The overseas construction project like plant industry is generally exposed to natural risks such as climate and topography and to social, political, economic, financial, legal, health-wide, managerial, technical, and cultural risks. Major risk factors in domestically plant industry can be considered...
The overseas construction project like plant industry is generally exposed to natural risks such as climate and topography and to social, political, economic, financial, legal, health-wide, managerial, technical, and cultural risks. Major risk factors in domestically plant industry can be considered governmental policy, industrial cycle, sales growth rate, entry barrier, market competing level, price competition, exchange-rate risk, raw-material demand and supply, and political risk in the corresponding region. The domestic plant industry is forecasted to be likely to continue stable growth in the long term and is judged to probably show growth of exceeding the world’s growth rate by virtue of reinforcing competitive edge in domestic businesses and of the government’s policy for supporting export. The explosive growth is prospected to be likely to be difficult as the past owing to the worries about the deterioration in the environment of investment in offshore plant and the power plant-facility maintenance of the advanced country caused by the global economic slowdown, which was begun from the US sub-prime mortgage crisis, and about economy in the new developing countries such as China and India. Nevertheless, there is a forecast that will be able to overcome enough, through which the government systematically supports the market opening such as developing SOC(Social Overhead Capital), inheriting experience, connecting market opening, diversifying the focused opening market, and expanding support for advance, in addition to a point that the domestically major overland-plant businesses are receiving an order centering on the Middle East. Still, the growth in the businesses of China and Middle East can become a threat at the point of time when domestic businesses are proceeding with securing competitive edge, for a reason that the major core technologies in the high value-added plant industry are concentrated on the overseas leading plant businesses. There may be occurrence of a failure in expanding production equipments and in producing the quantities with contract due to contraction in funds according to domestically economic stagnation and financial crunch. Thus, there requires attention.
The overseas construction project like plant industry is generally exposed to natural risks such as climate and topography and to social, political, economic, financial, legal, health-wide, managerial, technical, and cultural risks. Major risk factors in domestically plant industry can be considered governmental policy, industrial cycle, sales growth rate, entry barrier, market competing level, price competition, exchange-rate risk, raw-material demand and supply, and political risk in the corresponding region. The domestic plant industry is forecasted to be likely to continue stable growth in the long term and is judged to probably show growth of exceeding the world’s growth rate by virtue of reinforcing competitive edge in domestic businesses and of the government’s policy for supporting export. The explosive growth is prospected to be likely to be difficult as the past owing to the worries about the deterioration in the environment of investment in offshore plant and the power plant-facility maintenance of the advanced country caused by the global economic slowdown, which was begun from the US sub-prime mortgage crisis, and about economy in the new developing countries such as China and India. Nevertheless, there is a forecast that will be able to overcome enough, through which the government systematically supports the market opening such as developing SOC(Social Overhead Capital), inheriting experience, connecting market opening, diversifying the focused opening market, and expanding support for advance, in addition to a point that the domestically major overland-plant businesses are receiving an order centering on the Middle East. Still, the growth in the businesses of China and Middle East can become a threat at the point of time when domestic businesses are proceeding with securing competitive edge, for a reason that the major core technologies in the high value-added plant industry are concentrated on the overseas leading plant businesses. There may be occurrence of a failure in expanding production equipments and in producing the quantities with contract due to contraction in funds according to domestically economic stagnation and financial crunch. Thus, there requires attention.
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