HIROTOSHI OGURA, a self-described “factory geek,” is Daikin Industries’ master of doing more with less -- and part of the reason Japan’s recovery remains stuck in the slow lane.

    As Japan heads into the season of peak demand for room air-conditioners, Ogura and other Daikin managers have been tasked with figuring out how to boost output by some 20 percent at a plant in western Japan that six years ago the company had almost given up on as unprofitable.

    The wrinkle: they have no budget for new capital investment at the 45-year-old Kusatsu plant. The still-evolving workaround shown to a recent visitor involves home-made robots for ferrying parts, experimental systems using gravity rather than electricity to power parts of the line, more temporary workers on seasonal contracts and dozens of steps to chip away at the 1.63 hours it takes to make a typical new air conditioner.

    “We can do a lot without spending anything,” said Ogura, a 33-year Daikin veteran who joined the company just after high school.

    Like Daikin, a number of Japanese manufacturers are shifting production back to Japan from China and elsewhere to take advantage of a weaker yen. Rival Panasonic has pulled back some production of room air-conditioners, Sharp has brought back production of some refrigerators, and Canon has repatriated some output of high-end copiers, according to a list compiled by Nomura.

    But even as output recovers, Japanese companies remain cautious about new capital investment in factories and equipment. The trend is especially pronounced for smaller firms down the supply chain.

    (SD-Agencies)