Concentration of demand in specific industries and recession risk
First written in FY2016. 11 of 33 entries say "Worsened", first in FY2019-Q3. Latest entry: 2026-05-11.
Nippon Thompson moved to the "Worse" side of this theme in 2016, 3 years before the typical company in this theme (2019).
The whole theme swung hardest in 2020: 62 of 77 companies on the "Worse" side.
22 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「Looking at the operating conditions of the Group, demand for electronics-related equipment such as electronic component placement machines and semiconductor manufacturing equipment, as well as machine tools, increased in the domestic market, resulting in higher sales. In North America, demand for general industrial machinery such as various medical equipment and robots, as well as electronics-related equipment, increased, resulting in higher sales. In Europe, signs of recovery were seen in aftermarket products and other areas, but demand for general industrial machinery and electronics-related equipment slowed, leaving sales broadly flat. In China, sales increased, partly due to a recovery in domestic demand resulting from economic stimulus measures and contributions from large projects. In other regions, demand in South Korea, Singapore, Indonesia and other markets recovered, resulting in higher sales.」
Demand and sales increased in Japan, North America, China and other regions, while Europe was broadly flat. Conditions improved from the widespread demand slowdown and sales declines through the previous fiscal year. - FY2025Solid order intake alongside declining salesAnnual report
「Looking at the operating conditions of the Group, sales fell below the previous fiscal year, but orders received remained firm.」
While sales declined, orders received were described as firm, indicating that the impact of slowing demand on sales coexisted with an improvement in orders. - FY2025-H1Recovery in orders coexisting with slowing demandAnnual report
「Looking at the operating conditions of the Group, sales fell below the level of the same period of the previous year, but orders received remained firm.」
While sales fell below the level of the same period of the previous year, orders received were described as firm, indicating that the impact of slowing demand on sales coexisted with a recovery in orders. - FY2024-Q3WorsenedAnnual report
「Production of needle roller bearings, linear motion guides and other products during the cumulative third quarter of the fiscal year, based on average selling prices, was ¥38,958 million, down 23.5% year on year. Orders received for bearings and other products and various machinery components were ¥32,855 million, down 33.9% year on year.」
Against a backdrop of slowing demand, production declined 23.5% year on year and orders received declined 33.9%, with the impact of demand volatility and recession risk emerging in the figures. - FY2024-Q2WorsenedAnnual report
「As a result, sales for the cumulative second quarter of the fiscal year were ¥28,481 million, down 17.1% year on year. In terms of profitability, operating profit was ¥2,040 million, down 53.0% year on year, ordinary profit was ¥3,007 million, down 50.6%, and quarterly net income attributable to owners of the parent was ¥1,586 million, down 62.2%, due mainly to the effects of lower sales and reduced production.」
Although the Business and Other Risks section stated that there had been no material changes, slowing demand materialized as overall declines in sales and profit, with the impact of demand concentration and recession risk continuing from the previous quarter. - FY2024-Q1WorsenedAnnual report
「Looking at the operating conditions of the Group, demand for electronics-related equipment such as electronic component placement machines and semiconductor manufacturing equipment, as well as machine tools, slowed in the domestic market, resulting in lower sales. In North America, demand slowed, mainly for general industrial machinery such as precision machinery and various medical equipment, resulting in lower sales. In China, demand slowed due to weak domestic and external demand, resulting in lower sales.」
Slowing demand and lower sales emerged in major customer regions, including Japan, North America and China, worsening the risks associated with concentration of demand in specific industries and the recession. - FY2023WorsenedAnnual report
「In the fiscal year, production of needle roller bearings, linear motion guides and other products was ¥65,915 million, up 15.3% year on year, while orders received for bearings and other products and various machinery components were ¥61,939 million, down 21.1% year on year.」
Although sales increased in all regions for the full year, orders received declined 21.1% year on year, explicitly adding a warning sign regarding demand volatility and recession risk. - FY2023-Q3WorsenedAnnual report
「Looking at the operating environment for our group, although orders recently have been trending downward, net sales increased in all regions, supported by solid capital investment demand for electronics-related equipment, including semiconductor manufacturing equipment, a high level of order backlog, and the positive impact of the yen's depreciation.」
Although sales increased in all regions, the Company explicitly stated that recent orders received were trending downward, adding a warning sign regarding demand volatility risk. - FY2023-Q2RestatedAnnual report
「Sales increased in all regions, supported by strong capital investment demand for electronics-related equipment such as semiconductor manufacturing equipment and the positive effect of the weaker yen. In the domestic market, sales increased, led by general industrial machinery such as precision machinery and various medical equipment, as well as machine tools.」
Capital investment demand, including in specific customer sectors, remained high, resulting in higher sales in all regions. No change in the underlying concentration of demand was indicated. - FY2022-Q3RestatedAnnual report
「Looking at the operating conditions of the Group, sales increased in the domestic market, led by electronics-related equipment such as semiconductor manufacturing equipment and electronic component placement machines, as well as machine tools. In North America, sales increased, led by general industrial machinery such as medical equipment and precision machinery, electronics-related equipment and aftermarket products. In Europe, sales increased, led by general industrial machinery such as precision machinery, electronics-related equipment and aftermarket products. In China, sales increased significantly as capital investment demand remained strong. In other regions, demand in ASEAN, including Singapore and Malaysia, and South Korea recovered, resulting in higher sales.」
Sales continued to increase in major customer sectors in Japan and overseas, with a significant increase in sales in China and demand recovery in ASEAN, South Korea and other markets. - FY2022-Q2RestatedAnnual report
「Looking at the operating conditions of the Group, sales increased in the domestic market, led by electronics-related equipment such as semiconductor manufacturing equipment and electronic component placement machines, as well as machine tools. In North America, sales increased, led by electronics-related equipment, general industrial machinery such as medical equipment and precision machinery, and aftermarket products. In Europe, sales increased, led by electronics-related equipment, general industrial machinery, aftermarket products and other products. In China, demand recovered broadly, resulting in a significant increase in sales. In other regions, demand in ASEAN, South Korea and other markets recovered, resulting in higher sales.」
The Company reported higher sales in major customer sectors in Japan and overseas, a significant increase in sales in China and demand recovery in other regions, with the impact of demand concentration and recession risk remaining more mitigated than through the previous fiscal year. - FY2022-Q1MitigatedAnnual report
「In the domestic market, sales increased, led by electronics-related equipment such as semiconductor manufacturing equipment and electronic component placement machines, as well as machine tools. In North America, demand for transportation equipment was slow to grow, but demand for electronics-related equipment and aftermarket products remained resilient, resulting in higher sales. In Europe, demand for electronics-related equipment, general industrial machinery, aftermarket products and other products remained strong, resulting in higher sales. In China, sales increased significantly as demand recovered rapidly after economic activity resumed. In other regions, demand in India, ASEAN, South Korea and other markets recovered, resulting in higher sales.」
Demand recovery and higher sales were reported in each region, including China, further mitigating the impact of weak capital investment demand through the previous fiscal year. - FY2021MitigatedAnnual report
「Looking at the operating conditions of the Group, sales fell below the previous fiscal year as capital investment demand slowed due to the economic deterioration caused by COVID-19, but recent orders received have recovered.」
For the full year, capital investment demand slowed and sales declined, while the Company reported a recovery in recent orders received, indicating a partial improvement in demand volatility risk. - FY2021-Q3MitigatedAnnual report
「Looking at the operating conditions of the Group, sales fell below the level of the same period of the previous year as the economy deteriorated due to COVID-19, but orders received recently have been recovering. In the domestic market, sales of electronics-related equipment remained firm, but sales declined, mainly for machine tools and other products.」
Sales fell below the level of the same period of the previous year, and sluggish demand for machine tools and other products continued, while the Company reported a recovery in recent orders received, indicating a partial improvement in demand volatility risk. - FY2021-Q2RestatedAnnual report
「Looking at the operating conditions of the Group, capital investment demand slowed and remained weak in Japan and overseas due to the economic deterioration caused by COVID-19. In the domestic market, sales of electronics-related equipment remained resilient, but sales declined, mainly for machine tools and other products.」
Weak capital investment demand and continued lower sales for machine tools and other products persisted. Meanwhile, sales increased in China as economic activity resumed, and regional differences were also reported. - FY2021-Q1WorsenedAnnual report
「Looking at the operating conditions of the Group, capital investment demand weakened in Japan and overseas as the economy deteriorated due to the global spread of COVID-19, resulting in lower sales in all regions. As a result, sales for the cumulative first quarter of the fiscal year were ¥10,615 million, down 19.9% year on year.」
The economic deterioration associated with COVID-19 and weakness in capital investment demand materialized as lower sales in all regions, with the impact of specific-industry and recession risks continuing broadly. - FY2020WorsenedAnnual report
「Looking at the operating conditions of the Group, sales declined in the domestic market, led by electronics-related equipment such as semiconductor manufacturing equipment and machine tools. In North America, demand for precision machinery, general industrial machinery and other products remained weak, resulting in lower sales.」
Slowing demand from specific industries broadly materialized as lower sales in Japan and overseas, and the Company reported that concentration of demand and recession risk had worsened. - FY2020-Q3WorsenedAnnual report
「Looking at the operating conditions of the Group, sales declined in the domestic market, led by electronics-related equipment such as semiconductor manufacturing equipment and machine tools. In overseas markets, demand for precision machinery, electronics-related equipment and other products remained weak in North America, resulting in lower sales.」
In addition to major domestic customer sectors, weak demand and restrained investment were reported in North America, Europe, China and other regions, with the concentration of demand in specific industries and the impact of the recession continuing to result in broad-based declines in sales. - FY2020-Q2WorsenedAnnual report
「Looking at the operating conditions of the Group, sales declined in the domestic market, led by electronics-related equipment, due to sluggish semiconductor-related demand and other factors. In overseas markets, demand for medical equipment increased in North America, but demand for general industrial machinery, electronics-related equipment and other products slowed, resulting in lower sales. In Europe, demand for general industrial machinery, precision machinery and other products remained weak, and sales declined, also due to the negative impact of the stronger yen. In China, sales declined due to an economic slowdown caused by trade friction with the United States and other factors. In other regions, including Taiwan and South Korea, a cautious stance toward capital investment was observed, resulting in lower sales.」
Weak semiconductor-related demand, slowing demand in each region and a cautious stance toward capital investment have broadly materialized as lower sales in Japan and overseas. - FY2020-Q1WorsenedAnnual report
「The Group's operating conditions were generally affected by restrained capital investment among customer industries, resulting in lower sales. In the domestic market, demand for electronics-related equipment and other products slowed, resulting in lower sales.」
Restrained capital investment and slowing demand materialized as an overall decline in sales, including in Japan, and the Company reported that demand volatility and recession risk had worsened. - FY2019RestatedAnnual report
「Looking at the operating conditions of the Group, although some markets showed signs of restrained capital investment, the order backlog remained high. In the domestic market, sales increased, led by electronics-related equipment and precision machinery.」
The Company recognized restrained capital investment in some markets, while reporting that the order backlog remained high and sales in major domestic customer sectors increased. - FY2019-Q3WorsenedAnnual report
「Looking at the operating conditions of the Group, although some markets showed signs of restrained capital investment, the order backlog remained high. In the domestic market, sales increased, led by electronics-related equipment and machine tools.」
While the order backlog remained high and sales in major domestic markets increased, some markets showed signs of restrained capital investment, adding a warning sign regarding demand volatility and recession risk. - FY2019-Q2Cooling of overheated orders and a high order backlogAnnual report
「Looking at the operating conditions of the Group, orders that had shown signs of overheating have been easing since the second quarter, but the order backlog remains high. In the domestic market, sales increased, led by electronics-related equipment and machine tools.」
Although the Company stated that signs of overheating in orders were subsiding, it reported that the order backlog remained high. Sales to major domestic customer industries increased. - FY2019-Q1MitigatedAnnual report
「Looking at the operating conditions of the Group, sales increased in the domestic market, led by electronics-related equipment such as semiconductor manufacturing equipment and electronic component placement machines, against a backdrop of active capital investment by customer industries. In overseas markets, demand for precision machinery, general industrial machinery and other products remained resilient in North America, resulting in higher sales. In Europe, demand for machine tools, general industrial machinery and other products remained strong, resulting in higher sales.」
Demand for electronics, precision machinery, general industrial machinery and machine tools increased or remained strong in Japan and overseas, and the risk of weak demand in specific industries continued to be described as mitigated. - FY2018-Q3MitigatedAnnual report
「Looking at the operating conditions of the Group, active capital investment by customer industries continued both in Japan and overseas. In the domestic market, sales increased, led by electronics-related equipment such as semiconductor manufacturing equipment and electronic component placement machines, as well as machine tools. In North America, demand for precision machinery, machine tools and other products remained strong, resulting in higher sales. In Europe, sales of electronics-related equipment, machine tools and other products increased.」
Demand and sales for electronics-related equipment, machine tools and other products increased in Japan and overseas, continuing the improvement from the previous weakness in demand from specific industries. - FY2018-Q1MitigatedAnnual report
「In the domestic market, sales increased as demand for electronics-related equipment, including semiconductor manufacturing equipment, remained resilient, supported by investment in higher stacking and finer processing of semiconductors and growing demand in new markets such as IoT and AI. In overseas markets, demand for electronics-related equipment and machine tools remained strong in North America, resulting in higher sales. In Europe, demand for machine tools and other products recovered, and sales remained broadly flat. In Asia, sales increased significantly due to the consolidation of Yubijisho (Shanghai) Precision Bearing Manufacturing Co., Ltd. and Yubijisho (Suzhou) Bearing Co., Ltd. as subsidiaries, as well as increased investment in manufacturing automation in China and higher demand related to infrastructure.」
Demand, including for machine tools, recovered or strengthened in Japan and overseas, and improved from the period of sluggish demand through the previous year. The Company did not state that the underlying concentration of demand in specific industries had been eliminated. - FY2017MaterialisedAnnual report
「In the domestic market, demand for machine tools and other products was slow to grow, but sales remained firm, led by electronics-related equipment such as semiconductor manufacturing equipment.」
Slow growth in demand in specific industries, particularly for machine tools, has been reflected in market conditions for the full year. - FY2017-Q3MaterialisedAnnual report
「In the domestic market, demand for electronics-related equipment, including semiconductor manufacturing equipment, remained firm, but demand for machine tools, precision machinery and other products was sluggish. Although demand overall has recently shifted toward recovery, it had not returned to the level of the same period of the previous year.」
Continued sluggish demand for machine tools, precision machinery and other products has been reflected in results falling short of the level of the same period of the previous year. Meanwhile, the Company also reported that demand had recently begun to recover. - FY2017-Q2MaterialisedAnnual report
「In the domestic market, demand for electronics-related equipment, including semiconductor manufacturing equipment, continued to recover, but demand for machine tools and other products remained sluggish, resulting in lower sales.」
Continued sluggish demand for machine tools and other products has materialized as a decline in domestic sales. - FY2017-Q1MaterialisedAnnual report
「In the domestic market, sales to electronics-related equipment customers were on a recovery trend, but demand for machine tools and other products remained weak, resulting in lower sales.」
Weak demand in specific industries, particularly for machine tools, has materialized as an actual decline in sales. - FY2016First statedAnnual report
「The ratio of sales to specific industries, particularly electronics-related equipment such as semiconductor manufacturing equipment and electronic component placement machines, as well as machine tools, is relatively high.」
While seeking to mitigate the impact by expanding sales to other industries, the Company reported sluggish demand during the period due to the global economic slowdown, led by China.