We would like to extend our best wishes as we welcome the New Year.
We would also like to express our sincere gratitude to our member companies, relevant government ministries, and organizations for their continued support in the activities of Japan Construction Equipment Manufacturers Association (CEMA).
Last year, tariff increases by the second Trump administration resulted in additional tariffs being imposed on exports from Japan, and the business environment remains severe. CEMA is working together with its member companies to respond, including submitting two written requests to the government.
In addition, Expo 2025 Osaka, Kansai, Japan, held from April to October, attracted many visitors from Japan and overseas.
The visions of the future presented there, such as AI utilization, automation and robotics, and responses toward a sound material-cycle society, served as an important source of support for the challenges facing the construction equipment industry.
Under these circumstances, the demand forecast published by CEMA in August 2025 predicted that both domestic demand and exports would decrease in fiscal year 2025, with the shipment value for the full fiscal year expected to be 2,848.8 billion yen (down 3% year-on-year), marking a second consecutive year of decline.
In fiscal year 2026, although demand for some types of equipment is expected to recover, the overall recovery is expected to remain modest, with the shipment value forecast at 2,845.7 billion yen (±0% year-on-year).
Now, let us highlight the initiatives we particularly focused on last year and their current status.
1. Carbon neutrality (CN)
CEMA formulated its fifth compilation of the Requests for Realization of Carbon Neutrality and conducted request activities with relevant government bodies. The content of these requests was taken up at the Study Group on Roadmap Formulation for the Widespread Use of GX Construction Equipment established by the Ministry of Economy, Trade and Industry, and construction equipment was positioned as a priority field alongside automobiles in the government-wide GX Promotion Strategy (GX2040 Vision). In addition, these requests were reflected in the Plan for Global Warming Countermeasures, and the Seventh Strategic Energy Plan (decided by the Cabinet in February 2025) explicitly stated the promotion of biodiesel adoption for construction equipment.
2. Digital transformation (DX)
In December 2024, CEMA submitted written requests regarding automation and autonomy to the Ministry of Land, Infrastructure, Transport and Tourism, seeking the involvement of the Ministry of Health, Labour and Welfare, the Ministry of Economy, Trade and Industry, and other relevant ministries. As a result, the requests were reflected in the Regulatory Reform Implementation Plan decided by the Cabinet in June 2025, and an expert committee was established within the Ministry of Health, Labour and Welfare. In the first half of this year, items for examining technical standards will be organized, and once conclusions are reached, the necessary measures will be taken.
3. Human resource development and information dissemination
In the construction equipment and construction fields, securing and developing human resources is a pressing issue. To raise awareness of construction equipment and secure human resources, CEMA designated November 19 as "Construction Equipment Day" starting last year. CEMA held the inaugural commemorative event "KENKI (Construction Equipment) Dream Day" in Shibuya, attracting more than 3,300 visitors. Seeing everyone from children to adults joyfully familiarizing themselves with construction equipment, we reaffirmed that construction equipment is an industry of which Japan can be proud, and is indispensable to society.
CEMA's mission is to support Japan's construction equipment industry, which is critical for the world's infrastructure. We will continue to proactively address these issues, while moving forward with your continued support and cooperation.
Last but not least, I would like to conclude my New Year's greetings by wishing everyone a safe and wonderful year.
Chairman, Japan Construction Equipment Manufacturers Association(CEMA)
Akira Yamamoto
President and CEO
Kobelco Construction Machinery Co., Ltd.
