Business declined in the wake of the economic boom, which burst in 1991. The downsizing of the industry was due primarily to a prolonged depression caused by substantial reductions in public-sector projects and the move by companies to relocate production bases to outside Japan.
Things started to change in 2003, when the industry was buoyed by renewed demand from the export sector, especially the automotive industry, which enjoyed growing demand from overseas, as well as by the robust appetite of Japan itself and IT industries for additional capital investments.
“The hoist industry has continued its expansion year after year until the last fiscal year,” says Toshiyuki Noji, senior manager, business strategy department, Kito Corporation.
The manual hoist category (including lever hoists) has enjoyed a domestic increase of about 15% year on year, while the electric chain hoist category and the rope hoist category both grew almost 20% last year from the previous 12 months, according to Kito.
Fellow Japanese firm Endo Kogyo Co. Ltd. has noticed high demand for its AT series air hoists equipping small chain. Heavy manufacturing sectors (primary materials industries such as iron and steel, shipbuilding and construction machinery) are also hungry for units.
Noji agrees: “We believe demand for new equipment by basic materials, steel and shipbuilding industries will remain strong,” and on top of that, he saw growth in replacement demand from these sectors during fiscal year 2007, at the same level or slightly above that of 2006.
The manufacturing sector, which is the primary customer base of hoists in Japan, is accelerating its shift to the manufacturing of products with significant added value. In other words, they require more technologically advanced equipment.
As a result, demand for bespoke and custom-built units is growing, as it is for larger capacity hoists (especially from the traditional heavy manufacturing sectors) in addition to light capacity manual and electric hoists (50-500kg).
It is worth noting when exploring this geography that the neighbouring Chinese market, in terms of the number of hoists demanded, is 10 times as large as that of Japan.
Some argued in the past that the domestic crane and hoist sector would be adversely affected by the decisions of Japanese corporations to move their operations partially to China and the subsequent “hollowing out” of industries in Japan. However, the Japanese say, renewed attention has been given to Japanese-made products, especially in the manufacturing sector.
A number of Japanese companies with production bases in China have opted for Japanese-made hoists for use in their Chinese plants, a segment which “does contribute to the overall sales of hoists,” says Noji.
In order to encourage China to buy Japanese hoist products, “we have to deliver products that meet the requirements of these companies and to put in place a service structure,” he adds.
Additionally, Noji says “we see an increasing number of local Chinese companies seeking higher productivity and increased production of products with significant added value, and we believe that this trend in turn will accelerate the shift away from cost considerations as the primary determinant in their selection of hoists.”
This is a trend those in the West will certainly be keen to monitor.