Restraint on Capital Investment by Private-Sector Customers
First written in FY2017-Q2. 14 of 30 entries say "Worsened", first in FY2019-Q3. Latest entry: FY2026.
Nippon Avionics moved to the "Worse" side of this theme in 2019, the same year as the typical company in this theme.
The whole theme swung hardest in 2019: 13 of 26 companies on the "Worse" side.
13 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Demand for equipment increased for electronic equipment, driven by greater demand for data servers and growing interest in preventing incidents through monitoring, including waste monitoring against the backdrop of fire incidents associated with battery disposal.」
Demand for production equipment in the private sector changed from the previous weakness and restraint to an increase in demand, including for equipment related to data servers and waste monitoring. - 2026-05-12MitigatedRevision of earnings forecasts
「Demand for equipment increased for electronic equipment, driven by greater demand for data servers and growing interest in preventing incidents through monitoring, including waste monitoring against the backdrop of fire incidents associated with battery disposal.」
The investment and demand environment among private-sector customers shifted from the previous stagnation and restraint toward increased demand, including for data servers and waste monitoring. - FY2026-H1MitigatedAnnual report
「Demand for production equipment for electronic equipment has recovered, driven by increased demand for data servers and growing attention to monitoring waste, including spontaneous battery fires.」
The capital-investment and demand environment among private-sector customers changed from the previous weakness and restraint to a recovery in demand for production equipment, including equipment related to data servers and waste monitoring. - FY2025MitigatedAnnual report
「Bonding equipment and sensing solutions saw signs of recovery in demand for production equipment, although the pace of recovery remained gradual. As a result of efforts to expand sales in target markets, orders received were ¥4,405 million, up 18.6% year on year, and revenue was ¥4,091 million, up 20.7% year on year.」
Although capital-equipment demand among private-sector customers recovered only gradually, orders received and revenue for electronic equipment increased as a result of efforts to expand sales in target markets, reducing the impact of demand-suppression risks from the previous fiscal year. - FY2025-H1MitigatedAnnual report
「Electronic equipment saw signs of recovery in demand for electronic components used in information equipment and automotive electrical components, and demand for production equipment was also recovering gradually.」
The description changed from weak demand for smartphones and other information equipment and restrained capital investment to one indicating a recovery in demand for information equipment and automotive electrical components and in demand for production equipment. - FY2024-Q3WorsenedAnnual report
「Electronic equipment revenue was ¥2,432 million, down 39.0% year on year, and segment loss was ¥396 million, a ¥565 million year-on-year decrease, due to weak investment in production equipment.」
Weak investment in production equipment became evident in a 39.0% year-on-year decline in electronic-equipment revenue and a segment loss of ¥396 million, while the capital-investment and demand environment among private-sector customers deteriorated further. - FY2024-Q2WorsenedAnnual report
「Electronic equipment revenue was ¥1,653 million, down 43.2% year on year, and segment loss was ¥272 million, a ¥425 million year-on-year decrease, due to weak capital investment related to information equipment, including smartphones.」
Weak capital investment related to information equipment, including smartphones, continued, resulting in a 43.2% year-on-year decline in electronic-equipment revenue and a segment loss of ¥272 million. The restraint on capital investment by private-sector customers and deterioration in the demand environment became further quantified. - FY2024-Q1WorsenedAnnual report
「The business environment surrounding our corporate group was such that, against this global backdrop, the recovery in capital investment related to information equipment slowed, as represented by lower demand for smartphones and other products resulting from weak purchasing appetite, and demand related to electronic equipment remained uncertain.」
Lower demand for smartphones and other products and the slower recovery in capital investment related to information equipment continued, while the capital-investment and demand environment among private-sector customers continued to deteriorate. - FY2023WorsenedAnnual report
「The business environment surrounding our corporate group was such that capital investment, for which a recovery had been expected, stalled as electronic-component and automotive-related manufacturers reduced production due to lower demand for smartphones and other products amid weak global purchasing appetite and the semiconductor shortage, and demand related to electronic equipment remained uncertain.」
Lower smartphone demand, reduced production by electronic-component and automotive-related manufacturers due to the semiconductor shortage, and the stagnation in the recovery of capital investment continued, resulting in a 32.6% year-on-year decline in electronic-equipment revenue. - FY2023-Q3WorsenedAnnual report
「The business environment surrounding our corporate group was such that the recovery in capital investment stalled as automakers reduced production due to lower demand for smartphones and other products amid weak global purchasing appetite and the semiconductor shortage, leaving demand related to electronic equipment in an uncertain situation.」
Lower demand for smartphones and other products and reduced automaker production due to the semiconductor shortage continued and became more pronounced as a stagnation in the recovery of capital investment and increasing uncertainty surrounding demand related to electronic equipment. - FY2023-Q2WorsenedAnnual report
「The business environment surrounding our corporate group was such that, although private-sector capital investment showed signs of recovery, the recovery in capital investment appetite stalled as automakers reduced production due to weaker smartphone demand and the semiconductor shortage, leaving demand related to electronic equipment in an uncertain situation.」
Although private-sector capital investment showed signs of recovery, the stagnation in the recovery of capital investment appetite continued and became more pronounced due to lower smartphone demand and reduced automaker production resulting from the semiconductor shortage. - FY2023-Q1WorsenedAnnual report
「The business environment surrounding our corporate group was such that, although private-sector capital investment showed signs of recovery, the recovery in capital investment appetite for electronic equipment stalled due to weak Chinese demand in the information-device market, including smartphones, the semiconductor shortage in the automotive market, and lower automobile production by automakers resulting from supply-chain disruptions.」
Although private-sector capital investment showed signs of recovery, weak Chinese demand for information devices, the semiconductor shortage in the automotive market, and lower production due to supply-chain disruptions were reflected in results as a stagnation in the recovery of capital investment appetite. - FY2022MitigatedAnnual report
「In the business environment surrounding our corporate group, private-sector capital investment showed signs of recovery, while demand related to 5G and demand for capacity expansion to address the global semiconductor shortage remained firm.」
The description changed from the weakness and postponement of private-sector capital investment through the previous fiscal year to one indicating signs of a recovery. Demand for capacity expansion related to 5G and to addressing the semiconductor shortage also provided support. - FY2022-Q3WorsenedAnnual report
「The business environment surrounding our corporate group was such that private-sector capital investment showed signs of stalling in its recovery, although demand related to 5G (fifth-generation mobile communications systems) and demand for capacity expansion to address the global semiconductor shortage remained firm.」
The description changed from a recovery in private-sector capital investment in the previous quarter to one indicating that the recovery had stalled in the current quarter. Meanwhile, demand for capacity expansion related to 5G and to addressing the semiconductor shortage remained firm. - FY2022-Q2MitigatedAnnual report
「In the business environment surrounding our corporate group, private-sector capital investment showed signs of recovery, while demand related to 5G and demand for capacity expansion to address the global semiconductor shortage remained firm.」
The description changed from the previous weakness and postponement of private-sector capital investment to one indicating signs of recovery. Demand for capacity expansion related to 5G and to addressing the semiconductor shortage also remained firm. - FY2022-Q1MitigatedAnnual report
「In the business environment surrounding our corporate group, private-sector capital investment showed signs of recovery, while demand related to 5G and demand for capacity expansion to address the global semiconductor shortage remained firm.」
The explanation changed from the previous description of weak and deferred private-sector capital investment to an indication that private-sector capital investment was showing signs of recovery. Demand for 5G-related capacity expansion and capacity expansion to address the semiconductor shortage was also firm. - FY2021-Q3RestatedAnnual report
「Although private-sector capital investment remained sluggish due to the impact of COVID-19, capital investment related to 5G and demand related to COVID-19 countermeasures continued to remain firm in the business environment surrounding our corporate group.」
The company explained that, although weakness in private-sector capital investment continued, capital investment related to 5G and demand related to infectious disease countermeasures remained firm. Weakness in the demand environment coexisted with supporting factors. - FY2021-Q2RestatedAnnual report
「In information systems, while domestic procurement by the Ministry of Defense remained sluggish, the company is working to improve QCD (quality, cost and delivery) and to increase gross profit from the time orders are received in order to improve profitability.」
The postponement of and cautious stance toward private-sector capital investment caused by COVID-19 remain part of the business environment. However, capital investment related to 5G and demand related to infectious disease countermeasures remained firm, resulting in higher electronic equipment sales overall. - FY2021-Q1WorsenedAnnual report
「In electronic equipment, although the postponement of customers' capital investment in research and development and other areas became evident, sales increased because demand for bonding equipment related to 5G remained firm and demand for infrared equipment for screening people with fever increased.」
The postponement of private-sector customers' capital investment in research and development and other areas became evident during the current quarter as well. Meanwhile, demand related to 5G and for screening people with fever provided support, resulting in higher electronic equipment sales overall. - FY2020WorsenedAnnual report
「Meanwhile, although the order backlog for bonding equipment accumulated in the second half as overseas orders increased with the expansion of markets related to 5G, sales declined because of weakness in demand for information devices such as smartphones and in the automotive market during the first half.」
Although increased overseas orders related to 5G were a positive factor, electronic equipment sales declined 11.2% year on year because of weak demand for information devices such as smartphones and the automotive market, and the deterioration in the demand environment was reflected in the full-year results. - FY2020-Q3WorsenedAnnual report
「In electronic equipment, although orders received for bonding equipment from overseas increased in the third quarter and the order backlog accumulated, sales declined because of weakness in demand for information devices such as smartphones during the six months ended the second quarter. For infrared equipment, sales declined because weakness in plant disaster-prevention monitoring outweighed solid demand for special measurement applications and other uses, amid the emergence of delays in capital investment caused by economic uncertainty. Segment profit and loss deteriorated because of the decline in sales despite efforts to improve costs and reduce overhead expenses. Sales in this segment for the current period were ¥3,092 million, down 24.5% year on year. The segment loss was ¥375 million, a deterioration of ¥239 million year on year.」
Although the overseas order backlog accumulated, electronic equipment sales declined 24.5% year on year because of weak demand for information devices such as smartphones and delays in capital investment, while the segment loss widened to ¥375 million. - FY2020-Q2WorsenedAnnual report
「Electronic equipment sales were broadly flat for infrared equipment, but sales of bonding equipment for information devices declined because the smartphone market remained weak. Segment profit and loss deteriorated because of the decline in sales despite efforts to reduce overhead expenses. Sales in this segment for the current period were ¥2,069 million, down 28.8% year on year. The segment loss was ¥253 million, a deterioration of ¥169 million year on year.」
Sales for information devices declined because the smartphone market remained weak, resulting in a 28.8% year-on-year decline in electronic equipment sales and an increase in the segment loss to ¥253 million. The deterioration in the capital investment and demand environment among private-sector customers is continuing. - FY2020-Q1RestatedAnnual report
「Sales of infrared equipment increased because of growth in sales of new products launched in the previous period and systems projects, but sales of bonding equipment for information devices declined substantially due to the weak smartphone market, resulting in an overall decline in electronic equipment sales.」
The substantial decline in bonding equipment sales for information devices continued because of the weak smartphone market. Higher sales of infrared equipment were insufficient to offset the decline in electronic equipment overall, with electronic equipment sales down 29.2% year on year. - FY2019WorsenedAnnual report
「Sales of bonding equipment increased in Japan for the automotive components market, but overseas sales declined substantially overall because sales for information devices fell sharply due to the weak smartphone market and the greater-than-expected impact of US-China trade friction.」
In addition to the weakness in the overseas smartphone market, the impact of US-China trade friction was greater than expected, resulting in a 22.3% year-on-year decline in electronic equipment sales. The deterioration in the capital investment and demand environment among private-sector customers was reflected in the full-year results. - FY2019-Q3WorsenedAnnual report
「Meanwhile, sales of bonding equipment increased in Japan, mainly for the automotive components market, but overseas sales for information devices declined substantially because of weak capital investment accompanying the slowdown in the smartphone market and the postponement of business negotiations due to the impact of US-China trade friction.」
In addition to the slowdown in the overseas smartphone market, business negotiations were postponed because of US-China trade friction, resulting in a substantial decline in sales for information devices. The impact of private-sector customers' restraint on capital investment is expanding. - FY2019-Q2MaterialisedAnnual report
「Meanwhile, sales of bonding equipment increased in Japan, mainly in the solid automotive components market, but overseas capital investment remained weak because of the slowdown in the smartphone market, resulting in a substantial decline in sales for information devices. Segment profit and loss deteriorated despite efforts to reduce overhead expenses because of the decline in sales. Sales in this segment for the current period were ¥2,905 million, down 16.8% year on year.」
The slowdown in the overseas smartphone market and weak capital investment emerged as a substantial decline in sales for information devices, and sales in the electronic equipment segment declined 16.8% year on year. - FY2019-Q1MaterialisedAnnual report
「Meanwhile, sales of bonding equipment increased in Japan due to expanded sales in the automotive market, a focus area, but overseas capital investment remained weak because of the slowdown in the smartphone market, resulting in a substantial decline in sales for information devices.」
The weakness in overseas capital investment accompanying the slowdown in the smartphone market materialized as a substantial decline in sales for information devices. - FY2018MitigatedAnnual report
「In the private-sector market, production equipment that supports the miniaturization of electronic components used in smartphones and other information devices performed well.」
The explanation changed from customers' restraint on capital investment in the previous fiscal year to strong demand for production equipment for small electronic components in the current fiscal year. - FY2017RestatedAnnual report
「In the private-sector market, capital investment was active mainly in the market for manufacturing small components for overseas smartphones and automobiles undergoing increasing electrification, but overall conditions remained lacking in strength.」
The company indicated that, although capital investment was active in some areas of the private-sector market, conditions overall lacked strength. - FY2017-Q2First statedAnnual report
「In the commercial business, we worked to acquire new customers by actively participating in trade shows, including to develop overseas markets. However, sales declined because customers restrained capital investment and the measurement business was transferred in the previous fiscal year.」
Private-sector customers' restraint on capital investment emerged as an actual factor behind the decline in sales, despite measures to acquire new customers.