The mold-making industry underpinning "Made in Japan" faces crisis
A November 2 article in The Asahi Shimbun notes that, in industrial terms, the craftsmanship of mold-making once stood as a source of global pride for Japan. Yet, a "strange shift" has quietly taken place.
Over the past three decades, the number of companies producing molds has declined by nearly 70%, with an increasing number going out of business.
Molds are used to produce large quantities of identical parts or products. Materials such as steel and plastic are injected into molds to form various shapes of components and finished goods. It is estimated that an automobile requires approximately 30,000 parts, while a smartphone needs around 1,000. Many of these components are manufactured through molds. Molds play an indispensable role in numerous manufacturing processes and are often referred to as the "creators of products."
The number of domestic mold-making enterprises in Japan peaked at around 13,000 in 1990. By 2024, this figure had dropped to approximately 4,000—a decline of 70%. Mold shipments reached about ¥2 trillion in 1991; by 2024, they totaled around ¥1.5 trillion, marking a reduction of roughly 25% over more than three decades. Employment in the sector fell from about 120,000 in 1991 to approximately 70,000 in 2024.
While the 70% drop in the number of firms is striking, the decline in shipment value is only about 25%, and employment has decreased by 40%. Some experts argue that "the scale of the industry has not shrunk proportionally to the reduction in the number of enterprises."
Meanwhile, mold-making firms continue to voice concerns: "This is a crisis for Japanese manufacturing."
China accounts for 53.6% of global mold production, followed by the United States at 17.5%. Japan ranks third, with a share of 7.4%. Due to faster delivery times and lower costs, a significant volume of orders has shifted toward China.
According to research firm Teikoku Data Bank, the number of insolvencies or closures in the mold industry is projected to reach 172 cases in 2025—dramatically higher than the 51 cases recorded in 2015, setting a new high for the past decade.
The primary causes behind these closures include: (1) aging management personnel; (2) business partners relocating overseas; and (3) rising raw material costs that cannot be easily passed on to product prices.
Yukihide Matsuno, president of Matsuno Mold Manufacturing Co. in Saga Prefecture, stated: "Shifting mold-making orders abroad, particularly to China, constitutes a crisis for Japanese manufacturing. If mold-making firms continue to collapse, Japan will lose its technical capabilities, making future domestic manufacturing increasingly difficult, ultimately forcing reliance on foreign suppliers."
The Japan Mold Industry Association acknowledges that "the industry is at a turning point." With suppliers going bankrupt, "molds that have been relied upon for years can no longer be repaired, rendering continued production impossible."
Demand for contract manufacturing and repair services is growing. Even well-performing mold factories report a deep sense of urgency: "If we do not change, we cannot survive."
Original article: toutiao.com/article/1880698768318475/
Disclaimer: This article reflects the personal views of the author