Tokyo Olympics Jumpstart Japan’s Construction Industry

Olympics is one of the world’s most awaited events every four years. Since its beginning in Greece, the biggest event for sports enthusiasts is being visited by nobles, royals and peasants alike. In the modern times, the event is not any less appreciated but instead, it is celebrated in all parts of the world. It would truly be an honour for a country to host the said event.

The 1964 Olympics was one of the most remarkable events in modern history. The staging of the games marked Japan’s re-entry into the world community after two decades of shame and struggle caused by defeat in war and put the cap on what is regarded as the most explosive urban transformation in history. In 2020, much is expected from the country as well.

When the country has fought off competition from Madrid and Istanbul, Japan has thrown off a large preparation to host the 2020 Olympic Games even when the 2016 is still a year away to be celebrated in Rio de Janeiro. Because of this, construction in Japan has also flourished and thrived when all establishments are pursuing to better their buildings for the upcoming sports event. Its capital, Japan particularly spurs the moment of excitement and preparations.  Because of the fast increasing demand, chronic labour shortage in the construction industry and inflated material prices threaten the country’s compact games.

In response, Cedar Capital Group, a company which sells and rents capital construction equipment in Singapore has sent more agents in the country to assist in whatever is needed. Asian pride is at stake and it is inevitable that every agency, institution or organization, private or non-profit, in every corner of Asia should be involved. A lot of construction companies also promised to help.

Shortages are acute in the construction sector, where the task of upgrading ageing public infrastructure has fallen on a labour force already strained by the rebuilding of tsunami-afflicted areas in northeast Japan.

At the same time, costs for steel beams and other materials have risen as a result of the drop in the yen’s value. Even with the pared-down plans for the 2020 games, the metropolitan government’s Y153.9bn ($1.5bn) budget is likely to climb much higher, said Yoji Otani, an analyst at Deutsche Bank, as contractors turn up their noses at the low rates on offer.

Demolition work ahead of the Y163bn rebuilding of the Tokyo National Stadium in the city centre – due to host the opening and closing ceremony – has already been pushed back twice, with the latest round of bids in mid-July failing to reach the price offered, according to Japan Sport Council, which owns the venue. Despite these, many people still hope that within 5 years before the 2020 Olympic Games, Japan can reach and achieve its goals.