Job Discussion Forums

[rxk22]

I live in Chiba City, and we had an earthquake last night. That got me talking with my fiance, about Tokyo. We talked about how the Kanto area is prolly one of the most dangerous areas in Japan for earthquakes. More importantly, we ended up talking about how the Greater Tokyo Area GTA, is too big of a metropolis for it to be efficient.

I've read a study stating that because of it's size, that a lot of businesses in Tokyo have most their money wrapped up in real estate, either in loans, or in rent. That makes products services more expensive in the GTA. Now why does this matter? International business.

A company that does business in the GTA needs to pay more than they would in other areas in Japan. As it simply costs more to live in this area than other places. So the cost of living makes the payroll section of the budget more expensive as well. A person making 250k� a month in the GTA is barely making it, while in some smaller cities that is about average-ish pay.

Again, why does this matter? Well as P&G moved it's offices to Singapore, we all know the massive threat that hangs over most jobs, offshoring. If the jobs are too expensive to maintain, or to be competitive with other countries, than those jobs will go to other countries.

Now if they were going to outsource, what if the Japanese govt gave some good taxbreaks to the would be moving companies? Instead of taking that office or that factory from the GTA to China, what if they were given a taxbreak and moved the factory/office to Sendai or some other smallish city, where the costs would be much lower?

Tokyo in my opinion is way too big, and is a brain drain on the rest of the country, it also seems to steal any and all capital investments from the other areas. I think it would be a good thing all around if Tokyo was to slower become much smaller.

[shoegazer]

I don't know... What about all the international business that Tokyo attracts? Tokyo is one of only a small handful of alpha class cities in the world today and attracts the greatest amount of annual revenue in Japan. I don't see how business expenses in smaller Japanese cities vs. Tokyo is any different from say for example business expenses in Richmond, VA vs. New York City. Richmond is a ton cheaper business cost-wise than NYC. However... The former is a notable spot on the map in which businesses can conceivably profit, most likely on the local/regional level. The latter is an enormous world-renown, well-established metropolis that is the economic capital of its country and home to every kind of enterprise known to man on at least some level which furthermore has maximal reach in regard to international business networking opportunities. There's too much there already, not to mention the city's gov't will probably do whatever it can to maintain current businesses and continue attracting new ones. All I'm saying in short is that Tokyo, like New York, isn't likely to get smaller and if it did it couldn't really be a good thing. The only way you can make a big city smaller is to a) have it undergo a devastating economic crisis from which it is not likely to recover, eg: Detroit, b) acts of mass terrorism or warfare, c) natural disaster, though to be fair you seem to be implying this .

[rxk22]

You make a fair point. As an Alpha city it does pull in international business. Though other major cities are not on the same scale as GTA. NYC and it's surrounding area isn't as big as the Tokyo area. Though NYC does pull in a lot of international business.

Richmond though has pulled in a lot of businesses as late. They have managed to get a lot going on. This is actually and ideal situation. Smaller cities that can more efficient than larger cities.

I am also saying that from a efficient point of view. How much money and time is lost in Tokyo, just to maintain Tokyo? Transportation costs and high rents, tie up a lot of money.

[shoegazer]

This is also true. But that's the conundrum that comes along with the rapid growth of a big city, like big countries, making them more efficient in ways that will please everyone, especially if it means a pretty big change in a long-established way of life, eg: change over to green technologies from energy-inefficient and environmentally-unfriendly ones. I guess it depends on whether the public can see legitimate benefits in these types of changes in spite of the initial costs/hassles. However, whether powerful politicians and businessmen can agree with this is uncertain, as they may have personal incentives to prevent such changes. So it's really a question of who's losing out here. As usual, it's smaller business and middle-class citizens who bear the brunt of start-up costs and taxes. Yes, they could go to a Richmond or a Boulder, but if you've already got your roots established it's not so simple. Nonetheless, I'm sure there's plenty that can be done in Tokyo that could greatly increase overall efficiency cost-wise, though I'd bet that even if these changes could be made tomorrow, you'd have plenty of people who'd complain about it because it would cause a change in the economic environment and affect some peoples' jobs and livelihood, unions would cry bloody murder, it'd make for sensitive issues and big political headaches, etc, etc. I definitely see your point, and in terms of overall benefit, change could potentially be very good, but the monetary, social, and legal barriers are daunting. Guess that's the way of the world though -- don't fix it unless it's become incontrovertibly evident that it's totally and utterly broken, right?

[the4th2001]

Although a little different from what you're talking about, the Japanese government is looking at ways to bring in more international business and develop domestic job growth. PM Kan's been aggressively pushing to lower corporate taxes (it's finally been lowered by a measly 5%, but it's a starting point), cut small business taxes to around 15%, as well as trying to make it easier for business(wo)men to fly into Tokyo (which has been somewhat achieved with the expansion of Haneda airport). Also, as part of the new corporate tax system, companies receive further tax deductions for every new employee that is hired.

I'm not a hundred percent sure if it's provided to foreign companies/manufacturers, but the government is also trying to set up funding and tax benefits to keep Japanese manufactures from moving operations to countries like China and have them build new facilities in Japan with a focus on rural areas.

It would seem that from the government's perspective, just keeping and attracting new (international) businesses are their biggest concerns. On the other hand, local governments are just trying to keep their younger and educated folks from moving to other regions in search of jobs. Why don't Japanese companies expand in these regions? I would assume that they believe it's not cost effective to do so.

Looking at international companies in Tokyo though, it seems like maintaining operations here is the most efficient thing they could do.
・+10% of the Japanese population is living in the greater Tokyo region.
・It's the world's most populous metropolitan area in the world. **Not sure if this matters, but it's fun to mention.**
・The majority of top Japanese companies have their headquarters located in central Tokyo or are represented in central Tokyo.
・A big assumption on my part, but the majority of English speaking expats and other educated foreigners are living Kanto.
・Two of the largest international airports in Japan are located in Kanto.
・Its infrastructure is more extensive than rural areas.

I'm kind of curious about manufacturing in the greater Tokyo region in general. Although I'm sure that there are several manufacturing facilities in the region, I want to say that you're going to find more manufacturing in Aichi-ken or other regions like Chubu.

[rxk22]

To the 4th2001

That is part of my issue. I do wish Japan well, and in that I hope they unlike America keep most of their industrial base. Lowering the massive corp tax is a good start.

How many cases is it where the office has to be in Tokyo, because it's Japan? I bought my GF a bike at Kainz home, we got theft insurance. It was stolen and we went to a closer KH to get a new bike. Guess what? We had to go back the one where we bought it. Why? TIJ!!!! So how often to a massive amount of the offices and the such in Tokyo, for TIJ reasons?

Also, I think this article/study was pretty good.

http://www.rieti.go.jp/jp/events/05031801/pdf/2-2_kanemoto_p.pdf

Basically there comes a point when a city is indeed too large for it's own good.

Also if some of these actual jobs were sent to different ares, they wouldn't have to prop up entire prefectures with zaney construction jobs, and massive city halls.

[the4th2001]

I somewhat understand what you're getting at. Also, the Toudai slide deck was interesting.

About the Cainz Home story, did you buy the bike at a Tokyo branch? It sounds more like store policy rather than them wanting you to go to Tokyo just because it's Tokyo. Although most of CH's stores are located in the Kanto area, they still have branches scattered across the country. I'd assume that if you'd bought that bike at a branch in Sendai, they would've told you to go to Sendai to get the new bike.

About construction jobs and what have you, I think there's more to it than what you're suggesting. The government would still continue to waste money on infrastructure in rural areas regardless of a surge in jobs.

But again, I kind of get what you're getting at.

[rxk22]

[the4th2001]

What do you mean by "spill into Japanese business practices"? CH is a Japanese company and belongs to one of Japan's larger corporate groups (Beisia Group).

I can't comment on other industries at the moment, but I know the textile industry is primarily focused in other parts of Japan. The wool textile industry used to thrive in Ichinomiya, Aichi-ken before cheap Chinese imports killed it off. Actually, you can still find massive warehouses (AOKI's for example) and dead factories scattered throughout the town. It's kind of creepy and sad all at the same time.

[rxk22]

[the4th2001]

Since you mentioned PCs and communication, I thought you might be interested in this BBC article about Japan and technology.

http://www.bbc.co.uk/news/10543126

[rxk22]