Riding the wave of US shipbuilding expansion | NHK WORLD-JAPAN News - NHKニュース

Riding the wave of US shipbuilding expansion The US administration has accelerated investment in its shipyards and is expanding cooperation with Japan and South Korea. Last year, President Donald Trump announced plans to build about 25 new "Trump-class" battleships. One manufacturer in Japan sees a chance for growth. Based in Nagasaki Prefecture, a region with a long history of shipbuilding, Kubo Industries has been adapting to changes in the field.

Founded 78 years ago, the company manufactures steel structures for ships, bridges and other projects.About a decade ago, a heavy industry major began withdrawing from commercial shipbuilding operations in Nagasaki, in southwestern Japan. As a result, Kubo Industries saw its workload decline sharply.Company president Takahashi Shinya eventually found a new opportunity through work connected to the US Navy base in Sasebo.

"As it happened, the US Navy approached us," Takahashi says. "They said vessel repairs would increase and asked whether companies in Nagasaki could take on the work."Few local businesses were able to get on board.Kubo Industries decided to invest heavily to secure contracts with the US Navy. It opened an office near the Sasebo naval base and purchased additional equipment.The company also sent employees to the United States for training, where they learned about American labor standards and workplace regulations.After completing the necessary requirements, Kubo Industries became qualified for repair work on US military vessels.

In October, the company won its first major contract.Takahashi says competition remains limited and expects the business to provide higher profit margins."There are many opportunities for us to win contracts," he says. "We want to expand this type of work and leverage the skills we've built up over the years."

Still, Takahashi has mixed feelings about developments in US security policy."Since the Trump administration took office, the United States has been engaged in military operations. In that sense, I'd like to see a change," he says. "I think the conflicts could end with a different administration. Demand for naval vessel repairs might decline, but from a global perspective, peace is better."One expert says, however, that US efforts to counter China are likely to generate continuing demand for repair and maintenance work."If the number of naval vessels increases and the US Navy becomes more active in the Indo-Pacific, demand for repair work will also grow," says Sato Heigo, a professor at Takushoku University specializing in security issues. "The US has long held Japan's maintenance capabilities in high regard."

But when it comes to shipbuilding itself, Sato notes that Washington's objective remains the revival of domestic manufacturing."I believe that the Trump administration has called for South Korean shipbuilding operations to be moved to the United States to create more jobs.""It would not be surprising if Washington asks Japanese companies to move production there," he says. "For smaller firms, that is a risk they should keep in mind."Washington's trade and security policies are reshaping the global business environment. For companies like Kubo Industries, new opportunities are emerging. But navigating the benefits and risks of closer ties with the United States may prove just as important as winning new contracts.