A recovery in Japan's private-sector capital investment during the mid-1980s brought an end to a difficult period for the country's construction industry.
At that time, use of sophisticated office automation, information, and communications equipment was rapidly increasing, as was demand for buildings that offer their occupants more-pleasant work environments. This spurred a boom in the construction of so-called intelligent buildings. Against this backdrop, the Company presented its proposals for enhancing the functionality and amenity of office buildings in the form of the KI Building in Tokyo, which was completed in 1989. Incorporating the latest technologies, this epochal structure had a significant influence on the design of subsequently constructed office buildings.
In 1988, the completion of a tunnel connecting Honshu with Hokkaido and a bridge linking Honshu with Shikoku increased the geographic coherence of the Japanese archipelago. At the same time, the appreciation of the yen encouraged a growing number of Japanese companies to establish overseas subsidiaries with the goal of boosting their international competitiveness.
Kajima listed its shares on the London Stock Exchange in 1990.
Japan’s bubble economy collapsed in 1991, with the country subsequently entering an era of deflation that would last the next two decades. Economic growth halted, and a sense of despair spread through all of Japanese society. The nation’s economy began to decline, with adverse effects—including the shrinking of facilities investment, the advancing of deflation and a slump in consumer spending—causing the nation to steadily sink into an era of zero growth. Due to the aftereffects of the collapse, construction demand, which had been active up until the mid-90s, began to steeply decline, particularly in the private sector. It was against this backdrop that Kajima completed the construction of Tokyo East 21, a complex including offices, a hotel and commercial facilities in 1992. In fact, not only did Kajima plan, design and construct this building, but we also handle office/retail leasing for the building as well as running and managing it ourselves. This makes the Tokyo East 21 project a concrete demonstration of Kajima’s all-round strengths.
In 1999, the Kajima Technical Research Institute, the first such institution to be established in Japan, marked its 50th anniversary.
The economic environment for businesses continued to be harsh during the first few years of the 21st century, as new issues arose one after another, including a U.S. economic slowdown, stagnation of the Japanese stock market and problems involving the writing off of bad loans held by Japanese banks. From 2004 onward, while the gentle deflationary trend continued against the backdrop of a global economic recovery, facilities investment in the Japanese private sector grew and exports increased. However, although signs of improved corporate profits started to appear, the underlying trend for construction demand continued to be a downward one. It was in these circumstances that Kajima began proactively expanding into the remodeling, environmental, engineering, and other fields, as well as into PFI projects and real estate securitization. At the same time, Kajima committed to improving its profitability through measures including responding to demand for infrastructure development outside Japan. As projects to symbolize these new initiatives, in 2005 Kajima completed two buildings that serve as international sites for the IT industry: AKIHABARA UDX and Akihabara Daibiru Building. In addition, 2007 saw us complete the new Kajima Head Office Building and reconstruct the Kajima Akasaka Annex, thereby consolidating and reallocating our head office functions.
From fall 2008 onward, due to the effects of the financial meltdown triggered by the subprime mortgage crisis, the global economy fell into recession. Japan’s economy subsequently plateaued after a period of sustained recovery, partly as a result of the global recession, but also because of the strengthening yen and skyrocketing raw materials prices that led to problems such as increasing uncertainty about corporate profits. This was the background to Kajima’s celebration in 2009 of the 170th anniversary of its establishment.
In 2010, a fourth runway and an international terminal were opened at Tokyo International Airport (often called Haneda Airport), with the objective of taking the first step toward making the airport into a hub for Asian air travel. Kajima was a key member of the joint ventures for both projects, and led the construction for this international project. At the same time, we successfully completed the construction of several landmark projects in Singapore, which has been enjoying favorable economic growth. We have completed phase one of the Marine Bay Financial Centre project, which includes a 52-story tower, a 32-story tower and Resorts World Sentosa, an integrated resort covering a vast 320,000 m2 and that includes three hotels, a casino, a theater, and more.
On March 11, 2011, the Great East Japan Earthquake struck, causing an unprecedented disaster. Immediately after the earthquake, Kajima made concerted efforts as a group for the recovery and restoration of the affected areas, and participated in the disposal of wreckage in the Ishinomaki block of Miyagi prefecture, as well as the planning of decontamination work in Fukushima Prefecture. The disaster made it clear that there is a greater need than ever before for measures such as ensuring structural safety during earthquakes and tsunami, as well as implementing business continuity planning (BCP). Kajima is continuing to push forward with earthquake engineering and other technologies. Furthermore, with the creation of a low-carbon society in mind, we are also steadily working to popularize the use of renewable energy and green building technologies and to realize Zero Energy Buildings (ZEBs). These are designed to reduce the net amount of energy used during their operation to as close as zero as possible through energy saving and the use of renewable energy. In this way, while anticipating future trends over the next hundred years, we are participating in the building of a future society that is safe and that offers a high quality of life.