What are the latest 6 subsidies available for warehouse construction in 2023? Detailed explanation of conditions and how to apply

Do you feel that warehouse construction costs are high? If you are looking for a way to keep costs low, please consider taking advantage of subsidies. There are many subsidies available for warehouse construction, and they can be a great help in reducing the cost of warehouse construction. This article explains the types of subsidies available for warehouse construction and how to apply for them.

Overview of subsidies that can be received when building a warehouse

Subsidies are economic support measures taken by governments and local authorities to support the activities of businesses. It is possible to receive subsidies for warehouse construction. However, it is important to note that application procedures and grant conditions vary by subsidy.

This chapter describes the general process of receiving a grant. After you have a thorough understanding of the process, please review the details of the subsidy explained subsequently.

Steps to be taken until the grant is awarded

This section describes the general flow of the grant until it is awarded.

1. Subsidy Application

Apply for the grant of your choice. Applications are not always successful and are usually reviewed. The application process differs for each grant, so check the details.

2. Adoption of provision

After you have been contacted by the operator and your application has passed the screening process, if your application has been selected, follow the prescribed procedures. Please be sure to follow the procedures through to completion, as incomplete applications may result in the suspension of the grant.

3. Project Implementation

In order to actually receive the grant, the project must be implemented for the support covered by each grant. You must also leave evidence that you have conducted the project.

If the project is not eligible for support or there is no evidence that the project was conducted, the grant may be revoked. Be very careful.

4. Provision of subsidies

A record of the details and expenses related to the project implemented will be submitted. If the project is properly implemented and verified, the grant will be awarded. Accuracy and proper submission of records is important.

6 subsidies that can be received when building a warehouse

The following subsidies are available for the construction of warehouses

• Subsidies to cover a portion of construction costs
• Subsidies to support the introduction of environmentally friendly equipment
• Subsidies for technological innovations and energy-saving measures

These subsidies can help reduce the burden of building a warehouse and make your business more efficient. This chapter provides details on six typical subsidies so that you can make good use of them.

Business restructuring subsidies

This section describes the Business Restructuring Subsidy, a subsidy that can be received when building a warehouse.

Purpose of the grant

The “Business Restructuring Subsidy” was established to provide assistance to companies that have experienced a drop in sales due to the new Corona. Its purpose is to help companies restructure their businesses. Specifically, companies can invest in the construction or renovation of new factories and warehouses. This program can be said to be part of the effort to promote economic recovery. We aim to turn around the domestic economy by encouraging companies to take on new challenges.

Conditions for payment

To qualify for the “Business Restructuring Subsidy,” certain conditions must be met. First, companies whose sales have declined due to the Corona disaster are eligible. In addition, the company must have a plan for “business restructuring,” such as new business development or a change in industry. Furthermore, companies must work out a business plan together with an authorized business innovation support organization.

Eligible for payment

Eligible expenses are those that can be clearly classified as business expenses. For example, the following expenses are eligible

• building expenses
• transportation charge
• outsourcing expenses
• Cloud service usage fee
• Machinery, equipment and system construction costs
• technology introduction expenses

Maximum amount of payment and grant rate

There are several types of “business restructuring subsidies. The maximum grant amount varies depending on the type and the size of the company. One example is the “Growth” category, which is intended for businesses that are engaged in bold business restructuring for growth areas. The minimum grant amount is 1 million yen and the maximum grant amount is 70 million yen. The grant rate also varies depending on the size of the company, with a maximum of 2/3 for small and medium-sized companies and 1/2 for medium-sized companies.

Details will vary depending on the duration of the grant, the size of the company applying, and various conditions. Please check the official website of the grant for the latest information before proceeding with the application.

How to Apply for a Grant

We recommend using the grant application system provided by the Digital Agency for your application. Please note that the application to create an account must be submitted by mail.

(Official HP) Business Restructuring Subsidy

HACCP Subsidy

This section describes the HACCP subsidy, a subsidy that can be received when building a warehouse.

Purpose of the grant

HACCP subsidies are available for the construction of warehouses. Its purpose is to increase the number of HACCP-compliant facilities and to expand exports of Japanese food, agriculture, forestry, and fishery products. HACCP is a method of predicting and analyzing food safety hazards and controlling critical processes to prevent them. The grant will help businesses improve their competitiveness and expand into overseas markets.

Conditions for payment

To be eligible for the “HACCP Subsidy,” a business must be a food-related business. Specifically, this includes manufacturers, distributors, and intermediate processing businesses. Corporations and local governments are also included as grant recipients. However, in order to be deemed appropriate as a grant recipient, there is a screening process by the prefectural government and other authorities. Organizations that meet these conditions may apply for HACCP subsidies.

Eligible for payment

The “HACCP Subsidy” is primarily divided into two categories of expenses. First, it includes the cost of facility and equipment projects. This includes the cost of new or expanded facilities, repairs, and equipment to meet the needs of HACCP accreditation and importing countries.

The cost of effectiveness promotion projects are also eligible for the grant. This includes the cost of consulting and human resource development training for certification; HACCP subsidies can help improve the competitiveness of the food industry by supporting the development of facilities and increasing their effectiveness.

Maximum amount of payment and grant rate

The maximum amount and grant rate for the “HACCP subsidy” are set. Specifically, the upper limit differs depending on the subsidy amount, ranging from 2.5 million yen to 500 million yen for the fiscal year 2007 supplementary project, and from 5 million yen to 300 million yen for the fiscal year 2022 initial project. The subsidy rate varies depending on the size of the company and conditions, but is generally within 3/10 or 1/2.

Details will vary depending on the duration of the grant, the size of the company applying, and various conditions. Please check the official website of the grant for the latest information before proceeding with the application.

How to Apply for a Grant

A project implementation plan must be submitted at the contact point established in each prefecture. However, the submission address and method may differ from prefecture to prefecture, so please inquire in advance to confirm the details.

In addition, from FY2021, an “Export Business Plan” is also required. Submit it at the same time. For detailed information and application forms, please visit the official subsidy page.

(Official HP) HACCP Subsidy

Advanced Energy Conservation Investment Promotion Support Project

This section describes the “Advanced Energy Conservation Investment Promotion Support Project,” a subsidy that can be received when building a warehouse.

Purpose of the grant

The “Advanced Energy Conservation Investment Promotion Support Program” is available for improvement and renovation of warehouses. The program aims to reduce energy consumption by 2030 by improving energy efficiency in warehouses and supporting sustainable business operations through the introduction of energy-saving equipment and systems. Invest in energy conservation to reduce your environmental impact and realize economic benefits.

Conditions for payment

All corporations and sole proprietors are eligible. The conditions of the program are to improve energy efficiency through the installation of energy-saving equipment and systems in warehouses.

Eligible for payment

The following three are eligible

• Registered Advanced Facilities
• Equipment with mechanical design (tailor-made equipment)
• EMS (Energy Management System)

Maximum amount of payment and grant rate

The maximum amount of grant varies depending on the eligible project, but the minimum is 1 million yen and the maximum is 1.5 billion yen. The grant rate also varies depending on the size of the company. The minimum is from 1/3 or less. Details vary depending on the duration of the grant, the size of the company applying, and other conditions. Please check the official subsidy website for the latest information before proceeding with your application.

How to Apply for a Grant

As with the Business Restructuring Grant application process, applications can be submitted through the grant application system provided by the Digital Agency. Please note that the application to create an account must be submitted by mail.

(Official HP) Advanced Energy Conservation Investment Promotion Support Project

Project to accelerate the introduction of energy-saving natural refrigerant equipment for the early realization of a CFC-free and low-oxygen society

This section describes the “Project for Accelerating the Introduction of Energy-saving Natural Refrigerant Equipment for the Early Realization of a CFC-free and Low Oxygen Society,” a subsidy that can be received at the time of construction of a warehouse.

Purpose of the grant

It promotes the use of energy-saving specialized refrigerant equipment to reduce carbon dioxide emissions and improve the global environment.

Conditions for payment

A wide range of organizations and sole proprietors are eligible for subsidies, from local governments to independent administrative agencies, as well as private companies.

Eligible for payment

The subsidies are available for equipment such as frozen refrigerated warehouses and food manufacturing plants. Specifically, frozen refrigerated warehouses, food manufacturing plants, and frozen refrigerated showcases are eligible. In addition, expenses related to the introduction of energy-saving natural refrigerant equipment are also eligible for payment.

Maximum amount of payment and grant rate

The maximum amount of grant and the grant rate depend on the size and conditions of the company applying for the grant. For a typical company, the maximum grant amount is up to approximately 500 million yen, and the grant rate is less than 1/3 of the total grant amount. Details vary depending on the duration of the subsidy, the size of the company applying for the subsidy, and various conditions. Please check the official website of the subsidy for the latest information before proceeding with the application.

How to Apply for a Grant

Applications must be submitted by mail or brought in. The application window is the Japan Refrigerant and Environmental Protection Organization Business Support Center, and the application requires submission of an application form and an implementation plan.

(Official HP) Project for Accelerating the Introduction of Energy-Saving Natural Refrigerant Equipment for the Early Realization of a CFC-Free and Low-Oxygen Society

Projects to ensure stable supply of raw materials in light of changing international conditions

This section describes the “Project for Measures to Ensure a Stable Supply of Raw Materials in Light of Changes in the International Situation,” a subsidy that can be received when building a warehouse.

Purpose of the grant

The purpose is to promote measures for stable supply of raw materials (palladium and coal), which have become a supply risk due to changes in the international situation. Originally administered as the “Supply Chain Measures Subsidy,” it has been reorganized as a new subsidy to be publicly offered. For businesses aiming for a stable supply of the relevant raw materials, this subsidy is a valuable means of support.

Conditions for payment

Only those businesses that are upgrading or installing facilities related to raw materials (palladium and coal) that pose a supply risk are eligible for this program.

Eligible for payment

The following are eligible

• Facility equipment equipment costs used in facilities (e.g., factories)
• Construction costs of facilities necessary for manufacturing operations

Maximum amount of payment and grant rate

The maximum amount of grant is 3 billion yen, and the grant ratio is 1/2 to 1/3 or less.

How to Apply for a Grant

Applications can be submitted through the grant application system provided by the Digital Agency. Submissions should be made to Mizuho Research & Technologies, Inc., the Domestic Investment Promotion Project Secretariat, which is responsible for supply chain measures.

(Official HP) Project for Measures to Ensure a Stable Supply of Raw Materials in Light of Changes in the International Situation

Monozukuri subsidy

This section describes the Monozukuri subsidy, a subsidy that can be received when building a warehouse.

Purpose of the grant

With the aim of increasing the productivity of small and medium-sized enterprises (SMEs), the program supports the development of new services and prototypes, as well as capital investment to improve production processes.

Conditions for payment

The applicant must be a small or medium-sized enterprise. In addition, three types of subsidies exist: general type (normal quota, recovery wage and employment expansion quota, digital quota, and green quota), global expansion type, and business model building type.

The maximum subsidy amount and eligible expenses differ for each type. By utilizing these subsidies, SMEs are expected to grow and improve their competitiveness.

Eligible for payment

Eligibility applies to specific equipment and services. For example, machinery and equipment, system construction costs, transportation costs, technology introduction costs, intellectual property rights-related costs, subcontracting costs, expert costs, cloud service usage costs, and raw material costs are applicable.

In 2022, new quotas have been created, including a “recovery-type wage increase and employment expansion quota” (for businesses working to increase wages and employment despite difficult business conditions), a “digital quota” (for businesses working on DX, etc.), and a “green quota” (for businesses working on greenhouse gas emission reductions, etc.). The scope of the grant has been expanded.

Maximum amount of payment and grant rate

The maximum grant amount is 100 million yen, depending on the type of grant. The grant rate is 1/2 to 2/3. Details vary depending on the duration of the subsidy, the size of the company applying, and various conditions. Please check the official website of the subsidies for the latest information before proceeding with the application.

How to Apply for a Grant

The application is filed electronically via the Internet. To apply, you need to create an account called “gBizID Prime.

(Official HP) Monodzukuri Subsidy

Three reasons why business restructuring grants are recommended for warehouse construction

We have introduced six grants, but for warehouse construction, we recommend the Business Restructuring Grant as one of them, and here are three reasons why.

Relatively loose payment requirements

[The relatively loose payment requirements] is recommended. Although the condition is that the company must have suffered poor performance as a result of the Corona disaster, it is easy to be adopted and receive financial support even if the company is not seriously affected.

This will allow you to focus on restructuring your business by controlling the costs required for warehouse construction. Consider taking advantage of aggressive subsidies to restore your business performance and future stability.

Highly subsidized.

Next, we recommend that you take advantage of [the high subsidy amounts provided]. Compared to other subsidies, the amount is large, and in the case of the growth quota, which targets businesses engaged in bold business restructuring for growth areas, a maximum of 70 million yen can be subsidized.

This will significantly cover the cost of building the warehouse and allow for a smooth restructuring of the business.

Construction costs are also subsidized.

The subsidy covers not only the construction of new warehouses, but also the demolition and renovation of existing warehouses. While other subsidies often exclude construction of warehouses, this subsidy covers not only new construction of warehouses, but also demolition and renovation costs of existing warehouses.

summary

The subsidies that can be received for warehouse construction can help small and medium-sized businesses improve productivity and assist with capital investment. Subsidies can cover a wide range of costs, from machinery and equipment to system construction and building costs. Check the terms and conditions of each grant to find the right grant for your company and make the most of it for your business development.

For those who want to build a warehouse at a reduced cost without relying on subsidies, “tent warehouses” are recommended. Tent warehouses are constructed with a simple structure of a framework and sheeting, and are attractive because of the low hurdles involved in their introduction, which can be constructed at low cost and in a short construction period.

Although its low durability and weather resistance are sometimes pointed out, with appropriate maintenance, it has the durability to continue to be used for more than 10 years.

In addition, the light-permeating nature of the sheeting allows a level of brightness that eliminates the need for lighting during the daytime, making this method of construction highly workable. With these advantages, tent warehouses have been adopted by many advanced manufacturers and logistics companies, and their introduction can be expected to lead to more efficient warehouse operations.

If you are at all interested in tent warehouses, please visit the website of Taiyo Kogyo Corporation, which is celebrating its 100th anniversary and has the largest market share in Japan.