Demand Fluctuations Driven by Economic Recessions and Weaker Appetite for Capital Investment
First written in FY2016. 14 of 31 entries say "Worsened", first in FY2017-Q2. Latest entry: FY2026.
Chugai Ro moved to the "Worse" side of this theme in 2019, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 63 of 78 companies on the "Worse" side.
24 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In addition, the implementation of reciprocal tariffs by the United States may cause major changes in cross-border supply chains.」
Changes in supply chains resulting from the implementation of reciprocal tariffs by the United States were added to the existing risks related to economic and capital investment volatility as a new factor of uncertainty. The situation in the Middle East and soaring energy and raw material prices were also cited. - 2026-04-28WorsenedFinancial results presentation
「Although the fiscal 2026 order forecast, the final year of the medium-term management plan, was reduced from the plan target because of uncertainty surrounding the outlook for the situation in the Middle East, the operating profit target was maintained.」
Uncertainty surrounding the Middle East situation was identified as a specific factor reducing the fiscal 2026 order forecast from the medium-term management plan target. - FY2025-H1WorsenedAnnual report
「During the interim consolidated accounting period, the Japanese economy remained uncertain, with risks of an economic downturn caused by interest rate and foreign exchange volatility, in addition to rising prices driven by energy shortages and soaring raw material prices, the prolonged situation in Ukraine, and heightened geopolitical risks in the Middle East.」
Energy shortages, soaring raw material prices, interest rate and foreign exchange volatility, the situation in Ukraine, and geopolitical risks in the Middle East continued to be cited as factors contributing to uncertainty in the demand environment. Meanwhile, demand for decarbonization-related capital investment was considered solid. - FY2024WorsenedAnnual report
「Meanwhile, in addition to a slowdown in the Chinese economy, there is a risk that heightened geopolitical risks, including the situation in the Middle East, and overseas economic conditions affected by global inflation and policy rate trends will weigh on corporate earnings, leaving some uncertainty in the outlook.」
In addition to the slowdown in the Chinese economy, geopolitical risks such as the situation in the Middle East, global inflation, and policy rate trends were identified as new factors weighing on demand. - FY2024-Q3RestatedAnnual report
「Meanwhile, economic activity is normalizing further as COVID-19 control measures are eased, and corporate capital investment continues to trend upward in response to the government's growth strategy aimed at achieving a decarbonized society by 2050.」
While corporate capital investment continues to trend upward against the backdrop of eased infectious disease control measures and decarbonization policies, uncertainty factors such as soaring raw material and energy prices remain in the demand environment. - FY2024-Q2MitigatedAnnual report
「With COVID-19 reclassified as a Class 5 disease under Japan's Infectious Diseases Act, economic activity is normalizing. In addition, corporate capital investment is trending upward in response to the government's growth strategy aimed at achieving a decarbonized society by 2050.」
While uncertainty remains due to soaring raw material and energy prices and foreign exchange volatility, corporate capital investment was described as trending upward against the backdrop of COVID-19's reclassification as a Class 5 disease and decarbonization policies, indicating factors supporting an improvement in the risk of weaker capital investment demand. - FY2024-Q1RestatedAnnual report
「During the first quarter of the fiscal year, there were no material changes in the occurrence of major risks that management recognizes as potentially having a material impact on the financial position, operating results or cash flows of the consolidated companies, among the matters relating to the business conditions, financial position and other matters described in this quarterly report, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
No major risks or significant changes were identified regarding demand volatility arising from an economic downturn or weaker capital investment appetite. - FY2023-Q3WorsenedAnnual report
「However, as policy rate hikes in the United States and elsewhere continue amid rising global inflation, a downturn in overseas economies, particularly China, poses a risk of weighing on the domestic economy. Against this backdrop, the outlook for the economy remains uncertain due to the effects of stagnant automobile production caused by rising prices and supply constraints for semiconductors and other components, as well as volatility in the financial and capital markets.」
Global inflation, policy rate hikes, downturns in overseas economies, component supply constraints, stagnant automobile production, and volatility in the financial and capital markets continued and became more pronounced, broadening the factors contributing to uncertainty in the demand environment. - FY2023-Q2WorsenedAnnual report
「In addition to stagnant automobile production caused by accelerating global inflation and supply chain constraints, risks weighing on the economy began to materialize through higher prices resulting from persistently high energy and resource prices and the yen's rapid depreciation.」
Inflation, supply chain constraints, stagnant automobile production, persistently high energy and resource prices, and a weaker yen emerged as new downside factors among external risks related to economic conditions and capital investment demand. - FY2023-Q1WorsenedAnnual report
「During the first quarter of the fiscal year under review, Japan's economy remained uncertain due to soaring raw material prices resulting from the prolonged situation in Ukraine and restrictions on economic activity caused by lockdowns in China, stagnant automobile production due to supply constraints for semiconductors and other components, volatility in the financial and capital markets, and the yen's depreciation accompanying changes in the structure of trade.」
In addition to the previous risks involving infectious diseases and the capital investment environment, the disclosure cited the situation in Ukraine, China's lockdowns, component supply constraints, stagnant automobile production, financial market volatility and the yen's depreciation, broadening the factors contributing to uncertainty in demand conditions. It also described a recovery in capital investment against the backdrop of the government's carbon-neutrality strategy. - FY2022-Q3WorsenedAnnual report
「During the third quarter of the fiscal year under review, Japan's economy showed signs of gradual normalization and recovery as infections declined following the wider availability of COVID-19 vaccinations from the beginning of autumn. However, conditions remained uncertain due to renewed infections caused by the emergence of new variants from the end of the year, the impact of semiconductor shortages on production activity and soaring resource prices.」
While economic activity moved toward normalization, renewed infections caused by new variants, the impact of semiconductor shortages on production activity and soaring resource prices added to continued uncertainty surrounding capital investment and demand conditions. - FY2022-Q2RestatedAnnual report
「During the second quarter of the fiscal year, there were no material changes in the occurrence of major risks that management recognizes as potentially having a material impact on the financial position, operating results or cash flows of the consolidated companies, among the matters relating to the business conditions, financial position and other matters described in this quarterly report, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
It was reported that there had been no material changes in the risk of demand fluctuations due to economic downturns and reduced willingness to invest. - FY2022-Q1WorsenedAnnual report
「Economic activity is expected to recover as vaccinations are promoted, but signs of renewed infections due to the spread of variant viruses have also emerged, and conditions remain uncertain.」
While the disclosure indicated expectations for a recovery driven by vaccinations, it also described signs of renewed infections caused by variant viruses and continued uncertainty about the outlook. - FY2021MaterialisedAnnual report
「Although economic activity gradually began to resume in some industries, with no sign that the COVID-19 pandemic was coming to an end, renewed infections from the beginning of autumn contributed to continued weakness in corporate capital investment and difficult conditions.」
The risks of economic downturns and reduced willingness to invest materialized throughout the fiscal year in the form of renewed infections and sluggish corporate capital investment. - FY2021-Q3MaterialisedAnnual report
「During the third quarter of the fiscal year under review, Japan's economy remained difficult. Economic activity gradually resumed and some industries showed signs of recovery, although there was no sign that the global spread of COVID-19 was coming to an end. However, the renewed spread of infections from the beginning of autumn also contributed to continued weakness in corporate capital investment.」
Corporate capital investment remained weak against a backdrop of renewed infections, and the risk of reduced willingness to invest materialized in the business environment. - FY2021-Q2MaterialisedAnnual report
「Although some industries showed signs of recovery in production and exports, corporate capital investment remained weak, and conditions continued to be difficult.」
The risk of reduced willingness to invest continued to materialize in the business environment through COVID-19, US-China trade friction and companies' restraint on capital investment. - FY2021-Q1MaterialisedAnnual report
「Orders received amounted to ¥3,289 million, or 54.3% of the level in the same period of the previous year, due to customers' moves to restrain capital investment amid the spread of infectious diseases and stagnant sales activities caused by restrictions on people's movement.」
The previously identified risk of demand fluctuations due to reduced willingness to invest materialized in the form of customers restraining investment due to COVID-19 and stagnant sales activities caused by restrictions on people's movement. - FY2020-Q3RestatedAnnual report
「During the third quarter of the fiscal year under review, Japan's economy remained uncertain. Although employment conditions improved, exports and production continued to weaken due to the effects of US-China trade friction and other factors, while business sentiment, particularly among manufacturers, became increasingly cautious.」
Exports and production remained weak due to the effects of US-China trade friction, while manufacturers continued to take a cautious view of business conditions. - FY2020-Q2MaterialisedAnnual report
「Among the markets related to the Group, the steel industry saw signs of reduced capital investment amid declining demand for steel products and a rapid deterioration in steel product market conditions. In the automotive industry, as production volumes declined worldwide, particularly in China, a cautious approach to capital investment became widespread. In the display industry, although the shift to organic EL displays for high-end smartphones progressed further, some equipment installations were postponed due to stagnant demand in the small- and medium-sized flexible organic EL panel market.」
The previously identified risk of reduced willingness to invest materialized in the form of reduced capital investment in the steel industry, a more cautious investment stance in the automotive industry and postponement of display equipment installations. - FY2020-Q1WorsenedAnnual report
「During the first quarter of the fiscal year under review, Japan's economy remained on a gradual recovery path against a backdrop of improving employment and income conditions. However, as the economic slowdown in China continued, exports, production and machinery investment showed weakness, and business sentiment, particularly among manufacturers, became increasingly cautious, leaving conditions uncertain.」
In addition to the continued slowdown in the Chinese economy, the disclosure described weakness in exports, production and machinery investment and cautious business sentiment among manufacturers. The business and other risks section stated that there had been no material changes. - FY2019WorsenedAnnual report
「In the latter half, the effects of US-China trade friction, including concerns about a slowdown in the Chinese economy, gradually became apparent. Business sentiment deteriorated, while some weakness was seen in exports and production, and conditions remained uncertain.」
The disclosure described concerns about a slowdown in the Chinese economy, the emergence of the effects of US-China trade friction, deteriorating business sentiment and weakness in exports and production, making the deterioration in the external environment relevant to demand fluctuations more concrete. - FY2019-Q3WorsenedAnnual report
「The effects of trade friction arising from protectionist policies in the United States gradually became apparent. Business sentiment deteriorated, exports weakened and conditions remained uncertain.」
The effects of trade friction became apparent, with deteriorating business sentiment and weakening exports described. The business and other risks section itself stated that there had been no material changes. - FY2019-Q2WorsenedAnnual report
「The effects of trade friction arising from protectionist policies in the United States gradually became apparent. Business sentiment deteriorated, while the recovery in exports showed signs of stalling, and conditions remained uncertain.」
While the business and other risks section stated that there had been no material changes, the discussion of the operating environment described the emergence of trade friction, deteriorating business sentiment, a stalled export recovery and continued uncertainty about the outlook. - FY2019-Q1RestatedAnnual report
「During the cumulative consolidated period of the first quarter, there were no material changes in unusual fluctuations, etc., in financial position, operating results or cash flows, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
It was reported that there had been no material changes in the risk of demand fluctuations due to economic downturns and reduced willingness to invest. - FY2018RestatedAnnual report
「Demand for production equipment, the Group's main products, is affected by economic conditions in Japan and overseas, particularly trends in capital investment. Accordingly, economic downturns in markets related to the Group, especially reduced willingness to invest, could affect the Group's operating results.」
The risk that demand for production equipment will be affected by economic conditions and capital investment trends continues to be described. - FY2018-Q3RestatedAnnual report
「During the cumulative consolidated period of the third quarter, there were no material changes in unusual fluctuations, etc., in financial position, operating results or cash flows, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
It was reported that there had been no material changes in the risk of demand fluctuations due to economic downturns and reduced willingness to invest. - FY2018-Q2RestatedAnnual report
「During the cumulative consolidated period of the second quarter, there were no material changes in unusual fluctuations, etc., in financial position, operating results or cash flows, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
It was reported that there had been no material changes in the risk of demand fluctuations due to economic downturns and reduced willingness to invest. - FY2018-Q1RestatedAnnual report
「During the cumulative consolidated period of the first quarter, there were no material changes in unusual fluctuations, etc., in financial position, operating results or cash flows, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
It was reported that there had been no material changes in business and other risks. - FY2017RestatedAnnual report
「Among the markets related to the Group, the steel industry saw continued capital investment to strengthen its business base as domestic demand recovered and operations reached near-full capacity, despite higher raw material prices. In the automotive industry, the trend toward a stronger yen during the period was corrected from the second half of the fiscal year onward, and the launch of new vehicles also contributed to performance, leading to new capital investment, including the replacement of aging equipment.」
Capital investment continued in Japan's steel and automotive industries, while economic trends in China and emerging markets and uncertainty about the outlook for the global economy remained. - FY2017-Q2WorsenedAnnual report
「Overseas, the gradual economic recovery continued in the United States and Europe, while the economies of China and Southeast Asian countries continued to slow, increasing uncertainty about the outlook. In the automotive industry, production volumes increased in North America and China but declined in Japan due to weak sales of minicars, and new capital investment was postponed.」
The disclosure described continued economic slowdowns and increasing uncertainty in China and Southeast Asia, declining domestic automobile production and postponement of new capital investment, indicating a deterioration in the external environment relevant to capital investment demand fluctuations. - FY2016First statedAnnual report
「Demand for production equipment, the Group's main products, is affected by economic conditions in Japan and overseas, particularly trends in capital investment. Accordingly, economic downturns in markets related to the Group, especially reduced willingness to invest, could affect the Group's operating results.」
The risk that demand for production equipment will be affected by economic conditions and capital investment trends.