Rising Manufacturing Costs from Higher Asian Labor Costs and Yen Depreciation
First written in FY2016. 12 of 20 entries say "Worsened", first in FY2023-Q1. Latest entry: 2026-10-06.
PAL GROUP Holdings moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2022: 6 of 7 companies on the "Worse" side.
3 other companies' latest entry also says "Worsened".
- 2026-10-06WorsenedEarnings
「人手不足やコスト高、円安に伴うインフレ懸念など、先行きは引き続き不透明感が強い状況です。」
人手不足、コスト高、円安に伴うインフレ懸念が外部環境上の負担要因として引き続き示されている。 - FY2027-H1WorsenedAnnual report
「Meanwhile, in addition to heightened consumer concerns about protecting household finances due to uncertainty surrounding the situation in the Middle East, the outlook remains highly uncertain because of labor shortages, higher costs and concerns about inflation associated with the weaker yen.」
In addition to the previous concerns about costs arising from the weaker yen and raw material prices, the description now also includes the situation in the Middle East, labor shortages, higher costs and inflation concerns, broadening the external factors affecting the business environment. - 2026-07-07WorsenedEarnings
「The business environment became unpredictable both domestically and internationally, as higher crude oil prices caused by the escalation of conflicts in the Middle East and the closure of the Strait of Hormuz created serious supply concerns for global supply chains.」
In addition to yen depreciation and rising costs, higher crude oil prices and supply concerns in the supply chain are identified as external factors affecting the business environment. - FY2026WorsenedAnnual report
「In addition to persistently high import costs due to foreign exchange movements, climate-related factors such as the prolonged record heat and extreme temperature fluctuations have also contributed.」
In addition to persistently high import costs, the disclosure includes the prolonged heatwave and temperature fluctuations, expanding the external-environment factors affecting procurement and manufacturing costs and demand forecasting. - 2026-04-07WorsenedEarnings
「The year was characterized by pronounced month-to-month unevenness in personal consumption, compounded by persistently high import costs caused by exchange-rate fluctuations, a prolonged record-breaking heatwave and extreme monthly temperature fluctuations resulting from climate change.」
Persistently high import costs caused by exchange-rate fluctuations are identified, together with climate factors, as a concern for the business environment. - FY2026-H1WorsenedAnnual report
「In the foreign exchange market, a weaker US dollar reflecting lower US interest rates and a weaker yen reflecting Japan's low real interest rates progressed simultaneously, and the USD/JPY exchange rate remained mainly in the ¥140 range.」
Compared with the previous interim period's explanation anticipating benefits from yen appreciation, the disclosure now states that the yen depreciated and the USD/JPY exchange rate remained mainly in the ¥140 range. - FY2025-H1SoftenedAnnual report
「Although the environment has begun to reflect a change in the yen's depreciation trend, we expect the benefits of yen appreciation to our performance to become apparent from the fourth quarter onward, and believe that future foreign exchange movements will also provide a tailwind for our general merchandise business.」
The disclosure has shifted from the previous focus on concerns over cost increases due to yen depreciation to an explanation that anticipates a change in foreign exchange trends and benefits from yen appreciation from the fourth quarter onward. - FY2025-Q1RestatedAnnual report
「Meanwhile, the outlook remains uncertain due to downside risks from inflation caused by yen depreciation and other factors, as well as fluctuations in the financial and capital markets.」
The disclosure continues to identify inflation caused by yen depreciation as an external-environment concern affecting procurement and manufacturing costs, among other factors. - FY2024WorsenedAnnual report
「As most of the products of our group depend on imports, sharp fluctuations in foreign exchange rates could drive up procurement prices and cause our gross profit margin to deteriorate. In particular, the impact could be adverse in the general merchandise business, which accounts for 37.6% of our group's sales, because some products have a set maximum selling price.」
The risk of higher procurement prices due to dependence on imports and yen depreciation is updated to show that the general merchandise business accounts for 37.6% of sales, indicating the scale of the business exposed to the risk. - FY2024-Q3RestatedAnnual report
「The effects of higher utility and raw material costs associated with the prolonged Russian invasion of Ukraine and further inflation caused by yen depreciation continue.」
The disclosure identifies the situation in Ukraine, soaring utility and raw material costs, and inflation caused by yen depreciation as continuing factors affecting procurement and manufacturing costs. - FY2024-Q2WorsenedAnnual report
「The effects of higher utility and raw material costs associated with the prolonged Russian invasion of Ukraine and further inflation caused by yen depreciation continue, while rising labor and delivery costs resulting from labor shortages have also been added.」
In addition to the previously cited cost increases due to raw material prices and yen depreciation, the disclosure now includes higher utility, labor and delivery costs. - FY2024-Q1RestatedAnnual report
「The outlook remains uncertain due to factors including higher energy and raw material prices associated with the prolonged Russian invasion of Ukraine and further price increases resulting from the weaker yen.」
The disclosure continues to identify the prolonged invasion of Ukraine, soaring energy and raw material prices, and inflation caused by yen depreciation as factors contributing to uncertainty over the outlook for procurement and manufacturing costs. - FY2023WorsenedAnnual report
「As most of the products of our group depend on imports, sharp fluctuations in foreign exchange rates could drive up procurement prices and cause our gross profit margin to deteriorate. In particular, the impact could be adverse in the general merchandise business, which accounts for 35.6% of our group's sales, because some products have a set maximum selling price.」
The risk of higher procurement costs due to yen depreciation and soaring raw material prices is described in specific terms, including dependence on imports, the general merchandise business's 35.6% share of sales and the existence of maximum selling prices. - FY2023-Q3WorsenedAnnual report
「However, the outlook is expected to remain uncertain due to the prolonged Russian invasion of Ukraine, soaring energy and raw material prices, and the yen's rapid depreciation.」
The prolonged invasion of Ukraine is explicitly mentioned, and soaring energy and raw material prices and the yen's rapid depreciation continue to be identified as factors contributing to uncertainty over the outlook. - FY2023-Q2WorsenedAnnual report
「In addition to soaring raw material prices and the yen's rapid depreciation resulting from Russia's invasion of Ukraine, the outlook is expected to remain uncertain.」
In addition to soaring raw material prices and the yen's rapid depreciation, Russia's invasion of Ukraine is explicitly identified as a factor, and uncertainty over the outlook for procurement and manufacturing costs continues. - FY2023-Q1WorsenedAnnual report
「The outlook remains uncertain due to soaring raw material prices and the yen's rapid depreciation.」
Soaring raw material prices and the yen's rapid depreciation are described more directly as factors contributing to uncertainty over the outlook for procurement and manufacturing costs. - FY2022Re-disclosure of concerns over higher procurement costs due to yen depreciation and other factorsAnnual report
「Russia's military invasion of Ukraine has driven up the prices of energy-related products, while the yen has also depreciated rapidly, raising concerns that various cost increases will affect our procurement routes.」
A risk similar to the previously disclosed yen depreciation and higher manufacturing costs has been explicitly disclosed again as concerns over higher procurement costs resulting from the situation in Ukraine, higher energy prices and the yen's rapid depreciation. - FY2017DroppedAnnual reportThe current annual securities report contains no specific disclosure regarding higher manufacturing costs due to rising Asian labor costs or yen depreciation in the sections on "Issues to Address" and "Business and Other Risks."
- FY2017-Q1RestatedAnnual report
「The environment surrounding the apparel industry to which we belong is extremely challenging, due to a loss of seasonal appeal caused by global warming, weak sales during the summer and winter sale periods, and a shift in the core customer base from young people to adults, in addition to the substantial increase in manufacturing costs resulting from rising labor costs in China and other Asian countries and the effects of the yen's rapid depreciation.」
The disclosure continues to identify rising Asian labor costs and yen depreciation as significant challenges resulting in higher manufacturing costs. - FY2016First statedAnnual report
「We are facing a series of extremely challenging issues, including a substantial increase in manufacturing costs resulting from rising labor costs in China and other Asian countries and the effects of the yen's rapid depreciation.」
The disclosure identifies higher manufacturing costs as a realized external-environment challenge facing the apparel industry.