Japanese leading engineering companies received orders of record-high 17.1 trillion yen in fiscal 2014 that ended in March 2015, says the Engineering Advancement Association of Japan. The value increased by 11.5% from the year earlier and orders won by general construction contractors accounted for more than half of the total value at 8.89 trillion yen.

The data, based on the survey results of 59 member companies of the organization, revealed that domestic orders recorded 13.55 trillion yen, up 9.7% from the previous year, while overseas orders increased 21% to 3.57 trillion yen. In Japanese engineering market, almost all sectors saw increase especially in energy, urban development and transport. Overseas orders jumped due to large contracts won in energy sector in Southeast Asia.

The current fiscal year is projected to see 6.4% decline from fiscal 2014. Despite the negative repercussion from the achivement in 2014, the domestic market will be underpinned by strong investment associated with the 2020 Tokyo Olympic Games and the disaster reconstruction spending in northern Japan. The overseas performance of Japanese engineering companies will likely suffer from a slump in oil prices. (2015/09/11)