Japanese firms have been pouring money into Ohio. Will the rest of Asia follow?

Ohio, often overlooked by many Asian investors, has become a hotspot for Japanese companies, primarily due to its strategic location near major US automotive producers, Honda and Toyota. Takashi Nakagawa, a Pacific Manufacturing executive, explained that the company's expansion was driven by proximity to these key customers. The subsidiary, a part of Japan-based Pacific Industrial, has been in Fairfield, Ohio, for nearly four decades and has grown from 50 to nearly 1,000 employees to support its largest manufacturing facility outside of Japan. This facility spans over a million square feet and comprises five buildings.

Japan is the leading foreign investor in Ohio, with over 1,000 Japanese businesses operating there. The pressure of tariffs is expected to spur further investment from Japan into the United States. In July 2025, Japan committed to providing up to US$550 billion in support for US projects, while the US agreed to lower tariffs on imports from Japan. A notable project is a US$33 billion natural gas facility in Ohio, which is considered the largest in history.

However, getting other Asian investors on board has been challenging. Japan accounts for 23% of international establishments in Ohio, followed by businesses from Canada, Germany, and the United Kingdom. Singapore businesses, for instance, have a mere presence of less than 1% in the state. Leo Chan, executive director of the Asia Chamber of America, suggested that Ohio might not cross most investors' minds due to familiarity with other major hubs like New York, Los Angeles, San Francisco, and Boston. He emphasized that Ohio requires more education and storytelling to attract investors.

Despite its past reputation as the "rust belt," Ohio has transformed into a dynamic state with a reconstructed industrial might. Honda played a crucial role in this transformation when it became the first Japanese company to manufacture cars in the US in 1982. Today, its Marysville factory, covering 47 FIFA-standard football fields, can produce 440,000 vehicles annually.

This has led to the establishment of hundreds of Japanese suppliers in the vicinity, supporting production for various carmakers, including Toyota, Subaru, and Mazda. Pacific Manufacturing, for instance, supplies car components to these manufacturers.