Limited sourcing options, supply delays, and raw material price fluctuations
First written in FY2016. 6 of 18 entries say "Worsened", first in FY2022-Q3. Latest entry: FY2026.
Toyo Denki Seizo K.K.(Toyo Electric Mfg.Co.,Ltd.) moved to the "Worse" side of this theme in 2020, 1 year before the typical company in this theme (2021).
The whole theme swung hardest in 2021: 35 of 55 companies on the "Worse" side.
14 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「To address China’s export controls on rare earths, we are promoting initiatives to secure a stable supply system, including diversifying our supply chain and developing rare-earth-free products, and related costs are expected to arise going forward.」
Although procurement risks from rare-earth export controls remain, the company is putting specific measures in place, including supply chain diversification, development of rare-earth-free products and the adoption of alternative materials. - FY2026-H1MaterialisedAnnual report
「China's export controls on rare earths have delayed the arrival of related raw materials, partially affecting the Group's production activities.」
With respect to procurement risks, the company describes delays in the arrival of raw materials resulting from China's export controls on rare earths and the resulting actual impact on production activities. - FY2025WorsenedAnnual report
「If supplies are disrupted or delayed due to changes in global economic conditions and market trends, including China's rare-earth export controls and additional US tariffs, or natural disasters, or if a supplier of raw materials goes bankrupt or ceases or suspends operations and alternatives are difficult to secure, this may result in delays in production and shipments.」
In addition to existing shortages of semiconductors and other components, the company specifically identifies China's rare-earth export controls, additional US tariffs, and the bankruptcy or closure or suspension of operations by suppliers as procurement risks. - FY2024MitigatedAnnual report
「The company continues to implement measures including supply chain diversification and changes in the raw materials it uses. It also works continuously to gather information on risks such as the bankruptcy of business partners and is pursuing permanent measures including securing alternative suppliers.」
Although the possibility of shortages, price spikes and longer lead times for semiconductors and other materials remains, the company continues to implement measures including supply chain diversification, changes in raw materials and securing alternative suppliers. - FY2024-Q3MitigatedAnnual report
「Orders received by the Group are on a recovery trend. Although shortages of certain components continue to affect sales, the situation is improving.」
The company states that although shortages of certain components continue to affect sales, orders received are on a recovery trend and the component shortage situation is improving. - FY2024-Q1RestatedAnnual report
「Although orders received by the Group are on a recovery trend, the impact on sales from prolonged difficulties in procuring certain components continues.」
The company states that orders received are on a recovery trend, while prolonged difficulties in procuring certain components continue to affect sales. - FY2023RestatedAnnual report
「Although some raw materials, including semiconductors, continue to face global shortages, price spikes and longer lead times, the Group is working to mitigate the impact by diversifying its supply chain through its close network of business partners and changing the raw materials it uses.」
While shortages, price spikes and longer lead times for semiconductors and other materials continue, the company specifically identifies measures including multi-source procurement, supply chain diversification, changes in raw materials and securing alternative suppliers. - FY2023-Q3WorsenedAnnual report
「Meanwhile, in testing equipment for automotive development, some planned capital investments in testing equipment are being reviewed in response to the rapid shift toward electrification. In addition, the impact on the Group's production processes from prolonged difficulties in procuring components continues.」
The company states that difficulties in procuring components have continued for an extended period and that their impact on production processes persists. - FY2023-Q2WorsenedAnnual report
「Meanwhile, shortages of components, including semiconductors, have affected scheduled sales projects, including by causing postponements.」
Shortages of components such as semiconductors have affected business operations in practice by postponing scheduled sales projects. - FY2023-Q1WorsenedAnnual report
「Meanwhile, the company has been affected by semiconductor delivery delays, particularly in the private railway sector.」
The transportation business has been directly affected by semiconductor delivery delays. The company also states that difficulties in procuring components continue in the industrial business, indicating that supply constraints have become evident. - FY2022WorsenedAnnual report
「In addition, shortages and longer lead times for components, including semiconductors, as well as fluctuations in the prices of raw materials such as steel and copper, may affect the performance and other aspects of the Group.」
In addition to the existing risks of limited sourcing options, supply delays and raw material price fluctuations, the disclosure specifically identifies shortages and longer lead times for components such as semiconductors, expanding the scope of procurement risks. - FY2022-Q3WorsenedAnnual report
「In addition to the impact of the spread of new variants domestically, the situation remained uncertain due to factors including higher resource prices, constraints on component supplies and the continued depreciation of the yen.」
In connection with the existing risks of limited sourcing options, supply delays and raw material price fluctuations, constraints on component supplies and higher resource prices are specifically identified as business-environment factors. - FY2020ReframedAnnual report
「Because of the specialized nature of the business, certain materials have limited procurement availability, including materials for which the number of potential subcontractors is limited, and production may be affected by supply delays or discontinuation of production. In addition, fluctuations in the prices of raw materials such as steel and copper may affect the performance and other aspects of the Group.」
The disclosure has been reorganized to focus on limited sourcing options, supply delays and production discontinuations, and raw material price fluctuations. The impact of major disasters on the supply chain is addressed under a separate risk item. - FY2019RestatedAnnual report
「Because of the specialized nature of the business, certain materials have limited procurement availability, including materials for which the number of potential subcontractors is limited, and operations may be affected by supply delays or discontinuation of production. Operations may also be affected if the entire supply chain is disrupted by a major natural disaster or other event. In addition, performance may be affected by fluctuations in the prices of raw materials such as steel and copper.」
The company reiterates the risks of limited sourcing options, supply delays and production discontinuations, supply chain disruptions caused by disasters, and raw material price fluctuations. - FY2018RestatedAnnual report
「Because of the specialized nature of the business, certain materials have limited procurement availability, including materials for which the number of potential subcontractors is limited, and operations may be affected by supply delays or discontinuation of production. Operations may also be affected if the entire supply chain is disrupted by a major natural disaster or other event. In addition, performance may be affected by fluctuations in the prices of raw materials such as steel and copper.」
The company reiterates the risks of limited sourcing options, supply delays and production discontinuations, supply chain disruptions caused by disasters, and raw material price fluctuations. - FY2016First statedAnnual report
「Because of the specialized nature of the business, certain materials have limited procurement availability, including materials for which the number of potential subcontractors is limited, and operations may be affected by supply delays or discontinuation of production. Operations may also be affected if the entire supply chain is disrupted by a major natural disaster or other event. In addition, performance may be affected by fluctuations in the prices of raw materials such as steel and copper.」
The company lists limited sourcing options, supply delays and production discontinuations, supply chain disruptions caused by disasters, and fluctuations in steel and copper prices.