Firms Expanding into Tohoku Increase after 2011 Disaster

Economy

Tokyo, March 11 (Jiji Press)--The number of companies that have expanded their operations into six prefectures in the Tohoku northeastern Japan region from other parts of the country has increased some 26 pct over a decade after the March 2011 disaster, a survey by Tokyo Shoko Research Ltd. has shown.

The number of such companies in the construction industry jumped 1.8-fold on the back of road construction, infrastructure development and other projects for the reconstruction of the region that was devastated by the massive earthquake and tsunami as well as a subsequent nuclear accident at Tokyo Electric Power Company Holdings Inc.'s <9501> Fukushima No. 1 power plant in Fukushima Prefecture, according to the survey.

However, with the completion of many of these projects, construction needs in Tohoku began to decline. The region now faces the challenge of developing a new industry that does not rely on reconstruction-related demand, pundits said.

In the survey, the research firm counted the number of companies that are headquartered outside of the six prefectures--Aomori, Iwate, Akita, Miyagi, Yamagata and Fukushima--and have branches, sales offices or factories in these prefectures.

The number of such firms increased from 13,553 in March 2011, immediately after the disaster, to 17,046 in February 2021.

[Copyright The Jiji Press, Ltd.]

Jiji Press