In the 90’s the average annual wage in the UK was much lower than Japan, so that many Japanese manufacturing companies moved in the UK to make R&D investment particularly in the software domain to gain benefit from the cheap & skilled labour. Japanese wages have stayed the same for the past 30 years, while the British labour cost has risen rapidly. Now is the time for British manufacturers to source skilled Japanese engineering cheaply.
Why Japan?
Potentially Cheap
Japanese labour cost could be cheaper. Popular destinations such as China and India are becoming expensive and may be comparable to Japan. The other South-East Asian countries such as Vietnam are still cheaper if relevant expertise is obtained.
Manufacturing Expertise
It is generally understood that IT is a Japanese weak point. If you outsource software/IT development, India or China could be better off. Japan is traditionally excellent in manufacturing whose expertise is embedded in the industrial culture. Relevant skills will be found in the country.
National Character
Although personality depends on the person, the average Japanese mindset is described as polite, calm, diligent, well organised and reliable. Management cost would be less in working with Japanese compared with the other countries.
Access to Experienced
Compulsory retirement plan forces experienced personnels to retire at 60. In reality, many people have to work after 60 to make a living by accepting a lower salary. Enjoying early retirement is uncommon in Japan. This produces the possibility to have access to the very experienced resources at relatively low cost.
Low Mobility
Even before the COVID pandemic, the mobility of Japanese labour was low compared with the other Asian countries. As Japan has relatively large markets and self-contained, it is sufficient and comfortable to do business in Japan. It has not been essential to expand the business globally. Hence, good skills do not move out. As moving to the UK to work is an unrealistic option, you should search resources in Japan.
Remote Working
Under the COVID pandemic, remote working is common everywhere. Japan is no exception. Thanks to the modern collaboration and engineering tools, working with remote engineers as a team is not a problem. To overcome time differences, flexibility need to be considered.