How Nakano Corporation Builds Global Trust in Construction

By Daniel de Bomford

Looking at the manmade wonders of the world, it’s easy to appreciate the complexity of their construction. Dozens of architects and designers, along with hundreds of builders, come together over thousands of hours to ensure every screw is tight, every beam is supported, and every panel is secure. Success requires trust, operational efficiency and vision. Japanese construction firm Nakano Corporation embodies these traits.

Nakano Corporation has been delivering results beyond its size since its inception in 1933. Despite being a mid-sized company, it expanded internationally into the United States in 1974, and before the end of the 1980s, Nakano Corporation had opened offices in Singapore, Indonesia, Malaysia and Thailand.

Japan’s construction landscape is shifting radically as the country’s population shrinks and centers increasingly in urban areas. Concurrently, it is moving away from scrap-and-build policies towards extending the life of existing infrastructure.

For decades, Nakano Corporation has been a leading contractor for design, construction, renovations and civil engineering.  To remain profitable, Japanese firms must adapt to the new paradigm, and Nakano Corporation is no exception. As renovation and seismic retrofitting have become an increasing share of the market, the company has accelerated its efforts to improve its resilience technology.

A Blueprint for Domestic Growth

President Takashi Iizuka says that domestically, the company is focused on profitability through efficiency improvements, securing and retaining talent and strengthening collaboration with partners as outlined in its “Chukei 86” strategy. “My personal aspiration is to create a company where employees share the same vision, communicate openly, and work together with energy, positivity, and camaraderie,” he says.

Improving build efficiency is paramount, and Nakano Corporation has turned to innovation to make gains, mastering new methods like the HRPC II precast concrete method. Success hinges on close involvement from the design stage to optimize planning and coordination. Iizuka describes the “Hyper Seismic” system as especially valuable for retrofitting existing structures such as schools and hotels.

Recalling a client in Sendai using basement seismic isolation, he says, “During a major earthquake, while shelves collapsed in nearby buildings, our tenant—a convenience store—reported that not a single item fell.”

But as the population shrinks, so too does the labor pool. “Recruiting talent is indeed a critical priority,” Iizuka states. Under his leadership, the company has implemented a company-wide KENKO Investment for Health. Programs that improve work-life balance are an essential investment for attracting new, young talent.

At the same time, the company is focusing on diversity, amongst its other SDGs. “While construction has traditionally been male-dominated, over the past decade, many talented women have joined Nakano Corporation as site engineers, architects, designers, and even project managers,” Iizuka says.

Underground seismic isolation

Global Growth Through Local Strength

However, Nakano Corporation is not going to limit itself to the domestic market, and Iizuka considers the organization’s longevity abroad to be a rarity for a mid-sized contractor. As the company celebrates its 50^th anniversary in Singapore and 40^th in Indonesia, Iizuka reflects on what he believes to be one of the company’s great strengths: developing strong local organizations.

“While Japanese staff were essential in the early years, we have invested heavily in training local employees so they can manage projects independently,” he explains. “Today, we have just 20 Japanese staff across five countries, compared to 70–80 in the past.”

Over 60 percent of Nakano Corporation’s overseas clients are non-Japanese, and Iizuka expects that number to increase as multinationals grow in Southeast Asia. In the immediate future, Southeast Asia remains the company’s primary focus, but it is watching India closely.

Trust as the Foundation of Success

Iizuka says that profitability depends on delivering value to clients, “Listening closely to clients and co-creating outcomes with them is central to our philosophy.” Quality, safety and reliability are at the heart of Nakano Corporation’s value proposition.

With an impressive track record, Nakano Corporation’s quality and ability to deliver are clear. Iizuka says the company strives to provide clear added value, building trust through transparency. “Ultimately, this is what will allow us to maintain competitiveness, meet our targets, and build trust globally.”

To hear more from President Takashi Iizuka of Nakano Corporation, check out this interview with him.