Risk from Production Volatility at Customer Manufacturers
First written in FY2016. 13 of 32 entries say "Mitigated", first in FY2018-Q1. Latest entry: FY2026.
Hirayama Holdings moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2018: 6 of 10 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Against this backdrop, although production in Thailand remained stagnant, the Hirayama Group captured domestic demand for production recovery and secured higher sales and profit year on year. The insourcing and staffing business ("insourcing" means contracted on-site operations; the same applies below) drove performance. Increased orders from new and existing customers, together with improved production efficiency resulting from the on-site improvement expertise for which the Hirayama Group is known, contributed to higher sales and profit.」
Despite production stagnation in Thailand, higher domestic demand for production recovery, increased orders from new and existing customers, and on-site improvements enabled the group to secure higher sales and profit overall. - FY2026-H1MitigatedAnnual report
「Under these conditions, although production in Thailand remained stagnant, the Hirayama Group captured demand from the recovery in domestic production and secured higher revenue and profit year on year.」
Although production stagnation in Thailand continued, the company captured domestic demand for production recovery and secured higher sales and profit overall year on year. - FY2025-H1MitigatedAnnual report
「As shown in the Short-Term Economic Survey of Enterprises in Japan (Tankan) released on 13 December 2024, the Business Conditions Diffusion Index (DI), which indicates sentiment among large manufacturers, improved by 1 point from the previous September survey to plus 14. This was the first improvement in 2 quarters, since the June survey. Automotive production, which had stagnated because of the certification irregularities issue, is recovering, while demand for capital investment also remained firm, resulting in a modest improvement.」
The DI for large manufacturers improved to plus 14, and automotive production also recovered, indicating some improvement in the production environment for business partners. - FY2024MaterialisedAnnual report
「Profit was affected by production cuts and shutdowns at some automotive-related companies due to the certification irregularities issue, production adjustments in the housing materials business, and shutdowns in the affected regions following the heavy rains in northern Kyushu last summer and the Noto Peninsula Earthquake at the beginning of the year, which pushed down profit, although」
Production cuts and shutdowns at automotive-related companies, production adjustments for housing materials, and shutdowns caused by the heavy rains and the Noto Peninsula Earthquake actually occurred and became factors depressing profit. - FY2024-Q3MaterialisedAnnual report
「In the insourcing and staffing business, sales and profit were negatively affected in the third quarter by shutdowns caused by supply chain disruptions following the Noto Peninsula Earthquake in January, a 2-day year-on-year reduction in operating days in March during the peak season, and the adverse impact of frequent production cuts and shutdowns, mainly among automotive-related companies.」
Supply chain disruptions caused by the Noto Peninsula Earthquake, production cuts and shutdowns at automotive-related companies, and fewer operating days actually occurred and became negative factors for sales and profit. - FY2024-Q2MitigatedAnnual report
「In the insourcing and staffing business, production continued to recover during the cumulative second-quarter consolidated period in automotive-related fields and agricultural machinery and compact construction equipment-related fields, driving performance.」
The company explained that production recovery continued in the automotive and agricultural machinery and compact construction equipment businesses, which had been affected by parts supply constraints in the previous fiscal year. - FY2024-Q1MitigatedAnnual report
「In the insourcing and staffing business, production recovered in automotive-related fields and agricultural machinery and compact construction equipment-related fields as component supply constraints that had affected the previous fiscal year were resolved, driving performance.」
The company explains that component supply constraints that had affected the previous fiscal year were resolved, and production recovered in automotive-related fields and agricultural machinery and compact construction equipment-related fields. - FY2023MaterialisedAnnual report
「In the insourcing and staffing business, some automotive-related production was postponed because of supply chain disruptions caused by component supply constraints, as in the previous fiscal year. Agricultural equipment, housing equipment, and semiconductor-related businesses, which had performed well in the first half, were affected by production cuts in the second half because many customers carried out inventory adjustments.」
Production postponements caused by component supply constraints continued, while production cuts due to inventory adjustments actually occurred in agricultural equipment, housing equipment, and semiconductor-related businesses. Meanwhile, demand for medical equipment and services offset the impact. - FY2023-Q3MaterialisedAnnual report
「In the insourcing and staffing business, some automotive-related production was postponed because of supply chain disruptions caused by component supply constraints, as in the previous fiscal year. Agricultural equipment, housing equipment, and semiconductor-related businesses, which had performed well in the first half, were affected by production cuts in the third quarter because many customers carried out inventory adjustments before the fiscal year ending March 2023. Medical equipment-related business continued to perform steadily.」
Supply chain disruptions caused by component supply constraints and the postponement of some automotive-related production continued, while production cuts due to inventory adjustments also occurred in agricultural equipment, housing equipment, and semiconductor-related businesses. - FY2023-Q2MaterialisedAnnual report
「In automotive-related fields, some production was postponed because of supply chain disruptions caused by component supply constraints, including semiconductors, as in the previous fiscal year, although」
Supply chain disruptions caused by component supply constraints, including semiconductors, and the postponement of some production continued. - FY2023-Q1MaterialisedAnnual report
「Under these conditions, some production was postponed because of supply chain disruptions caused by component supply constraints, including semiconductors. However, by capturing demand from the recovery in production after COVID-19, the group secured higher revenue and profit in all business segments, led by the insourcing and staffing business.」
Supply chain disruptions caused by component supply constraints, including semiconductors, and the postponement of some production continued. Meanwhile, the group secured higher revenue and profit in all segments by capturing recovery demand. - FY2022-Q3MaterialisedAnnual report
「Under these conditions, some production was postponed because of component supply constraints, including semiconductors, and supply chain disruptions caused by a major earthquake in Miyagi and Fukushima and heavy snowfall during the third quarter. However, by capturing demand from the recovery in production after COVID-19, the group secured higher revenue and profit in all segments, including overseas operations, led by the insourcing and staffing business.」
In addition to component supply constraints, including semiconductors, supply chain disruptions caused by major earthquakes in Miyagi and Fukushima and heavy snowfall occurred, becoming apparent in the postponement of some production. - FY2022-Q2MaterialisedAnnual report
「Under these conditions, in automotive-related fields, some production was postponed because of semiconductor supply constraints. However, medical equipment and food manufacturing performed steadily, while housing equipment and agricultural machinery performed well, resulting in revenue broadly in line with plan.」
Some automotive-related production was actually postponed because of semiconductor supply constraints, but the impact was offset by steady or strong performance in other fields. - FY2022-Q1MaterialisedAnnual report
「Under these conditions, in automotive-related fields, some production was postponed because of semiconductor supply constraints. However, medical equipment and food manufacturing performed steadily, while housing equipment and agricultural machinery performed well, resulting in revenue broadly in line with plan.」
Some automotive-related production was actually postponed because of semiconductor supply constraints. The company explains that the impact was offset by steady performance in medical equipment, food manufacturing, and other fields, as well as strong performance in other areas. - FY2021MitigatedAnnual report
「Under these conditions, 平山グループ's customer production, particularly in automotive-related fields, recovered and orders were converted into recorded revenue. Although office equipment-related and retail and service fields were weak, medical equipment and food manufacturing performed steadily, and the decline in overseas production bottomed out, resulting in revenue broadly in line with plan.」
The recovery in customer production and orders, the steady performance of medical equipment and food manufacturing, and the bottoming out of the decline in overseas production offset the impact of production fluctuations, resulting in revenue broadly in line with plan. - FY2021-Q3MitigatedAnnual report
「Under these conditions, 平山グループ's customer production, particularly in automotive-related fields, recovered and orders were converted into recorded revenue. Although office equipment-related and retail and service fields were weak, medical equipment and food manufacturing performed steadily, and the decline in overseas production bottomed out, resulting in revenue broadly in line with plan.」
The recovery in customer production and the conversion of orders into revenue, the steady performance of medical equipment and food manufacturing, and the bottoming out of the decline in overseas production offset the impact of production fluctuations at customers, resulting in revenue broadly in line with plan. - FY2021-Q2MitigatedAnnual report
「Under these conditions, customer production, particularly in automotive-related fields, recovered and orders were converted into recorded revenue. Although the office-related field remained weak, medical equipment and food manufacturing performed steadily, and the decline in overseas production bottomed out, resulting in revenue broadly in line with plan.」
The recovery in customer production and orders, the steady performance of medical equipment and food manufacturing, and the bottoming out of the decline in overseas production partly offset the impact of production fluctuations at customers. - FY2021-Q1WorsenedAnnual report
「Under these conditions, customer production, particularly in automotive-related fields, recovered compared with April–June 2020, and orders had begun to return but were still in the process of recovering. In addition, the office-related field was weak and overseas production declined, resulting in lower revenue year on year.」
Although customer production and orders, particularly in automotive-related fields, recovered, they were still in the process of recovering. Weakness in office-related fields and a decline in overseas production also contributed to a year-on-year decline in revenue. - FY2020RestatedAnnual report
「We believe that changes in customers' production trends and production-site strategies will continue to occur, regardless of their scale. If a customer experiences a large and sudden production fluctuation, this could have a significant impact on the group's performance.」
The company continues to disclose the risk of performance fluctuations resulting from production increases or cuts at customer manufacturers and the consolidation or closure of production sites, while identifying the conversion from staffing to contract manufacturing as a response measure. - FY2020-Q3WorsenedAnnual report
「In the IMF's global growth outlook announced on 14 April, the global growth forecast was revised down by 6.3 points from January to negative 3.0%. The forecasts for Japan and the United States were negative 5.2% and negative 5.9%, respectively.」
The company describes an environment in which growth forecasts for the global economy, Japan, and the United States turned sharply negative against the backdrop of COVID-19 and other factors, heightening the risk of production and demand fluctuations at customer manufacturers. - FY2019RestatedAnnual report
「In our contract manufacturing and manufacturing-staffing businesses, which are core operations, we provide services in line with the production conditions of customer manufacturers. Large and sudden changes in customers’ production could have a material impact on the group’s performance.」
The group continues to disclose the risk that production increases or decreases and the consolidation or closure of production sites at customer manufacturers could affect performance. - FY2019-Q3RestatedAnnual report
「In the insourcing and staffing business, typhoons and earthquakes affected parts of the supply chain and temporarily disrupted production. However, the subsequent recovery in production and a broad range of orders, mainly in transport equipment, housing equipment, and food-related fields, offset the impact. Revenue also increased substantially because ＦＵＮｔｏＦＵＮ株式会社, acquired at the beginning of the fiscal year, was added to the consolidated results.」
The company explains that the impact of the production disruptions caused by typhoons and earthquakes was offset by the subsequent recovery in production and a broad range of orders. - FY2019-Q2MitigatedAnnual report
「In the insourcing and staffing business, typhoons and earthquakes affected parts of the supply chain and temporarily disrupted production. However, the subsequent recovery in production and a broad range of orders, mainly in transport equipment, housing equipment, and food-related fields, offset the impact. Revenue also increased substantially because ＦＵＮｔｏＦＵＮ株式会社, acquired at the beginning of the fiscal year, was added to the consolidated results.」
The company explains that although typhoons and earthquakes temporarily disrupted production, the impact was offset by the subsequent recovery in production and a broad range of orders. - FY2019-Q1MaterialisedAnnual report
「In the insourcing and staffing business, production temporarily stagnated as typhoons and earthquakes affected part of the supply chain. However, broad-based orders, particularly in the transportation equipment, housing equipment and food sectors, offset the impact, and FUNtoFUN株式会社, acquired at the beginning of the period, was added to the consolidated accounts, resulting in a significant increase in revenue.」
Typhoons and earthquakes affected parts of the supply chain, temporarily disrupting production. The company explains that the impact was offset by a subsequent recovery in production and a broad range of orders. - FY2018WorsenedAnnual report
「Based on current order conditions, orders from major customers in the medical equipment, pharmaceutical, and precision equipment fields are expected to decline from the previous fiscal year. Accordingly, we will actively use the on-site improvement consulting in which we specialize to improve profitability at each production site.」
Although manufacturing overall continues to increase production, the company states that orders from major customers in the medical equipment, pharmaceutical, and precision equipment fields are expected to decline in the next fiscal year. - FY2018-Q3RestatedAnnual report
「Corporate earnings improved as manufacturing output continued to increase from the middle of the previous year, transport equipment recovered, and exports of semiconductors, electronic components, and other products surged on global IT demand.」
The company continues to report an improved production environment due to higher manufacturing output, a recovery in transport equipment, and increased exports of semiconductors, electronic components, and other products. - FY2018-Q2RestatedAnnual report
「Corporate earnings improved as manufacturing output continued to increase from the middle of the previous year, transport equipment recovered, and exports of semiconductors, electronic components, and other products surged on global IT demand.」
The company continues to report an improved production environment due to higher manufacturing output, a recovery in transport equipment, and increased exports of semiconductors, electronic components, and other products. - FY2018-Q1MitigatedAnnual report
「Corporate earnings improved as manufacturing output continued to increase from the middle of the previous year, transport equipment recovered, and exports of semiconductors, electronic components, and other products surged on global IT demand.」
The company describes continued increases in manufacturing output, a recovery in transport equipment, and a sharp rise in exports of semiconductors, electronic components, and other products, indicating an improvement in the production environment in contrast to the production cuts at customers reported for the previous fiscal year. - FY2016First statedAnnual report
「Among customers in the medical and pharmaceutical equipment fields, the main business area of the contract manufacturing business, production was approximately 5% below the initial plan. Production at a major customer in the precision equipment field was approximately 15% lower, resulting in a substantial decline in revenue.」
Production cuts at major customers actually occurred, leading to delays in reallocating personnel and declines in revenue and profit.