The 20th century has seen more advances made in the fields of science and technology than any other century in history. This past century has seen the unceasing development of mass production and mass consumption, with a vast volume of seaborne trade being generated to support them. Many of the ships engaged in this trade have become increasingly specialized, operating as crude oil tankers, bulk carriers, containerships, liquefied gas carriers among others to ensure the more efficient transportation of raw materials, oil and processed goods. Ships have also become even larger and more efficient.

　At the beginning of the 20th century, Japanese shipbuilders lagged far behind their western counterparts in technological standards. However, their aptitude for elaboration and accuracy, armed with integrated technical capabilities for designing, production and quality control, enabled the Japanese builders to develop and maintain cost competitiveness, in respect of which they grew to be recognized as the world leaders.

　However, as the market becomes increasingly globalized, international competition intensifies and the structures of industry and trade undergo transformation, the traditional approach of Japanese shipbuilders to cost competitiveness with the emphasis on traditional "process innovation" is no longer sufficient in itself to keep them in the leading position. The challenge they face now is to change their approach from the traditional model of "catching up" to one of "frontier creation," and to steer their efforts toward product innovation, which would enable new high value businesses and new markets to be created through the utilization of info-communications and achievements in the realms of frontier technologies. In addition, they have to appropriately address environmental issues and safety requirements, which may often be incompatible with the immediate public needs for greater convenience and improved service quality.

　With a view to remaining a well-respected and attractive industry capable of steadily supplying ships to support the very basis of physical distribution for the world economy and appropriately meet- ing the needs of the times for safety and environmental conservation in this 21st century, Japanese shipbuilders will continue to endeavour to meet these challenges.

　This brochure describes the current status and future course of the Japanese shipbuilding industry. I sincerely hope that this publication will contribute to deepening mutual understanding, which is the very basis of international co-operation.