Rising Material Prices and Longer Lead Times Associated with External Procurement and Outsourcing
First written in FY2023. 2 of 4 entries say "Worsened", first in FY2024. Latest entry: FY2026.
Nomura Micro Science moved to the "Worse" side of this theme in 2024, 2 years after the typical company in this theme (2022).
The whole theme swung hardest in 2022: 99 of 155 companies on the "Worse" side.
51 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「The Group conducts procurement activities through its supplier evaluation system and surveys of business partners. To respond appropriately to sudden changes in supply and demand, it is strengthening stable supply by securing procured goods through multiple sourcing, making planned purchases of equipment and other items expected to have long lead times, considering substitute products through new supplier development, diversifying procurement routes, and maintaining inventories based on anticipated supply and demand.」
We continue to implement measures including multiple sourcing, planned purchasing, alternative products, inventory procurement and price pass-through in response to rising material prices associated with external procurement and outsourcing, longer lead times, geopolitical, economic security and foreign exchange risks. - FY2025WorsenedAnnual report
「The Group's results may also be affected if geopolitical risks, economic security risks, foreign exchange fluctuations and other factors cause raw material and energy prices to rise, resulting in higher material prices and construction costs.」
For external procurement and outsourcing risks, the company specified the channels through which geopolitical risks, economic security risks and foreign exchange fluctuations could raise raw material, energy and construction costs, in addition to the previous material price and lead-time risks. - FY2024WorsenedAnnual report
「The Group's results may also be affected if changes in the economic environment, foreign exchange fluctuations and other factors cause raw material and energy prices to rise, resulting in higher material prices and construction costs.」
In addition to the previous risks related to external procurement and outsourcing, the company specified increases in raw material prices, energy prices, material prices and construction costs, thereby detailing the risk of higher costs. - FY2023First statedAnnual report
「If damage or accidents occur due to force majeure, including natural disasters such as earthquakes and floods, terrorism or infectious diseases, equipment and other items may not be supplied in a timely manner. In addition, material prices may rise and lead times may be extended depending on the business operations, operating status and staffing shortages of product suppliers and subcontractors.」
The company newly organized the former risks associated with outsourcing installation work and natural disasters as supply chain risks covering external procurement of equipment and other items, subcontractors, staffing shortages, material prices and lead times. It identified multiple sourcing, inventory stocking, advance ordering and information sharing with partner companies as countermeasures.