June 2010
Japan - Foreign construction orders down 32% in FY2009

Overseas construction orders at Japan's 43 major general contractors tumbled 32.7% to Y696.9 billion (US$7.7 billion) in fiscal 2009, slipping below Y700 billion for the first time in 29 years, according to industry figures released. At their peak in fiscal 2007, foreign construction orders won by Japanese general contractors reached Y1.68 trillion (US$18.6 billion). They have now declined for two consecutive years as the world economy has retreated.

The Overseas Construction Association of Japan reported a 96.4% plunge in orders from the Middle East due to the effects of the Dubai shock, and sharply lower orders from North America and Europe as well. With Obayashi Corp. and other major players facing losses on large projects undertaken in the Middle East, there are no signs that orders will rebound in fiscal 2010 either.