Dependence on Suppliers and Rising Raw Material and Component Prices
First written in FY2016. 11 of 22 entries say "Worsened", first in FY2021-Q3. Latest entry: 2026-05-13.
Taihei Machinery Works,Limited moved to the "Worse" side of this theme in 2017, 4 years before the typical company in this theme (2021).
The whole theme swung hardest in 2021: 24 of 53 companies on the "Worse" side.
15 other companies' latest entry also says "Worsened".
- 2026-05-13WorsenedRevisions to earnings forecasts
「Against the backdrop of heightened tensions in the Middle East, an uncertain outlook is expected to persist, with concerns over persistently high raw material and energy prices, particularly disruptions to oil-related logistics and shortages of petroleum-derived products.」
In addition to persistently high raw material and energy prices, the company added concerns on the cost and procurement fronts, including logistics disruptions and shortages of petroleum-derived products. - FY2024WorsenedAnnual report
「Higher material prices resulting from surging crude oil and raw material prices, as well as higher service unit prices resulting from labor shortages, could increase the company's manufacturing costs and significantly affect profit. In addition, the company depends on specific suppliers for some components and other items, creating the possibility that conditions at those suppliers could adversely affect delivery schedules for its machinery.」
In addition to rising raw material and component prices, the company explicitly identifies higher service unit prices resulting from labor shortages and dependence on specific suppliers, broadening its cost and delivery risks. - FY2024-Q2WorsenedAnnual report
「Although cost increases in the woodworking machinery business slightly exceeded expectations and performance in the housing materials business deteriorated,」
The company states that cost increases in the woodworking machinery business slightly exceeded expectations, indicating that procurement and manufacturing cost conditions remain challenging. - FY2024-Q1WorsenedAnnual report
「Costs increased due to continued rises in procurement material prices and labor costs, but remained generally within the expected range.」
The increase in costs resulting from higher procurement material prices and labor costs has continued. - FY2023WorsenedAnnual report
「For some component supplies, the company depends on specific suppliers, and disruptions in component supplies from those suppliers could affect the manufacture and delivery of its machinery.」
In addition to the risk of rising raw material prices, the company explicitly identifies dependence on specific suppliers for component supplies as a risk that could affect manufacturing and deliveries. - FY2023-Q3WorsenedAnnual report
「Progress has generally been in line with the plan so far, but lead times have lengthened further and prices have risen further, and the company will continue to monitor the situation.」
While advancing countermeasures, the company states that component lead times have lengthened further and component prices have risen further. - FY2023-Q2MitigatedAnnual report
「We reviewed our order and production plans and strengthened our ability to meet customers' requested delivery dates by arranging in advance for components with long lead times. We also worked to improve production efficiency and curb increases in procurement prices for materials.」
To address higher component procurement prices and longer component lead times, the company is reviewing its order and production plans, arranging components in advance, improving production efficiency and working to contain increases in procurement prices. - FY2023-Q1WorsenedAnnual report
「The operating environment is becoming more challenging, owing to the downward trend in housing starts, changes in the timber resource procurement environment and higher procurement prices resulting from yen depreciation.」
The company cites changes in the timber resource procurement environment and higher procurement prices resulting from yen depreciation, stating that procurement and manufacturing cost conditions are becoming more challenging. - FY2022WorsenedAnnual report
「Manufacturing costs have shifted to a significant upward trend due to suppliers' business conditions, higher crude oil prices and rising raw material costs, creating the risk of substantial fluctuations in profit.」
The company states that higher raw material and component prices have caused manufacturing costs to shift to a significant upward trend. Meanwhile, it is responding through cooperation and information sharing with major suppliers. - FY2022-Q3MaterialisedAnnual report
「Partly reflecting the impact of applying the accounting standard for revenue recognition, revenue for the cumulative consolidated third quarter was ¥1,613 million, compared with revenue of ¥1,428 million in the same period of the previous year. Profit was affected by higher research and development expenses and rising procurement prices for raw materials and other items, resulting in an operating loss of ¥143 million, compared with an operating loss of ¥37 million in the same period of the previous year.」
Higher procurement prices for raw materials and other items emerged in the results as a factor behind the operating loss in the plywood machinery business. - FY2022-Q2WorsenedAnnual report
「Supply and demand issues in housing materials resulting from the global surge in timber resource prices known as the “wood shock”」
The company states that the surge in timber resource prices has spread to supply and demand issues for housing materials, making the difficulty of the raw material and component procurement environment more apparent. - FY2022-Q1WorsenedAnnual report
「The business environment surrounding the company has shown some signs of recovery, including an increase in new housing starts year on year. However, uncertainty about the outlook remains strong, owing to the global surge in timber resource prices known as the “wood shock” and concerns about related increases in housing prices.」
The global surge in timber resource prices and concerns about higher housing prices are cited as new sources of uncertainty in the raw material and cost environment. - FY2021-Q3WorsenedAnnual report
「The company primarily procures dimension lumber, a key material, from overseas. Market conditions are becoming more challenging, with overseas demand increasing and procurement prices trending higher.」
The company has disclosed an upward trend in procurement prices for key materials dependent on overseas sourcing, driven by rising overseas demand, indicating increasingly challenging raw material cost conditions. - FY2020MitigatedAnnual report
「As measures to address these issues, the company has established a cooperative framework comprising its major suppliers, including the Kyosokai and Kyoseikai, and is responding by sharing information among suppliers, including the company, and establishing a cooperative framework for component supplies.」
To address supplier dependence and component supply risks, the company has established a cooperative framework and information-sharing arrangements with major suppliers. - FY2019MaterialisedAnnual report
「Conditions remained challenging in terms of costs, including the upward trend in raw material prices.」
The upward trend in raw material prices has continued, emerging as a cost burden in the housing materials business. - FY2019-Q3RestatedAnnual report
「Conditions remained challenging in terms of costs, including the upward trend in raw material prices.」
The upward trend in raw material prices and the resulting cost burden have continued. - FY2019-Q1MaterialisedAnnual report
「Raw material prices have also been trending higher, and cost conditions remain challenging.」
In the housing materials business, the upward trend in raw material prices has continued and has emerged as a cost burden. - FY2018MaterialisedAnnual report
「Conditions remained challenging, with procurement prices rising across the board for materials, including dimension lumber, a key material.」
Higher procurement prices for materials, including key materials, actually occurred, and operating profit in the housing materials business was ¥38 million, down 7.1% year on year. - FY2018-Q2MaterialisedAnnual report
「Raw material prices have risen, partly because of the impact of forest fires in Canada, the source of imports of dimension lumber, a key material.」
The company states that higher raw material prices for key materials actually occurred against the backdrop of forest fires in Canada and other factors. - FY2018-Q1MaterialisedAnnual report
「The increase in the cost of imported materials could not be fully absorbed, and the amount was ¥4 million, down 56.8% year on year.」
Higher imported material costs weighed on profit in the housing materials business, resulting in a 56.8% year-on-year decline in operating profit. - FY2017RestatedAnnual report
「Manufacturing costs may be significantly affected by suppliers' business conditions, higher crude oil prices and rising raw material costs, potentially resulting in a substantial decline in profit.」
The company continues to identify supplier dependence and the impact of rising raw material and component prices on profit as risks. - FY2016First statedAnnual report
「Manufacturing costs may be significantly affected by suppliers' business conditions, higher crude oil prices and rising raw material costs, potentially resulting in a substantial decline in profit.」
The company depends on suppliers for the supply of raw materials, components and services, and identifies profit declines resulting from higher crude oil prices and rising raw material costs as risks.