External Dependence on Critical Components and Processing Steps
First written in FY2017. 4 of 12 entries say "Mitigated", first in FY2023. Latest entry: FY2024.
Nagano Keiki moved to the "Worse" side of this theme in 2020, 2 years before the typical company in this theme (2022).
The whole theme swung hardest in 2025: 4 of 15 companies on the "Worse" side.
9 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「Our Group’s results for the fiscal year increased year on year as improved procurement conditions for previously difficult-to-obtain electronic components and increased staffing and equipment and other measures led to higher production capacity.」
The company states that improved procurement conditions for electronic components and increased staffing and equipment led to higher production capacity and sales, indicating that the impact of procurement constraints diminished. - FY2024-Q2MitigatedAnnual report
「Our Group’s results for the six months ended the second quarter increased year on year as improved procurement conditions for previously difficult-to-obtain electronic components and increased staffing and other measures led to higher production capacity.」
The company states that improved procurement conditions for electronic components led to higher production capacity through increased staffing and other measures, and to higher sales. - FY2024-Q1MitigatedAnnual report
「Our Group’s results for the first quarter increased year on year as improved procurement conditions for previously difficult-to-obtain electronic components and increased staffing and other measures led to higher production capacity.」
The company states that improved procurement conditions for previously difficult-to-obtain electronic components led to higher production capacity and sales. - FY2023Adds multi-source procurement and in-house development of critical parts as countermeasuresAnnual report
「To mitigate risks, our Group will advance further strategic procurement measures, including procurement of critical parts and key processing steps from multiple suppliers. We will also develop in-house the critical parts that are central to high-performance, high-quality products and work to design efficient processing steps for those parts.」
In response to reliance on specific suppliers and shortages of electronic components, the company specified multi-source procurement, in-house development of critical parts and processing-step design as concrete countermeasures. - FY2023-Q3RestatedAnnual report
「In Japan, sales of pressure gauges and pressure sensors to the industrial machinery and semiconductor industries increased, but sales of pressure sensors for the construction-equipment industry and automotive applications, where some electronic components were difficult to obtain, declined.」
Difficulty obtaining some electronic components continued, and the impact of procurement constraints continued to appear in lower sales of pressure sensors for construction equipment and automotive applications. - FY2023-Q2RestatedAnnual report
「In Japan, sales to the industrial machinery and semiconductor industries increased, but sales of pressure sensors for automotive applications and to the construction-equipment industry declined.」
Difficulty obtaining some electronic components continued, and the impact of procurement constraints continued to appear in lower sales of pressure sensors for the construction-equipment industry and automotive applications. - FY2023-Q1MaterialisedAnnual report
「Sales of pressure sensors for the semiconductor and construction-equipment industries and for automotive applications declined because some electronic components were difficult to obtain. On the cost side, expenses were affected by higher labour costs as well as surging purchase prices for raw materials and electronic components.」
Difficulty obtaining electronic components and surging purchase prices for raw materials and electronic components materialised as lower sales and higher costs. - FY2022Highlights shortages and surging prices for electronic components and other materials and reliance on specific suppliersAnnual report
「For key materials, including electronic components, for which suppliers are limited or switching suppliers is difficult, we will promote initiatives to eliminate delivery delays at an early stage by enhancing our purchasing capabilities and reviewing and expanding our supply chain.」
In addition to reliance on specific suppliers for critical parts, shortages of electronic components and other materials, supply delays and surging raw-material prices actually affected the production environment during the period. - FY2022-Q3RestatedAnnual report
「In every country and region, shortages and price increases for electronic components and raw materials have become concerns for the recovery of economic activity.」
Shortages of electronic components and raw materials and rising prices continue to be cited as procurement-environment concerns, following the previous quarter. - FY2022-Q2WorsenedAnnual report
「In every country and region, shortages and price increases for electronic components and raw materials have become concerns for the recovery of economic activity.」
In connection with the risk of external reliance for critical parts and processing steps, shortages of electronic components and raw materials and rising prices have newly been identified as procurement-environment concerns. - FY2020Highlights reliance on specific suppliers and a response based on multi-source procurementAnnual report
「Some critical parts and key processing steps rely on specific suppliers, and we take strategic procurement measures for these items as necessary.」
The company has moved from describing parts and processing steps for which two-source procurement is difficult to explicitly stating its reliance on specific suppliers. It also describes measures to promote procurement from multiple suppliers. - FY2017First statedAnnual report
「While our Group strives to manufacture critical parts and perform key processing steps internally, our production system relies on external suppliers, generally using two-source procurement. However, some critical parts and key processing steps cannot be procured from two sources, and we take strategic procurement measures for these items as necessary.」
While pursuing in-house production and generally using two-source procurement, the company indicates that some parts and processing steps cannot be procured from two sources, potentially resulting in supply delays, higher prices and difficulties in quality control.