Building for a better future

The Japanese construction industry boomed more than 50 years ago around the time of the 1964 Olympics, and as such there is a need for maintenance for these infrastructures that have been built. We have seen Japan’s aging population and the need for new social infrastructure to accommodate the older generations. What is your take on Japan’s current construction industry? What role does your company play in this transformation that is taking place?

The construction industry along with other industries are experiencing the effects of post-economic growth specifically on what to do with the infrastructural projects that were built many years ago. We are talking about the renovations of these facilities to continue to be in good quality for more generations. This not only includes the buildings but also roads and bridges. Another point to consider is disaster prevention because we know that Japan is highly vulnerable to natural disasters. Due to natural disasters that occurred many years ago the civil engineering construction industry and other related industries are still doing recovery work and may still continue for the next two years to come in this area.

Japan, being located at the intersection of three tectonic plates, is a disaster-prone country; Japan experiences earthquakes, tsunamis, and landslides. We met companies such as Abe NikKo Kogyo that created free-stress concrete, tsunami proof time switches, and ensured stable water supply even in times of disaster. Your company Hashimotogumi does similar operations; you have your tidal embankment disaster prevention here at Suruga Bay and at different places, you also have your tsunami evacuation towers that you constructed. Can you tell us the construction technologies that Japan can bring to the world and what do you believe are the key disaster prevention technologies?

Most of the prefectures in Japan are vulnerable to tsunamis. Most of the companies that are related to disaster-prevention activities are focusing a lot of efforts into keeping everyone and the facilities safe, especially against tsunamis. Around this area where our company is located we provided shelters where people can be safe in case of a tsunami. Conventional tidal embankments were only effective against waves that hit, but once waves beyond the tidal embankments returned to the sea, they fell to the offshore side and faced the reality that they could not resist the next tsunami. Therefore, we have created a "tenacious" structure that does not fall over even in the event of receding waves. This technology is very crucial especially to the people who live close to the seashore.

Can you tell us more about this technology?

280 ton floating crane barge Hashimotomaru is installing concrete blocks to make the tidal embankment "tenacious".

The tidal embankments in the sea are usually not supported by piles at the bottom. In the previous construction the blocks - as they are hit by the waves - topple down which could be disastrous. The solution that we came up with is to strengthen the intermediate blocks from the other side. Currently, this technology that we introduced has been standardized by the Japanese government. Emergency signs and hazard lights are also vital for disaster prevention.

The tsunami evacuation tower at night

You can see that this has a fluorescent light. During a huge disaster the absence of electricity and water supply makes it difficult for the people to find the right way towards the shelter, this product accumulates light and can be used in times like these. We are not only selling these products commercially but also doing this kind of social contribution to help those who are in need and are most vulnerable in times of a disaster. 

Your company is also engaged in the general construction business where you make custom buildings such as the aquatics center here in Yaizu. You are also active in civil engineering where you contributed to the Shizuoka airport, the marine engineering business where you utilize your disaster-prevention technologies, and the ready-mix concrete and real estate development business. Which line of business is the main focus of your company?

In some foreign companies their business only focuses on fields related to construction, usually civil engineering is included in the construction activities. It is quite different in Japan because most of the general contractors are only related to construction, furthermore, some civil engineering companies are only focusing on this field while some are doing construction activities as well. Our company combines general contractor, construction, and civil engineering into one including a real estate development team. Eighty to 90% of our total sales come from our construction and civil engineering businesses. 

What synergies have you been able to create and how have they allowed you to develop better customer service for your private sector clients?

Thirty years ago, our company was only related to public works, but currently with the necessity of private constructions we see that this is the area that we can possibly go to. We are balancing out activities for the public and private sectors expanding them to customer-oriented activities. It is much more demanding on public projects because there are strict deadlines and they have to be more precise. 

Working in the private sector after being a company for so many years in the public sector, what benefit has this brought you? What differentiates your company from other private construction companies?

One advantage of having long experience with the public sector is we have accumulated knowledge and experience to produce high-quality products and services. Our high-end projects require preciseness and promptness in submissions because we could not allow ourselves to downgrade the quality of our construction and civil engineering outputs. For this reason, we have transferred these important qualities into our projects in the private sectors. Our company’s goal is to achieve precision and sustainability of our infrastructure projects. 

Your company has been involved with a divergent range of projects, what is your most favorite project and the one that is closest to your heart?

Children’s Hall “Tantokuru Kodomo-kan”

One project involves a children's playground where the parents and their children can go and spend some time together. There is a library there, play area and other attractions for the children; it is a building designed for social interactions. It is a very interesting project, especially because it is close to our new headquarters currently under construction. In this building we are going to provide an open space where people can use it not only for business purposes but also for various events. This serves as our social contribution and this brings merits to our company too. Lastly, we have one ongoing project that brings a lot of excitement. It is an agriculture-related business. 

With Japan’s aging population it is expected that by 2050 there will only be around 100 million people and more than one-third of the population will be more than 65 years of age. The pool of talented engineers who are looking to join a company such as yours is shrinking. It is said that the construction industry is slow in adopting new technologies such as ICT which are useful in making the construction works safer and more efficient. How are you adopting these ICT technologies and how are you going to attract talented graduates to your company?

It has been quite a huge problem for civil engineering construction companies to recruit young, talented graduates. The approach that has been utilized is when new recruits join our company they are given 14 months of OJT so that they can decide which division of the company they are more comfortable with or more interested in as opposed to the past practice where as soon as the recruits join the company they are assigned right away to a specific division. This obviously brings more hardships for the company but in the long run it is more important to prioritize the human capital, consequently the new recruits have more flexibility. In terms of ICT adaptations, we have Revit which is a 3D CAD system developed by Autodesk. The data is accumulated using this system in the company and they digitize it. With this software it has become easier for us to design 3D objects and for excavations. Another technology that we are utilizing is 3D Mapping which allows us to visualize what is happening on the original object during the construction as well as after the construction. It is extremely important to use such technologies in order not to cause unnecessary problems in the area we are working on. These technologies are very intuitive and easy to use, the new recruits do not have to be coming from construction or engineering-related fields to operate these softwares. 

In 2019 you started your operations in Vietnam which is an interesting country because it has become a manufacturing hub. There is a need for a company such as yours to provide infrastructure that will link these different cities in Japan and at the same time there is a need to increase affordable housing in Vietnam. The Vietnamese government is giving $900 million in incentives to companies that can provide affordable housing before 2022. Can you tell us more about the technologies that you introduced in Vietnam and why did you start your operations there?

Designing the plants of Japanese companies that go abroad to localize their productions in Southeast Asian countries is very crucial for many reasons. We would like to be contributing to the food industry because the sanitary requirements and standards in this field are very strict. The design of the plant should be meeting these standards, we all know that the Japanese standards in terms of quality are high especially when it comes to food manufacturing. We provide the food companies with the designs and features of their plants not only in our affiliate company in Vietnam but in China as well. However, due to the COVID-19 situation such activities in Vietnam have been put to a halt and most of the jobs have been postponed.

Press-fitting of revetment steel sheet pile using self-propelled system in Viet Nam

The construction industry is expected to grow to as much as $10.5 trillion here in Asia. What strategies are you adopting to continue your corporate growth?

Vietnam will still be our priority especially since we have only established there in 2019, for this reason we would like to expand our share, expertise, and operations in this market. We will also focus on China in terms of food production where we give emphasis on sanitary standards and regulations. We know that China is a huge market and the locals who have the financial assets are willing to use Japanese brands and work with Japanese civil engineering and construction companies. We have already established a joint-venture activity in Vietnam and some more activities are ongoing through this structure. As regards China, to gain access in the local market is through a joint-venture with a local company, later on we could penetrate deeper into the Chinese market with different forms of structures. The most important idea is once we tackle this market we have to develop a very robust business plan especially in terms of legislation matters.

Imagine we come back to interview you again in two years after your 100th anniversary, what would you like to tell us? What are your dreams for the company and what would you like to have accomplished by then?

Two years is a bit short, let me talk about ten years from now as we already have developed this long-term plan. We shall have employed at least a thousand people, reached fiscal results of ¥ 100 billion, and have an average annual salary of ¥ 10 million.