Rising Component Costs and Unforeseen Events at Suppliers and Outsourcing Partners
First written in FY2016. 5 of 11 entries say "Restated". Latest entry: FY2025.
Nittoku moved to the "Worse" side of this theme in 2021, 1 year before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 9 of 11 companies on the "Worse" side.
0 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「In consideration of supply chain stagnation and other factors, we will progressively shift overseas sites, including those without production functions, to a system that enables overhauls and simple equipment assembly to be performed locally, known as a small-factory model, thereby expanding the scope of work that can be handled at each site.」
As a response to supply chain stagnation, it clearly stated a policy of expanding the scope of work that can be handled at overseas sites by adopting a small-factory model. - FY2024-Q1Easing supply constraints alongside continued cost and supply uncertaintyAnnual report
「In the environment surrounding our group, capital investment remained firm amid the continuing global trend toward decarbonisation in the automotive industry, supported in part by accommodative financial conditions and the easing of supply constraints. This reflected needs for the automation, sophistication, and improved quality of manufacturing and production systems, including measures to address labour shortages and investment related to digitalisation.」
While explaining that the impact of supply constraints has eased, it also expresses concerns about rising resource and energy prices, tight supplies, and higher import costs, indicating that an improved procurement environment and uncertainty coexist. - FY2023RestatedAnnual report
「Shortages or suspension of supplies of procured materials due to various issues, and deterioration or suspension of our production functions」
It continues to identify supply chain disruption, material shortages, and production constraints as major risks. - FY2023-Q3RestatedAnnual report
「During the nine-month period ended 31 December 2022 (1 April 2022 to 31 December 2022), concerns included higher resource and energy prices associated with the prolonged situation in Ukraine, global supply chain disruptions, production constraints and shortages of resources and materials, supply chain disruptions caused by the resurgence of COVID-19 infections, and increasing downside risks to the global economy resulting from countries' shifts toward monetary tightening policies.」
It explains that shortages of resources and materials, supply chain disruptions, and production constraints are continuing, and reconfirms the risk of impacts on procurement and production. - FY2023-Q2RestatedAnnual report
「At the same time, it was necessary to closely monitor the impact on the global economy from factors including rising resource and energy prices resulting from the prolonged situation in Ukraine, disruption to global supply chains, production constraints and shortages of resources and materials, and countries’ shifts toward tighter monetary policies in response to global inflation.」
It explains that disruption to global supply chains, production constraints, and shortages of resources and materials are continuing. - FY2023-Q1WorsenedAnnual report
「However, parts procurement for materials and for sale remained unstable because of ongoing global supply chain disruptions. Lead times lengthened rapidly at most overseas bases, and individual sales declined 10.0% year on year.」
In addition to unstable procurement of materials and parts for sale, lead times lengthened rapidly at most overseas bases, affecting the business through delays in recording sales. - FY2022RestatedAnnual report
「Although parts procurement remained unstable because of supply chain disruptions caused by COVID-19 and fluctuations in demand, we increased production efficiency under the local production for local consumption approach, accurately addressed customer needs, and achieved higher revenue and profit than in the same period of the previous year.」
It explains that, while supply chain disruptions and unstable parts procurement caused by infectious diseases and demand fluctuations continued, the Group responded through local production for local consumption and achieved higher revenue and profit. - FY2022-Q3MaterialisedAnnual report
「In addition, production activity remained sluggish because of shortages of manufactured components, while raw material prices and transportation costs surged, and uncertainty persisted amid the intensifying US-China trade friction and geopolitical risks.」
Production disruptions caused by component shortages and surging raw material prices and transportation costs have continued as actual impacts on the business environment, beyond the general procurement risks previously described. - FY2022-Q2MaterialisedAnnual report
「Although production has been affected by shortages of semiconductors and raw materials and higher resource prices, some industries have begun to actively pursue capital investment.」
It states that shortages of semiconductors and raw materials and higher resource prices have actually affected production. Procurement and materials-related risks have progressed from general statements of potential risk to specific impacts on the business environment. - FY2020RestatedAnnual report
「In addition to infectious diseases, if our Group, customers or suppliers suffer damage from a fire, natural disaster or other event, activities such as order taking, procurement, production and sales may be disrupted depending on the extent of the human and physical damage, potentially affecting operating results and financial position.」
It reiterates the risk of procurement and production disruptions caused by disasters or accidents affecting suppliers and others, together with infectious disease risks. - FY2016First statedAnnual report
「In addition, if an unforeseen event such as a disaster or accident occurs at a materials supplier or subcontractor, it could disrupt production by our Group and adversely affect our Group's operating results and financial position.」
It cites difficulties in passing through sharp increases in raw material and component prices, as well as production disruptions caused by disasters or accidents affecting suppliers and subcontractors.