Risk of declining orders and utilization rates due to companies curbing IT investment
First written in FY2016. 20 of 32 entries say "Worsened", first in FY2019-Q1. Latest entry: 2026-10-28.
System Research moved to the "Worse" side of this theme in 2018, 2 years before the typical company in this theme (2020).
The whole theme swung hardest in 2020: 17 of 37 companies on the "Worse" side.
10 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「If rising international geopolitical tensions and prolonged conflicts, including in the Middle East, lead to higher energy prices, unstable raw material supplies and exchange-rate fluctuations, causing companies to become increasingly inclined to restrain investment in information systems, previously scheduled system development projects may be suspended or scaled back.」
For the risk of restrained IT investment, the company identifies geopolitical tensions, including in the Middle East, higher energy prices, instability in raw material supplies and exchange-rate fluctuations as new factors. - 2026-05-11WorsenedEarnings
「同時にＡＸの進展は今後、既存のＩＴ事業の付加価値構造に大きな変化を及ぼす可能性があり、その動向を注視する必要があります。」
AXの進展が既存IT事業の付加価値構造に大きな変化を及ぼす可能性を、新たな外部環境上のリスクとして示した。 - FY2025WorsenedAnnual report
「If geopolitical risks, further increases in raw material prices, an expansion of global inflation, and the introduction of additional tariffs under U.S. trade policy cause companies to become increasingly inclined to restrain investment in information systems, previously scheduled system development projects may be suspended or scaled back.」
The company added additional tariffs under U.S. trade policy to the existing geopolitical and inflation factors and continues to identify the risk of restrained IT investment. It also describes the tendency for reductions in customers’ investment to emerge 6–12 months after their financial performance deteriorates, as well as the optimal allocation of engineers. - FY2024WorsenedAnnual report
「If geopolitical risks, including the situations in Russia and Ukraine and the Middle East, lead to further increases in raw material prices and an expansion of global inflation, causing companies to become increasingly inclined to restrain investment in information systems, previously scheduled system development projects may be suspended or scaled back.」
The company added the situation in the Middle East to the geopolitical risks identified and indicated the risk of restrained IT investment through higher raw material prices and global inflation. It explained that reductions in customers’ investment tend to emerge 6–12 months after their financial performance deteriorates. - FY2024-Q2RestatedAnnual report
「Meanwhile, the outlook remains uncertain regarding the impact on domestic economic conditions and corporate earnings of higher prices resulting from prolonged increases in resource and energy costs and global inflationary pressure.」
While recognising a recovery trend as social and economic activity normalises, the company continues to describe uncertainty over economic conditions and corporate earnings arising from higher resource and energy costs, rising prices and global inflation. - FY2023-Q2RestatedAnnual report
「During the cumulative second quarter of the fiscal year, the Japanese economy was expected to recover as it entered a new phase of living with COVID-19, supported by the effects of various policies. However, the outlook remained uncertain regarding the impact on domestic economic conditions and corporate earnings of the prolonged situation in Ukraine, rising prices due to the weaker yen and exchange-rate fluctuations resulting from global monetary tightening.」
The company identifies the prolonged situation in Ukraine, the weaker yen and rising prices, and exchange-rate fluctuations resulting from global monetary tightening as external-environment factors. It also states that there have been no significant changes in business and other risks. - FY2023-Q1WorsenedAnnual report
「During the cumulative first quarter of the fiscal year, according to the Bank of Japan’s June 2022 Tankan (Short-Term Economic Survey of Enterprises), the business conditions DI for large manufacturers deteriorated by 5 points from the previous March 2022 survey to 9 points, marking the second consecutive quarter of deterioration. This reflected higher raw material prices caused by Russia’s invasion of Ukraine and the weaker yen, as well as the impact of China’s zero-COVID policy. By industry, the business conditions DI for large automobile manufacturers deteriorated by 4 points from the previous survey to minus 19 points, reflecting the impact of parts supply constraints and other factors.」
Against the backdrop of the situation between Russia and Ukraine, the weaker yen and higher raw material prices, China’s zero-COVID policy and parts supply constraints, the DI for large manufacturers deteriorated to 9 points and that for automobile manufacturers to minus 19 points. - FY2022WorsenedAnnual report
「As geopolitical risks, including the situation between Russia and Ukraine, and the spread of COVID-19 worsen economic conditions and companies become increasingly inclined to restrain investment in information systems, previously scheduled system development projects may be suspended or scaled back.」
In addition to the existing COVID-19 and economic downturn factors, the company identifies geopolitical risks, including the situation between Russia and Ukraine, as factors behind the risk of restrained IT investment and reduced project scale. - FY2022-Q3WorsenedAnnual report
「Business sentiment is expected to become even more uncertain depending on the future spread of the Omicron variant of COVID-19. By industry, the business conditions DI for large automobile manufacturers deteriorated by 1 point from the previous survey to minus 8 points. Although the impact of supply constraints for parts, including semiconductors, had eased, production had not yet reached the level needed to make up for lost output.」
Uncertainty over the outlook due to the Omicron variant was indicated, and the DI for large automobile manufacturers deteriorated by 1 point to minus 8 points. Parts supply constraints had eased, but production had not yet reached the level needed to make up for lost output. - FY2022-Q2WorsenedAnnual report
「By industry, the business conditions DI for large automobile manufacturers deteriorated by 10 points from the previous survey to minus 7 points, reflecting the impact of supply constraints for parts resulting from the spread of COVID-19 in Southeast Asia.」
While the DI for large manufacturers overall improved, the DI for automobile manufacturers deteriorated by 10 points to minus 7 points, reflecting the impact of constraints on parts supplies. - FY2022-Q1WorsenedAnnual report
「By industry, the business conditions DI for large automobile manufacturers deteriorated by 7 points from the previous survey to 3 points, reflecting the impact of factors including production stoppages at factories due to the semiconductor shortage.」
While the DI for large manufacturers overall improved, the DI for automobile manufacturers deteriorated by 7 points to 3 points, reflecting the impact of factory stoppages caused by the semiconductor shortage. - FY2021WorsenedAnnual report
「The SI services business, which focuses on system development for companies, experienced weak order conditions as major customers, including automotive-related manufacturers, postponed or reduced IT investments amid continued uncertainty over the outlook due to the prolonged COVID-19 pandemic and the global semiconductor shortage. Revenue was ¥6,234 million, down 8.3% year on year.」
Against the backdrop of the prolonged COVID-19 pandemic and the semiconductor shortage, customer IT investment continued to be postponed or reduced, and revenue from SI services fell 8.3% year on year. - FY2021-Q3WorsenedAnnual report
「The SI services business, which focuses on system development for companies, experienced weak order conditions as major customers, including automotive-related manufacturers, postponed or reduced IT investments. Revenue was ¥4,256 million, down 12.3% year on year.」
Postponements and reductions in IT investment by major customers continued, and revenue from SI services fell 12.3% year on year. Following the decline in the previous quarter, the reduction in orders became evident in actual results. - FY2021-Q2MaterialisedAnnual report
「Some customers adopted a rigorous approach to evaluating and selecting IT investments, particularly large-scale projects, resulting in a decline in the number and scale of projects. As a result, orders declined mainly in the manufacturing sector, including the automotive-related manufacturing industry, which comprises the company’s major customers, and revenue from SI services was ¥2,792 million, down 10.9% year on year.」
Customer selection of IT investments actually resulted in fewer and smaller projects and a decline in orders, while revenue from SI services fell 10.9% year on year. - FY2021-Q1WorsenedAnnual report
「The business conditions DI for large manufacturers deteriorated by 26 points to minus 34, its lowest level in 11 years since June 2009, after the Lehman crisis, when it stood at minus 48. By industry, the business conditions DI for large automobile manufacturers deteriorated by 55 points from the previous survey to minus 72, its lowest level since June 2009, when it stood at minus 79. The spread of COVID-19 brought domestic and overseas economic activity to a standstill or reduced it, resulting in a rapid and substantial deterioration and an extremely severe situation.」
Against the backdrop of the stagnation in economic activity caused by COVID-19, the DI for large manufacturers fell to minus 34 and that for automobile manufacturers to minus 72, providing further evidence of deterioration in the external economic environment. - FY2020WorsenedAnnual report
「As the global spread of COVID-19 worsens economic conditions and companies become increasingly inclined to restrain investment in information systems, previously scheduled system development projects may be suspended or scaled back.」
In addition to the existing risks of an economic downturn and restrained IT investment, the company identifies the global impact of COVID-19 as a specific factor. - FY2020-Q3WorsenedAnnual report
「According to the Bank of Japan’s December 2019 Tankan (Short-Term Economic Survey of Enterprises), the business conditions DI for large manufacturers deteriorated by 5 points from the previous September survey to zero, marking the fourth consecutive quarter of deterioration. By industry, the business conditions DI for large automobile manufacturers deteriorated by 13 points from the previous survey to minus 11 points, while the outlook index for three months ahead was unchanged at minus 11 points. Uncertainty in overseas economies arising from trade friction between the United States and China and other factors weighed on business sentiment.」
The business conditions DI for large manufacturers deteriorated to zero, marking the fourth consecutive quarter of deterioration. The DI for large automobile manufacturers also fell to minus 11 points, while the outlook index stood at minus 11 points, providing further evidence of deteriorating business conditions. - FY2020-Q2WorsenedAnnual report
「During the cumulative second quarter of the fiscal year, according to the Bank of Japan’s September 2019 Tankan (Short-Term Economic Survey of Enterprises), the business conditions DI for large manufacturers deteriorated by 2 points from the previous June survey to plus 5 points, marking the third consecutive quarter of deterioration. By industry, the business conditions DI for large automobile manufacturers deteriorated by 3 points from the previous survey to plus 2 points, while the outlook index for three months ahead fell 7 points to minus 5 points. Concerns about a decline in consumption following the consumption tax increase and uncertainty in overseas economies arising from trade friction between the United States and China weighed on business sentiment.」
The business conditions DI for large manufacturers and automobile manufacturers deteriorated, and the outlook index for automobile manufacturers fell to minus 5 points. The decline in consumption following the consumption tax increase and uncertainty in overseas economies resulting from trade friction between the United States and China also became specific factors weighing on business sentiment. - FY2020-Q1WorsenedAnnual report
「During the cumulative first quarter of the fiscal year, according to the Bank of Japan’s June 2019 Tankan (Short-Term Economic Survey of Enterprises), the business conditions DI for large manufacturers deteriorated by 5 points to plus 7 points, declining for the second consecutive quarter. By industry, the business conditions DI for large automobile manufacturers deteriorated by 10 points from the previous survey to plus 5 points, while the outlook index for three months ahead fell 5 points to zero, reflecting concerns about the impact of trade friction between the United States and China.」
The business conditions DI and outlook index for large manufacturers and automobile manufacturers declined, and concerns about trade friction between the United States and China were also indicated. - FY2019RestatedAnnual report
「As economic conditions deteriorate and companies become increasingly inclined to restrain investment in information systems, previously scheduled system development projects may be suspended or scaled back. Such reductions in corporate investment in information systems lower the utilisation of the company’s engineers, resulting in higher cost of sales. If this situation persists and corporate investment in information systems does not resume contrary to the company’s expectations, its financial performance could be affected.」
The company continues to identify the risk that restrained corporate IT investment could result in project suspensions or reductions and lower engineer utilisation. - FY2019-Q3WorsenedAnnual report
「By industry, the business conditions DI for large automobile manufacturers fell 2 points from the previous September survey to plus 14 points, while the outlook index for three months ahead fell 6 points to plus 8 points, and uncertainty about the outlook increased amid concerns about trade friction between the United States and China.」
The business conditions DI for large automobile manufacturers fell 2 points from the previous survey, and the outlook index for three months ahead fell 6 points. The company states that uncertainty about the outlook increased against the backdrop of trade friction between the United States and China. - FY2019-Q2WorsenedAnnual report
「During the cumulative second quarter of the fiscal year, according to the Bank of Japan’s September 2018 Tankan (Short-Term Economic Survey of Enterprises), the business conditions DI for large manufacturers deteriorated by 2 points from the previous June survey to plus 19 points, marking the third consecutive quarter of deterioration.」
The business conditions DI for large manufacturers deteriorated by 2 points from the previous survey, marking the third consecutive quarter of deterioration. Trade friction, higher raw material prices and natural disasters are also identified as factors weighing on business sentiment. - FY2019-Q1WorsenedAnnual report
「During the cumulative first quarter of the fiscal year, according to the Bank of Japan’s June 2018 Tankan (Short-Term Economic Survey of Enterprises), the business conditions DI for large manufacturers deteriorated by 3 points to plus 21 points, declining for the second consecutive quarter. By industry, the business conditions DI for large automobile manufacturers deteriorated by 7 points from the previous survey to plus 15 points, while the outlook index for three months ahead fell 2 points to plus 13 points, reflecting concerns about rising raw material and labour costs and trade friction involving the United States.」
The business conditions DI and outlook index for large manufacturers and large automobile manufacturers declined, while concerns about rising raw material and labour costs and trade friction involving the United States became specific external-environment risks. - FY2018RestatedAnnual report
「As economic conditions deteriorate and companies become increasingly inclined to restrain investment in information systems, previously scheduled system development projects may be suspended or scaled back.」
The company continues to identify restrained corporate IT investment as a risk that could lead to project suspensions or reductions and lower engineer utilisation. - FY2018-Q3RestatedAnnual report
「During the cumulative third quarter of the fiscal year, the Japanese economy remained on a moderate recovery trend, supported by the government’s and the Bank of Japan’s economic and monetary policies. However, the outlook remained uncertain due to heightened geopolitical risks, including developments in emerging markets and the U.S. administration and the North Korea issue.」
While recognising the ongoing economic recovery trend, the company continues to describe uncertainty over the outlook arising from geopolitical risks, including developments in emerging markets and the U.S. administration and the North Korea issue. - FY2018-Q1RestatedAnnual report
「By industry, the business conditions DI for large automobile manufacturers fell 2 points from the previous survey to plus 16 points, while the outlook index for three months ahead fell 5 points to plus 11 points, reflecting concerns about raw material prices and the outlook for overseas economies.」
The company identifies the decline in the business conditions DI and outlook index for the automobile manufacturing industry, together with concerns about raw material prices and overseas economies, as external-environment risks. - FY2017RestatedAnnual report
「As economic conditions deteriorate and companies become increasingly inclined to restrain investment in information systems, previously scheduled system development projects may be suspended or scaled back. Such reductions in corporate investment in information systems lower the utilisation of the company’s engineers, resulting in higher cost of sales.」
The company continues to indicate the risk that restrained customer IT investment could lead to project suspensions or reductions and lower engineer utilisation. - FY2017-Q3RestatedAnnual report
「However, since the nomination of the next U.S. president, markets have fluctuated significantly, shifting over a short period from the previous trend of falling share prices and a stronger yen to rising share prices and a weaker yen. In addition, the policies advocated by the U.S. president are expected to have a substantial impact on the future of the Japanese economy, creating an increasing sense of uncertainty about the outlook.」
The company continues to identify uncertainty over the outlook for the Japanese economy arising from U.S. policies and market volatility as an external-environment risk. - FY2017-Q1RestatedAnnual report
「The outlook remained uncertain, amid concerns about downside risks to the global economy arising from a slowdown in emerging-market economies, including China, and instability in Europe.」
The company continues to express concern about downside risks to the global economy from a slowdown in emerging-market economies and the situation in Europe. It also states that demand for IT investment from major customers remains solid. - FY2016First statedAnnual report
「As economic conditions deteriorate and companies become increasingly inclined to restrain investment in information systems, previously scheduled system development projects may be suspended or scaled back. Such reductions in corporate investment in information systems lower the utilisation of the company’s engineers, resulting in higher cost of sales.」
The company identifies reductions in customers’ investment in information systems amid an economic downturn as a risk that could lead to project suspensions or reductions and lower engineer utilisation.