The Development Bank of Japan Inc. (DBJ) is pleased to announce the publication of the findings of the Survey on Planned Capital Spending for FY2023.
The results of the survey point to a second consecutive increase (up 20.7%) in planned domestic capital spending by major companies in FY2023, surpassing the pre-pandemic investment level of FY2019. Spending on semiconductors and electric vehicles is expected to remain robust, while investment to accommodate the increased movement of people will resume. By region, substantial increases are planned in Hokkaido, Hokuriku and Kyushu in particular, driven by the automobile and semiconductor-related industries.
Regarding domestic capital spending, our findings reveal the following characteristics regarding corporate behavior:
- The rising raw material and labor costs, as well as risks from the conflict between China and the US, are prompting moves to diversify sourcing overseas and expand business where demand is robust. Enhancement of production sites in Japan is a notable change from the pre-pandemic period.
- Investment for decarbonization continues to be led this year by renewable energy, energy conservation and electric vehicles. Despite the emergence of new energy forms such as sustainable aviation fuel (SAF), decarbonization shows no substantial increase this year as a percentage of capital spending or R&D investment.
- Spending on digitization shows an increase led by investment related to decarbonization and for user convenience in railways. Despite the increased use of, and interest in generative and other types of artificial intelligence (AI), most of the spending on digitization is intended to update existing systems.
- R&D investment shows an increase, mainly for electrification, IoT and decarbonization. Although companies are actively investing in talent development as the labor shortage remains the largest obstacle to innovation, only 10% of the firms are planning to partner with startups.
- Faced with the requirement to retain talent, companies are making proactive efforts not only in recruitment but also in pay increases.
- Medium-sized firms are also moving toward raising the prices of their products and the wages of their employees, but few of these companies are planning to increase the prices of their products and services to achieve carbon neutrality.
More details on the survey are available in the attached PDF.
Please note that no information regarding individual firms will be provided by DBJ, as the survey is conducted under conditions of confidentiality and anonymity.
DBJ's reports are one of the ways in which it fulfills its corporate philosophy of "Design the Future with Financial Expertise: Continue to expand financial frontiers; Provide the best solutions for customers and society; Pursue sustainable development for Japan and the world."
Inquiries:
Chief Research Office
Economic & Industrial Research Department
Tel. +81-3-3244-1845 E-mail: capex@dbj.jp
Regional Research & Planning Department (information by region)
Tel. +81-3-3244-1633 E-mail: rpinv@dbj.jp