Japan's construction industry is shifting from a scrap-and-build approach to one focused on regeneration, aligning with Western practices. It is entering a transition period from tearing down old buildings for new construction or replacement to a market emphasizing renovation and repair to extend building lifespans.

Japan's construction industry is shifting from a scrap-and-build approach to one focused on regeneration, aligning with Western practices. It is entering a transition period from tearing down old buildings for new construction or replacement to a market emphasizing renovation and repair to extend building lifespans.
Understanding of the long-term use of existing buildings is gradually permeating society as a whole, from single-family homes and apartment buildings over 40 years old to public structures. Regarding apartment buildings, the number requiring renovation and repair now reaches 40,000 units. Furthermore, much of the social infrastructure built intensively during the high-growth period—bridges, dams, ports, etc.—is aging. The sharp increase in renewal and maintenance costs signals that the time has come for a fundamental review of public works.
The draft 2012 Ministry of Land, Infrastructure, Transport and Tourism White Paper states that combined national and local public works spending in 2010 was 8.3 trillion yen. Even now, renewal costs (0.9 trillion yen) and maintenance costs (3.3 trillion yen) account for 50% of this total.
If all social infrastructure exceeding its service life were uniformly replaced with identical functionality, costs would increase by 4.4 trillion yen by fiscal year 2025. Combined with maintenance and disaster recovery costs, the total would exceed 8.3 trillion yen. As replacement costs continue to rise, keeping public works spending at 1 trillion yen would mean required replacement costs over the next 60 years (through fiscal year 2075) would reach approximately 70 trillion yen, making funding these replacements virtually impossible.
The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) proposes a countermeasure: increasing inspection frequency and implementing aging countermeasures focused on repairs and maintenance. While this would increase maintenance costs, it would significantly limit the fiscal burden. For example, Japan has 150,000 road bridges nationwide. A sharp increase in aging bridges would incur enormous replacement costs.
The "Longevity Maintenance Plan" promoted by the ministry to local governments is shifting away from conventional repairs and replacements toward planned maintenance and preservation for extended service life. Amid these changes, the construction industry's transformation is drawing attention as it seeks new business opportunities.