While Japan has faced stiff competition from regional competitors in recent decades, Nippon companies still dominate when it comes to high mix, low-volume B2B technologies. Working behind the scenes supporting larger companies with their parts, components, materials and machinery, Japanese SME manufacturers are often referred to as the “hidden champions” of the nation’s manufacturing industry, excelling in niche fields where they are reputed for their high-quality technologies that cannot be replicated by regional peers.
“More than 90% of Japan’s business structure is SMEs. The Japanese government provides strong support to these companies and is dedicated to nurturing their growth. Our founder came from Niigata prefecture, and our company has continued as a specialist in fluid control devices,” says Yoshinori Nakamura, president of one such SME, Kaneko Sangyo, who adds that “satisfying the needs of our clients instead of purusing profit” has been key to the company’s success over the past 100 years.