Capital Investment and Production Stagnation Caused by COVID-19
First written in FY2020. 4 of 11 entries say "Mitigated", first in FY2021-Q2. Latest entry: FY2026.
The whole theme swung hardest in 2024: 6 of 15 companies on the "Worse" side.
5 other companies' latest entry also says "Dropped".
- FY2026DroppedAnnual reportThere was no specific disclosure identifying COVID-19 as a standalone risk; it was incorporated into general risks such as accidents, disasters and infectious diseases.
- 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.」
The company explained that supply constraints and impacts on the business environment under the pandemic continued, including supply chain disruptions caused by renewed outbreaks. - FY2023-Q2RestatedAnnual report
「In the environment surrounding the Group, economic activity was recovering globally from the COVID-19 pandemic, and some manufacturers actively invested in capital equipment in response to demand for greater automation, more advanced capabilities, and higher quality in production equipment.」
The company continued to describe the previous situation in which economic activity was normalizing and capital investment was recovering despite the pandemic, while supply constraints remained. - FY2022Economic recovery amid ongoing infections alongside supply constraintsAnnual report
「During the current consolidated fiscal year, the operating environment for the group saw global normalization from the pandemic progress, while capital investment was robust across the manufacturing sector in response to demand for automation and upgrading of production equipment. Procurement of components remained unstable because supply chains continued to be disrupted by COVID-19 and fluctuations in demand, but」
The company explained that, while global economic normalization and stronger capital investment progressed despite the pandemic, supply chain disruptions and unstable component procurement caused by the pandemic and fluctuations in demand remained. - FY2022-Q3Economic recovery amid ongoing infections alongside the risk of new variantsAnnual report
「During the nine-month period of the third quarter of the current consolidated fiscal year (1 April 2021 to 31 December 2021), the global economy remained unpredictable. While COVID-19 continued, vaccination became more widespread and economic activity gradually resumed, but new variants emerged and infections spread.」
The company explained that, while vaccinations and the phased reopening of economic activity progressed, infections caused by new variants continued to spread, with pandemic-related risks coexisting with the recovery. - FY2022-Q2MitigatedAnnual report
「With respect to our group’s overseas business activities, local subsidiaries handle order intake, production, delivery and installation. As customers resumed their activities, inquiries, orders and sales all began to trend upward.」
Regarding the impact of COVID-19 on customer activity and overseas operations, the company explained that inquiries, orders received and sales were trending upward as customers resumed their activities. Although pandemic-related risks remain, the impact on business activities has eased to some extent. - FY2021MitigatedAnnual report
「The company conducted remote inspections to prevent delays in pre-shipment witness inspections caused by restrictions on the movement of people that had continued since early 2020. In addition, based on the concept of “local production for local consumption,” it expanded production capabilities at overseas subsidiaries to minimize travel between locations, made use of remote technology, transferred some orders and production to its European and Chinese subsidiaries, further developed its strengths toward the new normal, and continued working to restore performance.」
In response to the risks of restrictions on the movement of people, inspection delays and shipment delays caused by the pandemic, the company advanced remote inspections, expanded production capabilities at overseas subsidiaries, and transferred orders and production to Europe and China. - FY2021-Q3MitigatedAnnual report
「The company conducted remote inspections to prevent delays in pre-shipment witness inspections caused by restrictions on the movement of people that had continued since early 2020. In addition, based on the concept of “local production for local consumption,” it expanded production capabilities at overseas subsidiaries to minimize travel between locations, made use of remote technology, transferred some orders and production to its European and Chinese subsidiaries, further developed its strengths toward the new normal, and continued working to restore performance.」
In response to the risk of inspection delays and shipment delays caused by restrictions on the movement of people, the company is expanding its response by advancing remote inspections and transferring orders and production to its European and Chinese subsidiaries. - FY2021-Q2MitigatedAnnual report
「As an essential company, we began conducting remote inspections at an early stage and worked to eliminate shipment delays because restrictions on the movement of people that had continued since around February this year caused delays in some pre-shipment witness inspections, and some projects consequently failed to generate sales.」
Delays in pre-shipment inspections and sales not being recorded due to restrictions on the movement of people continue to occur, but the company is addressing shipment delays by conducting remote inspections. - FY2021-Q1MaterialisedAnnual report
「As described above, while economic activity was stagnating globally, the company was also affected by restrictions on the movement of people that had continued since around February this year. As a result, some projects failed to generate sales because pre-shipment inspections were delayed, leading to a substantial year-on-year decline in sales and profit.」
Restrictions on the movement of people caused by COVID-19 actually resulted in delays in pre-shipment inspections and sales not being recorded for certain projects, leading to lower sales and profit. - FY2020First statedAnnual report
「The global economy has remained stagnant under the impact of COVID-19, which has continued since the end of last year. If this situation is prolonged further, industries related to the company’s business are likely to remain cautious about capital investment, while continued regulations in Japan and overseas are expected to reduce orders received. In addition, even for orders already received, performance and financial condition could be affected by delays in witness inspections, shipment and delivery in line with the acceptance policies of customers in Japan and overseas, as well as declines in production activity if employees at production plants become infected or logistics are disrupted.」
COVID-19 was identified and separately presented as a major risk for the first time, with its impacts on cautious capital investment, lower orders, delays in inspections, shipments and deliveries, and reduced production activity described.