Rising Textile Manufacturing Costs Due to Persistently High Raw Material and Labor Costs in China, Shorter Lead Times and Smaller Production Lots
First written in FY2017-Q1. 12 of 22 entries say "Worsened", first in FY2019-Q1. Latest entry: FY2024.
Shinyei Kaisha moved to the "Worse" side of this theme in 2018, 4 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 7 of 8 companies on the "Worse" side.
3 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「In the textile industry, apparel demand expanded as more opportunities to go out increased consumer appetite, but the market saw intense sales competition amid the impact of climate change on sales and persistently high procurement costs due to surging raw material costs.」
Although factors supporting a recovery in apparel demand were seen, the textile business continued to face a difficult environment characterized by climate change, surging raw material costs, persistently high procurement costs and sales competition. - FY2024-Q2RestatedAnnual report
「In the textile industry, the lifting of restrictions on activity and increases in events and opportunities to go out contributed to stronger consumer appetite for apparel. However, procurement costs remained high because of surging raw material costs and foreign-exchange effects, and intense sales competition continued in the market.」
Although factors supporting a recovery in apparel demand were seen, procurement costs continued to remain high because of surging raw material costs and foreign-exchange effects, confirming the difficult textile manufacturing and procurement cost environment. - FY2023-Q3RestatedAnnual report
「In the textile industry, the domestic market environment was on a recovery trend, but the difficult situation continued as procurement costs rose because of surging raw material costs and foreign-exchange effects, amid intense sales competition.」
Although the domestic market was shown to be on a recovery trend, the textile business continued to face a difficult cost environment because of surging raw material costs, foreign-exchange effects including yen depreciation, higher procurement costs and sales competition. - FY2023-Q2WorsenedAnnual report
「In the textile industry, the domestic market environment was on a recovery trend, but the difficult situation continued as procurement costs rose because of surging raw material costs and the rapid depreciation of the yen, amid intense sales competition.」
Although the domestic market was shown to be on a recovery trend, the textile business continued to face difficult cost and profitability conditions because of surging raw material costs, the rapid depreciation of the yen, higher procurement costs and sales competition. - FY2023-Q1WorsenedAnnual report
「In the textile industry, the market environment showed signs of recovery as COVID-19-related restrictions were gradually eased and people in Japan went out more frequently. However, procurement costs rose because of surging raw material and logistics costs and the rapid depreciation of the yen, while lockdowns in China also created difficult conditions in terms of prices and lead times.」
Although there were signs of a recovery in demand, surging raw material and logistics costs, the rapid depreciation of the yen and price and lead-time constraints caused by lockdowns in China worsened the textile manufacturing and procurement cost environment. - FY2022WorsenedAnnual report
「In the textile industry, the spread of COVID-19 continued to reduce consumer appetite in Japan as people refrained from going out. Procurement costs also rose because of surging raw material and logistics costs, and the difficult situation continued.」
In addition to weak demand caused by COVID-19, procurement costs continued to rise because of surging raw material and logistics costs, and the textile-related business posted a full-year loss. - FY2022-Q3WorsenedAnnual report
「In the textile industry, the spread of COVID-19 continued to dampen consumer appetite in Japan as people refrained from going out. Although a recovery trend was seen in the third quarter, when the state of emergency was lifted, consumer behavior did not change. In China, the main production base, procurement costs rose because of surging raw material and logistics costs, and the difficult situation continued.」
Although some recovery in demand was seen in the textile business, higher procurement costs due to surging raw material and logistics costs in China continued, worsening the cost environment. - FY2022-Q1WorsenedAnnual report
「In the textile industry, the spread of COVID-19 led to weaker consumer appetite in Japan as people refrained from going out, while shorter operating hours and closures continued at department stores and other commercial facilities. In China, the main production base, procurement costs rose because of surging raw material prices, and the difficult situation continued.」
In addition to the previously identified rise in manufacturing costs in China and elsewhere, weak domestic sales, shorter operating hours and closures at commercial facilities due to COVID-19, and higher procurement costs resulting from surging raw material prices in China continued. - FY2021WorsenedAnnual report
「In the textile industry, the spread of COVID-19 reduced consumer appetite in Japan as people refrained from going out, while temporary declines in production capacity were also seen in China and other production centers. The difficult situation continued.」
In addition to the previously identified factors driving up manufacturing costs in China, temporary declines in production capacity in China and elsewhere due to COVID-19 were described. - FY2020WorsenedAnnual report
「On the production side, excess inventories caused by weak sales and the need to handle orders with short lead times and small production lots created a difficult manufacturing-cost environment.」
In addition to the previously identified labor costs in China and environmental protection measures, excess inventories caused by weak sales and the need to handle short-lead-time, small-lot orders were identified as factors driving up manufacturing costs. - FY2020-Q3WorsenedAnnual report
「On the production side, excess inventories caused by weak sales and the need to handle orders with short lead times and small production lots created a difficult manufacturing-cost environment.」
In addition to excess inventories caused by weak sales, handling orders with short lead times and small production lots was identified as a factor driving up manufacturing costs. - FY2020-Q1WorsenedAnnual report
「In the textile industry, consumers' strong preference for economy reduced their appetite for apparel, keeping in-store sales weak, while intense competition between online shopping sites continued. On the production side, persistently high labor costs and environmental protection measures in China, the main production base, affected manufacturing costs, and the domestic labor shortage also became more severe, resulting in a difficult environment.」
In addition to persistently high labor costs in China and the cost impact of environmental protection measures, the worsening domestic labor shortage was identified. Conditions for the textile business, both in terms of costs and the business environment, have become more difficult. - FY2019-Q3WorsenedAnnual report
「In the textile industry, consumers continued to favor economy, keeping appetite for apparel weak. On the production side, the difficult environment continued as persistently high labor costs in China, the main production base, and environmental protection measures affected raw material and other manufacturing costs, while Japan experienced abnormal weather, including typhoons, torrential rain and unusually warm winters.」
In addition to persistently high labor costs in China and the impact of environmental protection measures on manufacturing costs, abnormal weather, including typhoons, torrential rain and unusually warm winters, was identified as a factor worsening the textile business environment. - FY2019-Q2WorsenedAnnual report
「In the textile industry, consumers continued to favor economy, keeping appetite for apparel weak. On the production side, the difficult environment continued as persistently high labor costs in China, the main production base, and environmental protection measures affected raw material and other manufacturing costs, while Japan experienced abnormal weather, including extreme heat, typhoons and torrential rain.」
In addition to persistently high labor costs in China and higher manufacturing costs due to environmental protection measures, abnormal weather in Japan was identified as a factor worsening the textile business environment. - FY2019-Q1WorsenedAnnual report
「In the textile industry, consumers continued to favor economy, keeping appetite for apparel weak. On the production side, the difficult environment continued as rising raw material costs and persistently high labor costs in China, the main production base, as well as environmental protection measures, affected manufacturing costs.」
The impact of environmental protection measures on manufacturing costs was newly stated in addition to rising raw material costs and persistently high labor costs in China, indicating a deterioration in the textile business cost environment. - FY2018-Q3RestatedAnnual report
「In the textile industry, consumer appetite for apparel remained weak, while on the production side manufacturing costs rose because raw material and labor costs remained high and lead times became shorter and production lots smaller. The difficult environment continued.」
Weak apparel demand and higher textile manufacturing costs due to persistently high raw material and labor costs, shorter lead times and smaller production lots continue. - FY2018-Q2RestatedAnnual report
「In the textile industry, consumer appetite for apparel remained weak, while on the production side manufacturing costs rose because raw material and labor costs remained high and lead times became shorter and production lots smaller. The difficult environment continued.」
Weak apparel demand, persistently high raw material and labor costs, and higher manufacturing costs from shorter lead times and smaller production lots continue. - FY2018-Q1RestatedAnnual report
「In the textile industry, consumer appetite for apparel remained weak, while on the production side manufacturing costs rose because raw material and labor costs remained high and lead times became shorter and production lots smaller. The difficult environment continued.」
The document continues to identify weak apparel demand and cost-increasing factors on the production side, including in China. - FY2017RestatedAnnual report
「On the production side, the difficult environment continued, partly because raw material and labor costs remained high in China and manufacturing costs rose as lead times became shorter and production lots smaller.」
Persistently high raw material and labor costs in China, together with higher manufacturing costs from shorter lead times and smaller production lots, continue. - FY2017-Q3RestatedAnnual report
「In the textile industry, consumer appetite for apparel remained weak, inbound consumption also lost the momentum seen previously, and manufacturing costs rose because raw material and labor costs remained high in China, lead times became shorter and production lots smaller. As a result, the difficult environment continued.」
The difficult environment of persistently high raw material and labor costs in China, together with higher manufacturing costs from shorter lead times and smaller production lots, is described again. - FY2017-Q2RestatedAnnual report
「In the textile industry, consumer appetite for apparel remained weak, inbound consumption also lost the momentum seen previously, and manufacturing costs rose because raw material and labor costs remained high in China, lead times became shorter and production lots smaller. As a result, the difficult environment continued.」
The difficult environment of persistently high raw material and labor costs in China, together with higher manufacturing costs from shorter lead times and smaller production lots, is described again. - FY2017-Q1First statedAnnual report
「The business operated in a difficult environment in which manufacturing costs were trending upward because raw material and labor costs remained high in China, while lead times became shorter and production lots smaller.」
The document identifies persistently high raw material and labor costs in China, along with shorter lead times and smaller production lots driving higher textile manufacturing costs, as new business environment risks.