Restructuring in the Steel Industry
The Japanese steel industry has undergone a major restructuring over many years due to competition from steel products mainly originating in China, Taiwan, and South Korea, as well as slowing demand due to Japan's population decline. In the steel distribution industry, where we operate, we have seen the steel divisions of general trading companies spun off as independent companies and businesses merge, while over 800 steel distributors in Japan have been shaken out or reorganized due to falling business performance and a lack of success. The industry landscape is currently being reshaped into a simpler form.
Trading companies with a basic business style that revolves solely around providing products made to order will continue to be left by the wayside.
Product Flow in the Steel Industry and the Distribution of Construction Materials
Flexible Response to Industry Change
Onoken views this industry restructuring as an opportunity, and we have looked to leverage the strengths that others cannot match to drive continual growth by providing careful service and a focus on the retail market.
We have established a logistics system for fast delivery due to large inventories at our extensive nationwide network of distribution centers, while introducing processing machinery so we can make products to specific customer requirements.
We handle a wide range of items—not only steel products but also construction materials—and we also take on contracted construction work.
By entrusting us with everything from the sale of construction materials to actual construction, we can provide convenience to customers across the board by keeping costs down, ensuring excellent quality and on-time deliveries.
At the same time, we have built up a strong financial base since our earliest days that has allowed us to make significant capital investments for meeting customer requirements.
We have currently cultivated around 8,000 sales contacts that range from ironworks to shipbuilding, construction, machinery and secondary product manufacturers. We also have more than 2,500 suppliers and are growing our network overseas to other Asian nations, such as China, Taiwan, and South Korea, as well as Australia.