014 2015 U.S. 2015 (Note) From the April to June 2010 survey onward, all accommodation facilities including those with nine or fewer employees were included. This makes it impossible to compare data before and after this change. Source: Statistics on Overnight Trips, Japan Tourism Agency - 25 - (Note) Include accommodation facilities with 10 or more employees only. Source: Statistics on Overnight Trips, Japan Tourism Agency Consumption by Inbound Tourists Significantly Increased In 2014, consumption by inbound tourists in the Tohoku region stood at 21.857 billion yen. Although this showed an upward trend, it remained only 12.7% compared to the consumption in Hokkaido. Consumption per person during visits rose more than 60% from the previous year to 72,856 yen. However, this was less than 60% of the same value for Hokkaido. Over half of inbound tourists shopped at convenience stores, supermarkets and department stores. Changes in Consumption by Inbound Tourists (Million yen) Shopping Places for Inbound Tourists (Yen/per person per visit) Convenience stores Supermarkets Department stores Airport duty free shops Drug stores Souvenir shops in tourist spots 100-yen shops Home appliance mass merchandise shops Shops in stations Outlet malls Fashion boutiques Commercial complexes in central business districts Discount stores Other shopping centers 2011 2012 2013 Tourism consumption Unit value of tourism consumption (right axis) Accommodation facilities 2014 Tohoku Hokkaido Tohoku Hokkaido Highway service areas/road stations Others (Note 1) Tourism consumption means the total value of consumption by inbound tourists visiting the relevant prefecture(s). (Note 2) The unit value of tourism consumption means tourism consumption per inbound tourist in the relevant prefecture(s) during one visit. Source: 2015 Consumption Trend Survey for Foreigners Visiting Japan, Japan Tourism Agency Source: Statistics on Inbound Tourists, Japan Tourism Agency ●The number of retail outlets with duty free services (retailers that sell export goods) in the Tohoku region increased almost 14 times, from 81 in April 2014 to 1,149 in April 2016. However, this figure still only accounts for 3.3% of the national total. Changes in the Number of Retail Outlets with Duty Free Services in Each Prefecture (Shops) Aomori Iwate Miyagi Akita Yamagata Fukushima Share of national total April October April 2014 October 2015 (Note) In October 2014, the range of items that could be sold duty free was expanded. Source: Japan Tourism Agency - 26 - April 2016 3. Industrial Structure of Tohoku (1) Manufacturing Overview The value of manufactured goods shipped rose 6.2% year over year to 16.760 trillion yen. The value of manufactured goods shipped in the Tohoku region in 2014 increased 6.2% from the previous year to 16.760 trillion yen for the third consecutive year of growth. Its share of the national total also rose 0.1 point year over year to 5.5%. Changes in the Value of Manufactured Goods Shipped (Trillion yen) Share of national total 16.8 trillion yen Aomori Iwate Miyagi Akita Yamagata Fukushima 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (Note) From the 2007 survey, the entire activities of business establishments were included in the scope of the survey in order to gain a grasp of activities other than manufacturing. As a result, the survey results for 2006 and 2007, including the value of manufactured goods shipped, cannot be linked. Source: Census of Manufacture (four or more employees) for all years except for 2011; Economic Census for Business Activity 2012 (four or more employees) for 2011. By prefecture, while the number of business establishments decreased in all Tohoku prefectures, the number of employees increased in four of the prefectures, with Aomori and Akita the exceptions. The value of manufactured goods shipped and value added rose in all Tohoku prefectures. Manufacturing Data by Prefecture Number of business establishments 2013 2014 YOY change Value of manufactured goods shipped (million yen) Number of employees (people) 2013 YOY change 2014 2013 2014 YOY change Value added (gross added value for establishments with 29 or fewer employees) 2013 2014 YOY change Aomori 1,472 1,449 1.6 55,647 55,464 0.3 1,520,298 1,595,132 4.9 577,590 592,415 2.6 Iwate 2,148 2,130 0.8 82,077 82,600 0.6 2,267,151 2,270,696 0.2 622,738 634,826 1.9 Miyagi 2,693 2,647 1.7 107,580 108,908 1.2 3,726,535 3,972,171 6.6 1,041,497 1,140,223 9.5 Akita 1,940 1,897 2.2 61,554 60,659 1.5 1,106,465 1,214,936 9.8 422,420 469,466 11.1 Yamagata 2,682 2,634 1.8 97,320 98,434 1.1 2,395,796 2,608,074 8.9 826,419 835,812 1.1 Fukushima 3,832 3,798 0.9 150,818 152,768 1.3 4,762,508 5,098,999 7.1 1,531,648 1,615,051 5.4 14,767 14,555 1.4 554,996 558,833 0.7 15,778,753 16,760,008 6.2 5,022,312 5,287,793 5.3 208,029 202,410 2.7 7,402,984 7,403,269 0.0 292,092,130 305,139,989 4.5 90,148,885 92,288,871 2.4 Tohoku Japan Source: Census of Manufacture (four or more employees) - 27 - National Share by Industry Sector Information and communications equipment, and electronic parts, devices and electronic circuits have a larger share than the national average. By industry sector, Tohoku’s share of the value of manufactured goods shipped in Japan in 2014 was comparatively large for information and communications equipment (15.2%), electronic parts, devices and electronic circuits (13.8%), and lumber and wood products (excluding furniture) (12.3%), while it was small for export machinery and equipment (2.6%) and iron and steel (2.9%). Tohoku’s Share of the Value of Manufactured Goods Shipped in Japan (2014) Information Electronics Lumber Business Ceramics Paper/pulp Non-ferrous Beverages Other Foodstuffs Furniture Textiles Production Metals Printing Electrical Manufacturing average Plastics General-purpose Chemicals Iron and steel Transportation (Note) Three industries (rubber products, leather tanning/leather products/fur skins, and petroleum products) are not included in the above comparison, as some information is not disclosed. The figures in the brackets represent the share of the national total in 2013. Source: Census of Manufacture (four or more employees) <Reference> Abbreviations for industry sectors in the above graph refer to the following: Name of middle division industrial classification Abbreviation Name of middle division industrial classification Abbreviation Name of middle division industrial classification Abbreviation Manufacture of food Foodstuffs Manufacture of petroleum and coal products Petroleum Manufacture of general-purpose machinery General-purpose Manufacture of beverages, tobacco and feed Beverages Manufacture of plastic products Plastics Manufacture of production machinery Production Manufacture of textile products Textiles Manufacture of rubber products Rubber Manufacture of business oriented machinery Business Manufacture of lumber and wood products (except furniture) Lumber Manufacture of leather tanning, leather products and fur skins Leather Electronic parts, devices and electronic circuits Electronics Manufacture of furniture and fixtures Furniture Manufacture of ceramic, stone and clay products Ceramics Manufacture of electrical machinery, equipment and supplies Electrical Information Manufacture of pulp, paper and paper products Paper/pulp Manufacture of iron and steel Iron and steel Manufacture of information and communications electronics equipment Printing and allied industries Printing Manufacture of non-ferrous metals and products Non-ferrous Manufacture of transportation equipment Transportation Manufacture of chemical and allied products Chemicals Manufacture of metal products Metals Other manufacturing Other - 28 - Percentage Ratios by Industry Sector and by Prefecture The major industry sectors in Tohoku are foodstuffs, electronic parts, devices and electronic circuits, transportation equipment, and information and communications electronics equipment. ●In 2014, six industry sectors (electronic parts, devices and electronic circuits, foodstuffs, transportation equipment, information and communications electronics equipment, chemical products, and production machinery) accounted for about 50% of the value of manufactured goods shipped in the Tohoku region. Percentage of the Value of Manufactured Goods Shipped in Tohoku by Industry Sector (2014) (Unit: %) 2003 2008 2012 2013 Other Iron and steel Paper/pulp Ceramics Business Electrical Beverages Metals Non-ferrous Production Chemicals Information Transportation Foodstuffs Electronics 2014 Source: Census of Manufacture (four or more employees) (Industrial classifications were revised from the 2008 survey onward. Accordingly, “general machinery” in the 2003 survey was divided into “general-purpose machinery,” “production machinery,” and “business oriented machinery.” For the purpose of convenience, “general machinery” in the 2003 survey is posted as “production machinery” in the above graph.) The industry sectors that have the largest share in each prefecture are: non-ferrous metals in Aomori, transportation equipment in Iwate, foodstuffs in Miyagi, electronic parts, devices and electronic circuits in Akita and Yamagata, and information and communications electronics equipment in Fukushima. Percentage of Industry Sectors in the Value of Manufactured Goods Shipped in the Six Tohoku Prefectures (2014) (Unit: %) Aomori Iwate Miyagi Akita Yamagata Other Paper/pulp Iron and steel Ceramics Business Electrical Beverages Metals Non-ferrous Production Chemicals Information Transportation Foodstuffs Electronics Fukushima (Note) The following industry sectors have small percentage ratios in Tohoku and are therefore classified as “Other”: plastic products, general-purpose machinery, lumber and wood products, other goods, rubber products, printing, textiles, furniture and fixtures, petroleum products, leather tanning, leather products, and fur skins. Source: Census of Manufacture (four or more employees) - 29 - Value of Shipment in Four Major Industry Sectors The shipment value of transportation equipment is increasing. In 2014, the manufactured goods shipment value of electronic parts, devices and electronic circuits rose 8.1% from the previous year to 1.9134 trillion yen. Compared to 10 years previous (2004 = 100), the relative value was 80.0 (74.1 for Japan), i.e., at the 80% level. The manufactured goods shipment value of foodstuffs grew 4.1% year over year to 1.8447 trillion yen. Compared to 2004 (=100), the relative value was 100.2 (113.8 for Japan), and the figure has steadily recovered since the year of the Great East Japan Earthquake. The manufactured goods shipment value of transportation equipment contracted 4.8% from the previous year to 1.5526 trillion yen, representing a relative value of 138.4 (118.5 for Japan) compared to 2004 (=100), and exceeding the national level. The manufactured goods shipment value of information and communications electronics equipment expanded 12.4% from a year earlier to 1.3128 trillion yen, representing a relative value of 64.2 (67.0 in Japan) compared to 2004 (=100), i.e., around the 60% level. Changes in Manufactured Goods Shipment Value of Electronic Parts, Devices and Electronic Circuits (100 million yen) 2004=100 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Tohoku National index Tohoku index Changes in Manufactured Goods Shipment Value of Foodstuffs (100 million yen) 2004=100 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Tohoku Changes in Manufactured Goods Shipment Value of Transportation Equipment (100 million yen) 2004=100 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Tohoku National index National index Tohoku index Changes in Manufactured Goods Shipment Value of Information and Communications Electronics Equipment (100 million yen) 2004=100 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Tohoku index Tohoku National index Tohoku index Source: Census of Manufacture and Economic Census for Business Activity (four or more employees) (Note 1) From the 2007 survey onward, the entire activities of business establishments were included in the scope of the survey in order to gain a grasp of activities other than manufacturing. As a result, the figures for 2006 and 2007, including the value of manufactured goods shipped, cannot be linked. (Note 2) New classifications were introduced in 2008 (some sections of electrical machinery, equipment and supplies were transferred to electronic parts, devices and electronic circuits). This has disrupted data linkage. - 30 - Overview of Manufacturing Companies Headquartered in Tohoku Region Profit margins and shareholders’ equity ratio are rising. <Number of business establishments and permanent employees per company> In fiscal year 2013, manufacturing companies headquartered in Tohoku (771 companies*) had, on average, 3.26 business establishments, which included plants and sales office (up 5.0% from the previous year); 238 full-time employees (down 0.5% from the previous year); 8.05 billion yen in sales (up 2.2% year over year); and 0.70 subsidiaries (down 1.5% from the previous year) per company. Changes in the Number of Business Establishments, Number of Full-time Employees, Sales and Subsidiaries per Manufacturing Company (Index based on 2003=100) 2003 2004 2005 2006 No. of business establishments 2007 2008 2009 2010 No. of full-time employees 2011 Sales 2013 (FY) 2012 No. of subsidiaries Number of Business Establishments and Other KPIs per Manufacturing Company No. of business establishments No. of full-time employees Sales (100 million yen) Subsidiaries Tohoku Japan Tohoku Japan Tohoku Japan Tohoku Japan FY2011 3.178 5.863 235.2 394.2 68.04 206.9 0.644 3.748 FY2012 3.103 5.882 239.6 401.1 78.75 209.1 0.709 3.893 FY2013 3.259 5.928 238.3 404.5 80.51 220.6 0.698 3.990 YOY change (%) 5.0 0.8 0.8 2.2 5.5 0.5 1.5 Source: Basic Survey of Japanese Business Structure and Activities, Ministry of Economy, Trade and Industry 2.5 The Basic Survey of Japanese Business Structure and Activities surveys companies with 50 or more employees and a capital amount or equity investment amount of 30 million yen or more. <Operating Income-to-Sales Ratio> The ratio of operating income to sales for manufacturing companies headquartered in the Tohoku region was 2.6% (a 1.3 point rise from the previous year), while the ratio of ordinary income to sales was 3.0% (up 1.3 points from the previous year) and the ratio of net income to sales was 1.2% (up 0.4 points from the previous year). Changes in Ratios of Operating Income, Ordinary Income and Net Income to Sales in Manufacturing Companies 2003 2004 2005 2006 Operating income-to-sales ratio 2007 2008 2009 2010 Ordinary income-to-sales ratio 2011 Source: Basic Survey of Japanese Business Structure and Activities, Ministry of Economy, Trade and Industry - 31 - 2012 2013 (FY) Net income-to-sales ratio Operating Income-to-Sales Ratio and Other KPIs in Manufacturing Companies Operating incometo-sales ratio (%) Ordinary income-to- Net income-to-sales sales ratio (%) ratio (%) Total capital (million yen) Net assets (million yen) Shareholders’ equity ratio (%) Tohoku Japan Tohoku Japan Tohoku Japan Tohoku Japan Tohoku Japan Tohoku Japan FY2011 2.3 3.0 2.3 4.1 0.1 1.5 8,478 22,977 2,403 10,491 28.3 45.7 FY2012 1.3 3.2 1.7 4.6 0.8 2.0 8,654 23,533 2,642 10,877 30.5 46.2 FY2013 2.6 4.7 3.0 6.3 1.2 4.2 8,616 24,820 2,698 11,729 31.3 47.3 YOY change 1.3 1.5 1.3 1.7 0.4 2.2 0.4 5.5 2.1 7.8 0.8 1.1 *YOY change for total capital and net assets represents the percentage change from the previous year (%). <Shareholders’ Equity Ratio> Manufacturing companies headquartered in the Tohoku region in fiscal year 2013 had total capital (total assets) of 8.62 billion yen (down 0.4% from the previous year), net assets of 2.7 billion yen (up 2.1% from the previous year), and a shareholders’ equity ratio of 31.3% (up 0.8 points from the previous year) per company. Changes in Total Capital (Total Assets) and Shareholders’ Equity Ratio per Manufacturing Company (100 million yen) 2003 2004 2005 2006 2007 2008 Total capital per company (right axis) 2009 2010 2011 2012 2013 (FY) Shareholders’ equity ratio Source: Basic Survey of Japanese Business Structure and Activities, Ministry of Economy, Trade and Industry *Shareholders’ equity ratio = net assets (shareholders’ equity)/total capital. Generally, the higher this ratio, the smaller the liabilities of the company. <Research and Development (R&D)> Of the 771 manufacturing companies headquartered in the Tohoku region, 212 companies reported their R&D expenses, representing 27.5% of the total number of manufacturing companies (a 48.5% response rate for Japan). The ratio of R&D expenses to sales rose 0.66 points from the previous year to 3.63%. Furthermore, R&D expenses per company increased 26.5% from the previous year to 560 million yen. Current Status of R&D Expenses in Manufacturing Companies No. of companies that responded to the Basic Survey of Japanese Business Structure and Activities No. of companies that reported their R&D expenses Tohoku R&D expenses-to-sales ratio (%) Japan R&D expenses per company (million yen) Tohoku Japan No. of companies Ratio (%) No. of companies Ratio (%) Tohoku Japan Tohoku Japan FY2011 786 13,345 209 26.6 6,344 47.5 3.04 4.68 359.7 1,674.9 FY2012 786 13,203 228 29.0 6,383 48.3 2.97 4.81 444.7 1,743.9 FY2013 771 13,053 212 27.5 6,327 48.5 3.63 4.61 562.7 1,806.5 YOY change 15 150 16 1.5 56 0.1 0.66 0.20 26.5 3.6 (Note) YOY change in R&D expenses per company represents the percentage change from the previous year (%). - 32 - Changes in the R&D Expenses-to-Sales Ratio and the R&D Expenses per Company for Manufacturing Companies (Million yen) 2003 2004 2005 2006 2007 R&D expenses per company 2008 2009 2010 2011 2012 R&D expenses-to-sales ratio (right axis) Source: Basic Survey of Japanese Business Structure and Activities, Ministry of Economy, Trade and Industry - 33 - 2013 (FY) Industrial Property Rights The number of applications for industrial property rights increased for the second consecutive year with respect to utility models and trademarks. With respect to the number of applications for industrial property rights made in 2015 in the Tohoku region, the number of applications rose for utility models (189) and trademarks (2,302), while the number of applications decreased slightly for patents (1,719) and designs (264). After a decrease in 2011 in the aftermath of the Great East Japan Earthquake, the number of applications has gradually recovered. Although the numbers of applications for patents, utility models and designs were still below the pre-earthquake levels, the number of applications for trademarks exceeded the number of applications made before the earthquakes. Changes in the Number of Industrial Property Right Applications (Applications) Patent Utility model Design Trademark 2010 2011 2012 2013 2014 2015 Source: Japan Patent Office Annual Report, Japan Patent Office The Tohoku region accounts for 0.66% of patent applications, 3.63% of utility model applications, 1.06% of design applications, and 1.95% of trademark applications in Japan. 2015 Number of Industrial Property Right Applications by Region (Applications by Japanese nationals) Hokkaido Tohoku Kanto Chubu Kinki Chugoku Shikoku Kyushu Patent Utility model Design Trademark Okinawa (In thousands) (Unit: %) Share of national total Hokkaido Tohoku Kanto Chubu Kinki Chugoku Shikoku Kyushu Okinawa Patent 0.26 0.66 63.21 12.43 19.19 2.01 0.96 1.23 0.05 Utility model 2.13 3.63 49.93 9.12 21.99 4.32 2.38 6.16 0.35 Design 0.82 1.06 52.12 11.01 27.36 2.87 2.01 2.54 0.20 Trademark 1.34 1.95 50.89 6.13 31.01 2.42 1.26 4.54 0.45 (Note) Excluded applications made by Japanese nationals when it could not be determined which prefecture they belonged to. Source: Japan Patent Office Annual Report, Japan Patent Office - 34 - (2) Commerce Overview The number of business establishments increased for wholesalers, while the sales and number of employees rose for both wholesalers and retailers. In 2014, the total number of business establishments of wholesalers and retailers in the Tohoku region was 111,008 (up 1.2% from the 2012 survey; the national figure also rose 0.2% during the same period), while the number of employees was 776,029 (up 4.4% from the 2012 survey; up 3.5% for Japan). Annual sales of goods stood at 24,528.2 billion yen (up 6.2% from the 2012 survey; the national figure was down 0.3% during the same period). Annual sales of goods show sales of goods during the calendar year immediately before the year of the survey. For wholesalers, the number of business establishments, the number of employees and annual sales of goods all increased. For retailers, the number of business establishments decreased slightly by 0.4% from the previous survey; however, the number of employees and annual sales of goods grew. Changes in the Number of Business Establishments, Number of Employees and Annual Sales of Goods No. of business establishments Annual sales of products (*Sales during the calendar year immediately preceding the year of the survey) No. of employees Change from the Share of Change from the Share of national previous survey (%) (People) national previous survey (%) total (%) Tohoku total (%) Tohoku Japan Japan Commerce total Wholesalers Retailers (Million yen) Share of Change from the national previous survey (%) total (%) Tohoku Japan 2012 109,683 7.8 - - 743,262 6.6 - - 23,102,394 4.8 - - 2014 111,008 7.9 1.2 0.2 776,029 6.7 4.4 3.5 24,528,243 5.1 6.2 - 0.3 2012 25,868 7.0 - - 207,921 5.4 - - 14,693,149 4.0 - - 2014 27,511 7.2 6.4 2.9 220,524 5.6 6.1 2.9 15,545,466 4.4 5.8 - 2.4 2012 83,815 8.1 - - 535,341 7.2 - - 8,409,248 7.3 - - 2014 83,497 8.1 -0.4 -0.8 555,505 7.2 3.8 3.8 8,982,777 7.4 6.8 6.4 (Note 1) The number of business establishments and the number of employees were as of February 1, 2012 for 2012 and as of July 1, 2014 for 2014. (Note 2) Changes from the previous survey in the number of business establishments, the number of employees and annual sales of goods are based on comparison between 2012 and 2014. Source: Table 1, Vol. 2 Industries (Prefecture Table), 2014 Census of Commerce (Final Report), Ministry of Economy, Trade and Industry By prefecture, the number of business establishments and the number of employees were both larger than those in the previous survey for wholesalers, and annual sales of goods also exceeded the previous survey in all prefectures except Iwate and Akita. For retailers, the number of establishments was below that in the previous survey in all prefectures except Miyagi, while the number of employees and annual sales of goods were above those in the previous survey in all prefectures. 2014 Changes from Previous Survey by Prefecture (Comparison with 2012) Wholesalers No. of business establishments No. of employees Retailers Tohoku Tohoku Aomori Aomori Iwate Iwate Miyagi Miyagi Akita Akita Yamagata Yamagata Fukushima Fukushima Annual sales of goods No. of business establishments No. of employees Annual sales of goods Source: Table 1, Vol. 2 Industries (Prefecture Table), 2014 Census of Commerce (Final Report), Ministry of Economy, Trade and Industry - 35 - (3) Service Industry The service industry’s share of all industries decreased with the expansion of the construction industry. In fiscal year 2013, the service industry in the Tohoku region had a Gross Regional Product (GRP) of 6.0802 trillion yen, a 2.4% increase from the previous year. The construction industry’s GRP was 3.2134 trillion yen, a 10.3% year-over-year increase. The service industry accounted for 18.9% of the GRP (nominal) of all industries. This marked a 0.2 point drop from the previous year (19.1%). Meanwhile, the share of the construction industry rose 0.6 points from 9.4% in the previous year to 10.0%. With the expansion of the construction industry, the relative share of the service industry decreased. Changes in Gross Product (Nominal) (Trillion yen) trillion yen trillion yen 2003 2004 2005 Gross product of service industry 2006 2007 2008 Gross product of construction industry 2009 2010 Share of service industry 2011 2012 2013 (FY) Share of construction industry Source: Annual Report on Prefectural Accounts, Cabinet Office According to the 2014 Survey of Selected Service Industries, the number of business establishments in the Tohoku region was greater than the national average for miscellaneous goods rental and leasing (12.4%), office machinery rental (12.0%) and machine repair shops (10.0%). The Tohoku region’s sales per employee exceeded the national average in the following business categories: industrial equipment and machinery rental (57.99 million yen), miscellaneous goods rental and leasing (15.48 million yen), and surveyor certification (11.71 million yen). - 36 - 2014 Annual Sales, Number of Business Establishments, Number of Employees, Annual Sales per Business Establishment, and Annual Sales per Employee of Selected Service Industries Annual sales (100 million yen) No. of business establishments No. of employees (people) Business category Japan Share of national total (%) 1,960 1.6 Tohoku Japan Share of national total (%) 904 4.0 Tohoku Japan Share of national total (%) 14,687 2.2 Tohoku Annual sales per business establishment (million yen) Annual sales per employee (10,000 yen) Japan Japan Tohoku Tohoku Software services 126,189 22,331 663,745 56,508 21,676 1,901 1,334 Data processing and information 67,306 975 1.4 11,071 478 4.3 310,911 6,914 2.2 60,795 20,391 2,165 1,410 services Internet based services 16,169 93 0.6 3,012 82 2.7 51,047 551 1.1 53,682 11,295 3,167 1,681 General goods rental and leasing 38,703 1,758 4.5 1,375 171 12.4 22,666 1,974 8.7 281,475 102,805 17,075 8,906 Industrial equipment and machinery 35,697 3,240 9.1 8,808 830 9.4 70,379 5,587 7.9 40,528 39,033 5,072 5,799 rental Office machinery rental 9,780 557 5.7 450 54 12.0 4,532 306 6.8 217,330 103,230 21,580 18,217 Automobile rental 15,918 786 4.9 5,015 497 9.9 36,445 2,563 7.0 31,741 15,819 4,368 3,067 Sport and hobby goods rental 121 × × 351 13 3.7 1,884 96 5.1 3,460 × 645 × Miscellaneous goods rental and 10,113 691 6.8 8,495 566 6.7 76,010 4,462 5.9 11,905 12,204 1,331 1,548 leasing Design services 3,240 63 1.9 8,161 270 3.3 8,161 270 3.3 3,970 2,331 3,970 2,331 Machinery design 5,113 77 1.5 6,440 201 3.1 51,533 911 1.8 7,940 3,829 992 845 Advertising agencies 82,620 1,846 2.2 9,286 541 5.8 123,424 4,159 3.4 88,973 34,116 6,694 4,438 Surveyor certification 2,215 167 7.6 843 57 6.8 20,268 1,429 7.1 26,277 29,365 1,093 1,171 Machine repair shops 19,406 1,100 5.7 11,890 1,184 10.0 103,159 7,280 7.1 16,321 9,292 1,881 1,511 Electric machinery, appliances and 13,370 465 3.5 7,159 590 8.2 69,682 3,026 4.3 18,676 7,882 1,919 1,537 supplies repair shops Wedding ceremony halls and funeral 22,852 1,725 7.5 9,862 897 9.1 129,166 11,938 9.2 23,172 19,228 1,769 1,445 services Cinemas 2,513 124 4.9 523 41 7.8 17,425 1,026 5.9 48,056 30,202 1,442 1,207 Event venues and operators 9,155 192 2.1 2,342 50 2.1 28,581 1,023 3.6 39,091 38,326 3,203 1,873 Sport facility providers 19,389 671 3.5 12,921 874 6.8 277,876 12,054 4.3 15,005 7,674 698 556 Parks, amusement parks, and theme 5,928 × × 147 10 6.8 41,472 222 0.5 403,297 × 1,430 × parks Preparatory schools 9,422 299 3.2 49,319 2,798 5.7 328,796 13,142 4.0 1,910 1,069 287 228 Cultural and skill education 9,328 371 4.0 79,509 5,435 6.8 256,477 11,727 4.6 1,173 682 364 316 *The colored cells in the above table indicate an 8% or larger share of the national total, or annual sales per business establishment or annual sales per employee that are above the national average. *“×” in the above table indicates that there are prefectures that did not disclose the relevant figure. Source: 2014 Survey of Selected Service Industries, Ministry of Economy, Trade and Industry - 37 - In terms of the Tohoku region’s share of national annual sales, business categories with a larger share include industrial equipment and machinery rental (9.1%), surveyor certification (7.6%), and wedding ceremony halls and funeral services (7.5%). Business categories with a smaller share include Internet-based services (0.6%). 2014 Share of National Annual Sales of Selected Service Industries Industrial equipment and machinery rental Surveyor certification Wedding ceremony halls and funeral services Miscellaneous goods rental and leasing Office machinery rental Machine repair shops Automobile rental Cinemas General goods rental and leasing Cultural and skill education Electric machinery, appliances and supplies repair shops Sport facility providers Preparatory schools Advertising agencies Event venues and operators Design services Software services Machinery designing Data processing and information services Internet based services Source: 2014 Survey of Selected Service Industries, Ministry of Economy, Trade and Industry In terms of each business category’s share of sales in selected service industries, industrial equipment and machinery rental (18.9% in Tohoku and 6.9% in Japan) and wedding ceremony halls and funeral services (10.1% in Tohoku and 4.4% in Japan) have a larger share in Tohoku than they do nationally. Meanwhile, software services (11.4% in Tohoku and 24.3% in Japan), data processing and information services (5.7% in Tohoku and 13.0% in Japan), and advertising agencies (10.8% in Tohoku and 15.9% in Japan) have a lower share in Tohoku than they do nationally. Percentage Ratio of Sales of Each Business Category in Selected Service Industries (2014) (Unit: %) Japan Source: 2014 Survey of Selected Service Industries, Ministry of Economy, Trade and Industry - 38 - Preparatory schools Cultural education and skills teaching Sport facility providers Cinemas Event venues Wedding ceremony halls and funeral services Electric machinery, appliances and supplies repair shops Machine repair shops Surveyor certification Advertising agencies Automobile rental Miscellaneous goods rental and leasing Design services Machinery designing Office machinery rental Industrial equipment and machinery rental General goods rental and leasing Data processing and information services Internet based services Software services Tohoku (4) Agriculture, Forestry and Fisheries Agriculture The total cultivated area for agricultural crops decreased for the first time in three years. The total cultivated area for agricultural crops in the Tohoku region shrank in 2011 following the Great East Japan Earthquake, then increased slightly in 2012 and 2013, and again decreased in 2014. The major reason was the reduction in the total cultivated area for wetland and upland rice (for human consumption). Changes in Total Cultivated Area for Agricultural Crops (ha) 744,800 in total 2010 Wetland and upland rice (for human consumption) 714,800 in total 715,100 in total 716,800 in total 712,800 in total 2011 2012 2013 2014 Wheat, barley and grains (for human consumption) Pulses (for dried beans) Vegetables Fruit trees Crops for fertilizers/feeds Other Source: Pocket Book on Tohoku’s Agriculture, Forestry and Fisheries Statistics, Tohoku Regional Agricultural Administration Office In 2014, livestock products had the largest share of agricultural output in the Tohoku region (1.2298 trillion yen) at 33.7%, followed by rice (27.9%), vegetables (17.9%), and fruits and nuts (15.5%). Tohoku’s share of national agricultural output (8,427.9 billion yen) in 2014 was lower than the previous year, at 14.6%. While the share of rice, which had the largest share until 2013, decreased, the share of fruits and nuts increased and claimed the largest share. Other items remained flat. 2014 Tohoku Region’s Agricultural Output by Item Tohoku’s Share of National Agricultural Output Other 20.4 billion yen Rice Rice 343.1 billion yen Livestock products 414.5 billion yen Fruits and nuts Livestock products 1,229.8 billion yen (2014) Vegetables Industrial crops Flowering plants Industrial crops 13.6 billion yen Vegetables 220.5 billion yen Other Fruits and nuts 191.1 billion yen Total Flowering plants 26.6 billion yen 2010 2011 2012 2013 2014 Source: Agricultural Output and Production Agriculture Income by Prefecture, Ministry of Agriculture, Forestry and Fisheries - 39 - Forestry and Fisheries The forestry industry’s output and the fisheries industry’s production value are both growing. The output of the forestry industry in the Tohoku region rose 12.4% year over year to 76.73 billion yen in 2014. In addition, Tohoku’s share of the national output increased from the previous year to 17.1%. Meanwhile, the ratio of “cultivated fungi” in the total output of Tohoku’s forestry industry remained unchanged from the previous year at 28.8%. Changes in the Output of Forestry Industry (Lumber, Cultivated Fungi, Other) Breakdown of 2014 Output of Forestry Industry (100 million yen) Other 682.5 in total Japan 447.77 billion yen 767.3 in total Cultivated fungi 2009 2010 2011 Lumber production Other 2012 2013 Lumber production Tohoku 76.73 billion yen 2014 Cultivated fungi production Outer circle: Japan Share of national total (right axis) Lumber production Inner circle: Tohoku Cultivated fungi Other Source: Pocket Book on Tohoku’s Agriculture, Forestry and Fisheries Statistics, Tohoku Regional Agricultural Administration Office, and others In 2014, the production value of marine fisheries and aquaculture rose 11.0% from the previous year to 164.7 billion yen. Its share of the national total also grew to 11.7%, although this was still below the pre-earthquake level. Tohoku’s share of the production volume of processed fishery products in 2014 rose for some of the major items, such as minced and steamed fish (kamaboko) and frozen, fresh seafood, and other processed food products (e.g., salted fish guts, seafood pickles, and seasoned and processed products). - 40 - Changes in Production Value of Fisheries (Marine Fisheries + Aquaculture) and Share of National Total Tohoku’s Share of National Production Volume of Processed Fishery Products (100 million yen) Minced and steamed fish (kamaboko) Dried-salted fish 1,483 in total 1,647 in total Frozen, fresh seafood Other processed food products 2009 2010 Marine fisheries 2011 2012 Aquaculture 2013 2014 2011 Share of national total (right axis) 2012 2013 2014 (Note) In addition to marine fisheries and aquaculture, the production value of fisheries includes inland water fisheries and aquaculture. However, there is no regional data on these products. Source: Pocket Book on Tohoku’s Agriculture, Forestry and Fisheries Statistics, Tohoku Regional Agricultural Administration Office, and others - 41 - ECONOMIC OVERVIEW OF TOHOKU REGION 2016 Tohoku Bureau of Economy, Trade and Industry
© Copyright 2026 Paperzz