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**Historical Development**:
– Physical record of construction industry in Japan: Horyuji temple completed in 607.
– Edo Period: Edo became the world’s largest city in the 17th century.
– Edo carpenters benefited from the Sankin-kōtai system.
– Regulations on logging established due to development.
– Typical housing for lower classes: all-wood buildings with frequent reconstruction.
– Meiji Period: Government promoted industrialization and Western practices.
– Introduction of Western building techniques by engineers from Europe and the US.
– First formal studies on earthquake implications in late 19th century.
– Japan’s first building code enacted in 1919.

**Post-war and Economic Impact**:
– Construction industry suffered under US Occupation after WWII.
– Industrial infrastructure relocated to former enemy territories.
– Rebuilding of physical infrastructure and key industries expanded after Korean War.
– Construction boom with large public budget allocation.
– Significant projects included dams, public housing, and transportation infrastructure.
– Japanese construction firms involved in building infrastructure overseas.

**Current Industry Landscape**:
– Japanese construction industry contributed 28.4 trillion Yen to GDP in 2018.
– Shortage of labor in the industry impacting productivity.
– Industry investing in automation and expanding labor pool.
– Energy efficiency and reducing greenhouse gas emissions are government goals.
– National standards for energy usage and emissions set by local governments.

**Challenges and Issues in the Construction Sector**:
– Interactions between construction industry and government can be seen as corrupt.
– Bid-rigging practices to raise project costs.
– Collusion investigated by the Fair Trade Commission.
– Aging workforce poses labor shortage.
– Declining productivity due to outdated practices.
– High dependency on public projects for revenue.
– Difficulty in adopting new technologies.
– Struggles with regulatory compliance and bureaucracy.

**Opportunities and Sustainability Efforts**:
– Increasing demand for eco-friendly and sustainable buildings.
– Infrastructure projects related to the 2020 Olympics.
– Renovation and retrofitting of existing structures.
– Urban development projects in major cities.
– Potential for international expansion and partnerships.
– Emphasis on reducing carbon footprint in construction.
– Implementation of green building standards.
– Adoption of energy-efficient practices.
– Recycling and waste management initiatives.
– Promotion of sustainable materials and technologies.