Contents 1.Overview of the Tohoku Region 2 (1) Overview of the Tohoku Region 3 (2) Positioning of Tohoku as Shown in Major Economic Indicators 2.Economic Structure and Trends in the Tohoku Region 4 (1) Gross Product 4 (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 13 (8) Private Sector Capital Expenditures 14 (9) Acquisition of Plant Locations 16 (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 industry 27 (2) Commerce 35 (3) Service industry 36 (4) Agriculture, Forestry, and Fisheries 39 Note: Due to rounding up/o, not all totals equal the sum of separate gures in tables and graphs throughout this document.
1. Overview of the Tohoku Region (1) Overview of the Tohoku Region Economic Indicators for the Tohoku Region Major economic indicators Item Tohoku Total area < km 2 > (As of October 1, 2016) <Note 1> 66,947 Total population < 1,000 people> (As of October 1, 2015) No. of households <thousands> (As of October 1, 2015) 8,983 3,468 Data and source National Land Area Survey of Prefectures and Municipalities (Geospatial Information Authority of Japan) 2015 Population Census (Ministry of Internal A airs and Communications) 2015 Population Census (Ministry of Internal A airs and Communications) Major economic indicators Income per capita <1,000 yen> Item (FY 2014) No. of establishments (As of June 1, 2016) No. of employees <1,000 people> (As of June 1, 2016) Nominal GRDP <100 million yen> Value of manufactured goods 325,838 shipped<100 million yen> (FY 2014) FY 2014 Annual Report on (2014, four or more employees) Prefectural Accounts 7,344 (Cabinet O ce) Wholesale sales value 88,881 <100 million yen> 227,998 (2013) 77 cities Number of Municipalities in No. of municipalities Each Prefecture Retail sales value 116 towns (As of April 1, 2017) (Ministry of Internal A airs <100 million yen> 34 villages and Communications) (2013) Tohoku 2,681 Data and source FY 2014 Annual Report on Prefectural Accounts (Cabinet O ce) 416,513 2016 Economic Census for Business Activity(Preliminary Report) (Ministry of Internal Affairs and Communications and Ministry of 3,752 Economy, Trade and Industry) 167,600 2014 Census of Manufacture (Final Report) (Ministry of Economy, Trade and Industry) 155,455 2014 Census of Commerce (Final Report) (Ministry of Economy, 89,828 Trade and Industry) <Note 1> For the areas of prefectures with unde ned 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 import duties, imputed interest, etc. on imported goods.
(2) Positioning of Tohoku as Shown in Major Economic Indicators Although Tohoku s population accounts for 7.1% of Japan s population, Tohoku is below the national level from the perspective of GRDP and value of manufactured goods shipped. In the manufacturing industry, Tohoku s position is higher for electronic parts, devices and electronic circuits and information and communications electronics equipment.
2. Economic Structure and Trends in the Tohoku Region (1) Gross Product The Gross Regional Domestic Product (GRDP) is 32.6 trillion yen, or 6.34% of the national total. Annual Report on Prefectural Accounts Annual Report on Prefectural Accounts Annual Report on Prefectural Accounts
(2) Real Economic Growth Rate The real economic growth rate was 0.6%, showing a positive growth for three consecutive years. Japan), continuing the trend of positive growth for three consecutive years. Mid-Year Economic Projection for FY 2017 July 14, 2017. Source: Annual Report on National Accounts of Japan, and Annual Report on Prefectural Accounts In terms of changes in the real economic growth rate of each prefecture in Tohoku, Miyagi, Fukushima and Iwate recorded positive growth, while Aomori, Yamagata and Akita recorded negative growth. Source: Annual Report on Prefectural Accounts
(3) Population The productive-age population in Tohoku is projected to shrink by 32.7% between 2015 and 2040. (Note) The above estimates are based on medium assumptions of births and deaths. Source: (1955 to 2015) Population Census of Japan (From 2020 onward) Population Projection by Prefecture, the National Institute of Population and Social Security Research (Projection from March 2013) 410,000 respectively, while the aged population (aged 65 or older) is projected to increase by 100,000. The decrease in population along with the aging of the population is advancing ahead of the national average. Source: (1995 to 2015) Population Census of Japan (From 2020 onward) Population Projection by Prefecture, the National Institute of Population and Social Security Research (Projection from March 2013)
(4) Demographics Tohoku s population shrank by 51,000 due to natural population decline, and by 25,000 due to net migration loss. In 2016, the number of live births in the Tohoku region was 61,300, down 2,100 from the previous year, while there were 112,300 deaths, up 1,600 from the previous year. As a result, natural population decline increased from 47,400 people in the previous year to 51,000 people. In 2016, 82,100 people moved to the Tohoku region, down 3,700 people from the previous year, and 106,600 people moved out of the region, down 900 people from the previous year. As a result, Tohoku s net migration loss (arrivals minus departures) increased from 21,800 people in 2015 to 24,600 people. Among the 155,600 people who moved out of one of the six prefectures in the Tohoku region, 49,000 peoplemoved into another prefecture in the region, while 106,600 people moved out of the region entirely, showing that about 70 of the people moved out of the region altogether. The destination of the largest portion of people moving within the Tohoku region was Miyagi Prefecture. Prefecture/region (moving out) Source: Annual Report on Demographic Statistics, Ministry of Health, Labour and elfare Comparison of Net Migration Loss in Tohoku Prefectures (2016) Prefecture/region (moving in) (Note) The number of arrivals/departures does 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 A airs and Communications Departures total Aomori Iwate Miyagi Akita Yamagata Fukushima Tohoku Outside Tohoku total total Tokyo area only Aomori 2,040 3,076 889 378 575 6,958 16,426 10,040 23,384 Iwate 1,817 4,633 960 422 710 8,542 12,441 7,737 20,983 Miyagi 2,021 3,484 1,737 2,834 4,118 14,194 33,413 19,949 47,607 Akita 922 1,062 2,600 597 467 5,648 10,103 6,497 15,751 Yamagata 319 484 3,722 474 1,161 6,160 10,400 6,570 16,560 Fukushima 443 737 4,931 452 960 7,523 23,821 13,671 31,344 Tohoku total 5,522 7,807 18,962 4,512 5,191 7,031 49,025 106,604 64,464 155,629 Outside Tohoku total 11,539 9,306 28,162 6,841 7,730 18,474 82,052 Tokyo area only 6,479 5,422 14,871 4,092 4,409 9,522 44,795 Arrivals total 17,061 17,113 47,124 11,353 12,921 25,505 131,077 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 people who evacuated or were displaced immediately after the Great East Japan Earthquake. Their number dropped to around 93,000 as of June 2017. (cf. Number of evacuees and displaced people as of June 2016: 155,000 people) Number of people who evacuated or were displaced to other prefectures/regions: 35,661 people from Fukushima, 5,317 people from Miyagi, and 1,307 people from Iwate Source: Survey by the Reconstruction Agency (as of July 16, 2017)
(5) Number of Business Establishments (Private) Private business establishments in Tohoku represent 7.4% of the national total, while the number of employees accounts for 6.5% of the national total. 2014. Number of Private Establishments and Employees by Prefecture Number of private establishments Number of employees 2014 2016 Comparison to Comparison to the 2014 2016 Comparison to Comparison to Aomori 60,866 59,183 1.1 508,770 500,991 0.9 Iwate 60,543 59,730 1.1 536,313 530,056 0.9 Miyagi 103,505 102,644 1.8 1,010,795 1,014,658 0.4 1.8 Akita 51,156 49,587 0.9 418,534 414,947 0.7 Yamagata 58,292 56,734 1.0 480,627 478,100 0.8 Fukushima 89,971 88,635 1.6 803,372 813,638 1.3 1.4 Tohoku 424,333 416,513 7.4 3,758,411 3,752,390 6.5 Japan 5,768,489 5,622,238 100.0 57,427,704 57,439,652 0.0 100.0 (Note) The number of private establishments includes businesses whose business details are unclear. Source: 2014 Economic Census for Business Frame and 2016 Economic Census for Business Activity (Preliminary Report), In terms of the ratios of private business establishments by industry (major group category), wholesale and retail services increased their share by 0.3 points, while manufacturing decreased its share by 0.2 points. (Note) The number of business establishments by industry includes only those for which required values were obtained. Source: 2014 Economic Census for Business Frame and 2016 Economic Census for Business Activity (Preliminary Report),
tertiary industry. In comparison to 2014, the ratio of employees in wholesale and retail trade decreased by 0.3 (Note The number of employees by industry for 2014 is as of July 1, 2014, and that for 2016 is as of June 1, 2016. Source: 2014 Economic Census for Business Frame and 2016 Economic Census for Business Activity (Preliminary Report),
(6) Industrial Production 2016 showed a gradual recovery in industrial production. quarter, to 96.6, thanks to an increase in production facilities, and an increase in semiconductor related demand, among others. From the 2nd to 4th quarters, information and communications electronics equipment production declined due to transfer of production of some items out of Tohoku, while the production throughout the year from 96.7 in the 2nd quarter, to 98.0 in the 3rd quarter, and to 99.9 in the 4th quarter with reached 100.2 mainly due to the production of transportation equipment aided by the launch of new car even with a pause machinery, and transportation equipment. There was an overall trend of improvement.
(Note) The IIP for Japan is prepared by the Ministry of Economy, Trade and Industry, while the IIP for Tohoku is prepared by the Tohoku Bureau of Economy, Trade and Industry. The IIPs for both Tohoku and Japan are annualized for the period from January 2016. The IIPs for both Tohoku and Japan are revised based on the gures for 2010 as the base values.
purpose, production and business oriented machinery, whose solid performance was aided by the demand for semiconductors, made a positive contribution (1.16). Electronic parts and devices, which both showed steady (1.01). Meanwhile, information and communications electronics equipment, due to the transfer of production (Note) 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 sector on the entire production. and silicon wafers in spite of the decrease in metal oxide semiconductor ICs (Logic), optical disks, and lithium storage batteries. Source: Prepared by the Tohoku Bureau of Economy, Trade and Industry
(7) Consumption Department store/supermarket sales value Sales at department stores and supermarkets increased ve years in a row on an all-store basis. In 2016, department stores and supermarkets in the Tohoku region recorded 1,240.3 billion yen in sales on an all store basis, up 0.1 from the previous year and marking a fth consecutive year of sales growth. Meanwhile, sales at existing stores shrank by 0.4 year on year, declining for four consecutive years. In terms of year on year comparison of sales by store type (on an all store basis), department store sales decreased 1.8, for a fourth consecutive year of decrease, while supermarket sales increased 0.5, recording a sixth consecutive year of growth. (Note) The sales value is partially expanded using the link coe cient (for the period up to June 2015). Source: Current Survey of Commerce, Ministry of Economy, Trade and Industry In 2016, in terms of the level of contribution to the sales value by goods, the sales of drinks/foods, such as meat and poultry and delicatessen items, in the 1st quarter, were significantly higher than those in the previous year (1.9), and other products, such as cosmetics and high ticket items also showed favorable sales performance (0.5). In the 2nd to 3rd quarters, sales were sluggish, mainly those of seasonal goods, because of uncertain weather conditions. In the 4th quarter, sales of drinks/foods rose due to the strong performance of fruits and vegetables, and meat and poultry (0.9). Sales of clothing were weak throughout the year. In 2017, in terms of the level of contribution to sales value by goods, the 1st quarter sales were sluggish for drinks/foods, such as fresh sh and delicatessen items ( 0.7), and the sales of clothing, such as non casual clothing (including coats) and seasonal clothing, were sluggish ( 1.0). In the 2nd quarter, sales of clothing items remained weak ( 0.6). (Note) YoY comparison and the level of contribution were calculated in a way where the value over the same quarter of the previous year was partially expanded using the link coe cient (from the 3rd quarter of 2015 to the 2nd quarter of 2016). Source: Current Survey of Commerce, Ministry of Economy, Trade and Industry
(8) Private Sector Capital Expenditures For scal year 2017, the private sector increased its planned capital spending because the non-manufacturing industry was expected to greatly increase capital spending in electric power generation and logistics-related areas. expenditures in the Tohoku region amounted to 415.8 billion yen (according to the June 2017 survey) the previous year. The manufacturing industry planned to decrease its capital expenditures industry planned to significantly increase its capital expenditures by excluding electricity). However, the actual capital expenditures in the Tohoku region schedules to build new production facilities and equipment are almost at an end. On the other hand, the such as for biomass and wind power generation in the electricity industry, distribution terminals in the transport industry, and wholesale and retail industries, while a decrease is projected in rental and lease of equipment, and information and communications.
By prefecture, the amount of capital expenditures in fiscal year 2017 indicates an increase of 9.7 for Aomori, a decrease of 7.8 for Iwate, an increase of 45.2 for Miyagi, an increase of 35.9 for Akita, a decrease of 4.5 for Yamagata, and an increase of 20.5 for Fukushima compared to the previous year. Source: Survey on Planned Capital Spending in the Tohoku Region, Development Bank of Japan
(9) Acquisition of Plant Locations Acquisition of plant locations has increased for the rst time in four years. In 2016 (from January to December), the number of acquisitions for plant locations (excluding electricity) in the Tohoku region increased by 23 (or 27.4 ) to 107 from the previous year, the rst increase in four years. The region s share of the national total went up by 2.8 points to 10.8. By prefecture, Miyagi had the largest number of acquisitions at 47 (35 in 2015), followed by Yamagata at 21 (16 in 2015), Fukushima at 16 (15 in 2015), Akita at nine (seven in 2015), Iwate at eight (seven in 2015), and Aomori at six (four in 2015). Acquisitions for relocation in the coastal areas which were a ected by the Great East Japan Earthquake, increased by six to 15 from the previous year (such acquisitions are involved with plans to close down all or part of existing plants). (Note 1) The above gures correspond to the acquisition (including leasing) of land with a size of 1,000 square meters or larger for use to build a factory, business office or research center for industries in manufacturing, gas or heat supply. They do not include the number of acquisitions of plant locations for vacant plants or for lease plants that have increased after the Great East Japan Earthquake. (Note 2) Hydraulic power plants, geo thermal power plants and solar power plants were excluded from the surveys for 2015 and subsequently. Accordingly, the above comparison is made with the exclusion of the electricity industry. Source: Survey of Factory Location Trends (2016 Preliminary Report), the Tohoku Bureau of Economy, Trade and Industry The top seven industrial sectors (excluding electricity) in terms of the number of land acquisitions for plant locations are: foodstu s (24), metal products (18), production machinery (10), and lumber and wood products (nine) followed by plastic products, business oriented machinery and transportation equipment (six each). By prefecture, the number of acquisitions for foodstu s is the highest in Miyagi (15), followed by Iwate (5), while that for metal products is the highest in Miyagi (8) followed by Yamagata and Fukushima (4 each). (Note) Excludes the electricity industry Source: Survey of Factory Location Trends (2016 Preliminary Report), the Tohoku Bureau of Economy, Trade and Industry
(10) Labor Force Population The number of employed persons was 4.51 million, and the number of unemployed persons was 140,000. a year before the Great East Japan Earthquake. Meanwhile, the number of unemployed persons was 140,000which to the impact of the Great East Japan Earthquake. Source: Labor Force Survey In all six prefectures of Tohoku, the ratio of employed women between the ages of 25 to 44 who have a young child (or children), shows an upward trend and is higher than the national average. The number of employed persons (men and women) aged 65 and over is increasing, while the ratio for this demographic remains unchanged. By industrial sector, the largest number of employed persons is in the wholesale and retail sector, reaching (Note) The total of the employed persons in each industrial sector shown in the above diagram does not equal the number of the employed persons shown at the top of the Census. 2011 due to the impact of the Great East Japan Earthquake.
(11) Employment Both the new job openings-to-applicants ratio and active job openings-to-applicants ratio remain high. was 1.83, which was also nearly as high as the national average of 2.04. ratio and the percentage of those who had found employment as of the end of March 2017 were higher than those as of the end of March the previous year. Source: State of Unofficial Acceptance of Employment for Newly Graduates of Junior and High Schools, Ministry of Health, East Japan Earthquake. Source: Labor Force Survey, Ministry of Internal Affairs and Communications
(12) Business Entry and Exit Rates The business entry rate remained relatively at, while the business exit rate increased over the past two years. Note: The business entry and exit rates are calculated using the following formulas based on data from the Annual Reports on Employment Insurance Services: * The business establishments covered by employment insurance refer to 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 the business entry rate exceeded the business exit rate by 2.08 points for Japan and by 0.67 points for Tohoku. By prefecture, the business entry rate exceeded the business exit rate in Aomori, Miyagi, Yamagata and Fukushima, while the business exit rate was higher than the business entry rate in Iwate and Akita. Source: Monthly and Annual Reports on Employment Insurance
(13) Internationalization Trade Exports decreased for the rst time in ve years, while imports decreased for two consecutive years. In 2016, exports Note[M1] from the Tohoku region dropped for the first time in five years for a total of 614.2billion yen, a decrease of 6.4 from the previous year. This was attributable to a decrease in the export of office equipment and iron and steel despite an increase in semiconductor production equipment. Meanwhile, imports Note[M2] decreased for two consecutive years for a total of 1,297.8 billion yen, a decrease of 14.5 from the previous year. This re ected a decrease in the import of coal and metallic ores/ scrap despite an increase in the import of clothing and accessories. The Tohoku region accounted for 0.9 of Japan s exports (0.9 in 2015) and 2.0 of its imports (1.9 in 2015). By port, Sendai Shiogama Port handles the largest volume of goods 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, the value of imports shrank at many ports, and, in particular, dropped signi cantly at Onahama Port. (For reference: Ports in Tohoku are shown on the Map of Transport Infrastructure on page 57 in the Japanese version.)
metallic ores/scraps, crude oil/raw oil, and coal. Source: Overview of Trade in the Tohoku Region, Yokohama Customs, Ministry of Finance indicates that a large proportion of cargo was loaded at ports located outside the Tohoku region. Meanwhile, Land, Infrastructure, Transport and Tourism
Internationalization of Corporate Activities The number of overseas subsidiaries of companies headquartered in the Tohoku region increased. According to the results of a survey with 1,561 responses from companies, the number of overseas subsidiaries (whose voting right stock is more than 50 ) and affiliates (20 50 ) owned by companies headquartered in the Tohoku region increased by 12 to 230 from the previous year, as of the end of March 2014. The largest number of these overseas subsidiaries/a liates are from Asian countries, excluding China (91 companies, or 39.6 of the total), followed by China (90 companies, or 39.1 ), and North America (23 companies, or 10.0 ). (Note) The Basic Survey of Japanese Business Structure and Activities targets companies that own a business establishment engaging in mining, manufacturing, electricity and gas, wholesale, retail, services or other businesses with 50 or more employees and a capital equity investment amounting to 30 million yen or more. Source: Basic Survey of Japanese Business Structure and Activities, Ministry of Economy, Trade and Industry ith respect to overseas transactions of companies (fiscal year 2014), the value of direct exports (155 responses from the survey) decreased to 402.9 billion yen. The ratio of exports to sales at the companies that responded to the survey was 22.7. Meanwhile, the value of direct imports (172 responses) decreased for the rst time in four years, for a total of 349.8 billion yen. The ratio of imports to total purchases at import companies was 22.7. (Note) The value of direct exports is the value of exports whose custom clearance procedures were taken under the name of the export company (excluding services). The value of direct imports is the value of imports whose custom clearance procedures were taken under the name of the import company (excluding services). Source: Basic Survey of Japanese Business Structure and Activities, Ministry of Economy, Trade and Industry
International Arrivals/Departures and Foreign Residents The number of non-japanese nationals residing in the Tohoku region is increasing. In particular, the number of foreign residents from Vietnam has increased rapidly in recent years. The total number of people arriving and departing through ports and airports in Tohoku was 261,136, a 4.1 drop rise from 272,212 in 2015. Although the number of Japanese is decreasing, that of non Japanese nationals is growing after a dramatic decrease following the Great East Japan Earthquake. hile the number of non Japanese nationals arriving in and departing from Japan is rapidly increasing throughout the country, 0.3 used the ports and airports in Tohoku to arrive in or depart from Japan. Source: Annual Report on Overseas Arrivals and Departures Statistics, Ministry of Justice
(Note 1) Following the revisions to immigration Control and Refugee Recognition Act and the introduction of a new management system for foreign 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 Resident in Japan (formerly Statistics on Registered Aliens), Ministry of Justice
(14) Tourism The number of inbound tourists to the Tohoku region has been increasing over the past four years. The number of inbound tourists to the Tohoku region decreased considerably in 2011 after the Great East Japan Earthquake, but recovered to 251.6 million in 2015. Source: Graphic Illustration of Transport in Tohoku/Statistics on Tourism in Each Prefecture, Tohoku District Transport Bureau, In 2016, the total number of overnight guests decreased in each prefecture except for Iwate. Compared to the previous year, overall consumption by tourists and consumption per capita increased in 2015 in Aomori and Iwate while these gures decreased in Miyagi, Akita and Yamagata. In Fukushima, although consumption by tourists showed a downward trend, consumption per capita increased.
The total number of international overnight visitors in Tohoku increased, exceeding that of the national rise. In 2016, the total number of international overnight visitors in Tohoku was 726,000. Compared to the previous year, it was an increase of 19.3, exceeding that of the national rise of 5.8. By nationality, the number of inbound overnight visitors from Taiwan increased rapidly after the Great East Japan Earthquake, reaching 250,000, followed by China with 85,000, a large increase of 58.6 compared to the previous year. In a comparison of Tohoku and Hokkaido, consumption by international inbound visitors in 2015 shows an upward trend in Tohoku with 22.298 billion yen, but is less than one twelfth that of Hokkaido which has succeeded in attracting international visitors to the area. Spending per capita in Tohoku was 48,474 yen, which is a decrease of 33.5 compared to the previous year, and is about 30 that of visitors to Hokkaido. (Note) The number of visitors represents the number of those staying at accommodation facilities with sta of 10 or more employees. Source: Statistics on Overnight Trips, Japan Tourism Agency
3. Industrial Structure of Tohoku (1) Manufacturing industry Overview The value of manufactured goods shipped rose 6.2% year-over-year to 16,760 billion yen. The value of manufactured goods shipped in the Tohoku region in 2014 increased 6.2 from the previous year (to 16,760 billion yen), for the third consecutive year of growth. Its share of the national total also rose 0.1 points year on year,to 5.5. Changes in the Value of Manufactured Goods Shipped (Trillion yen) (%) 30.0 7.0 25.0 20.0 15.0 10.0 5.0 0 Share of national total 6.0 5.9 5.7 5.7 6.0 5.6 5.5 5.5 5.3 5.4 5.5 5.0 5.0 18.4 18.9 18.4 17.0 17.0 1.6 1.7 1.6 16.3 16.8Trillion yen 1.3 1.2 15.8 2.5 2.6 15.2 2.5 14.7 1.5 Aomori1.6 4.0 2.4 2.4 14.3 1.5 1.5 1.5 2.1 1.4 Iwate2.3 2.3 3.8 3.6 3.5 2.0 2.2 1.9 3.5 3.6 3.6 Miyagi4.0 1.6 1.7 1.6 2.9 2.8 3.4 3.7 3.0 1.4 1.4 1.3 Akita1.2 2.9 2.9 3.0 3.2 3.1 1.2 1.2 1.1 1.1 2.4 2.8 2.6 2.4 2.4 Yamagata2.6 2.0 5.5 5.6 5.9 6.2 6.0 4.7 5.1 4.3 4.6 4.8 Fukushima5.1 1.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (Note) From the 2007 survey, the entire activities of 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 hile the number of establishments in the manufacturing industry decreased in all prefectures of Tohoku, the number of employees increased in all of the prefectures except for Aomori and Akita. The value of manufactured goods shipped and the value added rose in all Tohoku prefectures. No. of establishments 2013 2014 Manufacturing Industry Data by Prefecture YoY change No. of employees (Persons) 2013 2014 YoY change alue of manufactured goods shipped(million yen) 2013 2014 YoY change alue added(gross value added for establishments with 29 or fewer employees)(million yen) 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 Tohoku 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 Japan 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 Source: Census of Manufacture (four or more employees)
National Share by Industry Sector Information and communications electronics equipment, electronic parts, devices and electronic circuits, etc. had a relatively high share of the national total. Tohoku s share of the value of manufactured goods shipped in Japan in 2014 was comparatively large for information and communications electronics 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 transportation equipment (2.6 ) and iron and steel (2.9 ). Information Electronics Lumber Business Ceramics Paper/pulp Non-ferrous Beverages Other Food Furniture Textiles Production Metals Printing Electrical Plastics General-purpose Chemicals Iron and steel Transportation Tohoku s Share of the Value of Manufactured Goods Shipped in Japan (2014) (%) 0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 2.9 (3.0) 2.6 (2.8) 3.6 (3.6) 3.5 (3.1) 3.3 (3.2) 4.4 (4.6) 4.2 (4.1) 5.6 (5.5) 5.4 (4.9) 5.2 (5.2) 6.4 (6.2) 7.4 (7.2) 7.4 (7.4) 7.1 (7.1) 7.9 (7.6) Manufacturing Share of national total 5.5% (5.4%) 8.5 (8.3) 8.5 (8.4) 9.2 (9.4) 12.3 (12.0) 13.8 (13.7) 15.2 (13.9) (Note) Three industries (rubber products, leather tanning/ leather products/fur skins, and petroleum and coal 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: Middle division of industrial classi cation Manufacture of food Manufacture of beverages, tobacco and feed Abbreviation Food Middle division of industrial classi cation Manufacture of petroleum and coal products Abbreviation Petroleum Beverages Manufacture of plastic products Plastics Manufacture of textile products Textiles Manufacture of rubber products Rubber Manufacture of lumber and wood products (except furniture) Manufacture of furniture and xtures Manufacture of pulp, paper and paper products Printing and allied industries Manufacture of chemical and allied products Lumber Furniture Manufacture of leather tanning, leather products and fur skins Manufacture of ceramic, stone and clay products Leather Ceramics Paper/pulp Manufacture of iron and steel Iron and steel Printing Manufacture of non ferrous metals and products Non ferrous Middle division of industrial classi cation Manufacture of general purpose machinery Manufacture of production machinery Manufacture of business oriented machinery Manufacture of electronic parts, devices and electronic circuits Manufacture of electrical machinery, equipment and supplies Manufacture of information and communications electronics equipment Manufacture of transportation equipment Abbreviation General purpose Production Business Electronics Electrical Information Transportation Chemicals Manufacture of metal products Metals Other manufacturing Other
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) (%) 15.1 11.5 5.8 12.2 5.6 6.1 2.1 3.9 5.8 6.2 3.7 3.4 2.2 16.3 14.4 10.7 7.4 11.6 5.3 4.8 4.5 4.5 4.2 4.3 3.7 3.3 3.7 3.8 13.8 9.9 10.8 10.5 8.6 5.6 5.2 4.6 4.4 4.0 4.1 4.0 3.5 3.6 3.4 17.7 11.2 11.2 10.3 7.4 5.5 4.7 4.3 4.3 4.3 4.0 4.0 3.7 3.6 3.4 18.0 11.4 11.0 9.3 7.8 5.5 5.4 4.4 4.3 4.3 4.3 3.8 3.7 3.5 3.4 17.8 Electronics Foodstuffs Transportation Information Chemicals (Note) Industrial classifications were revised from the 2008 survey onward. Accordingly, general machinery in the 2003 industrial classification was divided into Production 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.) Source: Census of Manufacture (four or more employees) Non-ferrous Metals Beverages Electrical Business Ceramics Paper/pulp Iron and steel Other The industry sectors that have the largest share in each prefecture are as follows: 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) (%) Aomori Iwate 9.4 20.5 1.8 2.1 2.2 21.3 2.6 5.9 3.6 7.9 2.9 5.8 7.6 6.2 0.2 9.2 14.9 25.1 3.1 2.3 7.4 0.7 3.9 2.2 3.5 4.6 3.6 4.2 14.6 0.7 Miyagi 12.0 12.4 9.2 2.5 2.3 5.8 1.7 4.5 3.7 3.9 1.7 3.2 4.8 4.8 27.7 Akita 26.2 7.8 5.1 2.1 6.5 6.0 4.3 5.2 1.8 2.1 6.1 4.1 3.8 1.9 17.0 Yamagata 15.7 11.5 4.8 13.8 8.8 9.0 2.1 3.4 1.7 5.4 1.9 3.2 1.3 0.8 16.5 Fukushima 6.8 5.6 7.9 14.8 8.7 3.1 4.2 5.3 7.7 5.6 4.9 4.1 3.1 2.0 16.1 Electronics Foodstuffs Transportation Information Chemicals Production Non-ferrous (Note) The following industry sectors make up only a small percentage in Tohoku compared to other regions and are therefore classi ed as Other : They include plastic products, general purpose machinery lumber and wood products, other manufacturing, rubber products, printing and allied industries, textile products, furniture and xtures, petroleum and coal products, leather tanning, leather products and fur skins. Source: Census of Manufacture (four or more employees) Metals Beverages Electrical Business Ceramics Paper/pulp Iron and steel Other
Shipment value of Manufactured Goods in Four Major Industrial Sectors The shipment value of transportation equipment shows an increase. In 2014, the shipments of electronic parts, devices and electronic circuits rose 8.1 from the previous year to 1,913.4 billion 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 shipment value of foodstu s grew 4.1 year over year to 1,844.7 billion yen. Compared to 2004 ( 100), the relative value was 100.2 (113.8 for Japan), and the figure has steadily recovered since the Great East Japan Earthquake in 2011. The shipment value of transportation equipment contracted 4.8 from the previous year to 1,552.6 billion yen, representing a relative value of 138.4 (118.5 for Japan) compared to 2004 ( 100), and exceeding the national level. The shipment value of information and communications electronics equipment increased 12.4 from the previous year to 1,312.8 billion yen, representing a relative value of 64.2 (67.0 for Japan) compared to 2004 ( 100), i.e., at the 60 level. (100 million yen) 2004 = 100 30,000 111 112 111 120 25,000 20,000 15,000 10,000 5,000 0 25,000 20,000 Changes in the Value of Shipments of Electronic Parts, Devices and Electronic Circuits 100 100 111 23,914 26,640 26,656 2004 2005 Tohoku 102 2006 2007 26,538 2008 110 80 77 18,391 2009 20,922 National index (right axis) 89 87 2010 84 77 18,412 2011 71 63 14,994 2012 74 69 19,134 17,703 2013 80 74 2014 Tohoku index (right axis) Changes in the Value of Shipments of Foodstuffs (100 million yen) 2004 = 100 30,000 114 120 106 109 107 106 106 107 109 100 100 99 98 99 103 107 106 102 86 89 96 100 100 80 60 40 20 0 100 80 15,000 10,000 5,000 18,412 18,083 18,157 18,904 19,610 19,516 18,834 15,875 16,417 17,714 18,447 60 40 20 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0 Tohoku National index (right axis) Tohoku index (right axis) 5,000 Changes in the Value of Shipments of Transportation Equipment (100 million yen) 2004 = 100 30,000 160 142 145 138 25,000 126 126 140 118 20,000 115 119 120 107 121 120 107 111 106 100 110 93 15,000 106 107 100 100 92 10,000 15,972 16,314 12,049 15,526 80 11,220 11,873 12,301 13,579 13,513 10,274 11,866 60 Changes in the Value of Shipments of Information and Communications Electronics Equipment (100 million yen) 2004 = 100 30,000 113 120 25,000 100 104 97 98 92 100 104 89 20,000 15,000 10,000 5,000 20,448 91 90 18,797 18,485 87 17,881 21,364 80 16,307 89 18,180 77 78 15,776 13,040 67 65 67 64 57 11,681 64 13,128 80 60 40 20 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 40 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0 Tohoku National index (right axis) Tohoku index (right axis) Tohoku National index (right axis) Tohoku index (right axis) (Note 1) Since the 2007 survey, the entire activities of establishments were included in the scope of the survey in order to gain a grasp of activities other than manufacturing. Consequently, the survey results for 2006 and 2007, including the value of manufactured goods shipped, are not linked. (Note 2) New classi cations were introduced in 2008 (some sections of electrical machinery, equipment and supplies were transferred to electronic parts, devices and electronic circuits and information and communications electronics equipment ), causing a disruption of data linkage. Source: Census of Manufacture and Economic Census for Business Activity (four or more employees)
Overview of Manufacturing Companies Headquartered in the Tohoku Region Pro t margins and shareholders equity ratio of manufacturing companies rose. 120.0 Changes in the Number of Establishments, Number of Regular Employees, Sales, and Number of Subsidiaries per Manufacturing Company (Indexation using value for FY 2004 as 100) 115.0 111.1 110.0 105.0 106.6 100.0 95.0 100.0 98.6 90.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014(FY) No. of establishments No. of regular employees Sales No. of subsidiaries No. of establishments No. of regular No. of subsidiaries Sales (100 million yen) employees (persons) (companies) Tohoku Japan Tohoku Japan Tohoku Japan Tohoku Japan FY 2012 3.103 5.882 239.6 401.1 78.75 209.1 0.709 3.893 FY 2013 3.259 5.928 238.3 404.5 80.51 220.6 0.698 3.990 FY 2014 3.231 5.899 231.7 401.4 78.89 222.3 0.699 3.916 0.8 0.2 Source: Basic Survey of Japanese Business Structure and Activities, Ministry of Economy, Trade and Industry * 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. The ratio of operating income to sales for manufacturing companies headquartered in the Tohoku region was (%) 6.00 5.00 4.00 3.00 2.00 1.00 0.00-1.00-2.00-3.00 Changes in Ratios of Operating Income, Ordinary Income and Net Income to Sales in Manufacturing Companies 3.76 3.84 3.32 3.54 1.90 2004 1.59 2005 4.69 4.50 2.26 2006 3.70 1.79 4.01 2007 0.44 0.32-2.23 2008 1.77 1.50-0.08 2009 2.94 2.73 2010 2.30 2.26 0.24-0.07 2011 1.70 1.34 0.79 2012 2.95 3.37 2.66 2.57 1.97 1.21 2013 2014(FY) Ratio of operating income to sales Ratio of ordinary income to sales Ratio of net income to sales Source: Basic Survey of Japanese Business Structure and Activities, Ministry of Economy, Trade and Industry
Average Ratio of Operating Income to Sales and Other KPIs per Manufacturing Company Ratio of operating income to sales ( ) Ratio of ordinary income to sales ( ) Ratio of net income to sales ( ) Total capital (100 million yen) Net assets (100 million yen) Shareholders equity ratio ( ) Tohoku Japan Tohoku Japan Tohoku Japan Tohoku Japan Tohoku Japan Tohoku Japan FY 2012 1.34 3.24 1.70 4.62 0.79 1.99 86.54 235.3 26.42 108.8 30.5 46.2 FY 2013 2.57 4.70 2.95 6.30 1.21 4.20 86.16 248.2 26.98 117.3 31.3 47.3 FY 2014 2.66 4.67 3.37 6.73 1.97 4.30 85.09 252.5 27.69 122.7 32.5 48.6 Percentage change from the previous scal year 0.09 0.03 0.42 0.43 0.76 0.10 1.2 1.7 2.7 4.6 1.2 1.3 *Fiscal YoY change for total capital and net assets represents the percentage change from the previous scal year ( ). Manufacturing companies headquartered in the Tohoku region in fiscal year 2014 had total capital (total assets) of 8.509 billion yen (down 1.2 from the previous scal year), net assets of 2.769 billion yen (up 2.7 from the previous scal year), and shareholders equity ratio of 32.5 (up 1.2 points from the previous scal year) per company. 30.0 25.0 20.0 15.0 10.0 5.0 0.0 2004 Changes in Total Capital (Total Assets) and Shareholders Equity Ratio per Manufacturing Company (%) (100 million yen) 35.0 110.0 30.5 31.3 32.5 21.3 22.0 22.4 2005 2006 24.8 24.4 2007 2008 25.8 2009 28.7 28.3 79.68 84.75 83.66 82.09 74.48 75.63 93.22 84.78 86.54 86.16 85.09 2010 2011 2012 2013 2014(FY) 100.0 90.0 80.0 70.0 60.0 50.0 40.0 Total capital per company (right axis) 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 ratio)/total assets. Generally, the higher this ratio, the smaller the liabilities of the company. Of the 797 manufacturing companies headquartered in the Tohoku region, 208 companies provided their R&D expenses, representing 26.1 of the total number of manufacturing companies (a 48.0 response rate for Japan). R&D expenses to sales ratio was 3.50 (down 0.13 points from the previous scal year). Expenditures per company for R&D were 557.8 million yen (down 0.9 points from the previous scal year. Current Status of R&D Expenses in Manufacturing Companies No. of responses to the Basic Survey of Japanese Business Structure and Activities No. of companies that reported their R&D expenses Tohoku Japan Ratio of R&D expenses to sales ( ) R&D expenses per company (million yen) Tohoku Japan No. of companies Response ratio ( ) No. of companies Response ratio ( ) Tohoku Japan Tohoku Japan FY 2012 786 13,203 228 29.0 6,383 48.3 2.97 4.81 444.7 1,743.9 FY 2013 771 13,053 212 27.5 6,327 48.5 3.63 4.61 562.7 1,806.5 FY 2014 797 12,931 208 26.1 6,205 48.0 3.50 4.73 557.8 1,858.2 Percentage change from the previous scal year 26 122 4 1.4 122 0.5 0.13 0.12 0.9 2.9 (Note) Fiscal YoY change in R&D expenses per company represents the percentage change from the previous scal year ( ).
Changes in the R&D Expenses-to-Sales Ratio and the R&D Expenses per Company for Manufacturing Companies (Million yen) (%) 800 3.63 3.50 4.00 700 3.04 3.50 2.97 600 2.79 562.7 557.8 3.00 2.48 2.44 2.44 2.43 500 2.16 444.7 2.50 385.8 400 2.00 300 268.7 295.1 323.7 342.1 1.62 371.1 359.7 1.50 200 191.6 1.00 100 0.50 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014(FY) 0.00 R&D expenses per company R&D expenses-to-sales ratio (right axis) Source: Basic Survey of Japanese Business Structure and Activities, Ministry of Economy, Trade and Industry
Industrial Property Rights The number of applications for industrial property rights increased for designs and trademarks. 2,500 2,000 1,500 1,000 500 The number of applications for industrial property rights made in 2016 in the Tohoku region was 1,690 for patents, 137 for utility models, 293 for designs, and 2,500 for trademarks, with an increase in design and trademark applications, and a decrease in patent and utility model applications. The numbers of applications for patents and designs in 2016 rose while those for utility models and trademarks fell in comparison with the national level in 2011 when the application numbers fell o due to the Great East Japan Earthquake. Changes in the Number of Patent Applications (Applications) 0 Share of the national total (right axis) 0.63 0.55 1,575 Aomori Iwate Miyagi Akita Yamagata Fukushima 2011 0.57 1,641 2012 1,702 2013 0.68 1,816 2014 0.66 0.65 1,719 136 146 805 106 274 252 2015 1,690 145 142 732 132 257 282 2016 (%) 0.75 0.60 0.45 0.30 0.15 0.00 Source:, Japan Patent O ce Changes in the Number of Utility Model Applications (Applications) hen compared with the number of applications by prefecture in the previous year, patent applications increased in Aomori, Akita, and Fukushima. The number of utility model applications increased in Fukushima and the number of design applications increased in Aomori, Akita, Yamagata, and Fukushima and the number of trademark applications increased in Aomori, Iwate, Miyagi, Yamagata, and Fukushima. 300 250 200 150 100 50 0 3.54 223 Aomori Iwate Miyagi Akita Yamagata Fukushima 2011 Share of the national total (right axis) 3.37 2.91 2.95 183 2012 176 2013 183 189 15 19 2014 3.63 69 35 24 27 2015 2.78 137 8 8 52 27 14 28 2016 (%) 4.20 3.50 2.80 2.10 1.40 0.70 0.00 Changes in the Number of Design Applications (Applications) 600 500 400 300 200 100 0 Share of the national total (right axis) 1.11 297 Aomori Iwate Miyagi Akita Yamagata Fukushima 2011 1.27 354 366 2012 1.39 2013 1.60 397 2014 1.06 264 29 24 137 15 42 17 2015 1.19 293 43 23 109 16 65 37 2016 (%) 1.80 1.50 1.20 0.90 0.60 0.30 0.00 Changes in the Number of Trademark Applications (Applications) 3,000 2,500 2,000 1,500 1,000 500 0 2.05 2.28 2,174 1,733 Aomori Iwate Miyagi Akita Yamagata Fukushima 2.23 2.14 Share of the national total (right axis) 2,141 2,066 2,500 1.95 299 2,302 1.87 272 340 329 777 709 241 249 323 376 420 467 2011 2012 2013 2014 2015 2016 (%) 2.40 2.00 1.60 1.20 0.80 0.40 0.00 Source:, Japan Patent O ce
(2) Commerce Overview The number of business establishments increased for wholesalers, while the number of employees and total sales volume increased for both wholesale and retail trades. In 2014, the total number of wholesale and retail business establishments in the Tohoku region was 111,008 (up 1.2 from the 2012 survey the national gure also rose 0.2 during the same period), while the number of employees rose to 776,029 (up 4.4 from the 2012 survey up 3.5 for the nation during the same period). Total annual sales of goods stood at 24,528.2 billion yen (up 6.2 from the 2012 survey the national gure was down 0.3 during the same period). Total annual sales refer to sales of goods for the calendar year immediately preceding the year of the survey. For wholesalers, the number of business establishments, number of employees, and total annual sales all showed an increase. The number of retail establishments decreased slightly (down 0.4 from the previous survey), but the number of employees and annual sales showed an increase. Changes in the Number of Business Establishments, Number of Employees, and Annual Sales of Goods Annual sales of goods (*Sales during the year No. of establishments No. of employees immediately preceding the year of the survey) Share of Changes from the previous Share of Changes from the previous Share of Changes from the previous census( ) census( ) Million census( ) national (Persons) national national yen total( ) Tohoku Japan total( ) Tohoku Japan total( ) Tohoku Japan Commerce 2012 109,683 7.8 743,262 6.6 23,102,394 4.8 total 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 holesale trade Retail trade 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 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 census in the number of establishments, 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 For wholesalers the number of business establishments and employees increased from the previous survey in all prefectures and total annual sales increased from the previous survey in all prefectures except for Iwate and Akita. For retailers, the number of establishments decreased from the previous survey in all prefectures except Miyagi, but the number of employees and total annual sales increased from the previous survey in all prefectures. 2014 Changes from Previous Census by Prefecture(Comparison with 2012) Wholesale Trade Retail Trade 10 5 0 5 10 15 (%) 6.4 6.1 5.8 4.8 2.1 9.7 9.0 10.3-3.8 9.4 7.8 6.2 0.2 4.4-4.3 1.5 1.6 7.5 7.5 6.6 Tohoku Aomori Iwate Miyagi Akita Yamagata Fukushima 13.9 5 0 5 10 15-3.8-2.9-0.4-1.0-0.02-0.6 0.4 1.0 1.0 1.4 3.1 3.8 3.8 3.9 5.2 6.0 6.8 7.1 7.0 7.5 (%) Tohoku Aomori Iwate Miyagi Akita Yamagata Fukushima 13.9 No. of establishments No. of employees Annual sales of goods No. of 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