Japan, with around 1,500 companies that have generated more than 150,000 jobs in the region, plays an integral part in the economy of the U.S. Midwest, widely known as the industrial heartland.
Consul General of Japan in Chicago Jun Yanagi said the region served as “a strategic base for many Japanese companies” that enables them to develop their businesses “across the country and beyond,” while Japanese Chamber of Commerce and Industry of Chicago Executive Director Tetsuro Mitani said it was a “land of promises and haven for investors seeking holistic business development.”
Collectively, the states of Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin are among the world’s most productive regions.
“Considering the combined GDP (gross domestic product) of all Midwestern states, we have the fifth-largest economic production worldwide,” said Midwest U.S Japan Association Chairman Gordon Dobbie.
Although known traditionally for manufacturing, the Midwestern states have attracted a new type of partner and investor, one that has recognized the area’s suitability for growing their businesses in the 21st century, in fields such as electric vehicles (EV), green energy and technology, and life sciences.
“This is a fascinating time for the automotive industry in the Great Lakes region. In the past three years, 87% of OEM (original equipment manufacturer) investment has been in the EV battery sector, while EV and hybrid vehicles have seen a 15% increase in the market share compared to pre-pandemic levels,” said Alan Amici, CEO and president of the Center for Automotive Research in Michigan.
Meanwhile, Lafayette in Indiana is building on its legacy as a center of advanced manufacturing, determined to become the production hub of semiconductor and microelectronics production in the Midwest with the help of Purdue University.
“With SK Hynix planning to invest nearly $4 billion to build an advanced chip-packaging facility in West Lafayette, we are at the crossroads of next-generation tech manufacturing in the Midwest,” said Lafayette Mayor Tony Roswarski.
Collaboration between the industrial and education sectors has grown much closer over the years with the recognition that such efforts, both cross-country and cross-border, lead to life-changing research and innovation.
“Strengthening research partnerships with Japan is key to solving global challenges and is redefining the term ‘impossible’,” said University of Illinois Urbana-Champaign Chancellor Robert Jones.
Also in Illinois, Jefferson County announced last year that Texas-based Manner Polymers will build its first 100% renewable energy-powered factory.
“Green production and supply chain processes will be a key priority for foreign investors, including the Japanese. We’re developing better renewable energy infrastructure and technologies to meet future challenges,” said Jefferson County Development Corp. Executive Director Tony Iriti.
On the other hand, Wisconsin Economic Development Corp. Secretary and CEO Melissa Hughes credits her state’s ability to adapt and innovate for attracting foreign investment, the largest of which is Kikkoman, one of the world’s largest soy sauce producers.
Marking its 50th year in Wisconsin last year, Kikkoman has thrived in the state thanks to its business-friendly climate, the excellent work ethic of its residents, and easy access to soybeans, wheat and plenty of high-quality water.
“Our U.S. operations account for 70% of our business outside Japan. Kikkoman’s Wisconsin facility symbolizes global market success,” said Kikkoman Corp. Representative Director Osamu Mogi.
Across the region and industries, the Japan connection is highly valued.
“Investment opportunities in the life sciences and medical technology sector are booming here. We are setting the stage for Japanese investors to leverage our decades-long expertise and sophisticated ecosystem by partnering with innovators in Japan,” said Northeast Indiana Regional Partnership CEO and President Stephane Frijia.
This long-running trans-Pacific partnership in business could not have happened if Americans did not take to heart important Japanese cultural values.
“We also believe in omotenashi (selfless hospitality) and kizuna (enduring bonds). Our hospitality towards our foreign partners centers on welcoming them and forging strong bonds of trust for years to come,” said Huntington Mayor Richard Strick.
The same attention to the importance of long-term partnerships is at the heart of Indianapolis-based law firm Barnes & Thornburg LLP.
“The Midwest takes nothing for granted. While it offers unique benefits in terms of its central location, skilled workers, and countless business synergies, we embrace Japanese leaders as true friends and make deliberate efforts to prioritize their needs, community and culture,” said Partner Pete Morse.
