Deteriorating Performance at Customer Manufacturers and Cuts to Development Spending
First written in FY2016. 11 of 29 entries say "Restated". Latest entry: 2026-08-05.
Hip moved to the "Worse" side of this theme in 2019, 6 years before the typical company in this theme (2025).
The whole theme swung hardest in 2026: 4 of 7 companies on the "Worse" side.
8 other companies' latest entry also says "Restated".
- FY2026MitigatedAnnual report
「During the fiscal year under review, customer companies, mainly in manufacturing, including automobiles, aircraft, semiconductors, manufacturing equipment and medical equipment, maintained an active stance toward product development as uncertainty over the outlook from U.S. tariff policies eased. Demand for engineers from our company to increase development and design staff remained sound.」
The company states that while uncertainty from U.S. tariff policies eased, customer companies' product development stance and demand for engineers remained sound. - FY2026-H1Uncertainty from tariff policy coexisting with sound customer demandAnnual report
「During the interim accounting period under review, customer companies, mainly in manufacturing, including automobiles, aircraft, semiconductors, manufacturing equipment and medical equipment, maintained an active stance toward product development, although some showed caution due to uncertainty over the outlook arising from U.S. tariff policies and other factors. Demand for engineers from our company to increase development and design staff remained sound.」
While some customers showed caution due to uncertainty over the outlook arising from U.S. tariff policies and other factors, product development activity and demand for engineers remained sound across multiple manufacturing sectors. - FY2025-H1RestatedAnnual report
「During the interim accounting period under review, customer companies, mainly in manufacturing, maintained an active stance toward product development across all sectors, including transportation equipment such as automobiles and aircraft, semiconductors, manufacturing equipment and medical equipment. Moves to increase the number of development and design engineers were strong, and demand from customers for engineers from our company remained sound.」
The company states that customer companies' product development stance and demand for engineers remained strong and sound across multiple sectors. - FY2024RestatedAnnual report
「Customer companies, mainly in manufacturing, maintained an active stance toward product development across all sectors, including automobiles, semiconductors, consumer electronics and manufacturing equipment, and moves to increase the number of development and design engineers were strong.」
While customer manufacturers remained active in product development and increasing their engineering staff, the company continues to disclose the risk of declining demand due to an economic downturn or cuts in development spending. - FY2024-Q2RestatedAnnual report
「During the cumulative second quarter under review, Japan's economy showed a gradual recovery as socioeconomic activity normalized, including through the reclassification of COVID-19 to Category V. Meanwhile, prices continued to rise against the backdrop of elevated raw material prices and yen depreciation, requiring close monitoring of future developments. Customer companies, mainly in manufacturing, maintained an active stance toward product development, and the order environment for our company remained sound.」
While indicating the normalization of socioeconomic activity, active product development by customer companies and a sound order environment, the company continues to monitor elevated raw material prices, yen depreciation and rising prices. - FY2024-Q1Sound customer demand coexisting with elevated raw material prices and concerns over inflation caused by yen depreciationAnnual report
「During the cumulative first quarter under review, Japan's economy showed a gradual recovery as socioeconomic activity normalized, including through the reclassification of COVID-19 to Category V. Meanwhile, prices continued to rise against the backdrop of elevated raw material prices and yen depreciation, requiring close monitoring of future developments. Customer companies, mainly in manufacturing, maintained an active stance toward product development, and the order environment for our company remained sound.」
While indicating the normalization of socioeconomic activity, active product development by customer companies and a sound order environment, the company continues to monitor elevated raw material prices, yen depreciation and rising prices. - FY2023-Q3Strong customer demand coexisting with concerns over inflation and surging resource pricesAnnual report
「During the cumulative third quarter under review, Japan's economy continued to show signs of recovery, despite the emergence of the eighth wave of COVID-19, as efforts to balance measures to prevent the spread of infection with socioeconomic activity continued. Meanwhile, prices continued to rise due to surging resource prices and the yen's depreciation, requiring close monitoring of future developments. Customer companies, mainly in manufacturing, continued to pursue active product development, and demand for engineers from our company remained strong.」
While customer companies continued active product development and strong demand for engineers, the company indicates that the external environment of surging resource prices, yen depreciation and rising prices requires close monitoring. - FY2023-Q2RestatedAnnual report
「Customer companies, particularly in the manufacturing sector, continued active product development, and requests for engineers remained active.」
The company explained that customer companies’ active product development and requests for engineers remained strong. - FY2023-Q1Strong customer demand coexisting with concerns over supply constraintsAnnual report
「During the three months ended 30 June, Japan’s economy continued to show signs of recovery as economic activity normalized following a decline in new COVID-19 cases. However, the economic impact of soaring raw-material prices and tight supplies of components requires close monitoring. Customer companies, particularly in the manufacturing sector, continued active product development, and requests for engineers remained active.」
The company indicated that economic activity was normalizing and that customer companies were actively developing products, with strong demand for engineers, while noting the need to monitor the economic impact of soaring raw-material prices and tight supplies of components. - FY2022RestatedAnnual report
「Although customers were affected by the renewed spread of COVID-19, semiconductor shortages, supply-chain disruptions and other factors, requests for engineers remained firm and increased, particularly for systems engineers.」
While the impact of semiconductor shortages and supply-chain disruptions on customers continued, requests for engineers remained firm and increased, particularly for systems engineers. - FY2022-Q3WorsenedAnnual report
「Customer companies, particularly in the manufacturing sector, had remained resilient, supported by increased exports accompanying the recovery of overseas economies. However, some companies were affected by production cuts and other factors due to semiconductor shortages and supply-chain disruptions that emerged from the second quarter onward.」
Although customer companies had been supported by the recovery of overseas economies and other factors, the company stated that semiconductor shortages and supply-chain disruptions from the second quarter onward had actually affected some companies through production cuts. - FY2022-Q2MitigatedAnnual report
「Customer companies, particularly in the manufacturing sector, remained resilient, supported by increased exports accompanying the recovery of overseas economies.」
The company explained that customer companies remained resilient, supported by the recovery of overseas economies and increased exports, indicating that the business environment related to the risk of deterioration in customer companies’ performance and cuts in development spending had improved from the previous fiscal year. - FY2021MaterialisedAnnual report
「As the spread of COVID-19, which had continued since the previous year, affected the performance of a broad range of companies, it was expected to affect the company’s operating performance and other conditions as well. However, requests for engineers began to increase gradually, particularly for systems engineers, although differences were seen by industry and company.」
The spread of COVID-19 affected the performance of a broad range of companies and emerged in the actual performance environment through customers’ increased caution about expanding their workforces and a decline in the company’s utilization rate. At the same time, the company explained that requests, particularly for systems engineers, had begun to increase gradually. - FY2021-Q3MaterialisedAnnual report
「Although customer companies, particularly in the manufacturing sector, continued development activities, some customers remained cautious about increasing personnel because of concerns about the outlook.」
Amid the impact of COVID-19, some customer companies continued to be cautious about increasing personnel. Customers’ more cautious demand continued to affect the business through restrictions on sales activities and reduced hours worked. - FY2021-Q2MaterialisedAnnual report
「Although customer companies, particularly in the manufacturing sector, continued development activities, some customers remained cautious because of concerns about the outlook.」
Amid the impact of COVID-19, some customer companies continued to be cautious about increasing personnel and accepting sales activities. Customers’ more cautious demand had emerged in the actual business environment. - FY2021-Q1MaterialisedAnnual report
「During the three months ended 30 June, Japan’s economy was in an extremely difficult situation as the spread of COVID-19 led to a state of emergency being declared and social and economic activity rapidly stagnating. Although customer companies, particularly in the manufacturing sector, continued design and development activities to strengthen competitiveness, some customers remained cautious about increasing personnel, including by reviewing staffing plans and project start dates due to concerns about the outlook. Hours worked declined because of customer-directed telework, staggered working hours, restrictions on overtime and temporary closures.」
The stagnation of social and economic activity caused by COVID-19 and customers’ increased caution about expanding their workforces emerged as actual factors affecting performance, with hours worked declining through customer-directed telework, restrictions on overtime and temporary closures. - FY2020-Q3MaterialisedAnnual report
「Although positive factors such as an increase in the number of personnel working and higher technical fees supported profit, the main factors behind the decline in profit were the slower rise in the utilization rate compared with the previous fiscal year and a decline in hours worked amid customers’ cautious management of overtime.」
Customers’ cautious management of overtime and the decline in hours worked continue to be reflected as actual factors behind lower profit. - FY2020-Q2MaterialisedAnnual report
「Profit increased slightly year on year. Although factors weighing on performance included the gradual rise in the utilization rate from the start of the period and a decline in hours worked from the previous fiscal year amid customers’ cautious management of overtime, positive factors such as an increase in the number of personnel working and higher technical fees resulted in profit exceeding the same period of the previous year.」
Customers’ cautious management of overtime and the resulting decline in hours worked had emerged as actual factors weighing on performance compared with the previous fiscal year. - FY2020-Q1MaterialisedAnnual report
「Customers had been cautious about production and overtime plans from the start of the period and, although planned overtime gradually became established by June, the decline in hours worked compared with the previous fiscal year caused revenue growth to slow and was the main factor.」
The company explained that customers’ production and overtime plans were cautious and that hours worked declined from the previous fiscal year, slowing revenue growth. The impact of customers’ demand and operating plans had emerged as an actual factor affecting performance. - FY2019WorsenedAnnual report
「During the fiscal year, Japan’s economy remained on a gradual recovery trend, supported by improving corporate earnings and employment conditions and steady capital investment, although concerns about overseas economies increased, including the impact of US-China trade friction and the increasingly apparent slowdown in China’s economy.」
In addition to US-China trade friction, the company cited the increasingly apparent slowdown in China’s economy as a concern about overseas economies, stating that external concerns regarding economic conditions and deterioration in customer manufacturers’ performance had intensified. - FY2019-Q3RestatedAnnual report
「During the nine months ended 31 December, Japan’s economy continued on a gradual recovery trend, supported by improving corporate earnings and employment conditions and steady capital investment, although concerns remained about overseas economies, including the impact of US-China trade friction.」
The company referred to concerns about overseas economies, including US-China trade friction, while explaining that Japan’s economy continued on a gradual recovery trend. - FY2019-Q2RestatedAnnual report
「During the six months ended 30 September, Japan’s economy remained on a gradual recovery trend, supported by improving corporate earnings and employment conditions and increased capital investment, although concerns remained about overseas economies, including the impact of US-China trade friction.」
The company referred to concerns about overseas economies, including US-China trade friction, while describing the economy as being on a gradual recovery trend. It did not state that there had been any material change in the existing risk of deterioration in customer manufacturers’ performance or economic conditions. - FY2018RestatedAnnual report
「If the domestic and global economies deteriorate, causing customer manufacturers’ performance to decline and leading to cuts in development spending by their design and development divisions or restrictions on the use of outsourcing, the company’s operating performance and financial position may be affected.」
The company reiterated the risk that an economic downturn may lead customer manufacturers to cut development spending and limit their use of outsourcing. - FY2017RestatedAnnual report
「If the domestic and global economies deteriorate, causing customer manufacturers’ performance to decline and leading to cuts in development spending by their design and development divisions and a shift toward limiting the use of outsourcing, the company’s operating performance and financial position may be affected.」
The company reiterated the risks of deterioration in customer manufacturers’ economic conditions and performance, cuts in development spending and restrictions on outsourcing. - FY2016First statedAnnual report
「If the domestic and global economies deteriorate, causing customer manufacturers’ performance to decline and leading to cuts in development spending by their design and development divisions and a shift toward limiting the use of outsourcing, the company’s operating performance and financial position may be affected.」
The company indicates that an economic downturn may lead customer manufacturers to cut development spending and limit their use of outsourcing.