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Development Bank of Japan Inc. ("DBJ") is pleased to announce thepublication of a survey on planned capital spending for fiscal years 2017, 2018 and 2019 entitled "Substantial Growth in Both Manufacturing and Non-manufacturing: Driven by Investment for Expansion of Production Capacity and Urban Functions."
According to the survey, planned capital spending by major firms for FY2018 in industry as a whole shows an increase (up 21.6%), continuing a rising trend for the seventh straight year.
Based on our findings, domestic capital spending in FY2018 may be characterized as follows.
(1)
In the manufacturing sector, increased investment and R&D spending in the heavyweight transport equipment industry for new models, including for electrification, will be accompanied by a rise in spending in chemicals and nonferrous metals for electronic/battery materials. Spending is expected to increase in electric machinery for use in automobiles and efficiency and will increase in general machinery for capacity expansion for automobile and industrial robot components.
(2)
In the non-manufacturing sector, spending will continue in transportation for the development of railway/logistics facilities and in real estate for large-scale urban redevelopment projects. Also, services will see continued investment in hotels and theme parks for inbound tourists. In wholesale & retail, investment will be driven by the introduction of labor-saving equipment, mainly among CVS outlets.
(3)
Continuing from the previous year, our opinion poll this year focuses on "investment in a broader sense," including overseas tangible fixed asset investment, R&D, information technology investment, human investment and M&A. As regards R&D, almost 40% of the manufacturers respond that they are increasingly utilizing open innovation, etc. As for information technology investment, about 30% of the respondents report that they are utilizing, or considering utilizing, big data and AI, among others. Environmental, social and governance interest has been increasing as 90% of the firms respond that they feel the need to act in this area.
Please note that no information regarding individual firms will be provided by DBJ, as the survey is conducted under conditions of confidentiality.
More details on the survey are available on the Survey Report (Research Report) page of the DBJ website (https://www.dbj.jp).
DBJ's reports are one of the ways in which it fulfills its corporate philosophy of "Applying financial expertise to design the future: We solve issues facing our clients and society by opening new financial frontiers to achieve sustainable development in Japan and across the globe."
Inquiries: Economic & Industrial Research Department Development Bank of Japan Inc. E-mail: capex@dbj.jp
