Rising Raw Material and Labor Costs and Semiconductor Shortages
First written in FY2021-Q3. 6 of 10 entries say "Worsened", first in FY2022-Q1. Latest entry: FY2026-H1.
Nissha 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 2026: 12 of 14 companies on the "Worse" side.
8 other companies' latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「During the interim consolidated accounting period, the global economic environment was affected by factors including rising energy prices amid heightened tensions in the Middle East.」
Rising energy prices amid heightened tensions in the Middle East emerged as a new factor, and higher production-related costs in Industrial Materials put pressure on operating profit. - 2026-05-12RestatedRevision of earnings forecasts
「For operating profit, after incorporating the risk of fluctuations in raw material costs, the forecast is expected to exceed the previous forecast as a result of reflecting the increase in profit accompanying higher net sales.」
The earnings forecast incorporates the risk of fluctuations in raw material costs and anticipates a boost to profit from increased demand. - FY2023-Q3Higher costs and efficiency improvements coexistAnnual report
「Under these conditions, demand for mobility-related products in the Industrial Materials business remained firm against a backdrop of easing supply constraints, while demand for contract development and manufacturing organization (CDMO) services in the Medical Technology business expanded in an active market. Meanwhile, demand for tablet-related products in the Devices business declined sharply as the COVID-related demand surge ran its course, and demand for vapor-deposited paper in the Industrial Materials business declined as supply chain inventory adjustments continued for an extended period. While product demand trends strongly pressured profit, the Medical Technology business improved profitability by working to enhance productivity and efficiency in response to higher costs, including those resulting from inflation.」
While cost increases due to inflation and other factors have continued, profitability in Medical Technology improved through productivity and efficiency gains. - FY2023-Q2WorsenedAnnual report
「In addition to trends in product demand, higher costs due to inflation and an adverse product mix weighed on earnings.」
Higher costs due to inflation and an adverse product mix weighed on earnings, reducing company-wide operating profit to ¥58 million. Supply- and cost-side risks continue to be reflected in business performance. - FY2023-Q1WorsenedAnnual report
「In response to increases in labor and raw material costs caused by inflation, the Company worked to improve productivity and efficiency, resulting in higher operating income year on year.」
Higher labor and raw material costs against a backdrop of inflation continue to pose a risk to profitability. The company states that the impact was contained in medical technology through improvements in productivity and efficiency. - FY2022WorsenedAnnual report
「Raw material and energy prices and labor costs have been trending upward amid inflation driven by COVID-19 and Russia’s invasion of Ukraine.」
Rising raw material and energy prices and labor costs have been identified as structural risks against a backdrop of inflation and geopolitical factors, with the company intending to respond through product price increases and productivity improvements. - FY2022-Q3Supply constraints easing, but costs remain highAnnual report
「During the nine-month period of the third quarter of the current consolidated fiscal year, demand for smartphone-related products in the Devices business declined from the previous year, while demand for tablet-related products recovered and increased in the second half as supply constraints for semiconductors and other components eased.」
In tablet-related products, demand recovered and increased as supply constraints for semiconductors and other components eased, while declining smartphone demand and continued pressure on profitability from higher raw material and energy prices and rising labor costs persisted. - FY2022-Q2WorsenedAnnual report
「Profit was affected by a decline in demand for smartphones, higher raw material and energy prices, and rising labor costs, but the impact was limited by increased demand for certain products and revisions to selling prices.」
Higher raw material and energy prices and rising labor costs continued to weigh on profit. The impact was limited by increased demand for certain products and selling price revisions, but profit in medical technology declined 99.9% year on year. - FY2022-Q1WorsenedAnnual report
「Profit was affected by a decline in demand for smartphones, as well as higher raw material and energy prices and rising labor costs resulting from supply-side constraints.」
Constraints on the supply and cost sides, including higher raw material and energy prices and rising labor costs, continued and weighed on profit together with declining smartphone demand. - FY2021-Q3First statedAnnual report
「In the United States and Europe, the effects of raw material shortages and rising labor costs became evident, but the economic recovery progressed steadily. In Japan, the economy continued to recover, supported by factors including increased exports accompanying improvements in overseas economies, although the pace slowed due to supply-side constraints, including repeated waves of COVID-19 infections and shortages of semiconductor products.」
Constraints on the supply and cost sides, namely shortages of raw materials, higher labor costs and shortages of semiconductor products, emerged as an independent theme for the first time, resulting in demand adjustments in industrial materials and pressure on profitability in medical technology.