Risk of Rising Manufacturing Costs in China and Vietnam
First written in FY2018. 1 of 5 entries say "Worsened", first in FY2019. Latest entry: FY2022.
People moved to the "Worse" side of this theme in 2019, 3 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 6 of 7 companies on the "Worse" side.
2 other companies' latest entry also says "Restated".
- FY2022RestatedAnnual report
「Approximately 70% of the products we have manufactured under OEM contracts are produced in China, with materials also sourced there, exposing us to risks related to conditions in China and other factors. Production in Vietnam likewise involves risks such as rising labor costs. Accordingly, we are diversifying production locations, taking advantage of some of our contract factories in China expanding into other countries.」
The company continues to cite its dependence on production and material sourcing in China and the risk of rising labor costs in Vietnam, while continuing to diversify production locations. - FY2021MitigatedAnnual report
「Accordingly, we are diversifying production locations, taking advantage of some of our contract factories in China expanding into other countries.」
In response to dependence on production and material sourcing in China and the risk of rising labor costs in Vietnam, the group is diversifying production locations as some of its contract factories in China expand into other countries. - FY2020MaterialisedAnnual report
「Overseas sales of toys to China showed strong growth, but the temporary decline in supply resulting from the relocation of some production of the U.S.-bound product "Magna-Tiles" from China to other countries in the second half, together with market-share competition from other companies' products, contributed to the decline in overseas sales revenue.」
A temporary decline in supply resulting from the relocation of production outside China actually occurred and contributed to the decline in overseas sales revenue. - FY2019WorsenedAnnual report
「In response to changes in China's toy manufacturing environment, changing production locations has been identified as a key issue for the next, 43rd fiscal year.」
As a response to changes in China's manufacturing environment, changing production locations in the next, 43rd fiscal year, has been positioned as a key issue. Measures to address the risk of higher costs in China and Vietnam are taking concrete shape. - FY2018First statedAnnual report
「Our group relies on production in China for 70% of the products manufactured under OEM contracts, exposing it to risks related to conditions in China and other factors. Higher prices and labor costs in China are expected to continue, creating a risk of further increases in manufacturing costs. In Vietnam, where some production has been relocated in recent years, rising labor costs also represent an unavoidable risk.」
The group relies on China for production of 70% of its OEM-contracted products, and identifies higher manufacturing costs resulting from rising prices and labor costs in China and Vietnam as a risk.