Japans once-proud construction industry is painfully realizing its glory days are gone. Construction was once a pillar of the Japanese economy, accounting for nearly a fifth of GDP and employing nearly 7 million people. But after a decade in which the economy has hovered near zero growth, private sector spending has dropped precipitously. And a new government promises a tougher stance toward the public works spending that has kept a floor under the construction market.
Perhaps more importantly, the industry has largely lost the admiration of the public. Young people are avoiding construction careers. The heavy debts of the contractors and wasteful public works spending are now seen as hindering the nation's economic recovery. "The future of Japan's construction industry is not very rosy," understates Hajime Suzuki, executive director of the Research Institute of Construction and Economy, a government-affiliated think tank.