40% of Japan's mid- and large-sized manufacturing firms affected
As reported by Kyodo News on June 13: According to a survey conducted by Tokyo-based Regilia Company, as of the 13th, approximately 40% of manufacturing enterprises believe that if the situation in the Middle East continues to deteriorate, "the sustainability of their operations will reach a limit within six months." About 60% of respondents stated that daily business performance and operational sustainability are being "impeded or affected."
The survey was conducted online in May, receiving responses from over 500 manufacturing executives and managers. The participating companies are all mid- to large-sized enterprises with more than 500 employees.
Blockade of the Strait of Hormuz has caused a sharp rise in prices of oil-related products.
The most significant cost factor for surveyed companies is "raw material prices," cited by 63.9%. Regarding rising costs, 48.2% of respondents said they are "almost unable to pass on" or "completely unable to pass on" these increases to downstream pricing. Only 4.5% indicated they can fully reflect cost increases in product prices.
Additionally, concerning the impact on raw material and component procurement, 51.0% of respondents said they currently "see no hope of resolution" or "virtually no possibility of resolution," highlighting companies' anxiety about the future. 3.2% reported "carrying out layoffs," while 12.8% said they are "considering" layoffs.
Original source: toutiao.com/article/1867850668255243/
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