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REGIONALREPORT JAPAN
IRNAPRIL-MAY 2015
For decades it was an
economic powerhousewhose
ideas led - and changed - the
world. But how is Japan, and
its rental industry, really
faring in 2015?
T
he first people to approachwith the question
are the Japan ConstructionMachinery Rental
Association (JCRA). It’s an established body,
founded in 1974, and now represents 980 rental
companies and 26 manufacturers across more than
3,000 locations in the world’s 10th biggest country.
Four out of every five Japanese rental companies
count themselves among itsmembership.
More than a quarter of those rental companies -
258 in total - took part in the association’s Industry
Survey for 2015. Conducted during the final months
of last year, it askedJCRAmembers to ratehow their
business had fared during the year across a number
of key indicators, and to offer ideas on how it might
look at the samepoint in 2015.
In some respects the picture was positive, with a
clear majority saying business had either increased
or slightly increased - a figure of 62% in terms of
revenue and 55% for grossmargin. The percentages
who thought it had stayed roughly the same were
22% and 26% respectively. Using either measure,
fewer than 20%believed that businesswas down.
Forecast
Move on to the forecast for this year, however, and
thesituationstarted to lookdifferent. The “increase”
camp had almost halved, to 35% for revenue and
33% for gross margin, and the “down” respondents
surpassed 25% in both cases. Indeed, the figure
viewing their gross margins with pessimism went
through the 30%barrier.
So while the picture at the end of 2014 looked
reasonable, the perception for the market the
following year is that it would be “flat”, with more
than 35% feeling theywould have little to celebrate
in either revenue or gross margin by the end of
December 2015.
With the first quarter of 2015 now behind us, has
themarket behaved how the JCRAmembers though
itwould?
Easternpromise?
Aktio’sMie Inabe Techno Park branch
Nikken’smaintenance facilities and branch in Tokyo
