We have entered September, the final month in the single digits of the year. Yet the summer heat shows no sign of letting up. With such unusually persistent high temperatures, it’s possible that fatigue has accumulated more than we realize. This is the time to pace ourselves, rest when needed, and allow the body to recover from the lingering toll of summer.
Recently, a small but noteworthy news item surfaced: Mitsubishi Corporation has decided to withdraw from three offshore wind power projects promoted by the Japanese government. The withdrawal was reportedly driven by soaring construction costs. Although the projects were awarded at what was described as “industry-breaking” low bids, rising expenses—especially for imported wind turbines—threatened to turn the ventures into massive losses. With no domestic manufacturers, Japan relies heavily on overseas suppliers, and turbine costs have climbed 1.5 to 1.8 times over the past four years.
Japan still depends on fossil fuels for roughly 80% of its electricity generation, and decarbonization is a national priority. Wind power was meant to grow from just 1% of total electricity supply today to as much as 8% by 2040. With limited flat land available, solar power is reaching its natural limits, leaving wind as a critical piece of the strategy. Against this backdrop, Mitsubishi’s exit underscores just how difficult the path ahead will be.
At first glance, this may seem far removed from the challenges of running a small or mid-sized business. But there are lessons worth drawing.
First, on technology. Established technologies are often available cheaply, and it is tempting to rely on them to cut costs. But hesitating to adopt new technologies simply because they are more expensive can be short-sighted. Even small and mid-sized companies benefit from cultivating an awareness of cutting-edge tools, and from selectively introducing them into operations.
Second, on costs. Business leaders naturally focus on lowering costs, but too often that focus narrows to purchase prices alone. Consider instead how labor hours can be reduced—transforming a three-hour task into a one-hour task, for example. This way of thinking applies not only to manufacturing floors but increasingly to officework. The rise of AI is central here. Today’s AI systems can take on tasks once unthinkable to delegate, enabling entirely new forms of efficiency. Challenges remain, and full reliance on AI is unrealistic, but in an era of labor shortages, finding ways todeploy AI is no longer optional—it’s urgent.
Compared with China, Japan has long prioritized quality, sometimes at the expense of competitiveness on price. The challenge now is to preserve quality while lowering costs—and here, AI holds promise as a transformative tool. Flexibility of thought and openness to new methods are qualities every business leader will need.
For the government, the push for wind power is part of its broader “green transformation,” aimed at tackling global warming. When we connect this effort to the relentless summer heat we are enduring, the urgency feels all the more real.
