[2024] Manufacturing subsidies explained!

We have received many comments saying, "I would like to apply for a manufacturing subsidy, but the procedures are complicated and I don't know what to do."

By reading this article, you will be able to gain a detailed understanding of the 2024 Manufacturing Subsidy outline, changes, application process, schedule, and selected case studies.

What is the manufacturing subsidy?

The manufacturing subsidy isSmall Business AdministrationwithOrganization for Small & Medium Enterprises and Regional Innovation, JapanThis subsidy, sponsored by the Japan Finance Corporation, is an important support measure for small and medium-sized enterprises to introduce technological innovations and new business models and increase their competitiveness.

Subsidies are provided to small and medium-sized enterprises and small business operators for capital investment aimed at business innovation, such as the development of new products and services, or the introduction of new production and delivery methods.

The official name is "Subsidies to support new developments in manufacturing, commerce, and services for small and medium-sized enterprises and small businesses under the Small and Medium Enterprise Management Strengthening Act."

Purpose of the manufacturing subsidy

(1) Productivity improvement

Manufacturing subsidies support investments to improve corporate productivity.
This includes introducing the latest manufacturing equipment and automating and streamlining production processes.
This allows companies to reduce costs and become more competitive.

(2) Development of new products and services

The development of new products and services is also eligible for support from the manufacturing subsidy.
This includes research and development, market research, and new product prototyping.
By bringing new products and services to market, you can expect to attract new customers and expand your business.

(3) Revitalization of the local economy

Revitalizing local small and medium-sized enterprises directly leads to revitalizing the local economy as a whole.
The manufacturing subsidy is also an important source of funding for the growth of local small and medium-sized enterprises.

(4) Improving productivity in the commercial and service industries

Improving productivity is also an important issue in the commercial and service industries.
The manufacturing subsidy aims to improve operational efficiency and customer satisfaction by supporting the capital investment necessary for the introduction of new services and the improvement of existing services.
For example, by implementing specific improvement projects such as introducing a POS system or installing automated equipment in the store, you can aim to increase sales and reduce costs.

Changes and new regulations for 2024

There are some important changes to the Manufacturing Subsidy for FY2024.

Changes in the 18th edition

In 2024, new standards and requirements will be introduced starting with the 18th application.
Of particular note are the revision of the public recruitment framework and the addition of new evaluation criteria.

For example, special bonuses will be given to environmentally friendly capital investments and digitalization promotion projects.
This will give preferential treatment to companies that promote sustainable management and digital transformation (DX).

18th and subsequent rounds of public recruitment

① Labor-saving (custom-made) frame
Support for the introduction of specialized equipment (custom-made equipment) using digital technology, etc. to resolve labor shortages
Or investment in equipment and systems necessary for efforts to improve the efficiency and sophistication of production processes and service provision methods.
　
②Product/service high added value framework
Divided into application type: normal type and growth field expansion type (DX/GX)
Supporting the capital investments necessary to develop innovative products and services with high added value
　
③Global frame
"Development of innovative products and services" aimed at expanding and strengthening overseas business, etc.
Or support equipment and system investments necessary for “improving production processes and service provision methods.”

Subsidy amount and adoption rate

Subsidy upper limit and subsidy rate

The maximum subsidy amount varies depending on the size of the company (number of employees).
For example, if a company with 50 employees applies under the labor-saving category (custom-made category) and also meets the wage increase requirements, it may be able to receive a subsidy of up to 4000 million yen.

In addition, the subsidy rate has been increased to two-thirds for small businesses.
This increase in the subsidy rate is a measure intended to reduce the burden on companies and enable more companies to actively make capital investments.

Adoption rate and trends

In recent years, the acceptance rate in public applications has been around 40%, so it is by no means easy to get accepted.
To increase your chances of being accepted, you need to create a well-structured plan.
In particular, it is important to clearly describe the project's specifics, feasibility, and how its effectiveness will be measured.
You can also increase your chances of having your application approved by referring to past cases of successful applications and learning from them, or by seeking support from subsidy experts such as administrative scriveners.

Manufacturing Subsidy Application Flow

The application process for manufacturing subsidies is complicated, but if you understand each step, you can go through it smoothly.

Flow from application to adoption

First, you need to complete and submit an application.
The application form should include detailed information about your company, including a summary of your project and budget.
After that, your application will be reviewed and you will be notified of the results.

Application procedure details

The application process requires submission of a detailed plan.
It is especially important to prepare documents in accordance with the public solicitation guidelines established by the Manufacturing Subsidy Secretariat.
The plan must clearly state the project's objectives, specific content, and expected outcomes.
In addition, you will be required to provide a detailed breakdown of expenses for each item, how the funds will be used, and the basis for the amount of added value in the plan, and to present a reasonable budget plan.

Manufacturing Subsidy Application Schedule

The schedule for the next open call for applications (19th) for the Manufacturing Subsidy has not yet been officially announced (as of July 2024, 7).
The latest information on applications and schedules will be updated regularly on the official website of the Manufacturing Subsidy Program, so we recommend that you check it regularly.
　
The 18th deadline for applications has already closed.

Subsidy target

Let's take a closer look at the companies that are eligible for manufacturing subsidies.

Companies eligible for manufacturing subsidies

A wide range of industries are covered, mainly manufacturing, but also commercial services and agriculture, and each industry must meet certain requirements.

Subsidized expenses

Leave the assistance with applying for subsidies to Support Administrative Scriveners Corporation!

The application process for manufacturing subsidies is extremely complicated, requiring the preparation of a large amount of paperwork and meeting strict screening criteria.
Here, we will introduce the support provided by Support Administrative Scrivener Corporation and its benefits.

Click here for inquiries

Support content

① Check the conditions necessary for subsidy application

We will share the information after investigating whether the target subsidy is applicable and any concerns.

② Date management/case management

Even if there are a large number of requests, we will manage the cases and deadlines. We will guide you so that you can apply in plenty of time.

③ Information on required documents

We will provide easy-to-understand guidance so that you can prepare the necessary documents smoothly.

We will also handle documents from the applicant (orderer).

④ Check attached documents and create application form

We will quickly prepare a complete set of application documents by preparing all the documents necessary for the application.

⑤ Application support to the secretariat and support for amendments

We handle all online application support and post-application correction support.

Benefits of Choosing Support Gyoseishoshi Law Firm

Expertise and extensive track record

Support Administrative Scriveners Corporation has supported many companies in applying for manufacturing subsidies.
Our highly experienced administrative scriveners will prepare the optimal application documents for your project based on the latest public solicitation guidelines.
To date, we have supported over 3000 grant applications in total.
By utilizing our specialized knowledge and know-how to create a proposal that will impress the judges, we can increase the chances of your proposal being adopted.

Simplification of procedures

There are many steps to follow when applying for a grant.
Each task, such as creating a plan, estimating a budget, and preparing the necessary documents, is complicated and time-consuming.
If you request the Support Administrative Scriveners Corporation, we will assist you in creating all of these documents at once.

Providing the latest information

The manufacturing subsidy system and application guidelines are updated every year.
It is important to have up-to-date information and to submit an accurate application.
At Support Administrative Scriveners Corporation, we have a team structure that always responds based on the latest information, preventing mistakes when applying and ensuring a smooth process.

Examples adopted by our company

To receive the manufacturing subsidy, you will need to prepare a business plan that aims to improve productivity and add high added value.
　
Our company has supported numerous subsidy applications.
On the following page, we introduce some examples of customers for whom we have actually supported their applications for manufacturing subsidies, along with the key points that led to their application being approved.

Publication Examples

• Case 1: Labor-saving project to resolve labor shortages in the manufacturing industry
• Case study ② Introduction of automatic cutting machines to digitize manufacturing and improve workplace environment
• Case ③ Strengthening EC sales through new product development
• Case ④ Manufacturing utilization example in the service industry

Click here for details

FAQ

What documents are required to apply for the manufacturing subsidy?

In accordance with the application guidelines, you will need to prepare a plan and other documents.
Please consult with Support Administrative Scriveners Corporation regarding the specific documents required and how to submit them.

How much will the subsidy be if approved?

It depends on the size of the company and the number of applications.
Please check this out for details.

If I am having difficulty completing the application form, who can I get help with?

Please contact the administrative scrivener corporation. Our specialized administrative scriveners will support you.
The first consultation is free of charge.

How long does it take to apply for a manufacturing grant?

It usually takes approximately two to three months from preparation to submission of the application.
Starting preparations early is the key to a smooth application process.