Background on the Nagoya Economy

  • Nagoya is Japan’s fourth-largest city with 2.2 million residents and third-largest metropolitan area after the Tokyo and Osaka urban areas.
  • With a GDP of $577 billion, the Greater Nagoya Area ranks 21st in the world, behind Switzerland and above Sweden.
  • The Greater Nagoya Area produces 27% of Japan’s manufacturing output (versus 11% in Greater Tokyo and 10.2% in Greater Osaka) and 24% of Japan’s exports. Nagoya’s surrounding Aichi Prefecture has led Japan in industrial output since 1977.
  • Greater Nagoya produces 51.7% of Japan’s total automobile output and 45% of the country’s auto parts. This represents 8.2% of global automobile production.
  • The area accounts for 60% of Japan’s machine tool production.
  • Nagoya Port is Japan’s largest in terms of import and export tonnage and in terms of export value.
  • There is an ever-growing connection to Texas. Toyota USA is consolidating its offices to establish a new headquarters in Plano. Chubu Electric Company, the area’s largest energy supplier, has an office in Houston and has invested in LNG infrastructure in the state. Japan Railways Tokai has plans to build a bullet-train line between Houston and Dallas.
  • U.S. firms with significant operations in the Nagoya area include Boeing, Lockheed, PPG, DuPont, Borg Warner, Raytheon, Pratt and Whitney, TRW, SanDisk, Pfizer, and Cabot Microelectronics.
  • Mitsubishi Heavy Industries, Kawasaki Heavy Industries and Fuji Heavy Industries have major aerospace production facilities. They account for about half of Japan’s aerospace production.
  • Notable domestic companies with production facilities in the area include Toyota, Honda, Suzuki, Mitsubishi Motors, Denso, Sharp, Panasonic, Toshiba, Fujitsu, Yamaha, Noritake, Yamazaki Mazak, Nippon Sharyo, NGK Spark Plug, Makita, and Brother.
  • A new high-speed maglev train called Linea is under construction between Tokyo and Nagoya. It is scheduled to go into operation in 2027. This will reduce travel time from 100 minutes to 40 minutes.