Automation, Efficiency Improvements and IoT Utilization for Production Facilities

「Regarding capital investment, in addition to addressing labor shortages and skills transfer, the Company is considering investments to meet replacement demand aimed at ensuring stable operation of production equipment and strengthening security and safety measures, DX investment to improve productivity, GX investment toward achieving a decarbonized society, and investments related to disaster prevention and mitigation and strengthening national resilience.」

「In the chemicals, steel, construction and plant industries, sales of various process measurement and control instruments increased as the Company steadily captured replacement demand associated with scheduled maintenance aimed at ensuring stable equipment operation, as well as investment demand aimed at improving productivity. In addition, sales increased overall as the Company promoted solutions proposals centered on "selling solutions rather than products," including visualization of equipment conditions and remote monitoring using digital technologies.」

「Capital expenditure plans under consideration include improving energy efficiency and reducing environmental impact toward a decarbonized society; national resilience measures to address aging infrastructure and prepare for natural disasters; and DX investments aimed at automation and higher productivity in response to labor shortages and the challenge of transferring technical expertise, as well as more advanced use of data.」

「The company captured demand for investment aimed at improving productivity and strengthening competitiveness through DX, and sales of various process control and remote monitoring equipment remained solid for the social infrastructure, power, chemical, industrial equipment and heavy electrical equipment, and construction and plant industries.」

「Capital expenditure plans under consideration include investments related to improving productivity and safety, security and quality through automation and labor saving amid progress in addressing social issues such as labor shortages caused by the declining birthrate and aging population, as well as various policies toward carbon neutrality; R&D investments using the Green Innovation (GI) Fund program; and investments related to disaster prevention, disaster mitigation and national resilience. However, deteriorating profitability due to soaring material prices and labor costs, and longer project schedules caused by labor shortages, remain challenges.」

「Meanwhile, as the decline in the working-age population has caused process delays and higher manufacturing labor costs, consideration is under way of digital-related investments to improve productivity, environmental investments and investments in new-material development toward a decarbonized society. In the social infrastructure market, consideration is also under way of the maintenance and management of infrastructure facilities, national resilience, and disaster prevention and mitigation measures.」

「Meanwhile, capital expenditure plans under consideration include investments using digital technologies to create safe and secure manufacturing sites and further improve quality and productivity; the introduction of energy-efficient equipment that reduces environmental impact; R&D focused on fuel and feedstock conversion; and measures for disaster prevention and mitigation against natural disasters and implementation of national resilience plans. However, in addition to rising manufacturing costs, difficulties securing personnel have led to moves to hold back on capital expenditure.」

「Capital expenditure plans under consideration include R&D using the Green Innovation (GI) Fund program in response to the global trend toward decarbonization; promotion of digital transformation (DX) to automate and upgrade production equipment; and measures for disaster prevention and mitigation against natural disasters and implementation of national resilience plans. However, soaring material costs and difficulties securing personnel have also led to moves to hold back on capital expenditure.」

「Capital expenditure plans under consideration include digital transformation (DX) investments using artificial intelligence (AI), IoT and other technologies to create safe, highly productive manufacturing sites; the development of new materials and initiatives related to the circular economy toward a decarbonized society; and investments related to disaster prevention, disaster mitigation and national resilience initiatives being advanced by the government and local authorities.」

「In the chemical, steel and other industries that are major sales markets for the Group, profitability and operating rates declined due to soaring energy and raw-material prices, as well as the longer lead times for some semiconductors and electronic components. However, consideration is under way of investments in digital transformation (DX) to optimize and improve production efficiency; R&D investments in energy-efficiency technologies toward a decarbonized society; and investments related to disaster prevention, disaster mitigation and national resilience initiatives being advanced by the government and local authorities.」

「Amid the global trend toward decarbonization, there were also moves to consider reviewing business portfolios. In addition, consideration is under way of investments in R&D related to energy-efficiency technologies and new energy that would reduce environmental impact; promotion of digital transformation (DX) to maintain and improve the safety and productivity of aging production equipment; and social infrastructure investments related to disaster prevention, disaster mitigation and national resilience in preparation for the future.」

「Against this backdrop, to ensure that manufacturing continues to develop and generate added value steadily, more companies are expected to pursue business initiatives centered on realizing the much-discussed digital transformation (DX), including automation of production equipment using digital technologies such as IoT and AI; R&D investment in new technologies toward a carbon-neutral society by 2050; investments to improve the efficiency of aging equipment; and shifts in business portfolios driven by the pursuit of sustainability.」

「Capital expenditure plans under consideration include digital transformation (DX) investments to create safe, highly productive manufacturing sites; R&D investments in technologies to visualize CO2 emissions and improve energy efficiency toward a decarbonized society; and investments related to disaster prevention, disaster mitigation and national resilience in preparation for increasingly frequent natural disasters.」

「Companies are considering capital investment to support new ways of working and improve the working environment amid the COVID-19 pandemic, DX investment to ensure the safe and secure operation of aging equipment, research and development investment in energy-saving technologies to achieve a decarbonized society, and investment related to disaster prevention, mitigation, and national resilience in preparation for increasingly frequent natural disasters.」

「Companies are considering implementing DX investment to support the safe and secure operation of aging equipment, investment related to disaster prevention and mitigation and national resilience in preparation for increasingly frequent natural disasters, and other investments.」

「Sales increased to the petrochemical and plant engineering industries of replacement equipment for aging production facilities to ensure stable operations, as well as IoT-enabled production-equipment visualization and automation systems and various sensors and information and communications equipment related to safety measures.」

「Some companies remain cautious about investment, but consideration progressed toward automating production equipment and introducing condition-monitoring sensors and information and communications equipment under the themes of improving productivity and achieving digital transformation (DX) and smart maintenance at manufacturing sites.」

「Some companies remain cautious about investment, but consideration is progressing for automating production equipment using AI and IoT to improve productivity and achieve digital transformation (DX) at manufacturing sites, introducing various condition-monitoring and traceability equipment, and replacing equipment attached to aging production facilities. Demand for social infrastructure investment related to disaster prevention and mitigation measures for increasingly frequent natural disasters remains firm.」

「Companies are considering capital investment in the automation of production equipment using IoT to support work-style reform and improve productivity, the introduction of condition-monitoring equipment to improve the security and safety of increasingly aged production equipment, and social infrastructure investment related to disaster prevention and mitigation measures for increasingly frequent natural disasters.」

「Improving productivity through digital technologies such as IoT, big data, robotics, and AI has become an unavoidable challenge, and the number of companies expected to automate production equipment, introduce predictive maintenance, and invest in efficiency improvements for aging equipment is projected to increase further.」

「Capital investment continues to include IoT-enabled equipment management to improve productivity against a backdrop of the declining working-age population caused by the declining birthrate and aging population, research and development investment for the future, and replacement of aging infrastructure and production equipment. Companies are also considering investments related to environmental protection, security, and safety.」

「Demand remains high for capital investment in research and development for the future, automation investment to support work-style reform and improve productivity, replacement investment to improve the stability of aging equipment, and investment to strengthen environmental protection, security, and safety, and companies are considering implementation.」

「In our group’s existing business areas, including petrochemicals, steel, and machinery manufacturing, companies were assessing changes in the earnings environment amid higher raw material prices and a decline in machine-tool orders caused by US-China trade friction. However, as in the previous fiscal year, they continued to consider automation investment to improve productivity against a backdrop of labor shortages, replacement investment to support the stable operation of aging equipment, research and development investment to improve quality, and the introduction of IoT-enabled predictive maintenance.」

「In our group’s existing business areas, including petrochemicals, steel, and machinery manufacturing, production declined in some areas because of scheduled repairs and equipment trouble, but domestic demand remained firm, particularly for functional materials and high-value-added products. Capital investment also remained solid, supported by high corporate earnings, including replacement of aging equipment, expansion of production equipment for high-performance materials, increased automation and labor-saving investment to improve productivity, and investment to restore quality and reliability.」

「Companies are considering capital investments in automating production equipment to support the transfer of technical expertise, improve productivity, and save labor; introducing predictive maintenance systems using IoT and other big-data technologies; and making investments that strengthen security, safety, and reliability.」

「Capital investment included automation of production equipment using IoT and big data to improve productivity, higher equipment utilization rates, and research and development investment linked to new materials and technologies. In addition, social infrastructure investment was made in disaster preparedness and mitigation and the replacement of aging equipment.」

「In our group’s existing business areas, including petrochemicals, steel, and machinery manufacturing, demand conditions have remained firm and equipment utilization rates have stayed high. Companies remain willing to invest in automating production equipment using IoT and big data to improve productivity, as well as in research and development linked to new materials and technologies.」

「In our group’s existing business areas, including petrochemicals, steel, and machinery manufacturing, equipment utilization rates have remained high against a backdrop of firm domestic and overseas demand. Companies remain willing to invest in automating production equipment using IoT and big data to improve productivity, improving the efficiency of aging equipment, and developing public infrastructure, which is expected to accelerate further.」

「In our group’s existing business areas, including petrochemicals, steel, and machinery manufacturing, equipment utilization rates have remained high despite some delays in recovery. Companies are also considering investments to automate production equipment using IoT and other big-data technologies to improve productivity and to improve the efficiency of aging equipment.」

「Specifically, we aim to expand our business by implementing measures including proposals for IoT-enabled equipment maintenance systems, initiatives involving environmentally friendly equipment and systems, initiatives involving industrial machinery centered on oil cleanliness monitoring equipment, and capturing social infrastructure investment in fields such as electric power and public environmental services, while making the deepening and development of existing customer relationships and development of new customers in high-growth fields our priority market strategies.」

「However, expectations are rising for demand to monitor production equipment and conduct predictive maintenance using IoT, while companies remain willing to invest in refurbishing and replacing aging production equipment to maintain quality and cost competitiveness.」

「Expectations are also rising for demand to monitor the condition of machinery and equipment using IoT, while companies remain willing to reduce labor requirements, save labor, improve efficiency, and replace aging equipment.」

「To maintain and strengthen competitiveness through higher productivity, companies remain willing to make new capital investments in rationalization, labor savings, and workforce reduction, as well as replace aging equipment.」

「Automation and efficiency improvements in production equipment and higher labor productivity are unavoidable challenges at manufacturing sites, and the number of companies expected to introduce the latest information and communications technologies using big data, including to replace aging equipment, is projected to increase.」